Mapping and Analysis of the Energy Efficient Lighting Sector in Englands Northwest Duncan Yellen

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Mapping and Analysis of the Energy Efficient
Lighting Sectorin Englands NorthwestDuncan
Yellen
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Objectives

• To identify the strengths and weaknesses of the
• Energy Efficient lighting sector in the NW
• Concentrating on solid state lighting
• Map NW companies- their markets, capacity for
  growth etc.
• Research capability- universities and
  manufacturers
• International market and international
  developments
• Affect of big lighting companies move into the
  SSL market
• Potential use in large construction/
  refurbishment projects
• Action plan for sector growth

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Sector Overview

• SSL is a small but significant and growing
  segment of the photonics industry
• The LED market was valued at nearly 45 million
  in 2005
• To date, LEDs have mainly been used in niche
  applications
• (e.g. special effect, portable, sign lighting)
• Little impact so far on the general lighting
  market
• Potential to become more mainstream, but must
  overcome the barriers of cost and light output
• One key area for growth would be in street
  lighting

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NW Companies

• Approximately 50 companies, mostly small,
  UK-owned, estimated sales of 500 million
• Majority in Greater Manchester, and Lancashire
• Few reliant on local economy, mostly UK wide
• Includes raw material and component suppliers,
  operational and control equipment suppliers,
  lighting product suppliers, service providers,
  and end customers
• Key companies- ACDC Lighting, Forge Europa,
  Gradus Lighting, Luminanz, Marl International,
  NJO, SDL, Siteco, Whitecroft Lighting, Epichem,
  Ex-Or

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NW Companies Needs

• Barriers identified by companies
• Finance
• Innovation/utilisation of technology
• Lack of understanding by end users
• Payback periods
• Lack public awareness
• Assistance needed
• Product testing
• Marketing information
• Information on new developments
• Finance
• Educating potential customers/clients
• Gaps in the supply chain
• Ability of small companies to convert their
  product to market
• (lack funding)

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Research capacity

• Manufacturers- most do some in-house RD
• Universities- Manchester, Liverpool, Lancaster,
  Manchester Metropolitan, and Salford
• Leading academics are outside the NW e.g.
  Cambridge, Bath, Sheffield
• Some relevant materials (e.g. polymers) and LED
  expertise in NW universities
• EPSRC grants search under LEDs- 140 projects
  since April 1994

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Opportunities

• Potential use in new buildings
• NW construction market buoyant- leisure
  industry, hotels etc.
• For example, Manchester Super Casino,
  Mediacity in Salford
• Need to reduce carbon emissions and energy use
• Economic and environmental
• HB LEDs worth 4 billion 2005, SSL market worth
  1 billion
• Lighting supply and value chains well defined
• Few large and many small OEM lighting firms
• Niche markets for SMEs with specialist lighting
  products
• Move from low margin fixture manufacturing to
  high margin SSL products
• Scope to work with UKDL on regional initiatives

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Action Plan

• Problems to overcome/ actions to be taken
• High cost
• Well designed luminaires for LEDs needed
• Lack Government policies to change consumer
  behaviour
• Little visibility of SSL benefits to end
  users/general public
• No one organisation dedicated to networking along
  the supply chain
• Advantage West Midlands, Scotland and Wales are
  more effectively engaged with the photonics
  industry

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Action Plan Proposals

• Domestic
• Fundamental research on diffusion
• Applied Research on systems integration
• Demonstration Projects
• Commercial
• Awareness Raising
• Demonstration Projects
• Public Sector
• Fundamental research on Street Lighting