Marie Parry, the Group Marketing Director at Scolmore Group, looks at the latest report on the UK lighting sector.
According to the latest report by AMA Research - Lighting and LED Market Report - UK 2018-2022 the UK lighting market was estimated to have increased by 44% in 2013, in value terms.
Retro-fitting lighting solutions
The key driver for the lighting market is LED lighting, which has gained a significant share in the non-domestic sector and has started to make inroads into the domestic market. This technology is likely to promote a period of innovation and expansion, particularly in terms of more integrated products, control, and lighting solutions.
Retro-fitting of efficient lamp products has been crucial to growth rates within the market, particularly the exponential growth of LED lighting. The trend for improving lighting quality, particularly the demand for 'whiter' light in the private commercial sector has increased the demand for higher-value LED and fluorescent products.
Lamps
The lamps market has recorded the highest level of growth in recent years and is expected to continue
The lamps market has recorded the highest level of growth in recent years and is expected to continue to outperform the market, due to the introduction of a wide range of replacement, higher value LED, and low energy halogen products.
As prices of these products fall considerably and penetration increases, this sector is expected to slow, further limited by increasing lifecycles of products reducing the replacement market.
Controls
Controls remain an important sector with high levels of growth and potential for this to continue. This reflects a sustained focus placed on efficiency and cost savings with organizations recognizing the need to reduce unnecessary lighting provision.
Luminaires
Luminaires dominate the UK lighting market, although their overall share of the market is gradually declining in response to the high growth of other sectors, especially lamps. In the longer term, this trend is likely to reverse as more high-value integrated products gain ground in the market.
Strong luminaire market growth has been underpinned by investment in street lighting, rising levels of house completions as well as improvements in construction output for both the domestic and non-domestic sectors.
Reduced energy usage
Prospects for the UK lighting market remain positive, with annual growth rates of around 4-5% to 2022
Prospects for the UK lighting market remain positive, although more muted than in recent history, with annual growth rates of around 4-5% to 2022.
There is potential for growth from the domestic sector, as the take-up of LED systems offers increased scope for a reduction in energy use, improved controls, and as technology prices fall and awareness of benefits increases.
LED technologies
As users become used to longer lifecycles of lamps and shift views away from them being throw away products, they are likely to start moving towards integrated products, supporting the luminaire sector.
Despite the increased demand for LED technologies, there has been an oversupply in the global market, especially in developing countries and China. As a result, the global prices of LEDs have fallen significantly and are likely to continue to decline to some extent as wider usage results in more competition.
