Large Lighting Manufacturers Continue to Transition to LED, as Traditional Business Shrinks

Fabian Hoelzenbein

The lighting market continued the move toward LED technology in 2014. LED lamp revenues in 2013 were 25% of total global lamp revenues, growing to 30% in 2014 and forecast to reach 67% in 2022. A growing market for LED technology lighting means a shrinking market for halogen, compact fluorescent lamp and other traditional technologies, and larger lighting companies have struggled to adapt their businesses accordingly. At the same time, smaller and more specialized LED-only companies have entered the market, further increasing the pressure on the incumbent players.

Market leader Philips managed to increase its share in the LED lamp market, from 14% in 2013 to 17% in 2014. Runners-up Osram, Panasonic and Toshiba roughly maintained their market shares of 8%, 6% and 6%, respectively; GE increased from 3% in 2013 to 6% in 2014. Hefty losses in the traditional technology lamp market, however, meant that all top five lamp manufacturers lost market share overall.

The luminaire market is a lot more fragmented than the lamp market. Philips is the worldwide market leader, with 6% of the market, and the top 10 manufacturers combined comprising 22% of the market. Overall though, the luminaire market looks a bit brighter than the lamp market, at least for the top players. The top five companies — Philips, Acuity, Panasonic, Zumtobel and Cooper — all held on to their respective market shares in 2014; however, the pull of LED technology is also felt in the luminaire market.

LED luminaire revenue shares grew from 21% in 2013 to 23% in 2014, and this share is expected to reach 53% in 2022. The big winner here is Philips, whose LED luminaire market share increased from 4% in 2013 to 10% in 2014. Acuity Brands, which is focused on the American market, saw their share increase from 4% in 2013 to 6% last year. Acuity Brands holds 19% of the overall LED luminaire market (up from 16% in 2013). Philips is more concentrated on the European, Middle East and Africa (EMEA) market, with 12% of that market and Asia-Pacific (APAC), with 10% of that market.

It remains to be seen how leading lighting manufacturers will follow the market, as it moves toward LED. However, a strong focus on the luminaire market seems to help ease this transition, at least for the moment.
Fabian Hoelzenbein is a market analyst for lighting and LEDs at IHS. This article first appeared in IHS Electronics 360, an online publication covering the business and technology of electronics as it impacts myriad industries across the global economy. Find out more about IHS Electronics 360: http://electronics360.globalspec.com.