Even though the decorative lighting industry performance was average in 2016, the industry remained upbeat about its market outlook next year, according to statistics compiled by the Hong Kong Trade Development Council (HKTDC).

Visitors responded markets with the greatest future market potential include North America, Western Europe, and China, while LEDs and environmental lighting were the products that showed the most growth in the last few years. Additionally, smart lighting systems will be prioritized in future decorative lighting developments.

At the Hong Kong International Lighting Fair (Autumn Edition) that took place in October 2016, the HKTDC interviewed 393 buyers and 261 manufacturers that attended the show to gain further understanding of the decorative lighting market and future industry trends.

Industry optimistic about decorative lighting market outlook in 2017

At the lighting fair last month, 43% of buyers interviewed and 66% of visiting manufacturers projected annual revenue for 2016 to increase, the number of positive responses climbed up significantly in April 2016. The number of manufacturers estimating revenue declines in 2017 decreased with only 10% of buyers and 6% participating manufacturers holding negative outlooks. In general, this year’s decorative lighting sales performance was mediocre, but the industry is still fairly optimistic about their outlook in 2017.

Traditional decorative lighting markets in North America and Western Europe topped regional market growth potential outlook each scoring 3.65, while Chinese domestic market received a score of 3.63. Following in its footsteps was Australia, Pacific Ocean, ASEAN, Korea, Japan and Latin America. In reality, all regional market outlooks scored above the median score of 3 out of full score of 5, indicating the industry is optimistic about the global market outlook.

Industry affirms LED lighting trends

Based on survey results last month, more than 40% manufacturers highlighted LED and CFL as products with the greatest growth potential for 2017. Residential lighting, smart lighting systems, office lighting and commercial lighting emerged as the main market sectors to spur growth, respectively clinching 32%, 21% and 14% visitor votes.

Moreover, about 15% of visitors highlighted commercial lighting and residential lighting as markets with greatest growth potential in 2017. Additionally, 10% visitors responded decorative lighting solutions would have the greatest growth potential in 2017, the results were the same as an earlier survey conducted in April 2016. Another 10% visitors responded outdoor lighting had the greatest growth capacity in 2017, up 6% compared to the last survey conducted in April.

Decorative smart LED lighting a main focus in the future

Majority of visitors, up to 84% revealed smart technology will be beneficial to decorative lighting developments, many of those interviewed pointed the most important ones in the smart decorative lighting sector included: connection and communication between lights and smartphones or tablets , controlling smart lighting systems (48% interviewed agree), energy efficient smart lighting systems for residential, industrial and commercial buildings (41%).

Survey information

Of the 393 buyers surveyed, 27% were from Hong Kong and the remainders were international visitors. The major export markets for lighting products manufactured in Hong Kong include Western Europe (23%), North America (20%) and China (18%).