TrendForce: Revenues of the world’s top ten lighting companies are expected to drop by 5% annually in 2023

According to lighting market research by TrendForce, the inventory depletion situation of lighting market players has improved significantly compared with the first half of 2023, and outdoor lighting orders have increased and renovation projects have grown. However, most retail, indoor lighting, and special lighting demand are still weak. In addition, this year's global economic downturn has also caused the lighting market to enter a stage of corporate consolidation, and the overall lighting demand has been flat.

Therefore, TrendForce estimates that the revenue performance of the world's top ten lighting companies in 2023 will be slightly lower than in previous years, with an annual decrease of approximately 5%. Looking forward to 2024, even though the overall lighting market is still unclear, the industry has undergone two consecutive years of adjustments and is expected to see demand pick up for the second time next year.

Judging from the revenue performance of various manufacturers in the third quarter, the revenue of some lighting companies rebounded slightly. The top ten lighting companies’ total revenue reached US$5.2 billion, a quarterly decrease of 0.8%. Signify, Acuity Brands, and Panasonic rank among the top three. The total revenue of the three companies accounts for approximately 63% of the total revenue of the top ten lighting companies. Except for the exchange of rankings between LEDVANCE vs. MLS Lighting and Panasonic, the rankings of the other companies are the same as in the previous two quarters.

Signify's third-quarter revenue was approximately US$1.75 billion, down 2.5% quarter-on-quarter. As retail and indoor lighting demand continued to be weak, OEM sales slowed in the third quarter, leading to a decline in revenue. From the perspective of Signify's global layout, the main declining markets in Europe are Germany, Belgium, the Netherlands, Luxembourg and the United Kingdom. Revenues in North America such as the United States and Canada have all declined. At the same time, the recovery of the Chinese market has also been lower than expected.

Acuity Brands’ third-quarter revenue was approximately US$1 billion, down 1.0% quarter-on-quarter. The decline in lighting revenue was due to product replacement. Despite the lengthening cycle and the impact of poor general economic performance, revenue in this field remains among the top three in the world, accounting for approximately 20% of the total revenue of the top 10 lighting manufacturers. In the first half of 2023, Acuity Brands will introduce the innovative project Design Select into its service strategy to provide customers with high-quality lighting products and lighting control solutions. Design Select includes approximately 3,000 optional products from lighting brands such as Aculux, Gotham, Lithonia, nLight and SensorSwitch.

After MLS Lighting acquired LEDVANCE, its overseas business contributed more than 50% of its overall revenue. Judging from the first three quarters of 2023, lighting revenue combined accounted for 73% of total revenue. Revenue in the second half of the year mainly benefited from the support of seasonal demand in China's lighting industry. However, the overseas lighting market has become saturated and inhibited growth, affecting MLS Lighting's lighting revenue performance in the third quarter, which increased by approximately 2.3% quarterly.

It is worth mentioning that the LEDVANCE brand performed well in the Chinese industrial lighting market in the first half of 2023. Its layout in the Chinese market, coupled with strategies such as product structure upgrades, are expected to be effective. It is expected that LEDVANCE's lighting revenue will grow throughout 2023.