- 1 Definition / Scope
- 2 Market Overview
- 3 Key Metrics
- 4 Market Risks
- 5 Top Market Opportunities
- 6 Market Drivers
- 7 Market Restraints
- 8 Industry Challenges
- 9 Technology Trends
- 10 Pricing Trends
- 11 Regulatory Trends
- 12 Market Size and Forecast
- 13 Market Outlook
- 14 Competitive Landscape
- 15 Key Market Players
- 16 Strategic Conclusion
- 17 References
- 18 Further Reading
- 19 Appendix
Definition / Scope
Lighting is the act of illuminating the object through the use of artificial or natural light sources to achieve particular effects. Proper lighting is quite crucial to improve the appearance of the object/area and increase task performance. Light industry is comprised of the companies concerned with the manufacture of a range of products such as light bulbs, tubes, parts, light frames, lamps, and components. On the basis of end-use and type, it is categorized into the following types:
Lighting Market in the United Kingdom is in the growth stage. Its market value has been increased from USD 2.04 billion in 2013 to USD 3.13 billion in 2018. It is growing at the CAGR of 4-5% from 2019-2020 because of the increasing adoption of more energy efficient lighting products.  It is expected to reach USD 3.4 billion by 2020.
The commercial sector holds the largest market share of almost 70% followed by residential and street lighting. The market size of the commercial sector is estimated at USD 2.19 billion in 2018.
By lighting source
- Halogen light bulbs such as incandescent lighting bulbs were started to ban in 2009 and phased out from the United Kingdom in September 2018 and moving towards the more efficient light bulbs as its replacement saves almost 2 pounds per year.
- LED products are estimated to grow by almost 20% annually through 2025 and will increase its market share to 70% by 2020 because of the increasing demand and use of energy efficient lighting products.
|Base Year||2018||Researched through internet|
- Ban on energy inefficient lighting products
In the United Kingdom, energy inefficient lighting products such as incandescent, halogen bulbs are banned. Although it is promoting the market of the LED lighting bulbs, it is the major risk for the manufacturers of the conventional type of bulbs (incandescent, CFL bulbs)
- Highly concentrated market
The lighting market is dominated by just a few top market players in the context of the UK. Almost 75% of the total market is dominated by the five largest suppliers of LED lights.. Top five lighting companies in the UK are Wholesale lighting and electrical, Best LED Lighting, Hill Interiors, Ryness and GWS LED. It might be the risk for the growth of the remaining smaller firms.
Top Market Opportunities
- Improvement in construction output and designs
In the context of the UK, construction output is more than USD 110 billion per annum and is expected to grow at a rate of 1.3% per year. It is likely to increase the demand for lighting products.
- Access to golbal lighting markets
Almost 140 different lighting design practices are available in the lighting market of the United Kingdom which is providing the significant opportunity for the market players to incorporate it in the foreign projects and access the global lighting market.
- Rising awareness about Energy efficient lighting products
The choice of the consumers towards the lighting products is dependent upon their level of consciousness. A market survey conducted in the UK has revealed that 25% of consumers are looking on the internet for advice before buying the lighting products and more than half of them are replacing their lighting materials because of the reason for energy efficiency.  This advice seeking nature of consumer will increase the demand for energy efficient lighting products such as LED lighting technologies, which in turn will promote the growth of its market.
- Increasing demand for LED lighting
After the ban of incandescent light in 2009, the demand for LED lighting is in increasing trend. The demand for LED lighting has grown almost 3.5 times within the time period of 2008-2011 and is expected to grow at the rate of 20% through 2016. In comparison to other lighting types, the market share of LED lighting is expected to reach 70% by 2020. Its increasing demand will raise the UK lighting market.
- Declining price of LED lighting products
The average price of LED bulbs is estimated to be decreased by almost 30-40% from 2015. Because of this, commercial and industrial sectors are looking to replace their previous lighting (fluorescent) bulb with it. As the LED lighting held a significant market share of almost 45%, it will drive the growth of the whole lighting market.
- Increasing the export value of light fittings
The export value of ceiling and wall lighting fittings have been increased by almost USD 191 million from 2008 to 2016  It will also contribute to the growth of the lighting market in the UK.
- Energy efficient lighting technology
The latest energy efficient technologies in the lighting sector such as smart automatic lighting controls, occupancy sensors, etc are creating opportunities for the growth of the lighting market in the UK. For instance, an occupancy-based lighting system saves almost 24% of average lighting energy consumption. It will contribute to the reduction in building power stations and co2 production, which facilitate the government to reach the target of reduction of greenhouse gases emissions by 80% by the year 2050.
- Economic efficiency of LED light:
LED lighting technology is cost-efficient because of less energy consumption. It costs about USD 2.51 a year while incandescent bulbs would costs up to about USD 13.79 electricity a year. This cost efficiency is also driving the demand for LED lighting.
- Electricity consumption
Although a variety of energy efficient lighting materials are being introduced in the market, lighting consumes almost 18% of all UK electricity and consumes 58,000 TWH per year. This can be dropped by 4-6% with the use of more effective lighting controls and energy-efficient lighting. This condition of high consumption of electricity can be obstacles for the growth of traditional lighting system. So, the market players should focus on the production of energy efficient lighting products.
- Long lifespan of LED bulbs
The incandescent bulbs have the only lifespan of 2000 hours when used for almost three hours per day. The LED bulbs last for about 25,000 hours. In comparison, the lifespan of the LED bulbs is quite longer. Because of this, volumes of sales of replacement LED bulbs will decline and might restrain the growth of its market.
- Rising cost of production and price of lighting
At present, through the introduction of energy efficient technologies, the internet of things, and power over Ethernet in the sector of lighting materials, the cost per unit production of lighting articles is increasing. For instance, the price of raw materials such as aluminum, gold wire, copper, etc is increasing. Along with this, the price of the lighting materials is also in an increasing trend. For instance, almost USD 44411 amount has been increased in export value of electric lamps and lighting within the time period of 2011-2017. It will affect the demand for lighting materials as well as create a risk for the growth of this market.
Over the period the time, the lighting industry has undergone the number of drastic changes. The previously used traditional incandescent lamp was replaced by compact fluorescents, nowadays, it is also replaced by LEDs lights. Along with this, lighting technologies are moving towards the improvement of lighting quality with the introduction of whiter light in the commercial sector. The concept of directional and space lighting is also introduced to reduce the cost, carbon emission and save energy. Some of the other technological changes took place in the lighting market are as follows:
- Smart light controls effects: Lighting controls are facilitated with the microprocessor circuit based adjustment of the light intensity using the dimmer and zoning of luminaries with the automatic transition of lighting. This function provides flexibility to the user regarding their visual needs and also helps to reduce the cost related to the energy consumptions.
- Centralized intelligent networked lighting control system: Lighting system can be controlled through the robust software and application residing on a server or cloud.
- Occupancy sensing: It is the device which automatically controls the switch of light on the basis of the space being occupied. They are very suitable in enclosed spaces such as offices, classrooms. It is capable of saving almost 24% of the average lighting energy.
- Time scheduling lighting system: It adjusts the lighting system based on a timed event through the use of microprocessor built into the control system. It is suitable for large and open spaces.
- Daylight harvesting: It uses the photosensor to control the switch of lighting in the response to the available daylight. It can save almost 28% of the average lighting energy.
- Institutional tuning: It maintains the level of lighting on the basis of IES- recommended maintained task lighting level requirements. It can save almost 36% of the average lighting energy consumption.
- Color Tuning: Any type of light color can be produced in the lighting area. It is used for entertainment and commercial signs display purposes.
- Data generative system: It monitors the energy consumption and operating parameters and allow the process of data collection through the use of a digital network. This data can be used for the purpose of maintenance responses, energy consumption patterns, and other purposes.
- Demand response: It involves the reduction of the lighting power either upon request from the power supplier during an emergency event or based on the timing event.
In the United Kingdom, the price of the lighting materials depends upon the type of lighting and company of the products. The cost of some of the luminaries are summarised below:
In the United Kingdom, the Lighting Industry Association is the concerned authority for the regulation of the lighting market in Europe, which was formed due to the merge of the Lighting Association and the Lighting Industry Federation in 2012. It is concerned with both the domestic and decorative lighting industry and commercial and street lighting sector. It provides a range of services such as technical support, laboratory testing services, staff development, etc. for their members. Some of the regulatory trends of the lighting industry in the United Kingdom are as follows:
- Intellectual Property Rights: This right has encouraged the manufacturers to create a wide variety of innovative and intellectual lighting products. It provides economic incentive for their creation, which will promote the introduction of innovation in the lighting industry.
- Energy labeling: According to it, the companies must provide the energy labels and information printed in the product. Its rating ranges from A++ to E. Here, A++ is the most efficient product while E is the least one.
- Ecodesign working plan: All the traditional tungsten filament fixtures are banned to sell because of their inefficiency. All the lighting products sold must meet improved efficiency targets of the government to control CO2 emissions.
Market Size and Forecast
Lighting market in the United Kingdom was valued at USD 3.13 billion in 2018, which was increased from USD 2.63 billion in 2015. It is growing at the rate of 4-5% from 2018-2022. 
- USD 2191 million: Market value of the lighting in the commercial sector
- USD 813.8 million: Market value of the lighting in the residential sector
- USD 125.2 million: Market value of street lighting
- By lighting category
The market value of lighting categories is described in the table below. Here, the electric lamps and lighting fittings are growing annually by 50 million and its market value is estimated as USD 838.8 million while the market value of ultraviolet and infrared lamps is in decreasing trend. It is estimated at USD 25095 million in 2018, decreased from USD 27665 million in 2016. It might be due to the health risks (eye and skin issues) associated with its use.
Lighting Market in the UK will be growing at the rate of 4-5% from 2018-2022. It is expected to reach USD 3.26 by 2019 because of the increasing demand for energy efficient LED lighting. Among all types of lighting, the market share of LED lamps market is expected to grow from 45% in 2016 to 70% in 2020.  Street lighting is expected to grow 1-2% per year and will reach USD 421 million by 2022.
Key Market Players
Short profile of some of the market players
- ABB UK: It is focused on the creation of the most secure power supply and increase productivity in commercial and utility operation. Its sales value worth almost USD 1.26 billion serving across 20 locations in the UK.
- Advanced Lighting Technologies: It is one of the leading manufacturers of lighting materials and finished products which are energy efficient in nature. It provides innovative solutions to decrease energy consumption.
- ASD Lighting: It is a manufacturer of energy-efficient LED luminaires for commercial, industrial and residential applications.
- City Electrical Factors : It is the largest supplier of cable accessories, lamps and tubes, wiring accessories and other lighting equipment in the UK.
- Dar Lighting: It is one of the leading suppliers of high-quality, innovative, and energy-efficient lighting products for both residential and commercial applications.
- Eaton Electric: It is an American company concerned with multinational power management. Its sales value worth USD 21.6 billion globally.
- Medlock Electrical distributors: It is one of the largest electrical wholesalers in the UK. It supplies light, lamps, wiring accessories, cable, circuit protection, and other electrical technologies.
- Polaron control system: It is a manufacturer of an architectural lighting control system which was established in 1970 for the purpose of sustained growth and successful product development.
- Whitecroft Lighting: It is one of the largest manufacturers of commercial lighting solutions providing almost 600,000 luminaries per year.
Lighting market in the United Kingdom is in the growth rate because of the raising consumer consciousness level and introduction of technological innovations in lighting sector. Furthermore, the market players should be concerned with the energy efficient products and introduction of technological solutions in this sector for the sustainability of its growth.
- USD= United States Dollar
- LED= Light Emitting Diodes