LONDON (August 16, 2016) – Global revenue for lighting equipment grew by 4.6 percent in 2015, slightly lower rate of growth than the previous year, when revenue grew 4.8 percent. Behind this overall growth rate are two separate, although interlinked, stories, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.
First, lamp market revenue grew 4 percent in 2015, which was lower than the 7.3 percent revenue growth in 2014, but higher than previous IHS Markit revenue forecasts through 2023. As the lamp market continues to transition to LED, there are two effects combining to mute future revenue growth: an overall decline in lamp shipments, and price erosion of LED lamps. “As customers switch to LED technologies that have much longer lifespans than traditional technologies, fewer replacement lamps are required, resulting in lower shipment levels,” said Paul Bremner, Senior Analyst, IHS Markit. “As prices for LED lamps fall, manufacturer revenue will also begin declining in 2019.”
Secondly, luminaire revenue grew 4.8 percent, which was higher than the 3.9 percent revenue growth in 2014. Unlike the lamp market, luminaire revenue growth is expected to continue over the forecast period. “This growth comes from LED integrated and LED replacement luminaires, which will see continued growth in both revenue and shipments through 2023,” Bremner said.
New global and regional market statistics, forecasts and market share estimates were recently added to the IHS Markit Lighting Intelligence Service. In addition to the above, other key findings include the following:
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