28th March 2018

Research for the 2019 Lighting Market Report from MTW Research has found that sales of lamps and luminaires are set to rise by £50 million in 2020, whilst LED lighting market sales have risen by 150% in the last 6 years.

The 240 page report reviews the fundamental structural changes in the lighting market in recent years, charting …..

….. the rapid rise of LED lighting sales. The report identifies healthy underlying fundamentals from the leisure, housebuilding, first time buyers and domestic lighting end use sectors – despite Brexit uncertainties dampening growth to some extent.

MTW also highlight the recent government spending round as a catalyst for near term growth as capital expenditure levels in health, education, defence and infrastructure are set to support healthy growth trends in the lighting market from 2020 onwards. Brexit contingency planning has also boosted demand in the logistics and warehousing end use sectors according to the report.

With the final current phase of EU Ecodesign being implemented in September 2018, the LED market has continued to grow rapidly, with LED lighting sales forecast to rise by £90 million in the next few years as political appetite for increasing energy efficiencies in lighting continues in the longer term. According to MTW, more than 58 million halogen lamps will be replaced on average for the next 5 years, reflecting a key longer term trend for the LED lighting market.

Based on financial data from the industry, the report provides market sizes and trends for commercial lamps and luminaires markets; finding that growth in design-led commercial lighting represents a key trend in the lighting market in 2019. Other lighting trends identified by MTW in 2019 include growth in the specification of architectural lighting and decorative commercial luminaires.

Discussing LED lighting market trends, MTW’s director Mark Waddy commented, “Product development in the LED lighting market on tunable colour and white light engines is set to underpin value growth in the longer term, with system efficiency, colour stability and consistency set to remain key drivers for LED lighting sales.”

The report also reviews the lighting retail market, forecasting 10% growth for lighting retailers in the next few years, though MTW identify a number of lighting trends dampening growth and suppressing profitability in the lower-mid value end of the lighting market. Lighting retailers borrowing has also continued to rise and now accounts for more than 50% of total revenue in 2019 – up from 40% since MTW’s last report.

Product shares in the tungsten halogen, discharge, induction and CFL lamps market are provided in the report, identifying rapid changes in share for these sectors as sales of LED lamps have outstripped inflation by more than 300% in recent years. Within the luminaires market, trends in 2019 include growth for the architectural and decorative luminaires market whilst shielded direct luminaires and indirect luminaires have underperformed against the overall lighting market.

The report is available to purchase from MTW Research’s website.