Europe's lighting fixtures market saw a downturn in 2023, falling by 12% to nearly EUR 17 billion, following two years of robust growth. Despite this, the market remained 6% above 2018 levels. Residential lighting outperformed during the pandemic, but recent years have favoured professional segments, particularly outdoor lighting, which grew 1.5% annually since 2018.
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Key industry drivers include the EU's fluorescent lamp ban, high electricity costs, and a growing shift toward smart and energy-efficient lighting. LED lighting now represents nearly 90% of the market. Challenging conditions are expected to persist through 2024, amid declining residential construction and weak investment in non-residential sectors.
Trade figures show European lighting exports at EUR 14 billion in 2023, down 5% year-on-year, while imports fell 15% to EUR 18 billion, improving the trade deficit from EUR 6.1 billion to EUR 3.8 billion. Germany led exports with a 19% share, followed by Italy and the Netherlands. Imports mainly came from Asia-Pacific (43%) and Europe (51%), with China as the largest supplier.
Smart lighting now comprises 19% of the European market, doubling its share since 2019. The sector is evolving as major players integrate connectivity technologies, targeting commercial and outdoor markets ahead of residential uptake. Energy-saving features such as occupancy sensors and system integrations are fuelling interest.
Notable 2024 M&A activity includes British firm Luceco acquiring D-Line Europe, ROBE Lighting of the Czech Republic acquiring an Australian control systems company, and Belgium's Schreder buying Austrian solar lighting provider Photinus. France's Ragni Group also expanded by acquiring German public lighting specialist Hess.
CSIL forecasts indicate a slight market recovery in 2025 and 2026 as demand for smart and sustainable lighting continues to grow.
Source: World Furniture Online