Market Trends of uk led lighting Industry
An increase in residential real estate may drive the growth of the LED market
- In 2021, there were 56.5 million people living in England, and 1.56 children were born in the country. There was a 0.1-point decrease from 2019 to 2021. In 2020, the death rate in the United Kingdom dropped to 9.7 fatalities per 1,000 people, which translated to a decrease of 0.4 fatalities per 1,000 people (-3.96%) in 2021. In the United Kingdom, the demand for LEDs is expected to increase due to population growth and a drop in the death rate.
- England's housing stock has steadily grown, reaching a total of about 25 million homes as of 2021. There were around 44,500 build-to-rent homes in the country's 71,400 planned residences as of the second quarter of 2022. The UK residential real estate market experienced a rise in activity in 2021 before seeing a dip in 2022 after stagnating due to the epidemic. The number of transactions with a value of at least GBP 40,000 (USD 50475.20) increased from about 1 million units in 2020 to over 1.5 million units in 2021 and 1.3 million units in 2022. The average property price is anticipated to rise across the country, along with the anticipated rise in transactions. As a result of the increase in average price transactions, more people will likely buy homes in the future, thus increasing the demand for LEDs.
- In the United Kingdom, there were 32,889,462 automobiles with valid licenses in 2021. English homes had an average of 1.24 vehicles in 2020. In the country, there were 1,632,997 electric vehicles in 2021, a 6.9 increase from 2014. About 5% of vehicles in the country were powered by electricity entirely or in part at the end of 2021. Hybrid electric vehicles are by far the most common, with 932,335 units on the road in 2021. More LEDs are expected to be used in the country as the number of vehicles and EVs increases.
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Increasing per capita income and the government policy to roll out the use of energy-efficient lighting may boost the adoption of LED lights in the country
- 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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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Technological advancements by major automotive manufacturers and government laws to drive the growth of the LED market
- High online auto loans and discounts offered by the government to purchase EVs may drive the sales of LED lights
- High car ownership rates and new government regulations may drive the growth of the LED market
- High growth rates for new house purchases and the phasing out of halogen lights may drive the growth of LED lights
- Replacement of conventional lights and supportive government schemes to aid the use of LED lights and drive market growth
- 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
- The shift toward electric mobility through government initiatives may drive the growth of the LED market
- Government programs to promote the use of energy-efficient lighting and increase EV production may boost the use of LED lights
- The incorporation of a smart traffic management system and the project for the maintenance of roads may drive the growth of LED lights
- Innovation, renovation, and government contributions to the sports industry to drive the growth of the LED lighting market
