Global Lighting Equipment Manufacturing Industry
The global lighting equipment manufacturing industry serves a range of sectors, including commercial, industrial, residential and outdoor lighting. The industry manufactures lighting components such as tubes, fittings and fixtures, standard light bulbs, spotlights, ultra-violet lamps, infra-red lamps and flashlights. It also manufactures neon signs and electric signs.
Global demand for electric lighting is expected to climb 4.5% yearly through 2014 according to research from Freedonia, at which point the market could be worth close to $39 billion. Rising personal income and recovery in the automotive industry are among the factors fuelling market growth. In price-adjusted terms the average yearly increase through 2014 will be over 7%. Light-emitting diode (LED) and compact fluorescent lamp (CFL) costs are forecast to decline, leading to lower electric lighting prices. Demand for these products will encroach on demand for other types of lighting, impacting negatively on profit.
The structures market, encompassing residential and nonresidential lighting as well as street lighting, represents over 70% of all electric lighting product sales. Demand for electric lighting for motor vehicles and manufactured goods represents a smaller market segment but is likely to grow at a faster rate through 2014 due to automotive industry recovery.
The global lighting fixtures market is expected to grow at almost 6% a year through 2014 to reach almost $128 billion, according to Freedonia. Factors fuelling demand include greater levels of motor vehicle manufacturing and more residential building construction. Demand on the Chinese market represents almost 35% of overall demand through 2014. The most dynamic market segment is vehicular fixtures, expected to see the fastest growth.
Key Sub Segments
- According to Freedonia, CFL and LED lighting are expected to show the fastest growth. LED market growth is being fuelled by technological advances and cost reduction. CFL, which will grow at a faster rate, is being used to replace incandescent lamps. LED-backlit LCD TV market growth reached almost 27% in 2010, expected to grow 56% in 2011. The LED market climbed from $10 billion in 2009 to almost $16 billion in 2010, according to Research in China.
- The UV LED market is forecast to reach $100 million in 2016, representing 30% yearly growth, according to Yole Development. Around 90% of the market is composed of counterfeit detection, UV curing and applications, such as medical, that require UV A/B sources. The main applications for UVC LEDs are scientific instrumentation and research and development. UVA, which refers to 400-315nm light wavelength, made up 90% of the UV LED market in 2010, expected to fall to 80% in 2016.
- The global organic light emitting diode (OLED) lighting market is expected to be worth almost $8.5 billion in 2020, according to GBI Research, growing at an annual rate of over 90% from under $13 million in 2010. The main use for OLED lighting is display lighting, such as mobile phones, computer monitors and televisions.
Regional Market Share
The fastest growth in electric lighting demand is expected to come from developing countries, which will show higher sales than in the EU, the US and Japan, driven by economic growth and industrialization. Almost half of demand through 2014 will come from China, according to Freedonia, followed by India, Turkey, Thailand, Egypt and Vietnam. Developed countries will also show increased demand, mainly due to automotive industry recovery.
Demand for LED lighting has grown in recent times, though its share of the overall lighting market is relatively small. Growth in this sector continues to be strongest in areas where government plans to do away with incandescent lighting have turned to LED as a replacement. The market has been quite concentrated to date, though it is likely that competition will stiffen as new outfits enter the market.
OLED lighting remains a costly lighting option, though the market aims to take over from less costly florescent tubes and incandescent bulbs. While the sector focuses on taking over some market share from standard lighting applications, it can also be used in more specialized applications. OLED adaptability comes from its flexibility, and the fact that it is thin and tunable, and likely to be a key factor in attracting greater demand from lighting designers.
Leading Industry Associations
- International Association of Lighting Designers www.iald.org
- International Association for Energy Efficient Lighting www.iaeel.org
- National Electrical Manufacturers Association www.nema.org
- The International Commission on Illumination www.cie.co.at
- Digital Addressable Lighting Interface www.dali-ag.org
- Professional Lighting Designers Association www.pld-a.org
- National Lighting Bureau www.nlb.org