UK Lighting market flickers, but remains bright
A report by AMA Research estimates that the UK market for lighting was worth around £1.4 billion at manufacturers selling prices in 2009. Being a mature market, it mostly relies on replacement purchases which, generally, results in moderate growth or decline in line with the economy. However, the recession saw a market decline of 10% in 2009, and is forecast to fall a further 4% in 2010.
This will result in the lighting market struggling somewhat in the short term, but trading conditions in the longer term still remain positive.
In 2009, the lighting market was dominated by sales of luminaires, which accounted for 67% of the market, with lamps accounting for a further 26% and lighting controls the remaining 7%, although in the long term it is expected that lighting controls will gain share.
Growing sectors in the lighting market include LEDs, which represent a growing threat to more traditional products. Product development in LEDs will continue to offer this sector greater differentiation and it is expected that this will result in an increased market share in the medium to long-term.
Energy efficiency also continues to grow in importance, driven by legislative changes and increasing fuel bills. The government remains committed to promoting the use of energy efficient products, promoting use within public sector projects and through the introduction of energy conservation and monitoring legislation. Indeed, AMA has undertaken a more detailed study into the energy efficient lighting products market which has remained bouyant as a result of legislation, public information campaigns, and a high level of subsidisation (particularly in the domestic sector) which has largely offset the general economic decline and slowdown in housebuilding and construction activity.
The market for energy efficient lighting comprises lamps or bulbs, luminaires and lighting controls, and in 2009 it accounted for 36%, in value terms, of the greater UK lighting market, up from just 21% in 2005.
Some of the most notable trends in the sector include energy efficient lamps being designed to fit most standard luminaires, and growth in the luminaires and controls sector is therefore increasingly mirroring growth in the lamps sector – a trend likely to become even more noticeable as technology advances even further.
The value of the UK energy efficient lighting market is expected to reach £969 million in 2014, and the rate of growth – which slowed down slightly in 2009 – is expected to remain buoyant.
Given the projected decline in the use of non-energy efficient lighting solutions, largely as a result of legislation, AMA Research expects that the share of energy efficient lighting in the overall UK lighting market – 36% in 2009 – will reach 63% by 2014.
Copies of AMA Research’s “Energy Efficient Lighting Products Market – UK 2010-2014” and “Lighting Market - UK 2010-2014” reports are available from www.amaresearch.co.uk
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