Construction and manufacturing activity and a shift toward energy-efficient products are creating a bright future for lighting fixtures
Construction and manufacturing activity and a shift toward energy-efficient products are creating a bright future for lighting fixtures, according to a study by the Freedonia Group, Inc., a Cleveland-based industrial market research firm. The study, titled “World Lighting Fixtures,” forecasts that worldwide demand will increase 6.2% annually through 2008 to $85 billion, which is a substantial increase over the 1998 through 2003 rate of 3.5%. The study attributes the increase to accelerating global economic growth, which will drive construction and manufacturing activity — the two main determinants of lighting fixture demand.
Another factor will be more stringent government regulations that call for remodeling and retrofit projects geared toward improving the energy efficiency of existing lighting systems. These types of projects are starting to use more technologically advanced and energy-efficient products like electronic ballasts, HID lighting fixtures, LEDs, and fiber optic systems, which typically carry higher price tags. Although lighting fixture demand in North America will be slightly behind the global average, the United States market is expected to register a strong recovery (5.9%) from the performance of the 1998 through 2003 period (1.5%).