Building Lighting Control System Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Revenue earned by companies in the Building Lighting Control System Manufacturing soured In late 2007; as downstream demand from non-residential and residential construction plummeted, revenue declined steeply during the recession. Moreover, rising import competition has placed significant pricing pressures on domestic manufacturers. 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. Furthermore, new building lighting control systems can help builders and building owners obtain green building certifications IBISWorld forecasts that industry revenue will grow by twice that of general economic growth over the forecast period.

IBISWorld Market Research

IBISWorld Market Research

Over the next five years demand for new energy-efficient systems is expected to increase, supporting greater demand for building lighting control systems

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.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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