Global demand for lighting fixtures to exceed $175 billion
Global demand for lighting fixtures is projected to increase at a 6.9% annual rate through 2018 to $175.5 billion, bolstered primarily by industrialization efforts in developing nations.
Countries that maintain rapidly growing construction and motor vehicle industries, such as India and China, will experience the fastest gains in lighting fixture demand, according to World Lighting Fixtures, a new study from The Freedonia Group Inc.
Non-portable types lighting fixtures account for the bulk of demand, with 78% of total sales projected in 2018, and will also experience the fastest growth. Indoor and outdoor non-portable lighting fixtures will record similar rates of growth, benefiting from the strong gains in construction spending that are expected in much of the world. Sales will also be boosted as most existing indoor and outdoor non-portable fixtures will either need to be replaced or retrofitted to accommodate LEDs and other advanced light sources.
China is the largest national market for lighting fixtures, accounting for 24% of global sales in 2013. It is also one of the fastest growing, with annual gains of nearly 10% expected through 2018. The country will continue to experience robust growth because of its rapidly expanding construction industry and its status as the world’s largest motor vehicle producer. However, demand in India will increase at the fastest rate, driven by the continuing expansion of its electric grid and modernization of its building stock, as well as by growth in domestic vehicle production.
The US, which was the second largest national market in 2013 with 18% of global sales, is also projected to achieve above average gains through 2018, even as the rest of the developed world posts more moderate growth. Advances in the US lighting fixture market will be largely the result of an ongoing economic rebound. Sales increases in much of Western Europe, Japan, and Australia will be slower, hampered by a long-running shift in vehicle production capacity away from these areas, as well as by a less robust recovery from a weakened economic climate. Still, lighting fixture sales in these areas will benefit from growth in consumer spending levels and construction activity through the forecast period.
The Freedonia Group Inc. is a Cleveland-based market research firm. Edited by Joy Chang, Digital Project Manager, CFE Media, jchang(at)cfemedia.com