Brighter-looking future for lighting market

Just 0.4 per cent growth was recorded in the lighting market over the period 2002 to 2003. At least some cause for optimism is provided by sub-sections like the expanding lighting controls systems segment and the stable lamp segment, which together make up for the falling demand for luminaires. According to a new analysis from management consultants Frost & Sullivan, the growth of the market as a whole will probably depend in the last resort on the ability of companies to develop technically upmarket and innovative products.
In the years 2002 to 2003 the market suffered from a tendency towards saturation, decreasing demand and falling prices. Sales were down, especially because of the lack of growth in the building and construction industry, the most significant user sector, and reduced public spending. Through the flood of cheap imports from the Far East, which target the lower end of the market, the pressure on prices continued to grow. And this tendency was still further reinforced by the price-cutting policies initiated by European manufacturers in their efforts to react to the situation.
Energy savings as a selling point
The demand for premium products was at the same time influenced by poor growth in the global marketplace. However, the trends point towards a recovery in the medium term. There is a strong demand for energy-saving equipment already, and the sale of more technically sophisticated products should see more dynamic growth in the next four to five years.
Energy-saving lamps and LED technology are bringing momentum to the lighting market.
José Melero-Mart, industry analyst at Frost & Sullivan and author of the analysis, is convinced that, “Since the prices in the lower end of all market segments are weakening, only product innovation and differentiation can open up new perspectives for companies.”
As co-author Gaia Nocchi added, “If the future for expensive hi-tech products is also to be found in innovation, as the recent success of energy-conserving technology has demonstrated, the manufacturers must act accordingly by orienting their output to demand, introducing new products at sensible prices, providing users with appropriate information, and carefully explaining to them the advantages of modernisation.”
Trendy energy-saving lamps
The share of overall market sales attributable to bulbs and tubes is expected to expand, based on steady demand and the hoped-for rise in prices through the introduction of new technology. Continuous product…