Market Report
Commercial sector drives the growth in LED lighting market
LED lighting has been a key driver for growth in the overall lighting market, as is illustrated in the chart (pictured here) which shows that the LED share of the overall UK lighting market has nearly tripled in the last four years.
T
he key application area leading the growth in the UK LED market in the last few years has been the non-
domestic sector, where applications for LED have widened and usage has increased, driven by cost and maintenance cost justifications. Growth in the infrastructure construction
sector – particularly road and street lighting – will continue to underpin the LED growth and the wider lighting market into the medium term. This growth has been achieved despite the budget restrictions within the public sector. Austerity measures have seen a limitation on major refurbishment and improvement projects, yet the public sector has continued to invest in LED lighting and lighting controls over the last two to three years, as the local authorities strive to reduce energy costs as part of overall budget cuts. Other factors driving this growth in LED have included the underlying growth in construction output, within the offices, education and entertainment and leisure sectors, which have had the highest rates of growth amongst the non-residential areas.
Attractive The widespread uptake of LEDs has seen average prices drop, making them more attractive but also softening the value added to the market. During the last four years the global prices of LED lights has fallen dramatically, especially during 2015 when their average global price fell by 30-40%. This reflects a massive increase in supply from China and developing countries and a global price war for future market share. Whilst LED products remain more expensive than alternatives, they are much lower than three or four years ago. Market prospects for the future remain positive, though the rate of growth within the wider lighting market is expected to slow sharply, reflecting the already high share taken by LEDs. One area of expected growth is within the consumer sector of the LED market, as the share taken by the residential segment within the LED market is still less than 20%. Lighting appliance suppliers to the domestic
market have changed stocks significantly to include LED lighting appliances. A number of
20 | electrical wholesalerNovember 2018
retailers have committed themselves to LED lighting with Ikea, for example, phasing out other lighting to offer only LED-based appliances, starting in 2018. One barrier to domestic use of LEDs was a
limited range of bayonet cap fittings, as international suppliers had concentrated on the Edison Screw type bulb however, most retailers now carry a wide range of LED lamps in the bayonet cap as well as offering the screw type and GU10 and GU20 type fittings.
New builds
LED lighting is becoming a standard for many new builds and renovations, with manufacturers promoting the energy savings of LEDs to housebuilders and the advantages of LED lighting over traditional light sources, such as lighting controls and differing luminaire types. This means for example, that users can more readily dim or control the hue of their lighting to match moods, music or evening social get-togethers. Suppliers, including Osram, Philips, Samsung and Apple, now offer smartphone or tablet apps
that enable smartphones to control LED lighting. The potential applications for LED technologies are considerable and could develop the lighting market significantly into a number of new areas in the medium term. One potential growth area for LEDs is
providing ‘human-centric’ lighting – which improves people’s health and performance, through the control of light quality. Another potential technology afforded by LED lights is Li-Fi; delivering data using the visible spectrum rather than radio waves at speeds upwards of 1 Gbit/s. This can be built into LED modules so lightbulbs could become wireless hotspots. Prospects for the overall UK lighting market
remain positive, driven by the increased take-up of LED systems in the residential sector, reflecting these benefits of reduced in energy-usage, improved controls, price falls and increased awareness of the benefits.
● The ‘Lighting and LED Market Report –
UK 2018-2022’ is can be ordered online at
www.amaresearch.co.uk or call 01242 235724.
www.ewnews.co.uk
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