According to a recent research report, the UK lighting market is forecast to reach a value of approximately £2.3 billion by 2028, experiencing a steady growth trajectory despite recent economic fluctuations. Mike Collins, Managing Director at Ovia, looks at the details of the report and what is behind the projected growth.
The 17th edition of the UK Lighting Market Report 2024-2028 from AMA Research provides a comprehensive review of the rapidly evolving lighting industry. Significant changes have impacted the market in the last two to three years. The most significant of these are new regulatory requirements, the wider adoption of LED solutions, as well as the strong growth in smart and connected lighting technologies.
The UK lighting market is reported to be a mature market that has undergone significant changes in recent years. The most important of these being the withdrawal from production of incandescent, halogen and fluorescent lighting. These products are progressively being replaced by energy efficient LED lighting; however, with higher levels of competition, this technology has seen a sharp fall in price over the last decade, impacting on market value growth.
The focus of the report is on the main types of lighting products and systems used in residential and non-residential applications and covers the key product categories – lamps, luminaires and lighting controls. Although these have been relatively separated in the past, the market is now witnessing an increasing overlap between these categories. Much of this can be attributed to the development of connected lighting systems, such as equipment combining luminaires with lighting controls, and also the growth in the number of luminaires supplied with integrated LED lamps.
The UK lighting industry is facing a number of challenges in 2024, including a decline in construction new orders, increasing competition, high production costs, changing legislation, stricter health and safety regulations, and environmental issues.
As such, the market is expected to remain flat in 2024 and be supported primarily by RMI activity. The market is then forecast to return to steady growth in 2025 to the end of the forecast period. Although market demand is highly influenced by construction output, the market is expected to also be sustained by many of the recent technological advances in LED lighting, as well as the growth in demand for smart lighting devices and connected systems and controls.
Rapid evolution of LED technology
As the drive towards improving sustainability and energy efficiencies endures, so the rapid evolution of LED technology continues. According to The Climate Group: “LED lighting has been recognized as one of the most actionable and ready-to-implement technologies for cities to transition to a low carbon economy and peak emissions in the next decade.” It also states that lighting accounts for nearly 6% of global CO2 emissions, and a global switch to LEDs could save over 1,400 million tons of CO2 and avoid the construction of 1,250 power stations.
Switching to LEDs is an easy win – something as minor as a 20% reduction in energy costs can add the same benefit as a 5% increase in sales for business. Upgrading from conventional lighting to LED technology can deliver significant cost savings of up to 80% for a business. This is according to the Government Department for Business, Energy and Industrial Strategy. By replacing incandescent lamps with LED lamps there is the potential to reduce electricity consumption by 50% to 80%. If you add in controls and IoT devices like motion sensors, building owners will be able to further manage lighting use and electricity consumption.
TM66 certified LED luminaires
As a company Ovia has focused its efforts on contributing to the lighting industry’s transition to a circular economy and working towards making sure all of its Inceptor LED luminaires meet the requirements of the TM66 Assured Product Verification Scheme. This scheme is an innovative initiative developed and fulfilled by the Lighting Industry Association (LIA) and endorsed by CIBSE (Chartered Institution of Building Services Engineers) and its aim is to advance circular economy practices within the lighting industry.
Having been accepted as founding partners for TM66 last year, Ovia has become more involved in discussions with the LIA on the importance of the circular economy and to highlight the company’s plans to support the TM66 verification scheme. Last year LIA Chief Executive Officer, Ayca Donaghy and Head of Policy and Sustainability, Bob Bohannon, visited Scolmore Group head office to meet with the Ovia team for discussions on the whole subject of the circular economy and the efforts being made by Ovia to drive its sustainability policies throughout the entire business operation.
Almost the entire range of Ovia’s Inceptor luminaires have now been tested and scored very well on the TM66 Circularity Report. Testing involves the gathering of thorough evidence to support the specifications of the product range. The LIA verifies the TM66 results to ensure they have a consistent and accurate rating. Ovia will continue with its promise that every one of its Inceptor lighting products will get to the standards set by the TM66 report.