Market Overview

Size of the general purpose lighting fixture market (as a total of lighting fixtures and lamps using conventional light sources and LEDs, calculated based on the shipment value at manufacturers) for 2021 is estimated to 921,900 million yen, up 2.5% from the preceding year.

In accordance with the rise in demand for products with enhanced energy-saving performance against the backdrop of tight power supply led by the Great East Japan Earthquake in 2011, the demand for LEDs has been growing exponentially because they last a long time and have very low energy use. To the contrary of rapid expansion of the LED lighting market (LED lighting fixtures and LED lamps), the market of lightings using conventional light sources is declining sharply.

The demand for general purpose lighting fixtures fell considerably in 2020 as the COVID-19 recession led delays and postponements of new construction and renewals of stores, commercial facilities, and accommodation facilities, as well as slowdown in capital investments at enterprises. Nevertheless, in line with the easing of business and travel restrictions, the market is showing recovery from 2021.

 

Noteworthy Topics

Industry Restructuring

Competitive landscape may change in the lighting fixture industry, particularly among the companies that had an advantage over competitors in the business with stores, commercial facilities, and accommodations, which were most affected by the delays/postponements of constructions during the pandemic.

Moreover, against the background of rising needs for ‘smart home’ type of solutions that makes offices and buildings future proof, the industry may be restructured by market players that expand the domain of their businesses. Alliance or M&A with companies in peripheral businesses such as home appliances, audio & visual equipment, and air conditioning (heating, purification, etc.) as well as IT companies operating IoT platforms may enable the industry transformation.


 

Future Outlook

The general purpose lighting fixture market (as a total of lighting fixtures and lamps using conventional light sources and LEDs) is forecasted to increase by 5.2% on year-on-year basis to 970,100 million yen for 2022, drop by 2.3% to 947,400 million yen for 2023, and decline further by 8.7% to 885,200 million yen by 2027. Although energy-saving LED lights gain attention as a solution for SDGs and as a countermeasure to soaring electricity bills, the market is on a downward trend going forward, because of intensifying price competition and sluggish growth in annual shipment volume. The conventional lights market is projected to diminish as the demand shifts to LED lights. Nonetheless, the growth rate of the LED lights market is slowing down year by year.

LED lighting (SSL lighting) already occupies almost 100% of the market by annual shipment volume, meaning it is reaching maturity in terms of volume. Expansion cannot be expected by value either, as LEDs become commodity items and price competition intensified. However, there is a bright side: In view of the market by stock (lightings that are already being used in the market), LED occupies only about a half. Replacement demand can be expected for the other half. Stemming from the demand to take actions for SDGs and carbon neutrality, as well as to reduce electricity bills amidst soaring energy prices, attention for environmentally friendly and cost-saving LED lightings is rising once again in the last couple of years.

Another factor that may drive market growth is the signs of returning of the inbound tourists. The rise in inbound tourist demand is encouraging stores, commercial facilities, and accommodations to resume new construction and/or remodeling, pushing back enterprises on capital investments.

Despite the lost momentum for overall growth, the market is unlikely to plunge at once, as the demand for new building construction and remodeling continues at a certain level yearly. The market is forecasted to decrease in a medium term.


 

Research Outline