1 July 2016

LED lamps and luminaires growing from 28.6% of lighting revenue in 2015 to over half by 2019

Global revenue for lighting equipment grew by 4.6% in 2015, estimates IHS Inc through its Lighting Intelligence Service. This is a slightly lower growth rate than 2014's 4.8%. However, behind this overall growth rate are two separate, but interlinked, stories.

First, the lamp market revenue grew 4% in 2015, which was lower than 2014's 7.3% but higher than previous IHS revenue forecasts through 2023. As the lamp market continues to transition to LEDs, there are two effects combining to mute future revenue growth: an overall decline in lamp shipments, and price erosion of LED lamps. As users switch to LED technologies that have much longer lifespans than traditional technologies, fewer replacement lamps are required, resulting in lower shipment levels. As prices for LED lamps fall, manufacturer revenue will also begin declining in 2019.

Secondly, luminaire revenue grew 4.8%, which was higher than 2014's 3.9%. 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, forecasts IHS.

New global and regional market statistics, forecasts and market share estimates have been added to the IHS 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 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, accounting for almost 30% of the global market in 2015.

Although LED lamps and luminaires accounted for only 7.8% of unit shipments, they comprised 28.6% of revenue in 2015. Also, this is expected to rise to more than half of all lighting market revenue by 2019, concludes the report.

Tags: LED market Lighting market

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