LED Lighting Market Report - UK Analysis

Transcription

1 LED Lighting Market Report - UK Analysis Published: 24/05/2016 / Number of Pages: 78 / Price: Introduction and Overview The 3rd edition of the 'LED Lighting Market Report - UK Analysis' reviews the LED lighting sector with a focus on market size, trends, mixes, end-users, supply and distribution. This unique report incorporates both quantitative and qualitative analysis of the LED lighting products market, and provides market forecasts through to Key content covered: Market Overview - size, structure, key trends and future prospects to Key end users - and how this is changing. Supply chain of LED lighting products, distribution channels and shares. The impact of technological developments in LED products. The impact of European legislative changes. Review of the development and impact of pricing in this market. Key areas of insight include: Analysis of the domestic and non-domestic LED lighting sectors. Manufacturers - changes in the supply structure, mergers, acquisitions and companies exiting the market. Changing impact of pricing, and market, legislative and environmental considerations. Assessment of distribution channels and supply chain developments. Detailed market data and insight on the LED lighting market by AMA Research, a leading UK provider of construction market intelligence. Some of the companies included: ACDC Ltd, Acuity Brands Lighting, Advanced Lighting Technology, ASD Lighting, Aurora Lighting, City Electrical Factors (CEF), Cooper Lighting and Safety Limited, Cree Inc., Crompton Lamps, Denmans, Dextra, Dialight Plc, Edmundson Electrical, Emergency Lighting Products Ltd, Endo Lighting, Eyre & Elliston, FW Thorpe, GE Light Fittings, Harvard Engineering, Havells Sylvania, Holophane Europe, JCC Lighting, Ledon Lamp, Maclean Electrical Group, Medlock Electrical Distributors, MEGAMAN, MHA, Newey and Eyre, Osram, Philips Lighting, Photec Lighting, Photonstar LED, Rexel Group, Ringtail Emergency Lighting,

2 Routeco, Senate Electrical, Status International, Stearn Electric Company, Tamlite, The National Lighting Company, Thomas & Betts Ltd, Thorn Lighting, Toshiba Lighting Systems, Tridonic Atco, Trilux Lighting, Urbis Schreder Ltd, Ventilux, Verbatim Lighting, Vexica, Vita Energia Solutions, WF Electrical, Whitecroft Lighting, Wilts Wholesale Electrical Company, Zumtobel Lighting. The LED Lighting Market Market size by value and forecasts to Continued, radical change is forecast and there is informed commentary on these changes and forecasts. Key trends and influences on the market - technical innovation, product development and increases in imported products. Market share in domestic and non-domestic end use applications, supply chain issues into the LED light manufacturers. Market share and product mix - replacement lamps, luminaries and controls. Overall lighting market size by value and forecasts to Observations and trend commentary on these forecasts. End Use Sectors End-user shares in Definition, description of lighting requirements and LED trends within key end use sectors - including health, education, street, office / commercial, leisure, industrial, residential and other sectors. Key influencing factors on LED usage within key end use sectors. Particular focus on health, education, street and commercial LED lighting applications. Suppliers and Distribution Key suppliers by turnover and size of company (by number of employees where available). Changes in the corporate structures within the market as the major supply organisations restructure to improve their market shares and profitability in the industry.mix of main suppliers share by value. Key suppliers - description, indication of turnover, mergers and acquisitions etc. Commentary on medium sized suppliers and on specialist LED providers. Sales of LED lighting by channel of distribution. Commentary on changes in channels of distribution. Trends in, and factors influencing, distribution; significance of particular distribution channels, changing impact of online distribution etc. Future Prospects Influence of the general economic situation - construction levels and consumer confidence. The impact of the drive for efficiency and greater sustainability in lighting. Key areas of opportunity and prospects for continued investment in capital projects. Future prospects, areas of potential growth/decline.

3 Report Summary In 2015, the UK LED lighting market was estimated to have grown by 38% in value terms, incorporating all finished, mainsoperated LED lighting products, domestic and non-domestic used within construction and building. The LED lighting market is experiencing an explosion in growth as the new technology becomes more widely accepted in the mainstream lighting market, further encouraged by energy cost savings and CO2 concerns, driven by legislative changes, in turn resulting from environmental pressures. The market remains largely reliant on total system upgrades and new installation applications. However, as the LED lighting product offer has expanded and as the user base has grown, both replacement products and replacement LED lights which use existing light fixture are starting to take more share of the overall market. Non-domestic end users dominated in 2015, accounting for over 90% of market value, but domestic LED sector has experienced dramatic growth between 2013 and Infrastructure remains the leading sector within LED lighting with many councils, replacing and planning to replace, conventional street lighting with LED lighting. They are attracted to the significant energy cost savings, lower CO2 emissions and long life cycles, primarily. The Leisure & Entertainment sector and Health & Education have been early adopters of LED lighting and will continue to be major end use sectors in the near to medium term. Retail use is growing whilst office, industrial and domestic use is expanding rapidly. In 2015, the LED lighting market was characterised mainly by sales of LED luminaires, while replacement lamps and LED controls and accessories made up the remainder. The major suppliers of LED products are finding it hard to complete with cheap commodity LEDs and are looking instead to add value instead by integrating with new technologies, such as the Internet of Things (IoT). The five largest suppliers in the LED lighting market we estimated to account for around 75% of the market in 2015, while the remainder of the market was fragmented. However, there is currently a high level of corporate activity taking place in this market due to its recent rapid growth. The average price of LED lighting products has fallen substantially during the last three years, driven by the growing volumes of sales, manufacturing techniques and increased competition. This will have an obvious impact within the office, commercial and industrial sectors which are looking to replace existing fluorescent lighting and seek the commercial benefits of doing so. High growth is forecast across all sectors with domestic use a particular growth area over the next few years. The lack of product standards in the market has led to some consumer reluctance to purchase LED lamps due to poor experiences with lower quality products in the past. This barrier to growth should recede as these lower quality products are forced out of the market by a combination of EU legislation and LED price falls on the more expensive products. LED lighting penetration into the domestic sector has also previously been hampered by the quality of light produced by LED bulbs, but this will change as the latest generation of bulbs are producing warmer light which is more comparable with that of incandescent bulbs. Wider use of high value application-specific products in the non-domestic sector is expected to support the market in the longer term. It is also likely that high power and super power LEDs will gain market share compared to mid-power LEDs. Overall, the market is expected to continue to continue to see double digit growth between 2016 and List of Report Contents Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 6 2. SUMMARY AND FUTURE PROSPECTS SUMMARY FUTURE PROSPECTS 9

4 3. ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS THE UK LED LIGHTING MARKET THE OVERALL UK LIGHTING MARKET Market Size & Trends End Users Product Mix LED MARKET DEFINITION LED MARKET SUPPLY CHAIN UK LED LIGHTING MARKET SIZE & TRENDS LED LIGHTING PRODUCT MIX KEY MARKET INFLUENCES Construction Output Legislation Energy Consumption Electricity Costs and Average Prices END USE SECTORS FOR LED LIGHTING LED LIGHTING END USER MIX HEALTHCARE & EDUCATION LED USE 48

5 5.3 ROAD AND STREET LIGHTING USE OF LED OFFICE LIGHTING RETAIL SECTOR DOMESTIC USE OTHER END USE SECTORS SUPPLIERS OF LED LIGHTING OVERVIEW LED MARKET SHARES LED LIGHTING SUPPLIER PROFILES SPECIALIST LED LIGHTING SUPPLIER PROFILES DISTRIBUTION CHANNELS FOR LED LIGHTING OVERVIEW CHANNEL SHARES DIRECT SUPPLY ELECTRICAL WHOLESALERS RETAILERS DIY Multiples Grocery Multiples 78 Tables & Charts CHART 1 UK LED LIGHTING MARKET ( M MSP) 8 TABLE 2 GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5 EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 CHART 6 OVERALL UK LIGHTING MARKET ( M MSP) 19

6 CHART 7 UK LIGHTING MARKET MIX BY APPLICATION - DOMESTIC AND NON-DOMESTIC LUMINAIRES, DOMESTIC AND NON-DOMESTIC LAMPS, CONTROLS ETC % BY VALUE 21 CHART 8 UK LIGHTING MARKET PRODUCT MIX (LAMPS, LUMINAIRES AND CONTROLS) % BY VALUE 22 CHART 9 LED SUPPLY CHAIN 24 CHART 10 UK LED LIGHTING MARKET ( M MSP) 29 TABLE 11 UK TRADE DATA LED EXPORTS/IMPORTS AND ARRIVALS/DISPATCHES (EU) M 30 CHART 12 UK IMPORTS/ARRIVALS OF LEDS BY MAJOR GEOGRAPHICAL REGION % TOTAL VALUE CHART 13 UK LED LIGHTING MARKET - PRODUCT MIX BY VALUE TABLE 14 CONSTRUCTION OUTPUT FIGURES ( BILLION AT CURRENT PRICES) 34 TABLE 15 PHASE-OUT SCHEDULE FOR NON-DIRECTIONAL HOUSEHOLD LAMPS 37 TABLE 16 UK ENERGY CONSUMPTION - ELECTRICITY CHART 17 ELECTRICITY GWH CONSUMPTION BY END USER (DOMESTIC, INDUSTRY, OTHERS) CHART 18 LIGHTING ELECTRICITY CONSUMPTION BY END USER (DOMESTIC, INDUSTRY, OTHERS) CHART 19 LIGHTING ELECTRICITY CONSUMPTION IN BUILDINGS, BY 'OTHERS' SUB-SECTORS TABLE 20 ELECTRICITY PRICES IN THE UK INCLUDING TAXES PENCE PER KWH TABLE 21 PRICE INDICES OF CONSTRUCTION MATERIALS, LIGHTING EQUIPMENT FOR ROADS - ANNUAL AVERAGES 46 CHART 22 UK LED LIGHTING MARKET - DOMESTIC & NON-DOMESTIC SECTORS BY VALUE CHART 23 PRODUCT MIX - OFFICE LIGHTING ESTABLISHMENT 2015 BY VALUE 53 CHART 24 PRODUCT MIX HOUSEHOLD LIGHTING APPLIANCES 2015 % TOTAL UNITS 56 CHART 25 PRODUCT MIX INDUSTRIAL LIGHTING ESTABLISHMENT 2015 BY VALUE 58 CHART 26 UK LIGHTING MANUFACTURERS BY TURNOVER GROUP ( '000S) CHART 27 UK LIGHTING MANUFACTURERS BY EMPLOYEE SIZE-BAND CHART 28 UK LED LIGHTING MARKET SHARE MIX 2015 BY VALUE 63 CHART 29 DISTRIBUTION STRUCTURE FOR LED LIGHTING PRODUCTS 72 TABLE 30 LED LIGHTING DISTRIBUTION CHANNEL SHARES 2015 BY VALUE 73 CHART 31 ELECTRICAL WHOLESALE MARKET SHARES 2014 BY VALUE % (EDMUNDSON, REXEL, CEF ETC.) 74

7 CHART 32 DIY MULTIPLES MARKET SHARE % BY VALUE 77 The 'LED Lighting Market Report - UK Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on