Philips 2013 Annual Report Download - page 83

5 Sector performance 5.3.1 - 5.3.2
Annual Report 2013 83
dwellers. These people will all need light. In addition,
the world needs energy-efficient light in the face of
rising energy prices and climate change. At the same
time, the lighting industry is moving from conventional
to LED lighting, which is changing the way people use,
experience and interact with light. LED technology,
when combined with controls and software and linked
into a network, is allowing light points to achieve a
degree of intelligence. This is opening up the possibility
of new functionalities and services based on the
transmission and analysis of data.
The lighting market is expected to grow by 4-6% on a
compound annual basis between 2013 and 2016.The
majority of this growth will be driven by LED-based
solutions and applications – heading towards a 45%
share by 2015 – and growth geographies.
5.3.2 About Philips Lighting
Philips Lighting is a global market leader with
recognized expertise in the development, manufacture
and application of innovative, energy-efficient lighting
products, systems and services that improve people’s
lives. We have pioneered many of the key
breakthroughs in lighting over the past 122 years, laying
the basis for our current strength and ensuring we are
well-placed to be a leader in the digital transformation.
We have a firm strategy in place to deliver even greater
value for our customers. This strategy is based upon
four pillars:
• Lead the technological revolution – strengthen our
leadership position through continued innovation in
high-quality, efficient and connected LED systems.
• Win in the consumer market – build on our strengths
in lamps by meeting consumers’ needs and
delivering innovative products, such as the Hue
personal wireless lighting system that can be
controlled by a smart phone or tablet. At the same
time we are addressing costs so that consumers can
quickly enjoy the advantages of new LED
innovations in lamps, luminaires and systems. In
addition, we are developing new channels to market.
• Drive innovation in professional lighting systems and
services – providing integrated oerings for this
market, which is an early adopter of energy-efficient
LED and now intelligent connected lighting
technologies.
• Accelerate! – strengthen our capabilities and
improve the way we work so that we reduce our
costs, are more productive, and fully satisfy our
customers’ expectations.
We aim to further strengthen our position in the digital
market through added investment in LED leadership
while at the same time capitalizing on our broad
portfolio, distribution and brand in conventional
lighting - seizing the significant opportunity to grow
market share and optimize profits in conventional
lamps and drivers by flexibly anticipating the slower or
faster phase-out of conventional products.
We address people’s lighting needs across a full range
of market segments. Indoors, we oer lighting solutions
for homes, shops, offices, schools, hotels, factories and
hospitals. Outdoors, we oer solutions for roads (street
lighting and car lights) and for public spaces, residential
areas and sports arenas, as well as solar-powered LED
o-grid lighting. In addition, we address the desire for
light-inspired experiences through architectural
projects. Finally, we oer specific applications of
lighting in specialized areas, such as horticulture and
water purification.
Philips Lighting spans the entire lighting value chain –
from light sources, luminaires, electronics and controls
to application-specific systems and services – through
the following businesses:
• Light Sources & Electronics: LED, eco-halogen,
(compact) fluorescent, high-intensity discharge and
incandescent light sources, plus electronic and
electromagnetic gear, modules and drivers
• Consumer Luminaires: functional, decorative,
lifestyle, scene-setting luminaires
• Professional Lighting Solutions: controls and
luminaires for city beautification, road lighting, sports
lighting, office lighting, shop/hospitality lighting,
industry lighting
• Automotive Lighting: car headlights and signaling
• Lumileds: packaged LEDs
The Light Sources & Electronics business conducts its
sales and marketing activities through the professional,
OEM and consumer channels, the latter also being used
by our Consumer Luminaires business. Professional
Lighting Solutions is organized in a trade business
(commodity products) and a project solutions business
(project luminaires, systems and services). Automotive
Lighting is organized in two businesses: OEM and
Aftermarket.
The conventional lamps industry is highly consolidated,
with GE and Osram as key competitors. The LED lighting
market, on the other hand, is very dynamic. We face
new competition from Asia and new players from the