New regulations have banned most incandescent light bulbs, significantly reducing demand for industry products.
New York, NY (PRWEB) December 22, 2014
Things have not been so bright for the lighting and bulb manufacturing industry. In the five years to 2014, revenue has decreased an annualized 7.6% to $59.5 million. Though housing starts and nonresidential construction have increased steadily over the past several years, growth in these industry drivers has failed to boost the lighting and bulb manufacturing industry. “In the five years to 2014, the industry has struggled with increasing substitution of industry products with more energy-efficient lighting systems,” according to IBISWorld Industry Analyst Lucas Isakowitz. Moreover, high import penetration has further constrained industry growth. As a result, revenue is expected to continue its decline, dropping by 4.6% in 2014.
The rising concern over energy efficiency has profoundly impacted the industry. New efficiency regulations in Canada have banned most incandescent light bulbs, significantly reducing demand for industry products. Along similar lines, sales of industry products have been gradually displaced by solid state, light-emitting diode (LED) sources. With an increasing interest in “green” products, many consumers have switched to LEDs that save energy while providing greater application control. As a result, the lighting and bulb manufacturing industry has lost revenue to the semiconductor and other electronic component manufacturing industry (IBISWorld report 33441CA), which manufactures LED products. “The transition toward solid-state technology is anticipated to accelerate through 2019, driving the industry's decline,” says Isakowitz.
In the five years to 2019, the industry will continue to dim as overall revenue decreases at an average annual rate of 8.9% to $37.4 million. Contractors and homeowners alike are expected to increasingly opt for LED lighting systems over industry products, significantly reducing downstream demand; moreover, regulation is expected to continue encouraging the shift away from industry products. Lastly, import penetration is anticipated to remain high, heightening price competition for domestic manufacturers. Along with revenue, the number of industry companies and manufacturing plants is expected to decrease in the next five years.
For more information, visit IBISWorld’s Lighting and Bulb Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a range of electric light bulbs, tubes, parts and components. Light-emitting diode (LED) manufacturers and lighting fixtures manufacturers are excluded from this industry; LED systems are included in IBISWorld report 33441CA (Semiconductor and Other Electronic Component Manufacturing).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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