Light Bulbs Get Connected

For those interested in the energy efficiency sector, this week kicks off LightFair International. The trade show is the Super Bowl of architectural and commercial lighting. While it may seem boring, it is here that the latest in LED and OLED technologies have been unveiled.

Analysts estimate that replacing the 90 million 75 watt incandescent bulbs with LEDs would save $630 million and cut energy demand by more than 5.2 GW. So far the show hasn't disappointed. Manufacturers continue to drive down the price of LED bulbs, while increasing wattage equivalents. Perhaps the real exciting news of the show could be the future of home networking and automation within the lighting sector. A pair of partnerships will allow users to be able to control their bulbs and lighting needs remotely.

Google (NASDAQ: GOOG) has partnered with low cost LED producer Lighting Science Group (OTCBB: LSCG) to produce a Wi-Fi Android based bulb.

The idea is that when you walk into the room, your phone will sense your presence there and have your house will adjust the lighting accordingly. Google sees this as the first step towards IP enabled full home automation.

Not to be out done, NXP Semiconductors (NASDAQ: NXPI) announced that it has developed the GreenChip, a low-powered device that can be inserted into bulbs for inexpensive networking.

NXP was spun out of Philips (NYSE: PHG), who happens to be the world's leading producer of LED bulbs. While no formal partnership has been announced, it's almost assured that both companies will share the technology.

For investors, these partnerships highlight the future of energy efficiency and the LED space.