PRESS RELEASE BY MBD...

UK LIGHTING EQUIPMENT MARKET RESEARCH REPORT

RELEASED: APRIL 2008

After researching the UK lighting equipment market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

MARKET REVIEW 2003-2007:

The value of the UK lighting equipment market increased by 1% to £1856.7 million at MSP in 2007, fully offsetting the marginal decline recorded in the previous year. Overall between 2003 and 2007, demand increased by a moderate 3%. Market growth is believed to be a reflection of increased demand for higher value products and new technology including LEDs, combined with increased sales of lighting equipment and controls. Moreover, the market is believed to be positively affected by continued growth in construction output, particularly in the non-residential sectors. Indeed, demand for non-residential lighting equipment is believed to be boosted by local government investment in buildings, facilities and amenities financed by direct funding and PFI. Whilst the lighting equipment market demonstrated growth in demand during the majority of the review period, the value development is constrained by continued downward price pressure as a result of cheaper imports. The increased life span of energy efficient lamps has also lengthened the replacement cycle.

MARKET FORECAST 2008-2012:

MBD has revised downwards its projections for sales in the UK market for lighting equipment due to the recent change in economic conditions. By 2012, demand is projected to reach £1747.4 million (at 2007 prices). This represents a real term decline of 6% compared with 2007. In the short term, market growth is projected to be restricted by the problems in the mortgage markets which in turn is negatively affecting housing output. The UK lighting market is also expected to continue to face difficult trading conditions, reflecting increased price competition and import penetration from countries with lower labour costs such as China and the Far East. Consumer spending is anticipated to slow down in both 2008 and 2009 affecting end use sectors such as the automotive industry. Additionally, environmental issues concerning the disposal of toxic materials may affect the demand for rapidly developing sectors such as compact fluorescent lamps. Indeed, high energy efficiency lamps have been targeted by WEEE legislation, which came into effect on 2 January 2007, increasing disposal costs. Product innovation in the area of energy efficiency is likely to have a positive effect on demand for both domestic and non-domestic applications.

NOTE TO EDITORS:

Market & Business Development Ltd specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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