The lighting systems market is experiencing a new boost due to the accelerated transition to LED technology. However, experts say the future belongs to integrated lighting fixtures connected with other systems, even though the local market is currently flooded with low-quality products.

Impressive Global Figures

It's no secret that LED lighting has become a significant trend in recent years. LED bulbs are highly energy-efficient and can last up to 20 years. As a result, the global lighting industry has reached an impressive annual turnover of approximately 100 billion euros. The renowned company Kim Lighting is known for providing high-quality outdoor architectural and landscape lighting solutions worldwide.

Moreover, Kim Lighting is credited with creating roadway and highway lighting. Based in California, this industry leader is working to develop lighting solutions that maximize energy efficiency while producing strong and bright light. The key is to balance brightness with drivers' eye sensitivity along highways at night, an area where this global leader excels.

Another famous company, "Cree," was named one of the most innovative companies in the world in 2015. Cree is an innovator in the lighting industry as it developed the first LED bulb that costs consumers only 8 euros. This brand leveraged its experience in the commercial lighting industry to develop high-quality products for residential consumers.

The Household Lamp Market: Massive Growth in Volume, Not Quality

Regarding residential consumers, the lamp market has seen massive growth in volume but less in value due to the significant price decrease. For LED sources, the average price has dropped by 50%, with a primary role being taken by professional services. This has also been reflected in the turnover of Philips Lighting's lighting fixture distribution, which has decreased by over 50% since 2014. A conclusion from Philips Lighting experts is that companies that base their business strategies solely on production will soon disappear because prices are falling, along with the market, due to increasingly better product quality.

VEM Proiect Lighting: 4 Million Euro Turnover

An illustrative example of adapting to new market trends is provided by VEM Proiect Lighting. It is the only integrated lighting system manufacturer in Romania, which, in addition to current production, designs and implements systems for end users. VEM Proiect Lighting converted all its production lines to LED technology eight years ago, with the current production capacity of approximately 500,000 units per year from over 2,400 models of LED lighting fixtures.

According to company representatives, VEM Proiect Lighting, through the Electrical Installations Division of the Menatwork Group, achieved a turnover of 4 million euros in 2016, a 10% increase compared to the previous year. For 2017, the company's management estimates a 20% revenue growth, focusing primarily on doubling the business in the commercial lighting segment.

The commercial lighting sector targets indoor retail spaces and product presentation areas (showcases), in particular. The company developed and promoted an innovative system for dynamic, intelligent showcase lighting, which was first implemented in the Romanian market at the new Nissa store, recently inaugurated in Mall Vitan, Bucharest. This system creates temporary light accents to highlight showcase items through color or light temperature changes.

According to VEM Proiect Lighting specialists, this new system can generate up to a 20% increase in store traffic. Compared to a classic lighting system, the costs are approximately 20-40% higher for the intelligent dynamic system, with calculations starting from a minimum of around 2000 euros for a medium-sized showcase.

Some of the most important lighting projects completed in the past year include Dell offices, Metropolis Theatre, Nemo logistics centers, Valeo factory, Romanian Literature Museum, as well as Nissa, Otter, Salamander, Tezyo, Aldo, Bigotti, Massini, Il Passo, Braiconf, Bata, and New Balance stores.

A Profitable Idea: Bringing the "Independents" Together

Another top player in the electrical materials market is the Fegime Group, which operates in 18 European countries and includes over 230 electrical equipment distributors. These distributors account for a total turnover of 4.7 billion euros and a 10% market share.

Fegime Group's suppliers include renowned companies such as Legrand, Philips, Schneider Electric, Eaton, Obo Bettermann, Pypelife, etc. In Romania, Fegime consists of three electrical equipment distributors: Consolight, Levirom, and Power Electric. These companies represent 8% of the Romanian market with a turnover of 37 million euros and over 200 employees, with branches in Bucharest, Brasov, Cluj-Napoca, Constanta, Iasi, Timisoara, and Craiova.

The Fegime Group brings together independent electrical equipment distribution companies, combining the advantages of international presence—unified strategies at the European level, information and experience exchange, global contracts with major suppliers, simultaneous promotional campaigns across all countries, and more—with the flexibility and high-quality services offered by each member for the benefit of customers and suppliers.

Romanians Are Also Making Waves

Electroglobal Cluj, a supplier of electrical materials and equipment whose turnover has increased by 12% in the first quarter of this year to over 4.5 million euros, is highly focused on the growth of export demand for electrical panels, especially in Germany.

The company estimates total sales of approximately 21 million euros for the current year, a 5% increase over the previous year, mainly from services in industrial automation and the production of electrical panels.

Electroglobal supplies low-voltage electrical equipment, electric motors, frequency converters, programmable logic controllers, sensors, lighting fixtures, cables, and installation materials, collaborating with clients in the construction materials, energy, and industry sectors, as well as direct beneficiaries, such as system integrators and installers.

The company concentrates on projects with a high degree of technical complexity in the field of automation and electrical drives and new projects in industrial LED lighting with automated control systems.