Impact of COVID-19 on the Fluorescent Lighting Market
Fluorescent lighting functions as a highly versatile type of lighting and is in high demand for its better energy efficiency as compared to halogen and incandescent light bulbs. Also, fluorescent lighting is priced lower as compared to LED lighting. The fluorescent lighting market recorded a CAGR of around 16.3 percent in 2018. The current COVID-19 crisis has exposed the potential risks and susceptibility of the lighting industry’s value chain, thereby compelling the companies to consider transforming its global supply chain model. The lockdown has caused considerable losses in the first quarter of 2020. Maintaining a balance between the supply and demand environments has become very challenging. Manufacturing of all these devices was put on hold for a long period to prevent the spread of COVID-19. Factory closures in major countries such as China and the USA have disrupted production and cash flows of utilities. As a result, there was a fall in demand for fluorescent lighting.
Further, several European countries have temporarily suspended the export and import of products creating pressure on manufacturers. The innovations in the industry are already facing a setback with industry events such as the Light Fair 2020 being canceled to control the spreading pandemic.
Based on a survey conducted by the Lighting Industry Association (LIA) to comprehend the effects of the current lockdown on the lighting industry, more than three fourth of members reported their business remained open in some form. The key operative functions being sales, dispatching, and accounts, the members are focused on creating an efficient recovery plan.
MRF predicts that the demand for fluorescent lighting is expected to bounce back to its initial state in 2021 and attain an average growth rate in the last quarter of 2020. The demand is likely to emerge from the commercial sector. Leading players in this industry are increasingly focusing on maintaining their production and delivery strategies. Key players such as Panasonic Corporation (Japan), General Electric Company (US), and Schneider Electric SE, have committed to ensuring on-time deliveries of products from their manufacturing units across the globe.
Fluorescent Lighting Market Size Forecast
Source: MRFR Analysis