Lighting Fixtures Demand to Reach $21.9 Billion in 2014

Demand for lighting fixtures in the US is forecast to grow 4.8 percent per annum to $21.9 billion in 2014.  This pace represents an acceleration from the weak lighting fixture demand increase that occurred between 2004 and 2009.  Going forward, the fastest gains are expected to be generated by the motor vehicle and residential markets for lighting fixtures.  In both of these markets, a recovery in activity from depressed 2009 levels will spur demand for lighting fixtures to increase at double-digit annual rates.  These and other trends, including market share and product segmentation, are presented in Lighting Fixtures, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The motor vehicle market is projected to be the fastest growing source of demand between 2009 and 2014, doubling in size over that period.  Nearly all of this growth is attributable to the recovery of domestic motor vehicle production, which in 2009 declined to its lowest level in half a century.  Because of the strong growth in the motor vehicle market, vehicular lighting fixtures are forecast to be the fastest growing lighting fixture product type through 2014. 

The residential market for lighting fixtures is forecast to be the second fastest growing through 2014, as it rebounds from the losses it incurred between 2004 and 2009.  The majority of this growth will be concentrated in new single-family applications, as housing completions recover from the depressed 2009 level.  Despite the strong growth forecast, residential demand for lighting fixtures in 2014 will remain below its 2006 level, when housing construction peaked.

Throughout every major market segment, products that reduce the energy consumption of lighting will offer the best prospects for growth.  Much of this can be attributed to regulations banning the future sale of less energy-efficient lighting products.  The commercialization of light-emitting diode (LED) lighting is also having a significant impact on the industry.  LEDs are longer-lived and more energy-efficient than incandescent lamps but currently only account for a small share of demand.  LED-based lighting fixtures are expected to provide especially strong growth through 2014 due to the rapid pace of technological advances in these products, making them more energy-efficient, brighter and more affordable.  Nonportable lighting fixtures are expected to provide the fastest gains for LED-based products as these fixtures find increasing use in general illumination applications.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.