The top four lighting fixtures companies in 2014 held a mere 10.2% of the global market value in 2014, pointing to an extremely fragmented market, reports Transparency Market Research (TMR) in a new study. Nearly 90% of the market is in the hands of regional players and the key players Koninklijke Philips N.V., Acuity Brands, Inc., Hubbel Lighting, Inc., and Cooper Lighting, LLC are mainly focusing on increasing their geographical reach and adding innovative products into the market.
The booming consumption rate of LED lighting and energy efficient lighting technology is providing a considerable scope for the key companies to grow even faster. According to TMR, the scope of applications for lighting fixtures does not vary much for each region, allowing a generalized pattern of growth for all the regional players in this fragmented market.
Industries Move to LED Lighting, Offer Ample Opportunities to Lighting Fixture Players
“Most companies around the world, regardless of size, are doing their best to cut down operations costs as much as possible. The most common method that the companies are currently using is to switch their older lighting systems with newer, more efficient ones,” explains a TMR analyst.
Companies are thus switching their conventional lamps and lightings that use fluorescent or incandescent lighting, promoting the demand for lighting fixtures. The demand for LED lighting is also driven by the increasing regulatory pressure on companies to reduce their emissions and overall power consumption.
View exclusive Global strategic Business report: http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=6281
Complexity of Buying Process Can Slow Down Lighting Fixture Sales
Electrical engineers, lighting designers, architects, and finally the venue owners are all highly involved in the entire procedure for purchasing lighting fixtures in most sectors. Their individual level of involvement may differ from sector to sector, but the importance of each of their decisions does not. This results in a complex procedure where multiple user requirements need to be fulfilled by bulk orders of lighting fixtures. As a result, the rate at which lighting fixtures move from manufacturers to end-users is slowed down considerably, restraining the growth rate of lighting fixtures companies.
The problem is further complicated by the high initial investment required to set up lighting fixture production and supply processes.
APAC Lighting Fixtures Demand Expected to Rise
The revenue generated globally through lighting fixtures is expected to reach US$215.29 bn by the end of 2021. This market is expected to progress at a CAGR of 6.9% between a forecast period from 2015 to 2021. Owing to its high-population-density countries and the rapid industrialization of emerging economies, the Asia Pacific region is expected to reach US$82.26 bn in lighting fixtures revenue by 2021. It is expected to consistently lead the market between 2015 and 2021.
Of the various application sectors that require lighting fixtures, the industrial and commercial sectors have constantly dominated the demand by revenue. By the end of 2021, these sectors will collectively generate a revenue of US$89.93 for lighting fixtures players globally.