The worldwide consumption volume of LED track lighting heads, which were installed in retail stores reached an estimated 172.4 million units in 2017.
Track lighting is a method of lighting where light fixtures are attached anywhere on a continuous track device, which is a surface mounted channel that holds the lighting units (or 'heads') in place and brings power to them. The track is usually mounted to the ceiling but it can be mounted to a wall, a beam or dropped from the ceiling on stems or cables.
For the purposes of this market study, ElectroniCast segmented the product by the following sizes, which is measured at the area where the light is emitted, typically the width (shown in centimeters):
According to the new report, the use of the standard-size units, dominate the track lighting market in retail store applications. The standard (size) units reached an impressive worldwide value of $1.551 billion in 2017; and set to increase through the year 2027.
Some of the advantages of LED lighting in retail stores include: extending the shelf life of perishable products; LEDs enables colors to appear truer and more vibrant; the lights provide a positive well-lit and safe and inviting shopping environment; LEDs reduce the heat in display cases; LED lights enable Smart Lighting, which helps customers find products, via a phone apps, plus several other advantages.
10-Year Market Forecast
This report provides estimates and forecasts, based on market research study work performed by ElectroniCast Consultants. The LED-based lighting covered in this study include track lighting heads (fixtures), including the initial lamp, which are used inside of retail stores.
Track lighting is a method of lighting where light fixtures are attached anywhere on a continuous track device, which is a surface mounted channel that holds the lighting units (or 'heads') in place and brings power to them. The track is usually mounted to the ceiling but it can be mounted to a wall, a beam or dropped from the ceiling on stems or cables. This market study covers only the movable lighting unit for track lighting and not the track.
LEDs are used in both functional and decorative light fixtures, with an advantage of energy savings. Compared to incandescent lighting, LED-based solid-state lighting (SSL) delivers visible light with reduced heat. In addition, its solid-state nature provides for greater resistance to shock, vibration, and wear, thereby significantly increasing its lifespan.
Some of the Advantages of LED Lighting in Retail Stores
Market Forecast, by Region
The market data are segmented into the following regions; separate data-sections are provided for the following regions:
LED Level Quantified in the ElectroniCast Study
Below, are four levels (or “food chain”) pertaining to the LED marketplace. For the purposes of this study, we quantify and provide a market forecast for “Level 4”
Level 1 - The chip or die
Level 2 - The LED component (packaged LED) or other components
Level 3 – Lamps, complete LED-equipped PCB, or Module
Level 4 – Luminaire (light head with initial lamp/s)
Market Forecast, By Function
This report provides the 2017-2027 market data review and forecast by the following functions:
The average selling prices are not retail prices; the prices are based on the price of the product at the initial factory level. These are the original manufacturer’s (“factory”) prices invoiced to the first (original) customer, or transfer prices for internal (captive) production.
Market Forecast, by Product Size
For the purposes of this market study, we segment the product by the following sizes, which is measured at the area where the light is emitted, typically the width (shown in centimeters):
Retail Stores
In this market study we estimate and forecast the use of LED-based lighting heads for track lighting, which are used inside of retail stores. Of course, this industry sector may seem endless, which includes: very small neighborhood corner markets; convenience stores; grocery stores/supermarkets and hypermarkets; massive DIY (do-it-yourself) home improvement/lumber stores; contemporary art galleries, automobiles, bookstores, and furniture, appliances and electronics, sporting goods, handicrafts, musical instruments, gift shops, as wells as major department stores, and many others. However, shopping centers/malls, which are outside of the actual retail stores, are not included in the market data considerations. Also, we have not included food and drinking establishments, such as restaurants and bars in this market data.
Market Research Methodology
Market analysis and technology forecasting are complex tasks. Any predictions of the shape and trends of technology and economic movement start from the notion that the germ of what will be important tomorrow is present, although smaller or larger or in a different form, in our environment today. However, taking as a basis for a prediction the assumptions of current, conventional belief creates a set of preconceived notions that can lead to serious mistakes. ElectroniCast instead, looks to the basic driving forces.
The future market for the use of a particular type of LED track lighting fixture (head) depends on a number of factors, including: User equipment demand, for example – applications: interior retail store environment and market demand, and energy efficiency requirements and government regulations/laws/mandates/low carbon footprint, future-proofing (design and in technology), economy and investment community, product life cycles, competing technologies/solutions, cost/benefit ratios, requirements driven by Internet of Things (IoT), intelligent/digital building lighting controls, and others.
Information Base This study is based on analysis of LED lighting information obtained continually since 2002, but updated through the middle of September 2018. During this period, ElectroniCast analysts performed interviews with authoritative and representative individuals in the LED manufacturing (materials, chips, packaging, devices, associated parts/pieces, fittings/ fixtures) and building/facility management, local/state and federal government policy and management, LED driver IC and micro-controllers, product distributors, retail store management, import/export, and other. The interviews were conducted principally with:
The interviews covered issues of technology, R&D support, pricing, contract size, reliability, documentation, installation/maintenance crafts, standards, supplier competition and other topics.
Selected customers and distributors also were interviewed, to obtain their estimates of quantities received and average prices paid. Customer estimates of historical and expected near term future growth of their application are obtained. Their views of use of new technology products were obtained.
The analyst then considered customer expectations of near-term growth in their application, plus forecasted economic payback of investment, technology trends and changes in government regulations, to derive estimated growth rates of quantity and price of each product subset in each application. These forecasted growth rates are combined with the estimated baseline data to obtain the long-range forecasts at the lowest detailed level of each product and application.
A full review of published information was also performed to supplement information obtained through interviews. The following sources were reviewed:
Nature of the Data This report provides the consumption value, quantity and prices of LED-based track lighting fixtures (heads), which are used inside of retail stores — worldwide. The following details are important in interpreting the data presented in the study results/report:
The quantitative forecasts and value calculations for the LED track lighting fixture and the initial lamp (LED light source). Value-added motors, remote controls, and optional lenses/diffusers, optional hardware and tracks and track accessories/ components are not included in the average selling price market data.
Global Market Forecast proceeded as follows:
Forecast Lighting Demand Growth Based on primary research (interviews and evaluations) with engineers and product planners, ElectroniCast can see ideas and then (eventually) concepts about 3-7 years before innovation solutions (products) are announced in the public domain. Once we feel confident that these ideas and concepts will become innovative solutions (new products), we set anticipated usage into the market forecast. Therefore, as we are looking as several years, many of the future products may not even be at the idea-stage yet. It is also important to note that ElectroniCast, in effect, forecast lighting demand growth, which will drive demand for increased capability/capacity LED-based fixtures; therefore, we have expertise of what to look for.
Bottom-up Methodology ElectroniCast forecasts, as illustrated in the forecast data structure, are developed initially at the lowest detail level, then summed to successively higher levels. The background market research focuses on the estimated quantity of each track lighting fixture (track-head) size-category type of product used in the base year (2017), and the prices paid at the first transaction from the manufacturer.
This forms the base year data. ElectroniCast analysts then forecast the growth rates in component quantity use in each application, along with price trends, based on competitive, economic and technology forecast trends, and apply these to derive long term forecasts at the lowest application levels. The usage growth rate forecasts depend heavily on analysis of overall end user trends toward equipment usage and economic payback. Figure 1 further illustrates the research methodology regarding this study.
*If Applicable.