Based on financial data from more than 350 lighting manufacturers and retailers, the report presents a broadly positive forecast for the majority of key product sectors within the lamps and luminaires market. However, developments in optoelectronics and diode technology continue to result in LED lighting gaining share from other lighting product sectors, representing a fundamental shift in the UK lighting market. In response to the research, MTW’s director, Mark Waddy said, “The traditional hierarchy of the market continues to be challenged by the semi conductor industry who have consistently gained share of the UK lighting market in recent years. This trend is set to continue as Haitz’s law becomes increasingly relevant with greater efficacy levels and lower costs in LED lighting enhancing both product and market development opportunities.”
However, whilst the 450 page report highlights a number of opportunities for lighting manufacturers and retailers to exploit, MTW also sound a note of caution by identifying several key threats to the industry which are likely to dampen value growth in 2014 and beyond. One such threat is the continued incidence of counterfeit products entering the UK market, particularly LED modules, which not only restricts value and volume growth but also erodes end user confidence in the technology as well as the possible safety implications. Whilst there has been a growing impetus to combat plagiarism by many UK lighting suppliers, the growth in drop-shipping and internet selling continues to facilitate this activity.
Nevertheless, the over-riding tone of MTW’s report is optimistic with growth forecast for a large number of the key end use sectors for domestic and non-domestic applications. The report also provides a share by distribution channel and analyses the independent retail sector in detail since 2007 with forecasts to 2017. The research found that more than 40% of lighting retailers experienced revenue growth in the last 12 months, though debt levels have continued to rise as retailers have sought to differentiate themselves from larger multiples in order to reduce the threat of price competition. The analysis also concludes that more than 60% of retailers have a good-fair credit rating, suggesting that those retailers that weathered the recent economic storm now stand in good stead to take advantage of improving market conditions.
The full 450 page report, which also includes an optional retailer mailing list & 4 year financial spreadsheets for 360 key lighting product suppliers is available to purchase from £565 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324.