WELLESLEY, Mass.`, July 17, 2018 (GLOBE NEWSWIRE) — Stronger government regulations, rapid technological advancements, declining LED prices and reduced payback periods are driving growth in the global lighting market, according to a report by BCC Research.
The industry is expected to see a compound annual growth rate (CAGR) of 5.2% through 2022, when it is expected to reach $48.3 billion, according to the report General Lighting: Global Markets to 2022.
Major players in the market include Philips Lighting, Acuity Brands, Panasonic and General Electric, among others.
- The residential sector will lead in both growth and size, with an estimated 2022 value of $15 billion and a CAGR of 5.7%. Offices will have a 2022 value of $12.5 billion and a CAGR of 5.4%.
- By system type, luminaires will lead the market by both size and growth, with a 2022 estimated value of $22.6 and a CAGR of 5.8%. Control components will see a CAGR of 5.5% and fixtures will see a CAGR of 4.2%.
- The Asia-Pacific region will dominate the compact fluorescent lamps market by growth, with a CAGR through 2022 of 7.9%, although North America will lead by size, with an estimated 2022 value of $2.7 billion, followed by Europe at $2.3 billion.
“The global general lighting market is currently going through a substantial growth phase, with industry participants striving to meet the fundamental demand for a universal solution,” wrote report author Sinha G. Gaurav. “Such a universal solution is expected to meet the need of interoperability of different applications that at the same time should be easy to use and install.”
Market Challenged by High Purchase Prices and Highly Competitive Atmosphere
While newer lighting products such as LEDs and OLEDs are more efficient than past technologies, they have a higher initial purchase price; price consciousness by consumers can mean delayed purchasing. Meanwhile, the market is vast and well-established and is also flush with products. Brand loyalty is low, meaning companies must differentiate themselves by lowering prices and advertising, which are two factors eating into profits.