Market Trends of europe indoor led lighting Industry
Increasing disposable income and government incentives may lead to more LED penetration
- In 2022, 198 million households resided in the EU, with 2.2 members per household on average. The region's population was 746.2 million in 2020, which reduced to 742.2 million by 2023. Homeownership rates in the EU declined by 69.10% in 2022 from 69.90% in 2021. Such instances suggest that housing development projects are less than in previous years despite a slight decline in the number of households. Thus, LED penetration is expected to grow positively but less in the residential segment compared to previous years.
- In Europe, disposable income is high for most countries, resulting in rising spending power of individuals, especially on new residential spaces. The United Kingdom's per capita income reached USD 33,138 in 2022, while that of France reached USD 25,337.7.
- In Europe, the governments provide incentive programs to create more LED penetration. The UK government announced the launch of a new energy-efficient lighting proposal. Under this, lighting, such as low energy-use LEDs, would replace old halogen bulbs. Such initiatives could save households between GBP 2,000 and GBP 3,000 over the lifetime of these bulbs. The “Federal Funding for Efficient Buildings” program was launched in January 2021 in Germany. Anyone who owns a property in Germany or who is looking to buy property in the country can apply for the funding. The energy efficiency program also includes lighting energy efficiency buildings. In June 2017, the French government announced the Energy Savings Certificate scheme, which allows people to get subsidies that can cover up to 100% of the price of LED bulbs based on the householder’s income. Such instances are expected to boost the demand for LED lighting in the region during the forecast period.
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Government programs and the prohibition of the sale of halogen bulbs may drive the growth of LED lighting
- One of the main energy consumers in the EU, the industry sector accounted for 25.6% of total energy consumption in 2021, followed by the household and commercial sectors, which used the most energy. A significant number of households are converting to smart home technologies, which has increased the demand for lighting control in indoor spaces, such as residential buildings, at unexpected rates. The central feature of the European Green Deal, which was unveiled in September 2020, is the Housing Renovation Program, which was implemented by the EU administration. Such programs are assisting the expansion of LED lighting in the region.
- The demand for electricity in the commercial sector tends to be around 8-10 hours, while electricity use in the industrial sector does not fluctuate throughout the day or year. Electricity demand in the residential sector varies for about 7-9 hours. The Covenant of Mayors - Demonstration Projects scheme refurbished 27 roadways in Cantemir and installed 419 smart LED lighting. About 386 inefficient bulbs were replaced in Ocnița to lower the amount of CO2 released into the atmosphere, thus causing a rise in the use of LEDs in the region.
- In September 2018, the region also prohibited the sale of non-directional halogen bulbs. These legislative changes have made it easier for consumers to progressively switch from conventional lighting to LED technology. The governments in the region are also phasing out older, less efficient technologies to boost consumer acceptance of LED items, as well as giving subsidies and incentives to enhance the overall efficiency of LEDs in the region.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing residential housing and non-residential buildings may drive the growth of LED lights
- Government policies to limit the use of conventional bulbs and the target to increase EV sales may promote the use of LED lights
- The LED market is driven by indoor horticulture and strategic developments by agri-tech companies.
- Increasing vacancy rates and leasing activity of real estate properties may drive the growth of the LED market
- Government regulations and policies to ban the use of fluorescent lighting, as well as smart building initiatives, may drive the use of LED lights in the region
