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Osram flexes its muscles in two key growth markets

The firm is looking to increase its market share in LED based technologies and light management systems.

Osram has signed an agreement with Townsend Ventures to increase its stake in Encelium Technologies from 15 percent to 100 percent.

This move will enhance the company’s position in two key global growth markets, LED based technologies and Light Management Systems (LMS). Encelium is an ideal complement to Osram’s General Lighting portfolio of energy-efficient lighting products and solutions.

Encelium, headquartered in Teaneck, N.J., is a leading software technology development company concentrating in advanced lighting control and energy management systems for commercial and industrial buildings. Encelium employs approximately 70 people in the United States and Canada.

Encelium’s expertise and distribution network will extend the already deep Osram reach into the energy efficiency business and position the company for further LED expansion. After closing, Encelium will become part of the Osram General Lighting – LMS organisation.

“The acquisition of Encelium, and its cutting edge lighting control software for commercial buildings, is the next logical step for Osram in becoming one of the leading LED lighting solutions providers,” said Klaus-Günter Vennemann, CEO of General Lighting at Osram.

“Today lighting is responsible for 20 percent of electrical energy consumption globally. In the US it accounts for more than 30 percent of the commercial building’s electrical energy consumption. With an ever-increasing demand for improved energy efficiency of commercial buildings, this acquisition enables us to offer smart LMS options to our customers worldwide that provide the right light, in the right amount, at the right place, at the right time,” he continued.

LMS is a key growth market as lighting controls support the transition of standard lighting products to networked, intelligent and value-added solutions. According to a recent McKinsey study, the current global market volume for lighting systems control components is roughly estimated at two billion euros. This is expected to double by 2016 and triple by 2020.

“Osram leadership in LED lighting solutions, from modules, luminaires and controls, to installation and maintenance services, coupled with Encelium’s software technology capabilities, supports an aggressive growth strategy and further penetration into both existing and new markets”, said Anthony Marano, Chief Executive Officer of Encelium.

LMS growth is largely a result of its energy saving capabilities and quality of life improvements. In instances, solutions combining highly efficient lighting products with advanced LMS structures yield energy savings up to 80 percent. In addition to energy and environmental benefits, Light Management Systems deliver quality of light that shapes the quality of life. With new ways of dimming, colour control and mood enhancing lighting, the development of dynamic light possibilities are endless. 
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