AMA Research are pleased to announce the publication of the 2nd Edition
of the 'LED Lighting Market Report - UK 2014-2018 Analysis'.
The report reviews the LED lighting sector with a focus on market size,
trends, mixes, end-users, supply and distribution.
This unique report answers the need for both a quantitative and
qualitative analysis of LED lighting products with estimates and forecasts on
market size, trends and future prospects through to 2018,
the report is comprehensive, informative and will facilitate operational and
strategic decision-making processes.
Issues and sectors reviewed include:
- Supply chain of LED lighting products.
- Key end-users and how this is changing.
- Distribution channels shares and structures.
Key developments include:
- The impact of technological developments in LED Products.
- The impact of European legislative changes.
- The impact of Price changes.
In 2013, the LED lighting market was estimated to account for over 20% of the
overall lighting market. The market is growing rapidly and is largely being
driven by new installations in commercial and infrastructure applications. The
market has seen benefit from the increased focus on sustainability and energy
efficiency and the resulting interest in the new technology as well as from
developments which have allowed the wider use of LEDs in general lighting.
In the medium to long term, trading conditions remain positive for the
lighting market, with higher volumes of housing required, value added trends
and increasingly sophisticated, energy efficient, task orientated lighting
used across all market sectors, with LED growth likely to be at the forefront
of any overall lighting market growth.
Areas of particular interest 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 environmental considerations.
- Assessment of distribution channels.
Some of the key companies featured include:
Abacus Lighting, 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, GE Lighting,
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, 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.
Key areas covered in the report include:
THE LED LIGHTING MARKET
- Market size by value 2008-2013 and forecasts to 2018. Dramatic
change is forecast and there is informed commentary on these changes and
- 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
- Overall lighting market size by value 2008-2013 and forecasts to
2018. Observations and trend commentary on these forecasts.
END USE SECTORS
- End-User Market shares in 2013.
- Definition, description of lighting requirements and LED trends within
key end use sectors.
- Key influencing factors on LED usage within key end use sectors.
Particular focus on health, education, street and commercial LED lighting
SUPPLIERS & DISTRIBUTION
- Key suppliers by turnover and size of company (number of employees).
- Suppliers share by value.
- Key suppliers- description, indication of turnover, mergers and
- 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.
- Influence of the general economic situation - construction levels
and consumer confidence.
- The impact of the drive for efficiency and greater sustainability in
- Key areas of opportunity and prospects for continued investment in
- Future prospects, areas of potential growth/decline.
SUMMARY OF REPORT CONTENTS
In 2013, the UK LED lighting market was estimated to be worth £330
million at manufacturers' selling prices (MSP), this incorporates all
finished, mains-operated 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 is largely reliant on total system upgrades and new installation
applications. As a relatively new market, replacement products have therefore
much less influence on performance than in overall lighting at this stage.
Non-domestic end users dominated in 2013, accounting for 96% of market value,
whilst the domestic sector was estimated to account for £13 million.
Infrastructure is 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
output and long life cycles primarily. The Leisure & Entertainment and Health
& Education sectors have been high 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 lastly domestic use will expand
significantly over a longer time period.
In 2013, the LED lighting market was characterised mainly by sales of LED
luminaires, accounting for 75% of the market, with the rest of the market made
up by Replacement LED lamps and LED controls and accessories. The new use of
this technology for lighting often requires installation of specific
luminaires in order to achieve the full benefits and this also reflects the
fact that LEDs are often installed as part of a larger refurbishment or new
build project requiring new luminaires.
That said there has been significant development of replacement products for
traditional bulbs / lamps, where the LED replacement product has been
specifically designed to fit the original luminaire, thereby widening the
scope for LED market growth. Indeed product development within LEDs is focused
on development of retrofit products, greater efficiency and improved colour
rendering index (CRI). Additionally manufacturers are researching newer and
cheaper ways of manufacture to bring costs down. Controls are becoming more
sophisticated with the trend towards greater monitoring and energy saving
control systems for lighting. The average price of LED lighting products has
fallen in the last 12 months driven by the growing volumes of sales,
manufacturing techniques and increasing competition in the UK market.
However, LED products remain significantly more costly than many alternatives
restricting volume sales, particularly in the domestic sector.
Distribution is led by direct sales as many manufacturers introduce, and have
a better understanding of, the new technology but this will change longer
term. This channel is further supported by the dominance of larger public
sector projects, which tend to source direct for greater value. Electrical
wholesalers and specialist distributors are also significant players and their
share is likely to grow as the technology becomes more widely established and
used by the electrical contractors more widely. Retailers, including DIY,
supermarket, and high street stores are the principal suppliers to the
domestic market. The supply of LED products is led by five main suppliers who
are estimated to account for around 80% of the market. The remainder of the
market is fragmented comprising many second and third tier specialist and
The LED lighting market is expected to continue to experience significant
growth as the new technology further penetrates the lighting market. This is
likely to be supported in the short-medium term by government cutbacks hitting
public sector budgets therefore prompting investment in technologies which
provide reductions in long term running costs. High growth is forecast across
all sectors but office, industrial and domestic use will lag behind others.
All sectors will show a high level of LED share by 2020 reaching over 60% of
all general lighting. Controls are a growing and important market with a
number of British companies developing and expanding product ranges with
international sales. The combination of controls with LED lighting will help
increase the take up and result in greater efficiencies.
The government is also committed to promoting energy efficient products,
through their use within public sector projects and through the introduction
and strengthening of energy conservation and monitoring legislation. However,
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 may continue to restrict growth in the short term.
Product development remains important particularly in making products more
affordable and with better CRI and luminance properties. The flexibility of
LED lighting creates a wide market of opportunity for luminaire manufacturers
to develop new and different products for different applications.
There is unlikely to be any significant short term change within the
distribution structure of LED lighting products. However, it is likely that
there will be greater activity in the traditional channels, reflecting the
wider use of LED products in mainstream markets. In the longer term, it is
likely that electrical wholesalers and retailers will grow share, as will
other internet specialists, as the mainstream domestic market starts to accept
the technology. In the longer term, as the domestic sector starts to adopt the
new technology and with higher volumes of housing required and increasingly
sophisticated, task orientated lighting being used across all markets, LED
lighting will continue to see high volume growth. The market is expected to
grow rapidly from 2013 to 2018, resulting in a market value estimated at
around £1,050 million.
Table of Contents
- 1.1 BACKGROUND
- 1.2 SOURCES OF INFORMATION
2. SUMMARY AND FUTURE PROSPECTS
- 2.1 SUMMARY
- 2.2 FUTURE PROSPECTS
3. ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
4. THE UK LED LIGHTING MARKET
- 4.1 THE OVERALL UK LIGHTING MARKET
- 4.1.1 Market Size & Trends
- 4.1.2 End Users
- 4.1.3 Product Mix
- 4.2 LED MARKET DEFINITION
- 4.3 LED MARKET SUPPLY CHAIN
- 4.4 UK LED LIGHTING MARKET SIZE & TRENDS
- 4.5 LED LIGHTING PRODUCT MIX
- 4.6 KEY MARKET INFLUENCES
- 4.6.1 Construction Output
- 4.6.2 Legislation
- 4.6.3 Energy Consumption
- 4.6.4 Electricity Costs and Average Prices
5. END USE SECTORS FOR LED LIGHTING
- 5.1 LED LIGHTING END USER MIX
- 5.2 HEALTHCARE & EDUCATION LED USE
- 5.3 ROAD AND STREET LIGHTING USE OF LED
- 5.4 OFFICE LIGHTING
- 5.5 RETAIL SECTOR
- 5.6 DOMESTIC USE
- 5.7 OTHER END USE SECTORS
6. SUPPLIERS OF LED LIGHTING
- 6.1 OVERVIEW
- 6.2 LED MARKET SHARES
- 6.3 LED LIGHTING SUPPLIER PROFILES
- 6.4 SPECIALIST LED LIGHTING SUPPLIER PROFILES
7. DISTRIBUTION CHANNELS FOR LED LIGHTING
- 7.1 OVERVIEW
- 7.2 CHANNEL SHARES
- 7.3 DIRECT SUPPLY
- 7.4 ELECTRICAL WHOLESALERS
- 7.5 RETAILERS
- 7.5.1 DIY Multiples
- 7.5.2 Grocery Multiples
TABLES AND CHARTS
- CHART 1 UK LED LIGHTING MARKET 2008-2018 (£M MSP)
- TABLE 2 GDP DATA - 2011-2014 - KEY CONSTITUENT ELEMENTS
- CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 1994-2018
- CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 1995-2018
- TABLE 5 EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND
THE EURO, SPOT RATES
- CHART 6 UK LIGHTING MARKET 2008-2018 (£M MSP)
- CHART 7 UK LIGHTING MARKET MIX BY APPLICATION - DOMESTIC AND NON-DOMESTIC
LUMINAIRES, DOMESTIC AND NON-DOMESTIC LAMPS, CONTROLS ETC 2013 - % BY VALUE
- CHART 8 UK LIGHTING MARKET PRODUCT MIX (LAMPS, LUMINAIRES AND CONTROLS)
2013 - % BY VALUE
- CHART 9 LED SUPPLY CHAIN
- CHART 10 UK LED LIGHTING MARKET 2008-2018 (£M MSP)
- TABLE 11 UK TRADE DATA 2008-2013 - LED EXPORTS/IMPORTS AND
ARRIVALS/DISPATCHES (EU) £M
- CHART 12 UK IMPORTS/ARRIVALS OF LEDS BY MAJOR GEOGRAPHICAL REGION % TOTAL
- CHART 13 UK LED LIGHTING MARKET - PRODUCT MIX BY VALUE 2013
- TABLE 14 CONSTRUCTION OUTPUT FIGURES 2010-2018 (£ BILLION AT CURRENT
- TABLE 15 PHASE-OUT SCHEDULE FOR NON-DIRECTIONAL HOUSEHOLD LAMPS
- TABLE 16 UK ENERGY CONSUMPTION BY USER - ELECTRICITY 2009-2013
- CHART 17 ELECTRICITY GWH CONSUMPTION BY END USER (DOMESTIC, INDUSTRY,
- CHART 18 LIGHTING ELECTRICITY CONSUMPTION BY END USER (DOMESTIC, INDUSTRY,
- CHART 19 LIGHTING ELECTRICITY CONSUMPTION IN BUILDINGS, BY 'OTHERS'
- 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 2009-2013, 2010 = 100
- CHART 22 UK LED LIGHTING MARKET - DOMESTIC & NON-DOMESTIC SECTORS BY VALUE
- CHART 23 PRODUCT MIX - OFFICE LIGHTING ESTABLISHMENT 2013 BY VALUE
- CHART 24 PRODUCT MIX HOUSEHOLD LIGHTING APPLIANCES 2013 % TOTAL UNITS
- CHART 25 PRODUCT MIX INDUSTRIAL LIGHTING ESTABLISHMENT 2013 BY VALUE
- CHART 26 UK LIGHTING MANUFACTURERS BY TURNOVER GROUP (£'000S) 2013
- CHART 27 UK LIGHTING MANUFACTURERS BY EMPLOYEE SIZEBAND 2013
- CHART 28 UK LED LIGHTING MARKET SHARES 2013 BY VALUE
- CHART 29 DISTRIBUTION STRUCTURE FOR LED LIGHTING PRODUCTS
- TABLE 30 LED LIGHTING DISTRIBUTION CHANNEL SHARES 2013 BY VALUE
- CHART 31 ELECTRICAL WHOLESALE MARKET SHARES 2013 BY VALUE % (EDMUNDSON,
REXEL, CEF ETC.)
- CHART 32 DIY MULTIPLES MARKET SHARE 2013 - % BY VALUE