The market for luminaires is estimated to be worth £440 million in 1999, representing 19% growth in real terms since 1994, with the lamps sector worth £145 million. The major sectors of the domestic lighting industry have enjoyed significant real growth, with the lamps sector often the centre for all technical innovation in the lighting industry. Yet real growth has been largely concentrated in the mid- to premium-priced areas of the luminaires market, although the highest growth rates have been shown by outlets more likely to carry a broader product range. Growth has been supported by the increase of households in the UK and the larger number of consumers working from home and an apparent increased number of light sources in use per household. Increased consumer sophistication is indeed the primary promoter of real growth in the industry, stimulated by product innovation in design and technology and increasing media coverage. Designs are maximising their flexibility, with a greater consumer knowledge of and appreciation of the aesthetic qualities of lighting and how this can be used to best effect.

As space for display is often limited in many outlets, retailers often rely on advice and service as the focus of sales marketing. Domestic Lighting reviews the market for lamps or light sources and luminaires, and assesses uses of lighting, both functionally and aesthetically. A highly fragmented and usually unbranded market, this report determines the extent to which consumer sophistication and awareness of lighting are increasing as a driving force. Will new designs stimulate the market further?