The UK lighting market was estimated to be worth around £2 billion in 2015, an increase of thirteen percent on the previous year.
The spike in value is being attributed to the continuing popularity of LED technologies, as well as the progression of a number of finance schemes that allow for lighting replacements to be paid for from future energy cost savings.
Despite market forecasts being revised downwards following the EU referendum and the expected repercussions of leaving the European Union when it happens, the underlying trends still appear to be positive.
Nevertheless, in the medium to longer term, it is expected that the aftershocks of Brexit will start start to be felt.
'Market prospects have changed markedly with the result of the EU referendum, which is forcing companies and investors to consider their financial commitments, and the construction industry was already showing signs of slowing growth in the first half of 2016,' commented Keith Taylor of AMA Research.
'These deteriorating economic and construction trends are likely to affect the lighting market and while there has been good growth in the last two years, the next two to three years are expected to be much more constrained,' Taylor concluded.
The key driver for the whole lighting market remains LED lighting, which has gained a significant share in the non-domestic sector in recent years. However, despite the increase in demand there remains an oversupply to the global market, especially from developing countries and China. As a result the global prices of LEDs fell significantly in 2015.
The retro-fitting of efficient lamp products has also been crucial to growth rates within the market over the last two to three years. This trend is, however, now having less effect on market value, as the price of replacement lamps has fallen.
The non-residential lighting sector has not had the momentum of the domestic sector in the last couple of years but has started to pick up, especially in the commercial office sector. It is expected though that this area will start to slow down considerably as investors assess the risk factors associated with Brexit.
- The current state of the lighting industry will be discussed at this year's Lux Live. The exhibition will take place at ExCeL London on Wednesday 23 November and Thursday 24 November and entrance is free if you pre-register at www.luxlive.co.uk