Market Trends of uk indoor led lighting Industry
Increasing per capita income and the government policy to roll out the use of energy-efficient lighting may boost use of LEDs
- In 2022, the number of UK families was projected to reach 19.4 million, an increase of 5.7% from 18.4 million in 2012. The expected number of households in the United Kingdom in 2022 was 28.2 million, 6.1% more than that in 2012 (26.6 million). Thus, the increasing number of families and households may create more demand for LEDs in the country. During 2021-2022, there were 15.6 million owner-occupied households, representing 64% of all households in the country. This percentage increased from 63% during 2016-2017 but remained constant during 2020-2021. It has been consistent throughout the past 10 years.
- The disposable income in the United Kingdom is high, resulting in rising spending power of individuals and more spending on new residential spaces. The country's per capita income reached USD 33,138.0 in December 2022 compared to USD 36,516.3 in December 2021. Compared to some developed nations, the United Kingdom had high purchasing power in 2021, even though per capita income decreased compared to the previous year. For instance, in Brazil, it was USD 7732.4, while in France, it was USD 25,337.7 as of 2021. Housing starts in the country decreased to 39,220 units in Q4 2022 from 43,140 units in Q3 2022. Even though housing projects declined, the demand for LEDs existed. However, it was less in the residential segment compared to previous quarters. The government announced the launch of a consultation on a new energy-efficient lighting proposal. Under this proposal, lighting such as low energy-use LEDs will be rolled out to replace old halogen bulbs, which could save households between GBP 2,000 (USD 2523.76) and GBP 3,000 (USD 3785.64) over the lifetime of the bulbs. Such instances are further expected to boost the demand for LED lighting in the country in the future.
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High growth rates for new house purchases and the phasing out of halogen lights may drive the growth of LED lights
- In 2018, domestic buildings in the United Kingdom were responsible for about 29.5% of energy consumption. In 2020, the pandemic negatively impacted the UK construction market, with overall output decreasing by 40% Y-o-Y. However, in 2021, positive growth rates were registered compared to 2020. More new homes were built in 2021 in every region outside London, with growth rates in the Northeast, East Midlands, and Eastern regions reaching above 45%. Consequently, the rise in construction indicates more houses and buildings being built, thus increasing the demand for LEDs.
- Electricity demand 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. Adjustments were made to the nation's general lighting policy in accordance with how well London's lighting system functioned in 2018. While hallway lights have been lowered or removed to lessen spill into resident residences, a restored public space is illuminated. A project started by the community to illuminate old structures. Bridges now have new illumination as part of Illuminated River, a project that uses LED lighting. Such initiatives are boosting the market for LED lights.
- The UK government implemented the "Green Home Grant Scheme," which encourages English citizens to choose LED lighting over traditional lighting fixtures. The UK government began the phase-out of halogen light bulbs in 2021 after outlawing the use of incandescent lightbulbs. A 1.26 million tonne reduction in carbon emissions annually is the goal of the legislation. Many people will likely switch to LED lighting solutions once incandescent and halogen light bulbs are completely phased out.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- An increase in residential real estate may drive the growth of the LED market
- Government programs to promote the use of energy-efficient lighting and increase EV production to promote the use of LED lights
- The market is driven by increasing homegrown vegetables, technology advancements, and incorporation of LED lights to grow crops
- High car ownership and the purchase of commercial property may drive the growth of the LED market
- Replacement of conventional lights and supportive government schemes to aid the use of LED lights and drive market growth
