The Future of Lighting in the UK: Key Trends and Market Forecasts

The 17th edition of the UK Lighting Market Report 2024 – 2028 is now available. The report provides a comprehensive review of this rapidly evolving industry and analyses the significant changes that have impacted the market in the last 2-3 years.

To showcase a portion of the information displayed in the report, Editor of the Lighting Market Report Abdul Tantouch lists 5 key trends and forecasts below.

Market Forecast

By 2028, the lighting market is forecast to be worth some £2.3 billion at MSP, representing a CAGR of 2.8% when compared to the estimated market size in 2024.

Market Size

Lighting is currently estimated to account for around 12% of UK electricity consumption a year. By 2030, with the widespread use of LED lighting and smart connected systems this level could significantly reduce to around 8%, resulting in significant energy savings and reduced carbon emissions.

Product Mix

Luminaires dominate the product mix, with around 62% share of the market. Lamps have lost share, with the fall in the average price of LED products. The trend towards integrated luminaires instead of separate luminaires and lamps has also impacted on demand.

Market Drivers

The construction industry is a key driver of demand for lighting products & systems, both through new build and RMI activity, with the non-residential sector currently having around 70% of the total demand for lighting and residential housing the remaining 30%

LED Lighting

LED lighting is currently estimated to account for 72% of all UK lighting products & systems sold. Thanks to government legislation, this figure is forecast to increase to around 85% by 2030.

Market Demand

We asked Abdul, writer of the report, what the demand is like within the lighting market. He stated: 

“Demand for LED lighting will continue to grow and become more competitive, thanks to the high number of suppliers and manufacturing improvements. This means that LED lighting products will become more affordable. Smart and connected systems that incorporate sensors and controls further enhance the offering. There will be a greater need for manufacturers to innovate and differentiate products as this market evolves further.”