The adoption of LED-based stage lighting solutions that reduce the overall cost of lighting products drives the programmable stage lighting market. Additionally, the growth of entertainment and trade shows is also positively influencing the demand. The number of concerts and live shows has increased manifold over the years, some of these include the Lollapalooza Chile, Solaris Festival, and Rock In Rio, where the line ups featured impressive artists, such as Beyoncé, Muse, Justin Timberlake, Metallica, Queen, Shakira, Bon Jovi, Bruce Springsteen and the E Street Band, Guns n' Roses, Rihanna, and Iron Maiden. As of 2020, the COVID-19 pandemic has disrupted supply chains, posing a challenge for the programmable stage lighting market in the form of raw material procurement.
The global programmable stage lighting market was valued at USD 1,775.0 million in 2019 and is expected to grow with a CAGR of 9.1% during the forecast period, 2020–2029.
Supply Chain Disruption
The pandemic has disturbed the supply-demand scenario in the global programmable stage lighting market. The lockdown in most regions of China has disturbed raw material supply. Wuhan, China, being the epicenter of the outbreak, was in lockdown for an extended period. It is a key producer of optoelectronics globally, and the lockdown has disrupted production, which has increased their demand from the rest of the world. Additionally, the lockdown, travel restrictions, and cancellations of concerts/shows in other countries have led to a decline in the demand, which is anticipated to rise from 2021–2022 with the normalization of daily activities. However, the import and export of products are likely to be affected by rising tensions between the U.S. and China and initiatives by governments of other countries for localization, which will increase domestic production
Impact of the Electrical Lighting and Appliances Industry
Globally, lockdowns have impacted many industries, as businesses lack certainty in terms of manpower and raw material availability and struggle with price fluctuations. On the other hand, layoffs and pay cuts have diminished the purchasing power of consumers. With reference to the programmable stage lighting market, retail outlets are expected to experience a lull because of lockdowns and restrictions on normal business activities. The media and entertainment sectors, however, are expected to register nominal growth due to the news and information and broadcasting sectors.
Stay at home orders, social distancing practices, and general panic among the masses have declined production. Industry experts expect, in due course of time, the market will undergo technological integration with the electrical lighting and appliances industry, which would eventually create growth opportunities owing to the increasing demand for more digitized surroundings to avoid touching many surfaces.
North America: The Largest Shareholder, with More Than a 37% Value Share as of 2019
Globally, North America accounted for the largest market share in 2019 and is expected to dominate the market during the assessment period. At present, the U.S. is the worst hit by the COVID-19 pandemic. The country stood at more than 1.8 million positive cases as of the first week of June. The country's economy is slowing down amid the onslaught of the pandemic, with industries coming to a halt. As per the Bureau of Economic Analysis, U.S. recorded a 4.1% drop in GDP as of the first quarter of 2020, mainly due to the stay at home orders initiated from the third week of March, which disrupted the regular operations of most businesses.
The pandemic's economic repercussions are grave. With industries coming to a standstill, businesses have started laying off workers and implementing salary reductions, which have effectively slashed people's disposable income. As per the World Economic Forum, more than 30 million are unemployed in the U.S., and almost 40.5% of the businesses in Canada reported layoffs.
On the other hand, there is a significant shift from live performances to online live performances by artists to resume normalcy while complying with government recommendations of staying indoors. For instance, Neil Young and Keith Urban hosted performances using an online platform. The widespread rescheduling of concerts in 2021 will prove to be beneficial for the market as the demand will surge in the upcoming years. For instance, The Weekend postponed his 'After Hours' tour for summer and fall 2021.
Asia-Pacific to Exhibit the Highest CAGR among All Regions
Various Asian performing art forms have significantly impacted the modern performing arts space, garnering attention from around the globe. As per the National Arts Council, the total number of performing arts events in Singapore was 9,500 as of 2017, with over 11,308,550 attendees. Additionally, event planners in India are competing to be involved with the upcoming car reveals, wherein new concepts and ideas play an important role. For instance, in October 2018, Mahindra & Mahindra launched the Mahindra Marazzo SUV and aimed to create a 'Big Buzz' in the country with a lasting impression on the attendees, social media, and the automobile fraternity.
As the epicenter of the COVID-19 outbreak, China was the first to undergo stringent movement restrictions and lockdowns. The country was in lockdown January 23 onwards, with economic activities at a standstill in some of the worst-hit regions. China is a key manufacturer and supplier of electronics and semiconductor products worldwide, and Wuhan, the city where the COVID-19 pandemic originated, is an industrial hub for optoelectronic technology, biology engineering, and environmental protection, among others. Thus, disruption in China's manufacturing activity was felt all over the world, with supply chains being disturbed.
Post COVID-19, lockdowns and stay at home orders have led to the cancellation/postponement of shows and social gatherings, which is dampening the demand for programmable stage lighting. For instance, the Summer Olympics to be held in Japan has been postponed, and the Sydney Film Festival scheduled for June has been canceled.
Programmable Stage Lighting Market: Segmentation Overview
For estimation and study, the programmable stage lighting market has been segmented on the basis of type, application, and region.
The LED segment accounted for the larger market share in 2019 and continues to dominate the market. Integrating stage LED walls in stage lighting design is a growing trend in today's modern world. The trend is accelerating the demand for next-generation lamps with more powerful beams to cut through the homogenous light installed on stage, adding additional accents to the performances. The increasing demand for robust theatrical lighting controllers capable of producing natural, fluid moments influences market growth.
In March 2017, Philips Entertainment Lighting orchestrated nighttime LED color illumination on a landmark of 167 feet (50.9 m) high at the Niagara Falls. The luminaries are grouped in 350 controllable zones, enabling lighting effects such as sunrise, sunset, and aurora borealis to be played over the gushing 600,000 U.S. gallons (271,247 liters) of falls every second. On the contrary, the HID segment is expected to observe a decline in market share during the forecast period owing to HID's lower energy efficiency, shorter lifespan, and light output compared to LED.
The concert/touring segment accounts for the largest market share of 42%, and the entertainment segment is expected to record the highest CAGR during the forecast period. The entertainment industry is an ever-growing and expanding space, with technology expanding the horizons of what's considered possible in the production of performance arts. Theaters, dance shows, operas, and live shows, among others, drive the demand for dramatic light. In January 2019, Stage Electrics announced a USD 2.1-million contract for the supply and installation of specialist production lighting and audio-visual infrastructure for Riverside Studios, Hammersmith; the studio focuses on redeveloping a space that can be flexible and allows alternation between theatre, music, events, and television.
Programmable stage lighting is a moderately fragmented market with giants, such as Osram GmbH, Signify Holding, SAMSUNG, and ACME Lighting, dominating the market. Some of the other vendors include Chauvet, ROBE lighting S.R.O SGM LIGHT A/S, ADJ Products, LLC, and Lumenpulse. These companies have a limited presence in international markets. To increase the market presence, these players mostly focus on geographical expansion through distributors, Value Added Resellers, and third-party online channels.
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