Philips 2014 Annual Report Download - page 56
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Sector performance 6.3
56 Annual Report 2014
6.3 Lighting
“ We are leading the industry transformation, capturing
market opportunities and creating value for our customers.
Going forward, Philips Lighting will become a stand-alone
Lighting Solutions company. This will enable us to further
capitalize on the fundamental changes taking place in the
lighting industry and deliver innovations that create value
and boost growth.” Eric Rondolat, CEO Philips Lighting
• The lighting industry is undergoing a radical
transformation.
• The lighting market is being driven by the transition
to LED and digital applications.
• With our four-pillar strategy our goal is to create
further value as a world-class lighting solutions
provider.
• We continue on our Accelerate! journey to achieve
operational excellence across our businesses.
• The separation process is fully under way and is
expected to take approximately 12-18 months.
6.3.1 Lighting business landscape
We are witnessing a number of trends and transitions
that are aecting the lighting industry and changing the
way people use and experience light.
We serve a large and attractive market that is driven by
the need for more light, the need for energy-ecient
lighting, and the need for digital lighting. The world’s
population is forecast to grow from 7 billion today to
over 9 billion people by 2050. At the same time, we are
witnessing unprecedented urbanization, with over 70%
of the world’s population expected to live in urban
areas by 2050. These trends will increase demand for
light. In addition, in the face of resource constraints and
climate change, the world needs that light to be energy-
ecient. 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
sensors, controls and software and linked into a
network, is allowing light points to achieve a degree of
intelligence. This is further 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 3-5% per
annum between 2013 and 2018. The majority of this
growth will be driven by LED-based solutions and
applications – heading towards a 60-65% share by
2018 – and growth geographies.