LED lighting is a rapidly growing sector, representing a threat to
more traditional products. Product development in the LED market
will continue to offer this sector greater differentiation and
result in increasing share in the medium to longer term.
2011, the LED lighting market was estimated to be worth around
£105 million at manufacturers’ selling prices (MSP). This is a
developing market and is largely reliant on new installations and
this is resulting in rapid growth. The LED lighting market is
expected to continue to see rapid growth as the technology becomes
more widely accepted in the mainstream. In the long term, price
decreases may impact on value but in the next 5 years, increased
sales volumes should outweigh this issue. Trading remains
positive for the LED lighting market, with higher volumes of
housing required and increasingly sophisticated, sustainable,
efficient task-orientated lighting being used across all markets.
Energy efficiency continues to play an important role in the
market, driven by legislative changes and increasing fuel bills.
The government remains committed to promoting the use of energy
efficient products, promoting use within public sector projects
and through the introduction of energy conservation and monitoring
The non domestic sector dominates the market by value. This sector
has been quicker to take up LED technology as it is more focused
on long term running costs, whilst domestic users are likely to be
put off by the initial cost.
2011, the LED lighting market was dominated by sales of luminaires,
which accounted for 90% of the market, with replacement lamps
accounting for a further 8% and lighting controls the remaining
2%. Many current LED luminaires and modules are integrated. These
products are not easily replaced as they require mechanical
fasteners to couple the LED to the heat sink. This is changing as
more replacement lamps and modules are being brought onto the
market but means the traditional product split is becoming more
difficult to define.
The supply of LED lighting is relatively fragmented, although the
leading 5 companies are thought to account for 90% of current
market value. Distribution is dominated by direct sales as
manfacturers continue to introduce the technology to ever widening