Freedonia Market Research Analyzes Lighting Industry

Demand for lighting fixtures in the US is forecast to grow 3.5 percent per annum through 2012 to $21.6 billion.  Growth in inflation-adjusted terms (2.7 percent per year) represents an improvement relative to the 2002-2007 period.  A stronger outlook for construction markets will drive gains, especially the increased construction of housing and transportation infrastructure.  Demand from the manufacturing market will also improve, as domestic production of motor vehicles rebounds.  Across all markets, demand will increase fastest for advanced products such as high intensity discharge (HID) fixtures and light emitting diodes (LEDs), which are typically more energy efficient than traditional incandescent lighting systems.  These and other trends, including market share and company profiles, are presented in Lighting Fixtures, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Imports accounted for over 40 percent of demand in 2007, and over one-half of these came from China.  By 2012, imports are projected to account for over 45 percent of demand.  China is the largest source of imports in the portable lighting fixture segment, benefiting from lower production costs.

The nonbuilding construction market is projected to be the fastest growing market through 2012, with annual growth approaching six percent.  This improvement is the consequence of a more favorable outlook for the construction of highways and streets, which generates demand for roadway and other outdoor lighting fixtures.  As a result of the strength of this market, outdoor lighting fixtures will be among the fastest growing product types through 2012. 

Lighting fixture demand for both residential and nonresidential buildings is forecast to accelerate marginally through 2012.  The larger nonresidential building market will be supported by an increase in new building construction.  As construction of new housing units recovers through 2012, real residential demand for lighting fixtures will return to strong growth, offsetting a deceleration in unit price increases.  OEM demand in the vehicular market is projected to return to strong growth through 2012.  Driving this trend is the production of domestic motor vehicles, which is projected to once again experience growth after declining in the years leading up to 2007. 

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.