Focus on the LED Plant Lighting Market
With a huge blind box, from 2022 to 2023, we are starting a year full of uncertainty: all countries are looking for ways to recover the economy, the overall uncertainty is decreasing, and the efficiency and effectiveness of economic development have yet to be tested. Many people in the industry can't help but ask, will the LED lighting market be good in 2023? Although 2023 is full of uncertainties, one thing is certain is that the LED plant lighting market will continue to grow steadily.
Compared with the blowout development of the plant lighting market in the first half of 2020-2021, the plant lighting industry will be tepid in 2022, with stable development and an overall slowdown in growth rate. Some organizations predict that the market size of LED plant lighting will be US$1.79 billion in 2022, with an annual growth rate of 6.6%, while the market size in 2021 will be US$1.68 billion, a year-on-year increase of 29.6%.
After experiencing the first round of high growth, the global horticultural lighting market is currently growing relatively steadily, and the development of various regions shows differences and diversification. In order to cope with the food and energy crisis brought about by climate change, European greenhouses continue to increase their willingness to introduce energy-saving LED fill lights, and the lighting market for fruits, vegetables, flowers and other crops shows a good growth trend.
In April 2022, the United States passed the MORE Act and legalized industrial hemp, which drove the growth of demand for plant lighting. However, the North American plant lighting market was affected by destocking factors, and its growth rate was temporarily limited.
In June 2022, Thailand officially announced the legalization of growing and smoking marijuana, and the demand for plant lighting in Thailand has gradually increased.
As for the domestic market, affected by repeated epidemics and the relatively tight supply of raw materials such as upstream chips, the growth rate of market demand for LED plant lighting applications has slowed down. Demonstration projects such as the "Plant Factory Rice Breeding Accelerator" of the Chinese Academy of Agricultural Sciences have brought new development opportunities for plant lighting. At the same time, the report of the 20th National Congress of the Communist Party of China proposed to "tamp the foundation of food security in an all-round way", which pointed out the direction for my country's food policy.
It is foreseeable that under the favorable policy of legalizing industrial hemp in Thailand in North America, coupled with the food supply chain crisis brought about by the epidemic and geopolitics, and people's pursuit of safe and healthy food, smart agriculture has gradually been put on the agenda of governments around the world. The rise of plant factories and vertical farming will further stimulate the market demand for LED plant lighting. Relevant institutions predict that the global plant lighting system market in 2017 is only about 3.8 billion US dollars; 2027 will rapidly increase to 17 billion US dollars, of which the LED plant lighting market size can grow to 12.8 billion US dollars, with a compound annual growth rate of 16%; LED device level the market was only 100 million US dollars in 2017, and will expand to 700 million US dollars in 2027; the compound annual growth rate will reach 21%.
As a popular lighting track in recent years, plant lighting has attracted the strong layout of more than 30 listed companies or leading enterprises in the industrial chain.
On the one hand, they actively respond to market demand and continue to introduce new ones, focusing on product efficiency and color spectrum indicators, pursuing "brilliant" products. In 2022, the performance of plant lighting products will show a competitive situation. They all use their accumulated technical means to improve product performance, including photosynthetic photon flux (PPF), photosynthetic photon efficiency (PPF/W; PPE), uniformity of illumination, anti-corrosion and anti-sulfurization, etc. They have initially formed a certain influence on the plant lighting track.
According to the list of "Top 25 Plant Lighting in China's LED Industry of the Year" released by the daily LED omni-media, through the statistics of public data of listed companies and self-declared data of enterprises, after the review by the expert review meeting, Zhongke Biology, Foshan Lighting, West 25 powerful companies such as Di Technology, Sangrui Biology, Hongrui Optoelectronics, and Yuguang Lighting stood out and established their own status in the plant lighting track.
On the other hand, going out of the circle and establishing industrial chain cooperation has also become a new way for plant lighting companies. From the strategic cooperation between Songsheng and the Institute of Urban Agriculture of the Chinese Academy of Agricultural Sciences, to the LED plant lighting solution provider Fluence announcing a cooperation with the plant growth biotechnology company BioLumic. Through this cooperation, BioLumic will accelerate the development of the optical signal platform, and Fluence will gain more opportunities to enter the global horticultural market, while strengthening its horticultural lighting product portfolio.
Although the current strategic alliance has not yet become successful, plant lighting is a systematic interdisciplinary subject, and it is far from enough to rely solely on lighting companies to fight alone. In the future, more manufacturers will actively open up upstream and downstream and cross-border cooperation to promote the professional and large-scale development of the LED plant lighting market.