Abstract
The UK Non-Domestic Lighting Equipment Market is defined to include three key product sectors: Lamps, Luminaires and Lighting Controls. Overall market value is estimated at �920m in 2004.
The development of the overall non-domestic lighting market is significantly influenced by trends in industrial and commercial construction and has therefore exhibited slow to moderate levels of growth over the last few years. The retail, entertainment and warehousing sectors have benefited from the consumer spending boom, while the industrial and commercial office sectors have been adversely affected by the recession in manufacturing and an oversupply of office space in London and the South East. While the market has also benefited from government investment in health and education, it has been adversely affected by a growing level of imports from low wage economies such as China and the Far East.
Also impacting upon the market over the last few years has been a growing level of legislation aimed at reducing carbon dioxide emissions. While Part L of the Building Regulations, introduced in 2002, has encouraged modern buildings to maximise utilisation of natural daylight, the requirement for greater energy efficiency has resulted in increased usage of added-value energy saving products and lighting controls.
The downturn in consumer spending since mid 2004 and its negative impact on the retail and entertainment sectors, combined with continued difficulties in the manufacturing sector, is likely to feed through to a market slowdown in 2005. Subsequently the outlook is likely to be one of modest growth, with a steady improvement in the commercial office sector, a significant number of projects in the health and education sectors and infrastructure developments including airport extensions, 'Crossrail', the cross London rail link, and a number of major PFI street lighting schemes. In the medium to longer term, the market will also receive a boost from developments in connection with the 2012 Olympics.
Luminaires account for the largest share of the non-domestic lighting market at approximately 61%. Lamps have a share of around 28%, with lighting controls accounting for the remaining 11%.
The lamps sector is valued at around �258m in 2004 and has exhibited more steady levels of growth than other sectors of the non-domestic lighting market, being less dependant upon economic factors due to the significant ongoing demand for replacements. Discharge lamps represent the largest subsector with 32% of the lamps market, followed by Tungsten Halogen with 29%, Compact Fluorescents (15%), Fluorescent Tubes (12%) and Incandescent (4%). Fibre Optics and LED's are currently experiencing rapid growth, however at present their share of the market is small, accounting for some 4% each.
There are a wide variety of luminaires used in non-domestic applications, with this sector valued at some �560m in 2004. Growth in this sector is more volatile than in the lamps sector, reflecting its dependence upon commercial and industrial new build and RMI. Luminaire sales have also been adversely affected in recent years by the highly cost-competitive nature of the electrical contracting market, driving the specification of cheaper 'own brand' and imported ranges. However, the increasing emphasis on appearance in the commercial sector has encouraged the use of more expensive design oriented ranges.
The lighting controls and components sector has experienced good levels of growth in recent years to a value of around �102m in 2004. The sector has benefited in particular from increasing legislation relating to energy efficiency and the impact of rising fuel bills. The majority of commercial office installations now incorporate lighting control systems, however there remains considerable potential for further growth reflecting the continuing drive to reduce carbon dioxide emissions and the relatively low penetration of installations in some other sectors such as retail.
The distribution of non-domestic lighting equipment is dominated by wholesalers and distributors who account for around 62% by value, with this channel comprising general electrical wholesalers/distributors and specialists who supply primarily lighting equipment. Direct supply accounts for an estimated 29%, with other channels of distribution - including DIY multiples and builders merchants - accounting for approximately 9%.
The non-domestic lighting market is characterised by two polarised groups of suppliers, with a small number of large manufacturers, most of whom are active across a wide range of products sectors and a large number of small players, the majority of whom are active in just one or two niche subsectors. Major players include Zumtobel Group Companies, Phillips, Osram, SLI, GE Lighting, Cooper Lighting Security Ltd and Fitzgerald.
Key end use application areas for non domestic lighting equipment include commercial offices (21%), entertainment & leisure (17%), healthcare (17%), education (14%), retail (13%), industrial (9%) and infrastructure (5%), with 'other' applications such as prisons and the MOD accounting for 4%. Sectors likely to offer the greatest potential for growth over the next few years include healthcare, education, infrastructure and commercial offices.
Table of Contents
- 1. INTRODUCTION 6
- 2. SUMMARY 7
- 3. ECONOMIC ENVIRONMENT 10
- 3.1 GDP 10
- 3.2 INFLATION & INTEREST RATES 11
- 3.3 STERLING 12
- 3.4 CONCLUSIONS 13
- 4. THE MARKET 14
- 4.1 DEFINITION 14
- 4.2 MARKET SIZE AND OVERVIEW 15
- 4.3 INDUSTRIAL AND COMMERCIAL CONSTRUCTION 20
- 4.4 LEGISLATIVE INFLUENCES 26
- 4.4.1 Capital Incentive Allowance Scheme Relating To The Climate Change Levy 26
- 4.4.2 Energy White Paper 27
- 4.4.3 Building Regulations 27
- 4.4.4 The Climate Change and Sustainable Energy Bill 28
- 4.4.5 The Atex Directive 29
- 4.4.6 IEC 61508 29
- 4.4.7 Waste Electrical and Electronic Equipment (WEEE) Legislation 29
- 4.4.8 The Clean Neighbourhoods and Environment Bill 31
- 4.4.9 The Disability Discrimination Act 31
- 4.4.10 Other 32
- 4.5 SECURITY CCTV 32
- 4.6 IMPORTS/EXPORTS 34
- 4.7 MIX OF LIGHTING EQUIPMENT MANUFACTURERS 37
- 4.8 MIX OF SALES BY PRODUCT SECTOR 38
- 5. PRODUCTS 39
- 5.1 LUMINAIRES 39
- 5.2 LAMPS/BULBS 41
- 5.2.1 Incandescent 44
- 5.2.2 Tungsten Halogen 45
- 5.2.3 Fluorescent Lamps 46
- 5.2.4 CFL's (Compact Fluorescent Lamps) 47
- 5.2.5 Discharge Lamps 48
- 5.2.6 Fibre Optic Light 49
- 5.2.7 Light Emitting Diodes (Opto-Electronic Solid State Illumination) 50
- 5.2.8 Organic Light Emitting Diodes/Polymeric Light Emitting Diodes 51
- 5.2.9 Induction lamps 52
- 5.2.10 Other Light Sources 53
- 5.2.11 General 54
- 5.3 LIGHTING CONTROLS AND COMPONENTS 54
- 6. SUPPLIERS 59
- 6.1 SUPPLY STRUCTURE AND MARKET SHARES 59
- 6.2 MAJOR PRODUCT SUPPLIERS 61
- 6.3 LAMP SUPPLIERS 67
- 6.4 LUMINAIRE SUPPLIERS 68
- 6.5 EMERGENCY LIGHTING SUPPLIERS 69
- 6.6 STREET, AMENITY & OUTDOOR LIGHTING SUPPLIERS 70
- 6.7 FIBRE OPTIC LIGHT 72
- 6.8 LED, OLED, AND DEVELOPMENTS 73
- 6.9 BALLASTS SUPPLIERS 74
- 6.10 LIGHTING CONTROL SYSTEMS SUPPLIERS 75
- 7. CHANNELS OF DISTRIBUTION 78
- 7.1 SHARE OF SALES 78
- 7.2 WHOLESALERS 79
- 7.3 SUPER DISTRIBUTORS 81
- 7.4 BUYING GROUPS 82
- 7.5 PRE-PACKERS 83
- 7.6 THE ELECTRONIC COMPONENT DISTRIBUTORS 83
- 7.7 E-COMMERCE 84
- 7.8 SPECIALIST WHOLESALERS 84
- 7.9 DIRECT SUPPLY AND 'OTHER' CHANNELS 85
- 8. END-USE MARKETS 86
- 8.1 COMMERCIAL BUILDINGS/OFFICES 87
- 8.2 RETAIL 90
- 8.3 ENTERTAINMENT & LEISURE 94
- 8.4 HEALTHCARE 99
- 8.5 EDUCATION 101
- 8.6 INDUSTRIAL & WAREHOUSING 103
- 8.7 INFRASTRUCTURE 107
- 8.7.1 Roads and Street Lighting 107
- 8.7.2 Rail 109
- 8.7.3 Airports 110
- 8.7.4 'Other' Infrastructure 111
- 8.8 OTHERS 112
- 9. FUTURE PROSPECTS 114
TABLES AND CHARTS
- CHART 1 THE UK NON-DOMESTIC LIGHTING EQUIPMENT MARKET 1998-2008 Κ MSP 7
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1990-2008 12
- TABLE 3 EXCHANGE RATE FLUCTUATIONS 2000-2007 - THE POUND STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 13
- TABLE 4 UK NON-DOMESTIC LIGHTING EQUIPMENT MARKET 1998-2008 (Κ MSP) 15
- TABLE 5 CONTRACTORS OUTPUT - NEW WORK AND RMI NON HOUSING - CURRENT PRICES (Κ) 1997-2005 20
- TABLE 6 CONTRACTORS OUTPUT - COMMERCIAL SECTOR NEW WORK 1997-2005 EST - CURRENT PRICES (Κ) 22
- TABLE 7 NEW ORDERS OBTAINED BY CONTRACTORS 1997-2005 CURRENT PRICES (Κ) 25
- TABLE 8 UK CCTV MARKET (END-USER PRICES) ? 1998?2008 (Κ) 32
- TABLE 9 IMPORTS AND EXPORTS OF LIGHT FITTINGS AND FIXTURES 2001-2004 - Κ 35
- TABLE 10 SOURCE/DESTINATION OF IMPORTS/EXPORTS 2004 - Κ 36
- CHART 11 MIX OF LIGHTING EQUIPMENT AND LAMP MANUFACTURERS - BY TURNOVER SIZEBAND 2004 37
- CHART 12 UK NON-DOMESTIC LIGHTING MARKET BY MAIN PRODUCT SECTORS 2004 38
- TABLE 13 UK NON-DOMESTIC LUMINAIRES MARKET 1998-2008 Κ MSP 40
- TABLE 14 THE UK NON-DOMESTIC LAMPS MARKET 1998-2008 Κ MSP 42
- TABLE 15 PRODUCT MIX BY LAMP TYPE BY VALUE - UK NON-DOMESTIC LAMPS MARKET 2004 43
- TABLE 16 UK LIGHTING CONTROLS AND COMPONENTS MARKET 1998-2008 Κ MSP 56
- TABLE 17 NON DOMESTIC LAMPS, & LUMINAIRES, CONTROLS AND COMPONENTS MANUFACTURERS MARKET SHARE BY VALUE 2004 59
- TABLE 18 NON-DOMESTIC SALES OF LIGHTING EQUIPMENT BY CHANNEL OF DISTRIBUTION - 2004 BY VALUE 78
- CHART 20 ELECTRICAL WHOLESALE MARKET SHARES 2004 BY VALUE 79
- TABLE 21 END-USE APPLICATIONS FOR NON-DOMESTIC LIGHTING EQUIPMENT - 2004 86
- CHART 22 TAKE UP AND AVAILABILITY OF COMMERCIAL FLOOR SPACE IN THE CITY OF LONDON 1995 - 2004 88
- TABLE 23 PROJECTED GROWTH IN OFFICE BASED JOBS AND DEMAND FOR OFFICE FLOORSPACE IN LONDON BETWEEN 2001 AND 2016 89
- TABLE 24 TOTAL RETAIL SALES IN GREAT BRITAIN - 2000-2005 - Κ 91
- TABLE 25 ENTERTAINMENT & LEISURE FACILITY CONSTRUCTION - CONTRACTORS OUTPUT FOR NEW WORK (Κ) AT CURRENT PRICES 1998 - 2005 94
- CHART 26 NUMBER OF UK HOTELS AND RESTAURANTS 1998 - 2005 95
- TABLE 27 NHS CAPITAL EXPENDITURE 2003/04 - 2007/08 (ｙN). 101
- TABLE 28 INVESTMENT IN SCHOOL BUILDINGS 1999/00 - 2007/08 - Κ 102
- TABLE 29 TOTAL MANUFACTURING BUSINESS INVESTMENT Κ AT CURRENT PRICES 104
- CHART 30 CONTRACTORS OUTPUT FOR WAREHOUSING - NEW WORK AND RMI - 1998-2005 - CURRENT PRICES Κ 106
- TABLE 31 PFI/PPP STREET LIGHTING SCHEMES SIGNED IN 2003/2004 108
