June 30, 2016: With the global lamp market shifting its focus to LEDs, the market witnessed price erosion of LED lamps and reduction in lamp shipments as a whole .
Majority of the customers are willing to changeover to LED technologies as they offer longer lifespan than conventional technologies. This means that less replacement lamps will be required which leads to reduced shipment levels.
Reasons for the demand
Global revenue for lighting equipment, therefore, grew by 4.6% in 2015, according to estimates by IHS’s Lighting Intelligence Service. This rate of growth is a little less than that of 2014, when revenue grew 4.8%. There are two reasons behind this:
First, the lamp market revenue grew by 4% in 2015, which was lower than the 7.3% revenue growth in 2014, but higher than previous IHS revenue forecasts through 2023. As costs for LED lamps drop, manufacturers’ income will also start to decline in 2019.
Second, luminaire revenue grew by 4.8%, which was higher than the 3.9% revenue growth in 2014. The luminaire revenue growth is likely to continue over the forecast period, which will not be the case for the lamp market. This growth will come from LED integrated and LED replacement luminaires, which will see continued growth in both revenue and shipments through 2023.
According to the report, the supply base for LED lamps and non-LED lamps became more fragmented in 2015, with the top 10 manufacturers falling from 54.8% to 41.4% of the market for non-LED lamps, and falling from 55.1% to 50.2% of the market for LED lamps.
In contrast to the lamp market, the supply base for LED luminaires was more consolidated. The chief vendors accounted for 33.5% of the global market in 2015, up from 29.6% in 2014.
As China accounted for nearly 30% of the global lighting market in 2015, it is predicted to have been the biggest regional market for lighting equipment.
Even though LED luminiares and lamps accounted for a mere 7.8% in unit shipment in 2015, they made a revenue growth of 28.6%. Industry experts believe that over 50% of the lighting market will comprise of LED luminaires and lamps by 2019.