Sep 29, 2014 - the lighting fixtures market in. Europe (27) have been recently published by CSIL. âPart Iâ focuses on 16 Western European mar- kets, whereas ...
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THE EUROPEAN MARKET FOR LIGHTING FIXTURES by Jessica Catalano CSIL
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wo market reports concerning the lighting fixtures market in Europe (27) have been recently published by CSIL. “Part I” focuses on 16 Western European markets, whereas “Part II” analyses the markets in Central and Eastern Europe. WESTERN EUROPE: LED LIGHTING IS NOW AT 28% The production of lighting fixtures in the EU16 countries registered a slight decrease of -0.5% in 2013 compared to 2012, thus reaching a total value of EUR 10,518 million. A significant growth in production was recorded in Austria (+17.8%), while Greece (-25.6%), Norway (-18%) and Switzerland (-26.1%) experienced a significant decline of the production of lighting fixtures. Italy and Finland (slight increase of +0.6%) recorded a weak performance. The production of residential lighting performed better than the technical segment. Germany and Italy are the main exporters of lighting fixtures. Among the exporting countries, the Netherlands, Austria and Ireland have been growing at a remarkable pace over the last five years, recording average yearly growth rate of 9.8%, 7.3% and 4.0%, respectively. The United Kingdom (1.6%), Sweden (1.6%) and Denmark (0.8%) increased their exports at a lower pace during the period 2008-2013, while Belgium (-3.1%), France (-0.1%), Finland (-2.7%), Greece (-3.1%) and Italy (-1.5%) recorded a decline. Total value of imported lighting fixtures in the EU16 area increased by 4.7% in 2013 compared to 2012 reaching EUR 10,527 million. A significant increase has been recorded by Austria (+11.5%), the Netherlands (+8.5%) and the UK www.worldfurnitureonline.com
(+8.4%). Imports from Asia and Pacific have increased by 7.1%. MAIN PLAYERS In 2013 the top 50 players in Western Europe accounted for 81% of the EU16 production of lighting fixtures. Looking at the performance of these companies, a significant growth of turnover was recorded for companies such as Eclatec, Armaturen, L&S, Xenon, Keria, Globo Handels. However, Zumbotel, Philips Lighting Professional and Osram Group still have the largest share, compared to the sample of companies, representing 9.1%, 7.9% and 5.3% of the lighting production in the EU16 countries. Looking at the residential lighting market in the area, Ikea, Eglo, Philip Consumers and Keria are the major players with over 30% of the market. As far as the technical segment is concerned, Zumtobel, Philip Lighting, Fagerhult and Trilux are top companies, covering 27% of the market.
LIGHTING SOURCES In the years 2009-2013, the following trend has been recorded with regard to lighting sources: • Incandescence lost 25%, passing from 44% to 19% of total lighting sources. • Fluorescence also faced a decrease jumping down from 39% to 35%. • Gas discharge (including metal halide) increased 6% from 11% to 17%. • LEDs significantly increased jumping from 6% to 28% of total lighting sources. • Fiber optics are still around 1%. ACQUISITIONS During 2013, several players in the lighting sector have made acquisitions. Philips bought a majority stake in Saudi Arabia’s General Lighting Company from a consortium including Carlyle group. Philips’ current activities in the country will be combined with this company through a joint venture that will be named Philips Lighting Saudi Arabia.
CSIL report ‘The European Market for Lighting Fixtures’ is available for purchase and immediate download at: www.worldfurnitureonline.com THE EUROPEAN MARKET FOR LIGHTING FIXTURES, PART I Countries covered: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and UK. 150 interviews with the leading producers of residential, commercial, industrial and outdoor lighting fixtures. International trade, supply and consumption volumes. Market shares, distribution channels and investments. Data 2007-2013 and forecasts for 2014. About 220 pages + list of useful contacts Language: English. Edition XXIII, Year 2014 THE EUROPEAN MARKET FOR LIGHTING FIXTURES, PART II Countries covered: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia. About 120 pages + list of useful contacts Language: English. Edition V, Year 2014 September 2014 - WF 29
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This venture will focus on LED fixtures. Fagerhult signed an agreement to acquire 100% of the shares of Arlight based in Ankara (Turkey), in order to further strengthen its position in this market. Through this acquisition the group gains access to the dynamic Turkish market and to the growth opportunities in the region. Indeed, the Turkish lighting market is experiencing strong growth driven by the country’s ambitions to improve infrastructures and energy efficiency. Also, Fagerhult Group recently signed an agreement with Greenlux Finland Ltd, a leading manufacturer of LED luminaries for parking garages in Scandinavia. On the basis of this agreement, Greenlux will deliver LED luminaries suitable for general lighting to Fagerhult for marketing and sale under the Fagerhult brand name. The family business Ensto acquired Alppilux Oy, a privately owned Finnish manufacturer of energy-efficient lighting solutions. The acquisition is aimed to strengthen the company’s market position in the lighting business, especially as a supplier of LED lighting solutions in all market areas. Employing approximately 70 people in Finland, Estonia and Sweden, Alppilux Oy turnover is about EUR 12 million, with a production facility in Lohja, Finland and another one in Paide, Estonia. During 2012, the Nordeon group has been established with the acquisition of Philip’s Professional luminaire manufacturing facility in Springe (Germany). The Nordeon Group consists of four independently operated businesses: Hess (high end, decorative, architectural outdoor lighting products, the company has been acquired during 2013), Vulkan (technical, decorative and functional outdoor lighting products), Nordeon (functional indoor lighting products for industry, retail and offices) and installerdirect.com (online wholesale platform for installers). Owner of the Nordeon goup is Varova, a Dutchbased investment company. CENTRAL-EASTERN EUROPE: GROWING EXPORT The eight CE European countries considered registered a total turnover of lighting fixtures of EUR 1,896 million in 2013 and approximately the same value of consumption. The Region accounts for 15% of total European production (27 countries) and 13% of total 30 September 2014 - WF
European consumption (27 countries) of lighting fixtures. CE Europe exported EUR 1.3 billion of lighting fixtures in 2013 and imported a similar value. Over 20% of trade was intra CE European countries. Almost 30% of imports originated from Asian countries (mainly China), but also Russia/CSI proved to be an important destination. Trade with Western European countries is 60% export and 50% imports, respectively. In the years 2011-2013, exports of lighting fixtures from CE Europe increased from EUR 1,113 million to 1,268 million (+14%) and imports grew from EUR 1,189 million to 1,268 million (+7%). Poland alone provides 43% of the lighting fixtures production of the 8 countries, followed by Czech Republic (18%) and Romania (11%). Poland and Czech Republic together claim 52% of total exports and 48% of imports. Romania, Bulgaria and Croatia are net importers (algebrical balance among export and import), while Czech Republic and Slovakia are net exporters. The trade balance for Poland, Hungary and Slovenia shows parity. Consumption of lighting fixtures per inhabitant reached Western European levels in Slovenia (almost EUR 40 per inhabitant, at factory prices), in Czech Republic and Slovakia (around EUR 26-27), in Poland, Hungary and Croatia (around EUR 20), while it is lower in Bulgaria and Romania. Top ten manufacturers supply 17% of total demand of lighting fixtures in Central-Eastern Europe. Among them, Philips, Osram, Eglo. In two years, sales increased for Philips Professional, Osram, Eglo, Rosa, OMS Lighting, Intra Lighting, Nowodorski, Awex, and Ikea. Diffusion of LED lighting in Central Eastern Europe is still lower than in Western Europe, anyway it reached 14% of the market in 2013 and will probably reach a market share of 18%20% by the end of 2014. CSIL STUDIES ON THE LIGHTING FIXTURES INDUSTRY WORLDWIDE Annually, CSIL - Centre for Industrial Studies - publishes about 10 multiclient research reports on the lighting fixtures industry worldwide, working in team with market researchers mainly based in Milan (the very centre of Italian design), statisticians as well as a large network of country experts. Worldwide
leaders in the lighting fixtures market have been among CSIL customers over the years. The world market for lighting fixtures (excluding lamps, controls, equipment) is worth USD 80 billion at factory prices, and it grows at a yearly rate of 7%. From 2005 to 2012, the world trade for lighting fixtures recorded growth of 70%. It is also a relatively profitable sector with EBITDA of about 10%. Main market drivers are: GDP growth, energy saving, technical innovations (including LEDs, organicLEDs, lighting controls…), and an increasingly wide range of “solutions” available. Around 500 regional leaders, 4,000 relevant players, and 30,000 niche manufacturers are active in this market. Due to the LED revolution, entry barriers in the sector are changing fast, while a deep transformation in the supply chain is ongoing. LED lighting increased by 50% in Europe in 2013, and now it represents 28% of the overall market, according to CSIL market reports. International trade of lighting fixtures is a relevant issue as well, with main importers the United States, Germany, France, the United Kingdom, and Japan. The lighting fixtures market will be sized over USD 90 billion in the next year (2015), considering the 60 country markets studied by CSIL in its market research activity. Today China is by far the main manufacturer and exporter of lighting fixtures worldwide, but new players are breaking in: for example, South Korea registered a huge 70% growth of the export of lighting fixtures in the last available year (2012). The Italian market is relatively flat, but Italian exporting companies could record a 4% export growth during 2013. What’s next: the LED share will probably reach 40% next year (2015), while in a couple of years OLEDs will no longer be “just prototypes”. There is also a growing market for retrofit LED bulbs and lighting controls for new applications. Also worth mentioning is the e-commerce for the lighting fixtures market, today accounting for around 4% of total lighting fixtures business, including B2B. www.worldfurnitureonline.com
