Market Trends of Europe Decorative Lighting Industry
This section covers the major market trends shaping the Europe Decorative Lighting Market according to our research experts:
Growing focus on energy-efficient ambient lighting and LED-based lights
- The demand for lighting control requirements for indoor spaces like residential buildings increases at unanticipated rates, as a considerable number of homes are transitioning to smart home technologies. This is further driving the ancillary demand for LED lighting products in several households.
- In the current market scenario, the advanced residential LED lights can be used for various applications and are equipped with dimming, color-temperature tuning, and RGB color changing options, which are ideal for changing the atmosphere in the consumer's home. Moreover, several market players are prolifically investing in research and development to innovate and improve their product offerings.
- For instance, in September 2020, the long-established Italian decorative lighting company formerly known as Studio Italia Design announced the unveiling of Easy Peasy by Design Curator Luca Nichetto and Random Solo by design collaborator Chia-Ying Lee.
- In addition to this, the European Union and Canada are among countries and regions that have upgraded lighting standards, which is another significant factor shifting the residential consumer's affinity towards more efficient products like LED lighting.
- Moreover, the European government rolled out a Housing Renovation Programme to reduce the energy consumption of buildings, one of the flagships of the European Green Deal launched in September 2020. Such initiatives are also supporting the growth of decorative lightings in the region.
- Overall, the rapid urbanization and the increasing construction activities in the commercial sectors of different countries are expected to fuel the studied market demand in the foreseen period. However, with the onset of the COVID-19 pandemic, the short-term forecast indicates a decline in demand as several commercial constructions halted temporarily.
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Germany is Expected to Witness Significant Growth
- Cities in various countries of Europe including Germany are developing and applying strategies to improve the public, commercial, and residential lighting infrastructure of the countries by reducing costs and improving the urban environment giving an opportunity to the decorative lighting segment to grow. Moreover, growing technologies such as IoT and increasing adoption of smart homes across the country is leading to increased growth of technology-enabled decorative lighting.
- For instance, in August 2020, Ledvance GMBH, a Germany based company, announced the LEDVANCE and Bosch Smart Home lighting solutions for the smart home. The integration of LEDVANCE Smart+ products into the Bosch Smart Home System makes the application even easier for customers it is a high-quality solution for a safe home without the need for an additional bridge.
- Decorative lighting and LED are also been widely used in offices in the country. In order to provide efficient and healthy lighting facilities, several organizations in Europe are utilizing intelligent lighting systems and LED products, further supporting industry growth.
- For instance, Global third-party logistics (3PL) Syncreon was looking to upgrade to energy-efficient LED lighting at a distribution center in Germany. The company did not take the usual route. Rather than going out and buying all-new fixtures, the company decided to with an outsourcing model. The 3PL, which offers supply chain solutions for automotive and technology customers, would “rent” high-efficiency LED lighting from an outside partner on the “light as a service” basis. Syncreon’s wanted to reduce its energy costs and carbon footprint at its 180,000-square-foot facility in Niederaula. Additionally, Germany has the second-highest electricity costs per kilowatt-hour (kWh) in Europe, resulting in significant energy spend with the older lighting system.
- In November 2019, Signify, a prominent player in lighting announced the world’s first service for consumers that allows the customer to tailor and order their luminaire (lampshade and light) online, have it 3D printed from recyclable material and delivered to their door within two weeks. The company also announced it is using recycled material to 3D print with, starting with used CDs, and also launched a Philips-branded LED table lamp made from 24 recycled CDs.
- Moreover, The Energy Efficiency Directive (2012/27/EU) establishes a set of binding measures to help the European Union (EU) reach its 20% energy efficiency target by 2020. This means that overall EU energy consumption should be no more than 1483 million tonnes of oil equivalent (Mtoe) of primary energy or 1086 Mtoe of final energy. The aim of the EU's Energy Efficiency Directive is to help citizens, public authorities and businesses to better manage their energy consumption.
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