UK lighting market peaked at £2 billion, says analyst

The UK lighting market achieved a sales peak of £2 billion in 2008 before falling back 12 per cent last year to £1.7 billion, the business sector analyst MBD has reported.

It is predicting a further 1 per cent fall this year, followed by a sustained recovery from 2011. The market in 2009 was a five year low at £1754.6 million. This reflects the adverse economic conditions in the year, which reduced construction output and dampened demand for lighting equipment.

The growth of 3 per cent in 2008 - which took sales to an all-time high of £1994.6 million - can be attributed to expenditure by the Labour Government on health and education projects. Furthermore, demand for energy-efficient light bulbs in the latter part of the review period has also been driven by the Labour Government’s CERT programme, which resulted in energy suppliers sending out some 224 million lamps.

The market is expected to continue to face difficult trading conditions during 2010, although the wider economic climate is expected to improve. MBD anticipates the a decline of 1 per cent in real terms during this year. In 201, demand is expected to recover as construction output, in particular in the residential sector, is anticipated to return to stronger growth. Between 2011 and 2014 annual growth levels are projected to remain moderate, oscillating between 1 per cent and 3 per cent. By 2014, the value of the lighting equipment market is anticipated to increase by a cumulative 8 per cent in real terms compared with 2009, to a peak of £1900.3 million (at 2009 prices).

MBD says the bulb ban has provided the opportunity for further substantial growth for energy efficient products such as flourescent, halogen lamps and LEDs. Product innovation in the area of energy efficiency is likely to have a positive effect on demand for both domestic and non domestic applications.

It says halogen lamp sales will replace GLS and reach annual sales of £86.5 million in 2014 (at 2009 prices), representing a significant increase of 75 per cent compared with 2009.

• The UK Lighting Equipment Market Development Report is available from MBD at £600 www.mbdltd.co.uk

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