The German lighting industry experienced a significant market collapse in 2023, following a positive economic boom in 2022. Sales dropped by 9.1%, with lamps particularly affected. The decline is attributed to the end of the peak phase of the switch to long-lasting LED lamps. The trend is expected to continue moderately in 2024 and the next four years.
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The industry, part of the broader living and furnishing sector, has been impacted by recent crises, including the pandemic and the energy crisis. The pandemic initially reduced demand for lighting, leading to a recovery in 2021 and 2022. However, 2023 saw a sharp decline, driven by economic uncertainty and decreasing demand for conventional lamps as LED alternatives became more prevalent. Industry experts from IFH KÖLN and BBE Handelsberatung forecast this negative trend will persist until 2028.
Dr. Philipp Hoog from BBE Handelsberatung highlights that while the industry faces challenges, focusing on innovation, sustainability, and smart technologies presents future growth opportunities.
Lamp product group sees greatest loss
In 2023, the lamps product group (including incandescent, discharge, and LED lamps) suffered a historic decline of 17.4%. This decline reflects the shift from energy-intensive lamps to more efficient LEDs. Other segments, such as residential lighting and technical lighting, also saw significant losses, with technical lighting, which holds the largest market share, experiencing a 6.9% decrease in sales.
The market decline observed in 2023 is expected to continue, albeit at a slower rate, with a projected decrease of 1.8% to 3.1% by 2028. Economic conditions and financial burdens are likely to keep investments in home and interior sectors, including lighting, cautious. However, technical lighting in the B2B sector is expected to see some growth.
About the study
The 'Lighting and Lamps Industry Report' 2024, by IFH KÖLN and BBE Handelsberatung, provides an overview of recent changes in the lighting and lamps market. The study includes data on market volume, submarket development, distribution channels, and forecasts from 2024 to 2028.
More information:
IFH KÖLN
www.ifhkoeln.de