The European Union has already banned incandescent light bulbs and as of 2012, the traditional lights will no longer be available on store shelves in the U.S. With an eye on the future of the lighting sector, officials at Philips think they're ready for the competition because of their focus on LED bulbs.

The company is betting on an almost total shift in the lighting market to LED bulbs, Reuters reported. Philips executive Niels Haverkorn told the news provider, "In terms of value around 2015, LED will be bigger than conventional light sources."

These predictions come with some hard evidence to suggest LEDs have a bright future. LED-based products made up more than 10 percent of Philips' lighting sales for the first time in the fourth quarter of 2009.

In order to maintain a strong lead in the LED lighting sector, officials at Philips aspire to offer consumers an unparalleled array of color temperatures. They also foresee major price reductions in the coming years, said Reuters.

Currently, "warm" LED bulbs cost $46 while "cold" ones cost $25. Philips hopes that by 2015 these LED lights will cost $4 and $2 respectively.

Still, the lighting leader has some competition if they want to make their bulbs affordable for American consumers in time for the U.S. ban. Officials at Osram Sylvania say they hope to reduce the cost of LED bulbs to just $10 in time for 2012.