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Press Release: UK Lighting Equipment Market Development Report

Released: July 2010

After researching the UK lighting equipment market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2005-2009:

In 2009, the UK market for lighting equipment declined by an estimated 12% to a five year low of £1754.6 million. This reflects the adverse economic conditions in the year, which reduced construction output and dampened demand for lighting equipment. In contrast, modest growth of 3% took the value of the market to a peak of £1994.6 million in 2008, which can be attributed to expenditure by the Labour Government on health and education projects, which sustained demand for lighting products in the year. Furthermore, demand for energy-efficient light bulbs in the latter part of the review period has also been driven by the Labour Government’s CERT programme, which has resulted in energy suppliers sending out some 224 million light bulbs since March 2008.

Market Forecast 2010-2014:

The UK lighting market is expected to continue to face difficult trading conditions during 2010, although the wider economic climate is expected to improve. Thus, the value of the lighting equipment market is anticipated to decline by just 1% in real terms during the year. In 2011, demand for lighting equipment is expected to recover as construction output, in particular in the residential sector, is anticipated to return to stronger growth. Between 2011 and 2014 annual growth levels are projected to remain moderate, oscillating between 1% and 3%. By 2014, the value of the lighting equipment market is anticipated to increase by a cumulative 8% in real terms compared with 2009, to a peak of £1900.3 million (at 2009 prices).

Increased price competition and import penetration from countries with lower labour costs such as China and the Far East is anticipated to remain a feature of the market. Additionally, environmental issues concerning the disposal of toxic materials have affected the rate of production for rapidly developing sectors such as compact fluorescent lamps. Indeed, high energy efficiency lamps have been targeted by WEEE legislation, increasing manufacturer disposal costs, since 2007. Moreover, the EuP Directive, which became effective in March 2009, caused the mandatory phase out of energy intensive incandescent lamps. MBD believe this has provided the opportunity for further substantial growth for energy efficient products such as flourescent, tungsten halogen lamps and LEDs in the market. Product innovation in the area of energy efficiency is likely to have a positive effect on demand for both domestic and non-domestic applications.

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MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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