The public sector lighting market increased by 23% from 2003 to
£270 million in 2008 and is expected to rise marginally in 2009,
reflecting ongoing expenditure programmes and expenditure in health
and ‘other’ sectors. Current forecasts indicate average annual
declines of 1-3% from 2011 as government spending is reviewed,
resulting in a forecast market value for 2013 of £265 million.
The market has three major end-user markets – health, education
and infrastructure – which account for around 79% of the market.
The remaining market is made up of a number of other end users
such as defence, prisons, public offices, museums etc.
The public sector lighting market is dominated by the education
sector which accounts for 47% of the market, followed by
infrastructure with 17% share and health with 15%. ‘Other’ end
users make up the remaining 22% of the market.
2008/9 has experienced significant increase in public sector
expenditure as the government seeks to stimulate the UK economy
through increased public spending, particularly through capital
Pressure on pricing within the market is continuing with
competition for public contracts high as private sector
construction declines. Falling prices are further enabled by a
considerable decline in raw material prices, which until late 2008
had been boosting market value by increasing prices.
Changes to legislation on energy efficiency and carbon emissions
as well as volatile fuel prices has seen increased development of
energy efficient products and integrated lighting systems with
wider interest in these products throughout the public sector.
Public expenditure is likely to slow in the short to medium term
as the government revises spending in view of the General Election
due in 2010 and to manage the large budget deficit built up by
current spending levels.
Energy efficient products and monitoring and control systems for
lighting are expected to continue to gain share in the market
leading to increased specification of higher value products in the
The process of consolidation of suppliers is likely to continue as
large multi-national organisations continue to acquire business
units to enhance product portfolios and as less profitable
suppliers are forced to close or be acquired in the current