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Latest analysis of LED horticultural lighting market, industry and technology development trends
At present, the growth momentum of the horticultural lighting market is mainly from greenhouse applications. In greenhouses, artificial lighting is used to compensate for changes in natural light to increase crop yields. For these applications, traditional light sources such as fluorescent lamps and high pressure sodium lamps (HPS) are currently the most mainstream solutions. New applications will drive the transformation of the horticultural lighting industry Currently, the growth of the horticultural lighting market is mainly driven by greenhouse applications. In greenhouses, artificial lighting is used to compensate for changes in natural light to increase crop yields. For these applications, traditional light sources such as fluorescent lamps and high pressure sodium lamps (HPS) are currently the most mainstream solutions. However, the development of LED technology in recent years has enabled it to gradually enter the horticultural lighting market and seize market share. The main advantage of LED technology is that it can save a lot of energy costs compared to the lower power consumption of the prior art. Moreover, LED-based lighting systems generate less heat and enable the illumination of crop-intensive areas. LED lights are installed near the bottom crops that are relatively unlit by surface crops, improving output consistency and increasing crop yields. Greenhouse applications are still only a small part of the LED horticultural lighting market, and new applications from urban farmers will drive the horticultural lighting market to grow rapidly in the medium and long term. Today, most of the cultivated land is far from the metropolis with a large population. As consumers become more aware of where and how their food is grown, farmers find it increasingly difficult for them to meet the city's growth. Crops such as crops, fruits and vegetables on urban farms can be used in a closed environment without daylight (using artificial lighting), multi-layer planting (maximum production), or as an effective solution to these Needs and challenges. In the short term, these new indoor horticultural applications (and related industries) are mostly emerging from high value-added crops (such as plants for medical applications). However, urban farms will not be limited to these high-end products. In fact, there are already many urban/vertical farms in various regions of the world, and ordinary vegetables such as radishes, lettuce and basil are being grown. Horticultural Lighting Applications Market Opportunities for Horticultural Lighting The horticultural lighting market (system level) was $3.1 billion in 2016 and is expected to grow to $3.8 billion in 2017. The current market is mainly driven by greenhouse applications (92% in 2017) and existing lighting technologies (79% in 2017), but with the gradual replacement of LED technology and the rise of new applications, both at the system level and LED Device level, further increasing the scale and attractiveness of the horticultural lighting market. Under this circumstance, the horticultural lighting market is expected to grow to nearly 8.6 billion U.S. dollars in 2022 (the compound annual growth rate during this period is 17.8%). Of course, this is only the starting point of the market outbreak. Indoor/vertical farms will continue to grow rapidly between 2022 and 2027, driving the entire market to grow to more than $17 billion by 2027. In 2017, the horticultural lighting LED device-level market is expected to be around $100 million, and will grow to $400 million by 2022 (up to $700 million in 2027). 2017 vs. 2022 vs. 2027 horticultural lighting market revenue forecast LED technology: market disruption of the horticultural lighting industry The global lighting market is becoming increasingly competitive, and the horticultural lighting industry will be a new opportunity for the LED lighting industry, using LED technology Develop high value-added products for greater profit margins. Of course, established LED manufacturers are still facing competition from newcomers (mostly start-ups and small and medium-sized enterprises) who are trying to grab their market share in this market full of growth opportunities. Until the fourth quarter of 2017, the market for LED horticultural lighting industry was still small, with less than 50 manufacturers providing LED lighting systems specifically for this market. Focusing on the future, the development of the horticultural lighting industry is closely related to market dynamics. In fact, the marketing and communication of major industry players mainly focus on two main applications: 1. Medical crop cultivation, currently the main market driver; 2. Vegetable cultivation, growing low-end/quantity large-scale products. Some established mature lighting system manufacturers may not be involved in the first application (at least not publicly involved) to protect the brand image. This has created opportunities for many newcomers to quickly generate revenue and improve their expertise and experience in the horticultural lighting market. At the device level, most LED manufacturers tend to adopt technology-driven strategies that leverage their traditional LED product lines (such as UV, visible, and near-infrared LEDs) to quickly provide horticultural lighting solutions and related marketing tools (such as dedicated Data sheet, etc.). In the future, with the in-depth study of the impact of LED lighting on crop growth, these vendors will begin to provide solutions specifically for horticultural lighting (such as carefully modulated wavelengths, multiple wavelengths combined with solutions). At present, the missing link in the industry chain is mainly at the module level. In 2017, the horticultural lighting LED industry has not yet seen a true module-level supplier. Therefore, the market is still an emerging market, and the industry is still very young and lacks relevant. Standards and regulations. In this context, individual lighting system manufacturers are designing their own LED lighting modules with specific wavelength combinations/schemes. Some vendors have begun to position themselves as solution providers, not only providing lighting systems, but also providing global solutions for integrated sensors (humidity, oxygen content, etc.) and data management software. The goal of these intelligent lighting systems is to further increase the production of greenhouses and urban farms.