RANGE REVIEW: LIGHTING & ELECTRICAL
T
he overall UK lighting market has seen relatively good growth recently, and is estimated to have increased by
44% between 2013 and 2017. The key driver of this has been strong demand for LED lighting, which has gained significant share in the non-domestic sector and has also started to make inroads into the domestic market – in particular, with regards to the retro-fitting of efficient lamps and LEDs. 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
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 organisations recognising the need to reduce unnecessary lighting provision. Luminaires dominate the UK lighting market, accounting for a 57% share in 2017 by value. 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. The concepts of zoning, directional and space lighting, although previously
STRONG GROWTH and more
evident in the market, have been brought into sharper focus by the need to cut costs, carbon emissions and save energy.
In terms of supply, the lighting market remains in a state of flux, as major suppliers grapple with the changes that the rapid expansion of LED lighting is bringing to the wider lighting market. Some are leaving the market, some are restructuring, and others are either being acquired or making acquisitions to reposition themselves. Opportunities are, however, likely to remain within the lamps market for those organisations who can offer production scale and those who serve niche or specialist markets.
Growing competition
The distribution market for domestic lighting products tends to be dominated by retail channels with significant presence for home improvement multiples, grocery stores for lamps and department stores for luminaires. The spread of internet shopping has also expanded into lighting, and some manufacturers
and 16 DIY WEEK 23 NOVEMBER 2018 distributors have set up transactional websites,
LIGHT AHEAD
AMA Research takes a closer look at the UK lighting market – how strong demand for LED technology has driven growth in recent years, whilst department stores and other high street retailers have lost market share to the likes of Ikea and online traders
allowing direct sales to consumers. New-build domestic lighting is generally distributed via electrical wholesalers and distributors, whilst replacement lighting in this sector tends to be sourced from retail channels as end-users’ source products and contractors fit them. That said, the contractors increasingly
source
particularly where recessed LED spots are concerned, as the technical considerations are more vital in this area than aesthetics. Department stores and high street
stores have lost market share to other retailers such as Ikea and online stores as they have grown their involvement in the home interiors sector overall, nevertheless, these retailers retain a significant presence in luminaires, with House of Fraser and John Lewis, for example, offering significant ranges. AMA Research estimates that the share held by the home improvement multiples of the overall domestic lighting sector is around 17%, in
www.diyweek.net products,
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