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Cable Supplier CommScope Joins Lighting Giants by Picking Up Redwood Systems

Lux Research

CommScope’s acquisition of Redwood Systems marks a new era in lighting, which will evolve from replacement bulbs to a durable building material, says Lux Research.

BOSTON, MA – August 1, 2013 – CommScope breached the light-emitting diode (LED) industry’s consolidation, as the first non-lighting player to join several major lighting companies in the recent string of lighting controls acquisitions. CommScope’s acquisition of Redwood follows Acuity Brands’ acquisition of eldoLED and Adura Technologies in early 2013, Osram’s acquisition of Encelium in 2011, and Philips’ acquisition of Teletrol in 2009. Venture capital investors have also taken notice of the importance of lighting controls, investing $136 million in the space since 2007.

CommScope’s Intelligent Building Infrastructure Solutions division aims for a piece of 2020’s $25 billion commercial LED lighting market with this move, as Redwood’s LED lighting controls offer competitive costs and a shorter payback period compared to competitors, earning its history of “Positive” Lux Research ratings.

“We’re entering a new era; people are no longer thinking of lighting as a consumable, rather a durable material that can be integrated into buildings – and lighting controls are critical to that evolution,” said Christopher Hwang, Lux Research Associate. "As more companies and industries look to take advantage, more acquisitions are imminent – watch for action on companies like Metrolight and Enlighted."

With the long lifetimes LEDs and lighting controls enable, lamps will no longer need to be easily replaced, and designers will re-envision lighting. Planar lighting developers such as Cooledge are ahead of this curve, designing lamps that are not limited by the need to screw into a socket.