San Jose, Calif. − In a move to take advantage of the growing lighting and energy-efficiency markets, Flextronics has expanded its portfolio of energy infrastructure solutions and services, and launched a lighting solutions business for commercial and industrial applications. The new solutions expand the contract manufacturer's products and services it has provided for manufacturers of solar modules, advanced meter infrastructure and LED lamps by delivering an enhanced suite of supply chain and technology solutions.
Demand for energy and lighting products is expected to continue on an upward path. Networked lighting control equipment used in commercial buildings, alone, is forecast to grow from $1.7 billion in 2013 to $5.3 billion in 2020, according to Navigant Research. The research firm also projects that revenue from LED lamp sales will reach $8.7 billion by 2021, growing at a compound annual growth rate (CAGR) of 23.2 percent driven by falling LED prices and better quality LEDs.
"Flextronics is proud to help OEMs respond to regional growth opportunities from smart grid and LED lighting, while improving their cash flow and reducing the time to bring new solutions to market," said Jeannine Sargent, president, Energy at Flextronics, in a statement. "In addition to OEMs, we are now helping commercial and industrial businesses lower their utility bills with energy efficient lighting solutions."
Flextronics' energy infrastructure portfolio will include products, technology solutions, and supply chain solutions for generation, transmission and distribution, and consumption (lighting, charging stations, and smart meters). Supply chain services include support for forward logistics, vendor managed inventory, product fulfillment and reverse logistics.
The expanded portfolio of energy infrastructure products is aimed at helping original equipment manufacturers (OEMs) address regional shifts in the energy market by developing and delivering products to market faster, said Flextronics. Case in point: The European Commission targets a 20 percent increase in energy efficiency and a 20 percent target for all energy consumed to come from renewable resources by 2020. These "initiatives are driving the need for smart and clean energy solutions with increasing power electronic and digital communication capabilities that are interoperable, cost effective and highly reliable," said Flextronics.
The Flextronics Lighting Solutions portfolio focuses on energy-efficient lighting solutions, including those for high and low bays, offices, outdoors and lighting controls, targeting businesses and property managers who operate mega-square-foot facilities. Services include lighting audits, order fulfillment, and incentive management that can be offered directly to customers or with their preferred partners.
The lighting solutions and services portfolio is expected to help businesses reduce their procurement and utility costs as they meet corporate and government energy-efficiency targets, according to the contract manufacturer.