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23
April
2012
Trendforce

European lighting market value to soar by 40%

The energy shortage raises energy-saving awareness around the world, and with the effort of the major companies, LED lighting once again takes over the spotlight in 2012.
According to LEDinside, the LED research division of TrendForce, Europe has become one of the most fast-growing LED markets in the world besides Japan.

Benefiting from the ban imposed by certain countries against selling incandescent light bulb of high wattage in 2012, the value of European LED lighting market will soar to US$3.01 billion in 2012, a 44% YoY growth; the value is expected to reach US$10 billion by 2015, representing a compound annual growth rate of almost 49% from 2011 to 2015.

High Market Value Attributed to Cultural Emphasis on Lighting

According to LEDinside’s “2011-2015 European LED Lighting Market Report,” the population of Europe is estimated to be 830 million, 13%-14% of the earth population. In addition, due to the high prices in the European lighting market, the demand in Europe took up over 20% of the global lighting demand.

Moreover, Europe’s cultural emphasis on lighting aesthetics results in LED lighting’s wide adoption in there. For example, Lyon, a city of France, turns the lighting into the trademark of the city. The French government invests fund every year in public lighting infrastructure and the annual Fête des Lumières (Festival of Lights) in Lyon. Also, the city of Lyon founded Lighting Urban Community International Association (LUCI) which comprises around 63 cities, boosting tourism and economy.

European Lighting Fairs Shed Light on End-market Trend

With the high market value and unique lighting culture, Europe has two world’s leading lighting companies Philips and Osram. Furthermore, since its commencement in Italy in 1977, the biannual Milan International Lighting Exhibition, has been one of the most representative lighting fairs in the world on account of its large amount of transactions and participating companies.

Additionally, Light+Building, recently held in Frankfurt, Germany, has quickly developed into one of the most influential international exhibitions since it first took place in 1999. TrendForce states that as opposed to the Japanese lighting fairs’ focus on technologies and other Asian lighting exhibitions’ emphasis on components, European lighting fairs focus strongly on the assembly design and applicability of high-profit LED light products, which dominates the trend in the LED end market.

High Electricity Prices Stimulate LED Penetration Rate

TrendForce further indicates that the rapid development of LED in Europe attributes to not only the environmental awareness of Europeans but also the high electricity prices. The high prices are the critical momentum to propel the development of LED lighting.

For example, if a 7W LED light bulb (a replacement for 40W incandescent light bulb) is used for eight hours a day for a month (31 days), it can save 8 kWh compared to using an 40W incandescent light bulb. With the electricity prices of EU-27, US$2 can be saved every month by adopting a LED light bulb instead of incandescent one; more money can be saved in the outdoor and commercial lighting sectors due to their high electricity consumptions. TrendForce believes high electricity price drives Europeans to switch to energy-saving light bulbs, which will greatly affect the LED penetration rate.
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