The market for lamps and bulbs - Italy

1.2 Global Market

The global market for lamps and bulbs has grown significantly in recent years. Certain developing regions such as Asia, the Middle East, and Africa are leading the market due to their increasing urbanization. Trends such as LEDs or IoT are also contributing to the dynamic demand.

The market was estimated at $***.* billion in **** and is expected to reach $***.* billion in **** with a CAGR of *.*% between **** and ****.

Marché mondial de l'éclairage Monde, ****-*****, in milliards de dollars US Source: ****

The general segment (***) and backlighting.

In terms of regional segmentation, Asia-Pacific accounts for $**.** billion in ****, or **.*% of the global market. Moreover, it is expected to establish its dominance in the coming years for both consumption, with the growth of the construction sector, and manufacturing, where many companies are developing to offer the best technology. The growth of the LED market The global LED lighting market size has been valued at USD *.** billion in **** and is expected to witness a compound annual growth rate (***) of **.*% from **** to **** [***].  

1.3 The Italian market

The Italian lighting market is estimated at *.* billion euros and **** employees.

Already in ****, the Italian lighting industry recorded a decline of *.*% in total turnover. This was caused mainly by the decline in domestic demand (***) and the general flattening of consumption.

Domestic Market Value and Total Turnover, Lighting Italy, ****-****, millions of euros ASSIL

As for production, we analyzed the trend in turnover and production value of companies ATECO"**.* manufacture of lighting equipment", including manufacture of light bulbs and luminescence tubes except glass casing; equipment for electric lighting systems including non-glass parts and components (***). It can be seen that the market has been very stable over the last * years.

Value of Production and Turnover Italy, **** - ****, millions of euros ISTAT

Also with regard to the retail trade of lighting articles, we can see how the turnover and production value of companies registered with ATECO"**.**.** Retail trade of lighting articles" has remained quite stable over the last * years.

Value of Production and Turnover Italy, ****-****, Millions of Euros ISTAT

LED and smart lighting segments

According to the Politecnico di Milano's "Efficient and Intelligent Lighting" report, The LED market in Italy could have accounted for €*.* billion in ****, €*** million more than in ****.

It should also ...

1.4 Exports and Imports

From what emerges from the data reported by ASSIL in the report "Sector Data ****", published in December ****, it can be seen that, during the years ****-****, Italy had a positive trade balance, as far as the lightining sector is concerned with exports exceeding imports by about *** million.

Imports and Exports Italy, **** - ****, values in billions of euros ASSIL

For exports, there are no main trade partners, by share Germany is the largest (***) but the remaining **% of exports are to other countries of which **.*% to European countries, *.*% to Africa, *.*% America, **% Asia and *.*% Australia and Oceania.

Countries of Destination Exports Italy, ****, percentage ASSIL For Imports, on the other hand, there is the prevalence of a single major trading partner, China, which accounts for **% of imported goods. Other important partners are Germany and France. In total, the top * countries count for **.*% of total imports. Countries of Imports Italy, ****, percentage ASSIL

1.5 Impact of Covid

According to a survey conducted by ASSIL, the national association of federated lighting manufacturers, on a group of companies with a total turnover of *.* billion euros, **** employees and **% of the Italian lighting market, **.*% of companies have suffered a reduction in turnover of between **% and **% in ****.

Among the reasons for this reduction, **% believe that it is due to the lack of opportunity to participate in trade fairs. Added to this is the slowdown in demand for goods and services (***).

Also for this sector the use of Smart Working has increased (***) and in addition **% have requested the measures put in place by the government as support for companies [***]

2.1 Demand Driven by 4 Sectors

Lamps and bulbs are used by industry, communities, and the general public [***]. The two industries that consume the most light bulbs are the automotive sector for vehicle headlights and the construction sector for building equipment. Both industries have been doing relatively well since ****, but were hit hard by the pandemic crisis. Local and regional authorities are also big consumers, particularly for public lighting. The number of light points per kilometer of lit lanes in municipalities has been steadily declining, but city renewal projects could support demand. Energy refurbishment is also expected to play an important role in this segment in the coming years In addition, the general public purchases lamps and bulbs to equip their homes for various purposes (***). This segment also appears to be in decline, but with opportunities for development, particularly in relation to LEDs and related items.

2.2 The Automotive Sector

The consumption of lamps and bulbs is important in the automotive industry and is used in particular for the production of headlights and other lighting systems. Vehicle manufacturing is therefore an important outlet for the sector, especially in Europe, where it is highly developed. Three types of bulbs are most commonly used:

Halogen bulbs

Probably the best-known type of bulb and the most common in modern cars. The lamp consists of a tungsten filament enclosed in a glass bulb in turn filled with a gas (***). it is the electric current that heats the filament and thus produces light. The most common halogen lamp is the H* but there are others like the H* or H* for example.

LED bulbs

This lamp is being used more and more on new vehicles and especially for position lights. LED (***) has many innovative features and interesting advantages, such as low power consumption.

Xénon bulbs

Bulb known by this name because of the gas it uses. Unlike a classic filament lamp, its operation is slightly different. In fact, the production of light occurs through the formation of a small electric arc between two electrodes. The luminous flux produced by this bulb is twice as powerful ...

2.3 The construction sector

The construction industry is experiencing a time of relative stability. This is evidenced by the turnover of the last * years of an industry that has remained almost stable.

Evolution of Turnover Construction of Buildings Italy, ****-****, billion euros ISTAT

Tertiary real estate

We have said that the tertiary sector, both in its industrial and office implications, represents an important market for lighting. For the construction of offices, *.* billion were invested in ****, -**% compared to ****. Explaining this collapse is the take-up of leased office space that is growing, with Milan reaching ***,*** sqm (***) [***]. The tertiary real estate market therefore represents a real opportunity for Italian lamps and light bulbs as those used in offices, could see an increase in their sales thanks to the favorable economic climate, even if the pandemic effects and the new trend of smart-working are to be evaluated. In the tertiary real estate sector, many efforts still need to be made, as **% of the lighting systems in this sector are qualified as obsolete and are more than twenty years old. The implementation of a responsible and environmentally friendly energy management system could reduce energy consumption by about **%. There is a real potential for the renovation market in the lighting ...

2.4 Public lighting

In Italy there is a streetlight for public lighting every * inhabitants, in total there are about ** million lighting points, and it is estimated that are currently brought to LED about *.*. million of the total streetlights, of which ***,*** are to be considered intelligent lighting points with timed variation of luminance or lighting in relation to various factors [***].

According to ASSIL - the national association of the lighting market - of the lighting points on the Italian territory, **% are obsolete and **% are inefficient [***]

To provide street lighting service, a municipality must:

Construct the plant infrastructure, if any, in accordance with legal requirements; Select the appropriate features, lamps, and design of the lighting equipment; Sign a contract for the provision of the service activities and the corresponding energy supply.

According to a Censis research, the inadequacy and inefficiency of public lighting systems is mainly due to the choice of lamps. In fact, the most used lamp in Italy is the *** watt lamp, while other countries use more often the ** watt lamp [***]. Therefore, a shortcoming of the current Italian lighting system can be traced back to the technology used, and in this specific case to the lamps used. This has led to a strong use ...

2.5 Lamps: A Constantly Growing Demand

Demand for lamps, on the other hand, has been steadily increasing for years. This is also evidenced by the increase in the production value of bedside and desk lamps and electric interior lamps. This mainly refers to the consumer segment of the general public. In fact, household consumption of lamps and luminaires is expected to reach *.* billion euros.

Evolution of Lamp Production Italy, **** - ****, millions of euros ISTAT

In addition, we are also seeing a gradual shift to LED bulbs. These, despite a higher price, are increasingly sought after by families for their longer life, lower energy consumption and low environmental impact.

Despite the recent recall, traditional bulbs have already been replaced by energy-saving bulbs in nearly three-quarters of households. In the last * years, **% of Italians have made investments to reduce their electricity expenses by switching to energy-saving bulbs [***].

The Smart Home Market

Almost one in two Italians, **% of countrymen to be precise, have a connected object in their home. A growing figure - in **** it was **%, in **** **% - that has led the market to run fast, marking a +**% on **** and reaching *** million euros. of those items owned, about *% are light bulbs, and we've seen a **% increase in sales between **** and ...

3.1 Fragmented, protean supply and declining production

The number of companies operating in the manufacture of lighting equipment increased sharply between **** and ****, after a period of decline caused by the strong pressure on prices exerted by competition from countries with cheap labor (***). The number of employees has also followed the same trend in recent years.

Number of Companies and Employees, Lighting Equipment Manufacturing Italy, ****-****, units ISTAT

Different discussion for retail trade. Here there has been a sharp decline in the number of businesses and employees in the sector due to the emergence of chains or stores with increasingly lower prices that have made it impossible for small Italian retailers to survive.

Number of Enterprises and Employees, Retail Trade Italy, ****-****, units ISTAT In general, many of the players in this market operate in specific segments such as transportation, hospital equipment, etc. (***), but also industrial lighting, security lighting or signage.

Depending on the type of offer, opportunities are then targeted at professionals or the general public. Specialized products are sold to building specialists, integrators or electrical equipment retailers, while consumer products are sold through supermarkets, specialty stores or DIY stores.

3.2 The key role of the relationship between private and public for the future of the sector

Given the sheer volume of funding needed for infrastructure renewal, smart cities must consider innovative funding strategies in order to become a reality. From initiatives to improve public health and expanding access to Wi-Fi and promoting affordable housing, municipalities are forging innovative partnerships to improve the quality of life for their residents and as a means of renewing and modernizing aging infrastructure assets. Their experiences show how cities can overcome traditional barriers to funding and smart city projects by demonstrating the potential of new technologies to reduce costs, recycling existing and legacy infrastructure assets, unlocking value, and bringing together a critical mass of stakeholders to spur economic development [***].

Distribution of projects to make cities smarter Italy, ****, in % Source: ****

This statistic from the Digital Innovation Observatory shows the distribution by type of projects aimed at making cities smarter planned by local authorities in Italy in ****. According to the data, security was the top priority, with **% of projects related to smart security systems. However, lighting projects ranked second with **% of responses.

Number of light-emitting diode (***) spots installed in public lighting Italy, ****-****, in Units. Source: ****

3.3 Distribution chain in the Led market

Below we find representation of the distribution chain that characterizes the LED market.

The main components of LED products, LED diodes, are highly technical products. Manufacturers often have to deal with assembly companies that differ significantly in volume and dynamics from LED diode manufacturers. The defined working relationship between the diode company and the assembly company is characterized by a strong instability of interaction, as the latter buys the LED diodes and does not require specific expertise in assembly, and as a result there are many manufacturers in the market and potential assembly companies seeking business deals with them. Nearly ** percent of the market share of assembly companies in the industry is held by Chinese owners. These companies are generally small and have a large market share. In fact, we are in a classic example of a market under perfect competition, characterized by a high number of small firms, in which the behavior of a single firm does not cause the market equilibrium factors to change [***]. Importers are intermediaries and can choose between two different sales strategies for products purchased in the country of origin and imported: an easier way is to rely on Italian wholesalers like Sacchi, Rexel, Sonepar, etc. ...

3.4 Alternative methods of sale: ecommerce

In the field of lighting products distribution, especially LED products distribution, some companies use custom e-commerce or specific marketplaces to offer potential buyers another way to purchase. Business-to-consumer (***) e-commerce is one of the few sectors in Italy that has not been affected by the crisis and continues to see growth in purchases.

The advantages for companies that use this method of sale are: The low costs to be incurred to operate through this form of trade. The opportunity to expand the range of action of the company, coming to serve a greater and diverse amount of potential consumers. The possibility of creating virtual structures, which are only viable on the web. In Italy, consumers are very protected in some areas when it comes to selling online. Legislation is very strict and sometimes imposes onerous obligations on owners or managers of websites to communicate clear and unequivocal terms of sale and payment to consumers and the possibility that if a consumer should change his mind, he can exercise the right of withdrawal: to receive the product after purchase. This mandatory form of return has caused some problems for retailers, as some buyers have taken advantage of the legislation protecting them, incurring additional ...

4.1 Type and comparison of products and prices offered

As for light bulbs, there are different types with different basic technologies used today in Italy

The incandescent light bulb: This light bulb invented in **** by Thomas Edison is the one that revolutionized the world, but its technology is now outdated. In fact, it is very energy-intensive and not very environmentally friendly: only *% of the energy consumed is transformed into light and **% into heat. Its efficiency is often between * and ** lumens per watt, which is low compared to other bulb technologies. In terms of operation, an incandescent tungsten filament is wrapped in a vacuum glass bulb. As the filament heats up, light is produced. you can also include a gas in the bulb to increase the lifespan to a maximum of **** hours. The Halogen Bulb: This bulb is ** to **% more efficient than an incandescent bulb in terms of lumens per watt. This saves about **-**% of energy. However, its cost of use remains very high, as **% of the energy is converted into heat compared to *% into light. In terms of operation, the bulb is filled with a halogen gas (***), which, combined with vaporized tungsten, is deposited on the filament. Its life varies from *,*** to *,*** hours. As of September *, ****, retailers were no ...

4.2 New trends in supply

Booming LED market

The global LED market is growing. This is because LED technology tends to replace other types of lighting because of its low energy consumption. If we take into account that about **% of the country's energy consumption is for urban lighting, the item "Public lighting" is clearly one of the largest items in municipal budgets. In fact, spending on public lighting accounts for about **-**% of municipal energy bills. Replacing old streetlights with new LED lights can save about **% and the economic investment can be amortized in *-* years. Where does this savings come from? Lower maintenance costs, energy savings due to luminaire efficiency, more efficient system management [***].

In Italy there is a streetlight for public lighting every * inhabitants for a total of about ** million light points! In Italy the estimate is that about * and a half million of the total streetlights are currently LED.

An increasingly connected offer: smart lights

On the market, especially for home automation enthusiasts, the new smart lights are making their way onto the market, i.e. intelligent lights that can be easily controlled even remotely. Normally, this type of light bulbs are connected via Wi-Fi or Bluetooth to devices such as Amazon Echo ...

5.1 European Regulation and Ecological Transition

Many standards on the lighting market are not specific to the Italian market, but have been harmonized at the European level. These are the Low Voltage Directive and the EMC Directive that have laid the foundations for the rules that lamps must comply with in Europe

First of all, the CE mark has become mandatory for lights. It oversees the photobiological and electrical safety of lamps on the European market.

Then, the Ecodesign Directive ****/*** method implies that lamps must have a minimum energy efficiency, a minimum lifetime, withstand a minimum number of switching on and off and must not change color with wear.

In addition, the regulation ***/**** method makes the mention of the energy class of the bulbs sold in Europe

Finally, some types of lamps have been banned over time. In these cases, the purchase by consumers continued to be possible, but retailers were banned from continuing to replenish their supplies This was the case first of incandescent bulbs, then finally for halogens through Regulation ***/**** which came into force in September ****

Most recently, the Commission voted to ban mercury vapor lamps and sodium lamps retrospectively in ****.

Initially scheduled for ****, then delayed until September ****, a ban on the sale of lamps ...

6.1 Segmentation

• Artemide Group
• Helios quartz
• IGUZZINI ILLUMINAZIONE
• Marelli Europe
• BEST-LIGHT
• ITAL ENGINEERING
• GSC LIGHTING & CONSULTING
• Zonca lighting
• PREARO COLLEZIONI LUCE