Global Demand For Lighting Fixtures Expected To Approach $120 Billion In 2012

Oct. 10, 2008
Worldwide demand for lighting fixtures is forecast to increase by approximately five percent annually through 2012 to nearly $120 billion, according to “World Lighting Fixtures,” a new study released by the Freedonia Group, Cleveland.

Worldwide demand for lighting fixtures is forecast to increase by approximately five percent annually through 2012 to nearly $120 billion, according to “World Lighting Fixtures,” a new study released by the Freedonia Group, Cleveland. The study said growth will slow relative to the pace of the 1997 to 2007 period, in large part due to more modest price increases. While demand for lighting fixtures in the large markets of Japan and the United States will improve significantly from their sluggish gains over the past decade, the developing economies of Eastern Europe and the Asia/Pacific region are projected to post the fastest growth.

The construction market will remain the fastest growing source of lighting fixture demand, despite a moderation in construction activity worldwide. The fastest advances will occur in the developing nations of Asia (particularly China) where construction activity is growing the most rapidly. Nonbuilding (streets and highways) construction activity will remain relatively robust while nonresidential and residential building construction experience more pronounced decelerations. Consequently, outdoor lighting fixtures, particularly roadway lighting, is projected to be the fastest-growing fixture type through 2012.

Although growing slower than it has over the past decade, demand in the manufactured goods market will see robust growth in Eastern Europe, which is forecast to be the fastest-growing region in terms of lighting fixture demand. Demand for motor vehicle lighting fixtures will be particularly strong in this region, as motor vehicle production in Eastern Europe will grow faster than in any other region. India, China and Russia are expected to be the fastest-growing of the major national markets over the forecast period, benefiting from strong nonresidential construction activity. While these markets combined accounted for about 20 percent of lighting fixture demand in 2007, they are projected to generate over 40 percent of additional lighting fixture demand between 2007 and 2012. Furthermore, China is projected to become the largest national lighting fixture market by 2012, surpassing the United States.

Lighting fixture demand in the advanced economies of Western Europe, the United States and Japan are projected to lag the global average through 2012. The U.S. is forecast to achieve the fastest gains, as construction markets improve and motor vehicle production increases. Demand in Japan and Western Europe will be restrained by weak construction markets and poor prospects for motor vehicle production. To purchase a copy of the study, call (800) 927-5900 or order one online at www.freedoniagroup.com.