European market for lamps and lighting systems

The European market for lamps and lighting systems is continuing to grow. Sales already reached US $ 7.64 bn last year, and market consultants Frost & Sullivan are reckoning with a steady increase to US $ 8.89 bn by 2008. Consequently, according to a new analysis, this virtually mature market offers spectacular opportunities for protagonists who are prepared to develop innovative products or to tap into new geographical regions.
The chief factors for growth mentioned in the analysis are innovations in the sphere of design and performance, and progress in the area of energy-saving lamps. According to Paul Alexander, research analyst at Frost & Sullivan, the heightened need for security and protection against vandalism is contributing to increased investment in efficient lighting systems by both private households and the public sector. Customers are at the same time fundamentally prepared to pay more money for high quality products.
Cheap imports restraining market growth
At the moment still greater market growth is being prevented by factors such as cheap imports from the Far East and the saturation of certain sectors, including that for conventional light-bulbs. Yet another obstacle has resulted from the budgetary limitations caused by the general flatness of the economy.
Lights bring highest sales
The product markets identified by the study as those showing the greatest potential are the areas of display and decorative lights, fluorescent lamps and HID lamps. The lamp market already generates the lion’s share of the market at 65.8 per cent of sales. Fluorescent lamps are in second place. This sector is profiting from the clear tendency towards replacing conventional bulbs with CFLs (compact high-performance fluorescent lamps). Technical improvements such as the development of T5 fluorescent lamps will provide further impulses for growth.
Demand for compact halogen lamps
The volume of sales in the market for HID lamps is being boosted by the rising demand for new, compact halogen lamps and by the changeover from low-pressure sodium lamps to the high-pressure models. Frost & Sullivan presume that this development will continue until the end of the period under consideration (2008), since halogen lamps will tend to be installed more and more frequently, especially in the living and commercial areas.
Germany is still holding its own as the largest national market in Europe. Here the sector profits from the strength of all its client markets.
In summary…