Growth in the UK Energy Efficient Lighting market has been buoyant
over the review period, in contrast with
the greater UK lighting market which has seen demand decline in
2008 and 2009. This is the result of a combination of legislation,
public information campaigns and a high level of subsidisation
(particularly in the domestic sector) which has largely offset the
general economic decline and resultant slowdown in housebuilding
and construction activity. Growth peaked in 2008, at 16%, and is
expected to reach 10% this year (2010), taking the value of the
market to £574 million by year end.
The
market for energy efficient lighting comprises lamps or bulbs,
luminaires and lighting controls, and in 2009 accounted for 36%,
in value terms, of the greater UK Lighting Market, up from just
21% in 2005.
Some of the most notable trends in the market
include:
-
Energy efficient lamps can now
be fitted to most standard luminaires, and growth in the
luminaires and controls sector is thus increasingly mirroring
growth in the lamps sector a trend likely to become even more
noticeable as technology advances.
-
A high level of innovation;
particularly in terms of ultra efficient lighting a key
current and future growth area.
-
An extremely price-competitive
market which in combination with a stronger Euro has
increased pressure on margins.
-
Greater focus on providing
design-led solutions that address specific problems rather than
rather than just producing more energy-efficient products.
-
Subsidies and schemes which
help to drive uptake.
-
Focus
on whole life costs rather than just initial capital costs,
particularly in the non-domestic secto
-
A high level of imports.
The value of the UK energy
efficient lighting market is expected to reach £969 million in
2014, and the rate of growth which began to slow slightly in
2009 will remain buoyant over the review period. This is of
course dependent on how soon economic recovery makes itself felt
on activity and output in the housebuilding and commercial
construction markets, as well as the underlying and substantial
shift into energy efficient lighting products, away from the
standard lighting alternatives.
Given the projected decline in
use of non-energy efficient lighting solutions, largely the result
of progressive legislation currently already in place, we expect
that the share of energy efficient lighting in the overall UK
lighting market 36% in 2009 will reach 63% by 2014. Due to
the difficulties in establishing agreed data or viewpoints for the
energy efficient halogen sector, we have excluded tungsten halogen
from our analysis, but assuming the bulk of tungsten halogen
becomes energy efficient by 2014, then the share taken by energy
efficient products would be closer to 95% of the overall market at
that time.
