Philips 2011 Annual Report Download - page 73

6 Sector performance 6.3.1 - 6.3.3
Annual Report 2011 73
The second transition is from bulbs and components as
the point of value creation, to end-user-driven
applications and solutions. Increasingly, these applications
and solutions will include lighting controls. We believe
that, going forward, a key differentiator among lighting
suppliers will be the innovative strength to create systems
and solutions that are truly customer-centric, while
leveraging global R&D and supply chain scale.
Consumers, businesses and national and municipal
authorities are demanding highly adaptable lighting
solutions which they can use to customize their indoor
and outdoor environments as and when they desire.
Flexible and dynamic, our LED lighting solutions allow a
much higher degree of customization and provide
significantly greater possibilities than solutions based on
conventional technologies.
The third transition is the global interest in energy
efficiency, in response to rising energy prices and
increased awareness of climate change. Many countries
and regions have introduced legislative measures to
address energy consumption and the emission of
greenhouse gases, which are linked to climate change.
Philips will continue to play a significant role in
encouraging and enabling the switch to energy-efficient
lighting solutions, helping our customers to save on
energy costs while making a positive contribution to the
environment.
Between now and 2015, we expect the value of the global
lighting market to grow by 5-7% on a compound annual
basis. The majority of the growth will come from LED-
based solutions and products – heading towards a 45%
share by 2015. As one of the global leaders in LED
components, applications and solutions, with a strong
global presence across the LED value chain, we believe we
are well positioned for the changes at hand.
In 2010 the lighting industry as a whole was recovering
from the global economic developments in 2009. In 2011,
however, this recovery slowed due to downward
pressure on GDP, weaker consumer markets in mature
geographies and continued weakness in the construction
market. Growth geographies, once at risk of overheating,
have slowed to more sustainable growth rates, albeit
lower than expected.
6.3.2 Simply enhancing life with light
Philips Lighting enhances life with light through innovative
lighting solutions. We believe that by focusing on what
people really need and leveraging our expertise with a
broad range of leading partners, we can create and deliver
the most innovative and meaningful solutions on the
market.
Lighting can do more than just shedding light. Our
innovative solutions are transforming urban
environments, helping to create livable cities through the
use of light to enhance safety, municipal identity and
residential well-being. Consumers are increasingly
applying lighting to create their own ambience at home as
an expression of their lifestyle. Building owners and
retailers are recognizing the benefits of energy-efficient
lighting in reducing their operational costs. And schools
are learning how lighting can improve education and well-
being. We believe that the rise of LED, coupled with our
global leadership, positions us well to continue to deliver
on our mission to simply enhance life with light.
6.3.3 About Philips Lighting
Philips Lighting is a global market leader, with recognized
expertise in the development, manufacturing and
application of innovative lighting solutions. We have
pioneered many of the key breakthroughs in lighting over
the past 120 years, laying the basis for our current
position.
We address people’s lighting needs across a full range of
market segments. Indoors, we offer lighting solutions for
homes, shops, offices, schools, hotels, factories and
hospitals. Outdoors, we offer solutions for roads (street
lighting and car lights) and for public spaces, residential
areas and sports arenas. In addition, we address the desire
for light-inspired experiences through architectural
projects. Finally, we offer specific applications of lighting
in specialized areas, such as horticulture as well as air and
water purification.
Philips Lighting spans the entire lighting value chain – from
light sources, electronics and controls to full applications
and solutions – via the following businesses:
• Lamps: incandescent, halogen, (compact) fluorescent,
high-intensity discharge and LED
• Consumer Luminaires: functional, decorative, lifestyle,
scene-setting
• Professional Luminaires: city beautification, road
lighting, sports lighting, office lighting, shop/hospitality
lighting, industry lighting
• Lighting Systems & Controls: electronic and
electromagnetic gear, controls, modules and drivers
• Automotive Lighting: car headlights, car signaling,
interior
• Lumileds: packaged LEDs