Lighting industry comprises companies that operate by manufacturing a range of products including electric light bulbs, tubes, parts and components. The main product segments in the industry are lighting fixtures and control gear, which account for 82% of the lighting market. These segments are largely driven by building and construction activity and tend to be relatively volatile. Lighting components that include lamps, light bulbs, electrical elements and light frames account for approximately 15% of the overall market revenue, and neon and electronic signs account for 3%. The lighting components segment is in decline, as imports have a strong hold. Demand for neon and electronic signs is affected by advertising spending levels and competition between electronic signs and other forms of advertising.
Basically, lighting products are found throughout homes, workplaces and public spaces. The major two key trends that are shaping the lighting market are, the need for energy efficiency, and the emergence of solid-state lighting. Lighting presents a clear opportunity to save energy and slow climate change, as it accounts for about 19% of global electricity consumption. Innovative lighting solutions can save energy while also improving the quality of light.
There is a significant differences in LED technology versus other lighting technologies which finally majority of the consumers as well as industries have coped up with, and LED is expected to lead to a fundamental disruption of the lighting industry along the entire value chain. Standard lighting approaches are being challenged by entirely new possibilities enabled by LEDs, such as design flexibility, or the ability to dynamically change the color temperature of light.
Current Trends in Lighting Industry
Globally, as the rate of LED penetration in residential lighting is somewhat slower than the traditional lighting solutions and general-lighting segments, the residential LED lighting market is expected to be worth over $27 billion by the end of 2020. Architectural lighting has started to be an early adopter of LED lighting, especially in the recent and latest advancements in real estate, consumer taste and overall awareness of environmental friendly solutions in consumption of energy sources, and also due to more benefits such as color control, high efficiency, and economical. Therefore, it is expected to see a mammoth 85% LED penetration by the end of 2020 across the developing and developed nations. Rapid growth in LED penetration is also expected in hospitality, commercial store, and outdoor-lighting applications.