A report from Strategies Unlimited hasprojected that the global outdoor LED Lighting market will reach $1.9 billionby 2017. The report says the demand for LED outdoor lighting grew in 2012, withnearly two million LED luminaires installed in tunnels and roadways. The reportalso predicts that LED Street Light installations will increase by 400 per centin the next five years, although revenue growth will be less substantial owingto the saturated market driving prices downward. Governments and regulatory agenciesworldwide encouraged the implementation of LED lighting in 2012 in variousways, including: ARRA funding in the U.S., the 12th 5 year plan in China, andthe European 20/20/20 initiative. Developed countries, as well as emergingeconomies, installed LED street lights on a large scale. Strategies Unlimited Director of LED &Lighting Research Philip Smallwood said: "Unit shipments of LED streetlights are forecasted to have a CAGR of 31 per cent, while revenues areforecasted to only grow 16 per cent from 2012-2017 as downward pressure onprices continue due to competition. In North America and Europe alone, pricesare predicted to decrease on average -20 per cent and -15 per cent,respectively." After a disastrous response to the multipleproduct failures plaguing the initial installation of LED street lights in2009, China has mandated product quality requirements on all manufacturersbidding for LED street light installations. This, coupled with the government‘sstrong push for decreased energy usage, should help the country attain its goalof reducing energy consumption and carbon intensity by 16 per cent and 17 percent, respectively. In the U.S., price wars on LED streetlights attracted a lot of attention in the past year. One headliner was Cree‘s$99 residential LED street lamp. Though prices have been coming down, productquality has not been compromised as the DOE has on-going efforts to implementstringent product quality requirements. The U.S. has a market that can sustaindeclining prices along with technological advancements in SSL outdoor lighting.Strategies Unlimited analyst Shonika Vijay, said: "North America (which ispredominately the U.S.) will show aggressive growth of 44 per cent in LEDstreet light units in year 2012 through 2017."