The UK lighting market was estimated to be worth around £1.6 billion in 2013 with good growth prospects for 2014, according to a new report by AMA Research. Forecasts into the medium-term remain relatively optimistic with growth projected at 4-6% per annum until 2018, driven by increased demand for energy efficient lighting and growth of LEDs.
of retro-fitting of more efficient lamp products has been crucial to value
growth rates within the market in recent years, particularly where incandescent
lamps have been replaced with higher value alternatives. The trend towards LED
technologies has also driven up value growth, as has the introduction of a
number of finance schemes that allow for lighting refurbishments and
replacement to be paid for from future energy cost savings.
UK lamps market has experienced significant change in recent years as European
Directives have impacted on the supply and sales of certain lamp types. The
phased removal of inefficient lamps from both the residential and
non-residential sectors has continued to see the replacement of the traditional
incandescent lamp in the domestic sector with compact fluorescents which in
turn have been replaced by LEDs. In addition the trend for improving lighting
quality, particularly the trend for “whiter” light in the private commercial
sector has increased demand for higher value LED and fluorescent products.
account for the largest share of the UK lighting market accounting for a share
of around 61% in 2013. The sector is reliant on the levels of new build and
refurbishment activity, particularly in the non-domestic sector, and was
affected by the decline in output for the private commercial sector from
2009-12. The recent trend has been positive with moderate market growth in 2013
underpinned by investment in street lighting as well as the beginnings of
recovery of private sector offices and retail.
the lamps and luminaires sectors have experienced more positive conditions
2013-14 than in previous years, it is the controls sector that is experiencing
the most positive growth. Again this is
due to the focus placed on efficiency and cost savings with organisations
recognising the need to reduce unnecessary lighting provision.
key driver for the whole lighting market is LED lighting which has gained
significant share in the non-domestic sector in recent years. This technology represents an innovative
aspect for the lighting market and is likely to promote a period of innovation
and expansion particularly in terms of more integrated products, control and
said Keith Taylor, Director of AMA Research. “The adoption of more efficient lighting products in the medium-term
will boost value growth, however these products have increased life cycle
expectations which may have more negative implications for the market into the
The current trend for retro-fitting LED
lamps into existing luminaires is likely to be superseded by the development of
integrated LED luminaires into the medium-term, though the large established
base of existing luminaires will sustain the trend for some years to come.
However, increased demand for LED technologies is likely to lead to an increase
in average prices for some luminaires.
The controls market is currently in a
particularly innovative stage where new products are introduced on a regular
basis thereby underpinning good value growth. This innovation stage is likely
to transform to more moderate developments into the medium-term, though the
integration with LEDs has created a good platform for increased use and benefit
of lighting controls. However, the longer term trend for lighting solutions – where
control, luminaire and lamp are incorporated into a single unit may dampen
demand for separate controllers in future years and make market segmentation by
product far more difficult.
‘Lighting Market Report UK - 2014-2018
Analysis’ is published by AMA Research, a leading provider of market
research and consultancy services within the construction and home improvement
markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling