Global Lighting Fixtures and Luminaires Industry

Global Lighting Fixtures and Luminaires Industry

  • September 2020 •
  • 840 pages •
  • Report ID: 2438202 •
  • Format: PDF
COVID-19’s Massive Economic Shock Reaches the Average Household. Lighting Fixtures & Luminaires Sales Dip by -7.2% as Discretionary Incomes Shrinks

The global market for Lighting Fixtures & Luminaires is expected to slump by -7.2% in the year 2020 and thereafter recover to reach US$112.8 billion by the year 2027, trailing a post COVID-19 CAGR of 5.2% over the analysis period 2020 through 2027. The ongoing COVID-19 pandemic is adversely impacting the global economic environment and the lighting fixtures market is no exception to this. Due to the COVID-19 pandemic, lighting industry supply chain has been impacted considerably. Majority of lighting equipment manufacturers rely on China for importing raw materials and components. To curb the spread of virus, various manufacturing facilities halted production of essential lighting components. As a result, manufacturers have been facing significant difficulties in maintaining adequate production levels. COVID-19 and associated lockdowns implemented by various governments to control spread of the virus modestly impacted the lighting industry. Most businesses in the industry remained functional and reported decent operations, albeit on a limited scale, in terms of sales and dispatch orders. While lockdowns failed to coerce majority of companies to make redundancies, the average capacity declined to 45%. In addition, the COVID-19 pandemic made it difficult for several companies to secure raw materials and components owing to inadequate shipping capacity, untimely deliveries and slow return to production capacity across China. The lighting market is likely to remain impacted in the form of longer lead times, rising prices and depleting inventories.

The pandemic has also affected construction projects with negative implications for the new installation category of the lighting market. New installation projects rely heavily on new construction activity, which is estimated to remain subdued over the short term. While the healthcare industry is likely to deliver a decent performance, lack of tax rebates for retrofit installations is expected to reduce investment in retrofit installations in industry and commercial verticals. Lockdowns along with decisions to seal borders by various countries inhibited local manufacturers with limited inventory. The smart lighting market is also reporting notable declines in the outdoor application segment. The public places category of the segment is posting higher value drop in comparison to the streets & roadways category. The scenario can be attributed to postponement or even cancellations of prominent sporting events owing to the COVID-19 pandemic. In the consumer market, deteriorating personal financial conditions are impeding growth. Unemployment rates are climbing to worrisome levels in both developed and developing economies alike. Over 33 million Americans are unemployed. With the labor market in doldrums, consumer spending is plummeting. The economic anxiety among consumers has and continues to rise. Consumers have shifted to online and are spending much lesser than before the pandemic. Social outlook against this background remains grim with households expected witness erosion in wealth. Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. Availability of free time has long been critical for the D.I.Y home improvement market. The pandemic which put the world in quarantine giving people time on their hands, has also resulted in global recession, rising unemployment and erosion of household wealth. Weak consumer confidence and spending is impacting both D.I.Y & D.F.M home renovation spending alike. Investments in new homes, smart cities and smart homes are also witnessing massive erosions impacting sales of smart lighting solutions.

In the post COVID-19 period however, growth will make a comeback led by the resumption of market penetration of LED lighting and the corresponding demand for technologically advanced lighting fixtures. The growth in the market will also be driven by innovations in materials, manufacturing and technology targeted at improving product functionality, energy efficiency and eco-friendliness. In this regard, fixtures made from 100% recycled paper and cement and discarded plastic bottle tops are attracting lucrative price premiums in the market. Smart lighting enabled by internet of things (IoT) will help step up commercial opportunities for lighting fixtures and luminaries. As a result, the market will witness the surging popularity of smart luminaires integrated with built-in intelligence and intelligent lighting controls to enhance energy efficiency such as LED fixtures integrated with daylight harvesting sensors. Interior lighting fixtures is expected to witness healthy gains against the backdrop of improving home values and consumer focus on elegant fixtures with simple yet artistic geometric shapes and surreal designs. Few of the other noteworthy trends that will shape growth will include rise of smart cities and creation of opportunities in the public lighting market; focus on worker safety, productivity, visual comfort and energy savings and the resulting demand for innovative industrial luminaires; rise of connected lighting and the ensuing focus on the development of lighting fixtures and luminaries with daylight dimming and other software-enabled lighting controls and stringent energy efficiency norms and availability of government provided incentives such as subsidies for LEDs which help spur adoption of the otherwise expensive LED lamps and luminaires.

Competitors identified in this market include, among others,
  • Acuity Brands Lighting, Inc.
  • American Electric Lighting
  • Amerlux LLC
  • Bajaj Electricals Ltd.
  • Cree, Inc.
  • Current, Powered by GE
  • Eaton Corporation plc
  • ELK Group International, Inc.
  • Fagerhults Belysning AB
  • Feilo Sylvania
  • FW Thorpe Plc
  • Havells India Limited
  • Hella KGaA Hueck & Co.,
  • Holophane, Inc.
  • Hubbell Lighting, Inc.
  • Juno Lighting Group
  • Koito Manufacturing Company Ltd.
  • LEDvance GmbH
  • Lithonia Lighting Company
  • LSI Industries, Inc.
  • Lutron Electronics Co., Inc.
  • NVC Lighting Technology Corporation
  • OMS, a.s.
  • Opple Lighting
  • Osram GmbH
  • Panasonic Corp.
  • Schreder Group GIE
  • Targetti Sankey S.p.A.
  • TCP International Holdings Ltd.
  • Thomas Lighting
  • Thorn Licht GmbH
  • Toshiba Lighting & Technology Corporation
  • TRILUX GmbH & Co. KG
  • Venture Lighting International, Inc.
  • Zumtobel Group AG