Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A light fixture or light fitting is an electrical device containing an electric lamp that provides illumination. The primary components of a lighting fixture include a lamp socket, for holding purpose, and a fixture body. Lighting fixtures with an electrical lamp are termed as a luminaire. Furthermore, lighting fixture is also comprised of electric ballast, reflectors, aperture, and an outer shell, which acts as a protective cover for the electric lamp. Over the years, lighting fixtures have evolved from conventional lighting technology and fluorescent lamps to energy-efficient lighting technology such as LED lamps.
The global lighting fixtures market is estimated to account for US$ 349.92 Bn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Rapid transition from conventional lighting technology to advanced lighting technology is expected to drive growth of the global lighting fixtures market during the forecast period
The global lighting industry is rapidly moving from conventional lighting technology such as incandescent and fluorescent lighting to advanced and energy-efficient LED lighting technology. Strict regulatory norms on energy consumption and rising consumer awareness regarding energy efficiency have led to a significant increase in demand for advanced lighting fixtures. Furthermore, the demand for better lighting including lighting distribution, color temperature, and color consistency is expected to drive growth of the market during the forecast period.
- High growth in construction industry is expected to propel the global lighting fixtures market growth over the forecast period
High demand for lighting fixtures is attributed to increase in construction activities worldwide, especially in emerging economies such as Africa, Latin America, and Asia Pacific. This is owing to increasing investment in construction industry leading to accelerated infrastructure development in public, commercial, residential, and utility sectors. Thus, these factors are expected to propel the global lighting fixtures market growth over the forecast period.
APAC held dominant position in the global lighting fixtures market in 2019, accounting for 38.2% share in terms of value, followed by North America, Europe and RoW respectively.
Figure 1: Global Lighting Fixtures Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
- High initial investments are expected to hinder the global lighting fixtures market growth over the forecast period
Installation of lighting fixtures requires high initial investment. Advanced lighting fixtures such as LED lighting fixtures require high cost as compared to incandescent or fluorescent lighting fixtures. As a result of this, customers are unwilling to replace conventional lighting fixtures with advanced technologies, which in turn, is expected to hinder the global lighting fixtures market growth in the near future.
- Complex purchasing decision in lighting fixtures industry is expected to hamper the global lighting fixtures market growth during the forecast period
The purchasing decision of lighting fixtures is not made by end users alone though it involves different professionals including architects, lighting designers, and electrical engineers. The involvement of different professionals has led to the purchasing process being made complex, which in turn is restraining the growth of the lighting fixtures market. Hence, these factors are expected to restrict the market growth over the forecast period.
- Replacement of conventional fixtures with advanced fixtures can provide major opportunities
Retrofitting of conventional fixtures with advanced lighting fixtures is a major growth opportunity. These lighting fixtures are designed for optimal performance. Traditional lighting source technologies such as incandescent and fluorescent lighting are gradually phased out. Furthermore, advent of advanced lighting source technologies such as LED and OLED are aimed at reducing energy consumption, which boosts the demand for retrofitting activities. Increasing demand for advanced lighting is simultaneously opening new avenues for the lighting fixture manufacturers due to the installation of high-end advanced lighting fixtures that are retrofitting traditional lighting fixtures.
- Development of wireless technology for LED lighting solutions can offer major opportunities
Major companies in the market are focused on offering wireless technology in LED lighting solutions. Wireless LED solutions can be operated with smartphones, offering enhanced efficiency and energy savings. Thus, market players can capitalize on opportunities by providing novel solutions in the market and gain a competitive edge.
Figure 2: Global Lighting Fixtures Market Value (US$ Bn), 2017 - 2027
The global lighting fixtures market was valued at US$ 186.30 Bn in 2019 and is forecast to reach a value of US$ 349.92 Bn by 2027 at a CAGR of 8.3% between 2020 and 2027.
- Product research and development is a major trend in the market
Key players involved in the market are focused on research and development activities, in order to innovate novel products. For instance, in May 2015, Acuity Brands Inc. launched complete lighting solutions powered with integrated LED lighting and control systems. Furthermore, Cooper Lighting LLC launched Halo ALLSLOPE light-emitting diode (LED) downlight system. This new product is specifically designed for slope ceiling applications in the residential, hospitality, retail, and institutional sectors. In October 2015, Juno Lighting Group introduced AccuLite ALX-Series LED high bay luminaires.
- High demand for smart homes is another major trend
The demand for smart homes is increasing rapidly, especially in developed countries such as the U.S, Canada, France, Germany, and the U.K. These smart home projects are incorporating smart lights with wireless technology and Wi-Fi-connected solutions. Moreover, there is high demand for motion-operated LED lights that save energy as well as costs.
Major companies operating in the global lighting fixtures market are Acuity Brands, Inc., Zumtobel Lighting GmbH, Cooper Lighting, LLC, Panasonic Corporation Eco Solutions Company, General Electric Company, OSRAM Licht AG, Koninklijke Philips N.V., LSI Industries Inc., Juno Lighting Group, and Hubbell Lighting, Inc.
- Major companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in September 2019, Acuity Brands Lighting Inc., a subsidiary of Acuity Brands, Inc., acquired The Luminaires Group, a major provider of specification-grade luminaries.
- Key players in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in June 2017, OSRAM Licht AG acquired LED Engin Inc., a lighting solutions developer.