The growth of the global lighting fixtures market, revenue-wise, is estimated to touch US$215.29 billion by 2021 end. The market will grow at a CAGR of 6.9% till 2021, according to a Transparency Market Research (TMR) study.
North America will claim the largest revenue from lighting fixtures, which is expected to reach US$64.10 billionn by 2021. The lighting fixtures revenue of the Asia-Pacific region will touch US$82.26 billion by 2021, due to its highly-populated countries and rapid industrialization. On the other hand, China’s revenue in the lighting fixtures market will reach US$45.47 billion by 2021.
The study said that recessed lighting fixtures will lead the market revenue, with a value of US$58.38 billion by 2021.
Market in the hands of local players
However, the trend shows that nearly 90% of the lighting fixtures market is in the hands of the regional players, with the top four global lighting fixtures companies held a only 10.2% of the global market value in 2014, which shows that the market is extremely fragmented.
As a result, the top global players like Philips, Acuity Brands, Hubbel Lighting, and Cooper Lighting, are facing extreme competition, and to beat this competition, they are adding innovative products into the market, and are focusing on increasing their geographical reach,
Revenue-wise, the industrial and commercial sectors dominate the demands for lighting fixtures. By the end of 2021, these two sectors will generate a demand for lighting fixtures worth US$89.93.
Most of the big and small companies across the world, are making efforts to cut down their operations costs, hence switching over to LED lighting. Ceverly, these companies are using their older lighting systems with newer, energy efficient LED lights. The growing demand for LED lighting is also driven by the regulatory pressure on these companies to reduce their emissions and overall power consumption. This is opening up huge opportunities for the lighting fixture players, worldwide.
Complex buying process can slow down sales
Lighting designers, architects, electrical engineers, venue owners are all involved in purchasing lighting fixtures—be it industrial, commercial or residential sectors. All these individual have their own requirements, and their demand varies. The demand for products differ from sector to sector. Manufacturers, therefore, face the problem of catering to so wide range of product/solution demands. They find it a challenge to satisfy multiple user requirements by bulk orders of lighting fixtures. Consequently, the speed at which lighting fixtures move from manufacturers to the consumers has slowed down considerably, restraining the growth rate of individual lighting fixtures companies.