Over the next five years demand for new energy-efficient systems is expected to increase, supporting greater demand for building lighting control systems
Los Angeles, CA (PRWEB) January 19, 2012
The Building Lighting Control System Manufacturing industry’s performance has been a mixed bag over the past five years. During the period, revenue is estimated to fall at an average annual rate of 4.1%. According to IBISWorld industry analyst and report author Nima Samadi, “in late 2007, the industry’s performance soured; as downstream demand from non-residential and residential construction plummeted, revenue declined steeply during the recession. Fortunately for industry manufacturers, the gradual recovery of the housing market over the past year and the growing interest in the energy cost savings associated with new building light control systems has renewed interest in industry products.” As such, revenue is forecast to jump 7.0% to $552.1 million in 2012.
Import penetration has also adversely affected industry players over the past five years. Rising manufacturing capabilities in Asia and Latin America have led to increased lighting control systems production overseas. Samadi says that “since these countries have lower labor and overhead costs, they offer lower prices on comparable products, eroding industry sales. This rising competition has placed significant pricing pressures on domestic manufacturers; in order to maintain demand when the industry was contracting, players have been forced to reduce their markups.” Correspondingly, the number of industry employees is estimated to decrease 1.5% annually to 2,356 people over the five years to 2012.
Despite recessionary conditions, the industry has benefited from building owners’ growing interest in lower energy costs. Furthermore, new building lighting control systems can help builders and building owners obtain green building certifications, such as Leadership in Energy and Environmental Design (LEED) certifications. In addition, wireless technologies are allowing lighting control systems to now be retrofitted in buildings where installing wired systems would previously have been cost prohibitive or not feasible. Over the five years to 2017, demand for new energy-efficient systems is expected to increase, supporting greater demand for building lighting control systems. IBISWorld forecasts that industry revenue will grow by twice that of general economic growth over the forecast period.
Market share concentration in the Building Lighting Control System Manufacturing industry is medium, with the four largest firms controlling about half of the overall market. All of the largest firms have significant operations in similar industries, such as light fixture manufacturing, which grants them a significant advantage in terms of customer awareness and the ability to bundle products. Current major player include Acuity Brands, Hubbell Inc and Cooper Industries. Efforts by major firms such as General Electric and Ingersoll-Rand, which have considerable marketing muscle and supply chain and inventory management expertise, threaten to transform this industry’s composition, either via acquisition or simply by outperforming competitors.
For more information visit IBISWorld’s Building Lighting Control System Manufacturing industry
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Companies in this industry manufacture components and develop software for building lighting control systems. These systems include components and software to control communication with switches, motion sensors, and light sensors to provide flexible scheduling, daylight harvesting, occupancy control, personal control and load shedding.
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Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
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