Market Trends of europe led lighting Industry
Increasing residential housing and non-residential buildings may drive the growth of LED lights
- In 2022, Europe had 743.5 million people. The Member States of the European Union contain over 131 million structures. The European Union has 119 million residential buildings and 12 million non-residential buildings. In 2022, the demand for housing remained high, encouraging the building of new homes in the region, thus benefitting the local LED market.
- There were 197.4 million households in 2021 as opposed to 196.0 million in 2020. In the EU, 49.4% of households had a single child in 2021, followed by 38.6% with two children and 12% with three or more. About 70% of EU citizens were homeowners in 2020. In 2019, European homes had 1.6 rooms per person on average. The use of LEDs in homes and business spaces may increase as the population and the number of households rise.
- As of 2019, there were 242.7 million cars on the road in the European Union, an increase of 1.8% from the previous year, and more than 28 million vans on the road. France has by far the largest fleet of vans, with six million vehicles, followed by Italy (4.2 million), Spain (3.8 million), and Germany (2.8 million). EU roadways have 6.2 million medium and heavy commercial vehicles. Even though registrations have gone up recently, only 4.6% of all EU vehicles are alternatively powered. Hybrid electric vehicles make up 0.8% of all vehicles on EU roads, while battery-electric and plug-in hybrid vehicles each account for only 0.2% of the total. The increase in automotive vehicle sales may positively impact LED sales in the region.
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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 (USD 2,525.96) and GBP 3,000 ( USD 3,788.98) over: Europe outdoor households. 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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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing EV sales are expected to drive the LED market in Europe
- Sales of used car, auto insurance, and adoption of EVs via government policies may drive the growth of the LED market
- Increasing EV sales may drive the LED market in the region
- Government programs and the prohibition of the sale of halogen bulbs may drive the growth of LED lighting
- 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
- 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
- Increasing EV registrations and government policies for EV adoption may drive the growth of the LED market
- Government policies to limit the use of conventional bulbs and the target to increase EV sales may promote the use of LED lights
- Government investments to construct and expand road infrastructure projects are expected to drive the growth of the LED market
- Upgradation, replacement, and construction of new stadiums will drive the growth of LED lights
