by Brianna Crandall — September 7, 2016 — Global revenue for lighting equipment grew by 4.6% in 2015, a slightly lower rate of growth than the previous year, when revenue grew 4.8%. Behind this overall growth in the global lighting market rate are two separate, although interlinked, stories, according to IHS Markit, a global provider of critical information, analytics and solutions.
Luminaire revenue growth topped that of lamps due to LED integrated and LED replacement luminaires, which will see continued growth in both revenue and shipments through 2023.
Lamps
First, lamp market revenue grew 4% in 2015, which was lower than the 7.3% revenue growth in 2014, but higher than previous IHS Markit revenue forecasts through 2023. As the lamp market continues to transition to light-emitting diodes (LEDs), there are two effects combining to mute future revenue growth: an overall decline in lamp shipments, and price erosion of LED lamps.
“As customers switch to LED technologies that have much longer lifespans than traditional technologies, fewer replacement lamps are required, resulting in lower shipment levels,” said Paul Bremner, senior analyst, IHS Markit. “As prices for LED lamps fall, manufacturer revenue will also begin declining in 2019.”
Luminaires
Secondly, luminaire revenue grew 4.8%, which was higher than the 3.9% revenue growth in 2014. Unlike the lamp market, luminaire revenue growth is expected to continue over the forecast period. “This growth comes from LED integrated and LED replacement luminaires, which will see continued growth in both revenue and shipments through 2023,” Bremner said.
New global and regional market statistics, forecasts and market share estimates were recently added to the IHS Markit Lighting Intelligence Service. In addition to the above, other key findings include the following:
- The supply base for both non-LED and LED lamps became more fragmented in 2015, with the top 10 vendors falling from 54.8% to 41.4% of the market for non-LED lamps, and falling from 55.1% to 50.2% of the market for LED lamps.
- Unlike the lamp market, the supply base for LED luminaires became more consolidated. The top 10 vendors accounted for 33.5% of the market in 2015, up from 29.6% in 2014.
- China is estimated to have been the largest regional market for lighting equipment, comprising almost 30% of the global lighting market in 2015.
- LED lamps and luminaires accounted for only 7.8% of unit shipments, but made up 28.6% of revenue in 2015.
- LED lamps and luminaires are expected to comprise more than half of all global lighting market revenue by 2019.
