New applications will drive changes in the horticultural lighting industry
Currently, horticultural lighting market growth impetus 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 by far the most popular solutions. However, LED technology in recent years, making it able to gradually enter the horticultural lighting market, to 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. What's more, LED-based lighting systems generate less heat and crop-intensive lighting, installing LED lights near understory crops that are poorly lit by surface crops, improving output consistency and increasing crop yields.
Greenhouse applications are still only a small part of the LED horticultural lighting market, with new applications being pushed by urban farmers to boost the hurricane lighting market's rapid growth in the medium and long term. Today, most of the cultivated land is far away from the most populous metropolis. As consumers become aware of where and where their food is grown, farmers find it increasingly difficult to meet the growth of the city. Crops, fruit and vegetables from urban farms can be used in a closed environment without the need for daylight (using artificial lighting), in multi-layer farming (maximizing yield), or as an effective solution to these Needs and challenges.
In the short term, most of these new indoor horticultural applications (and their related industries) start with those high value-added crops (such as those used in medicine). However, urban farms will not be limited to these high-end products. In fact, many urban / vertical farms are now available in all regions of the world and common vegetables such as radishes, lettuce and basil are being grown.
Horticultural lighting applications
Horticultural lighting market opportunities
The Horticultural Lighting Market (System Level) in 2016 will be $ 3.1 billion 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 technology (79% in 2017), but with the gradual replacement of LED technology and the rise of new applications, Device level, to further enhance the size and attractiveness of the market of horticultural lighting.
Under these circumstances, it is expected that the market for horticultural lighting will grow to nearly $ 8.6 billion by 2022 (a CAGR of 17.8% during this period), which of course is only the starting point for an outbreak of the market. 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 market size of horticultural lighting LED devices is estimated to be about 100 million U.S. dollars and will increase to 400 million U.S. dollars in 2022 (up to 700 million U.S. dollars in 2027).
2017 vs. 2022 vs. 2027 Horticultural Lighting Market Revenue Forecast
LED technology: horticultural lighting industry market spoiler
The global lighting market is increasingly fierce competition, horticultural lighting industry or LED lighting industry will be a new opportunity to use LED technology to develop high value-added products for greater profit margins. Of course, veteran LED makers still face competition from new entrants, mostly start-ups and small and medium-sized businesses, who are struggling to snatch their market share in this market of growth opportunities.
Until the fourth quarter of 2017, the market for the LED horticultural lighting industry is still small, with fewer than 50 vendors offering LED lighting specifically for the market.
Focusing on the future, the development of horticultural lighting industry is closely linked with the market dynamics. In fact, the marketing and communication of major industry players mainly focus on two main applications:
1, the cultivation of medical crops, is currently the main market drivers;
2, vegetable cultivation, growing "low-end / volume of large-scale products."
Some established mature lighting system manufacturers may not be involved in the first application (at least not involved in the public) to protect the brand image. This opens up new opportunities for many new entrants to quickly reap revenue and enhance their expertise and experience in the horticultural lighting market.
At the device level, most LED manufacturers tend to adopt "technology-driven strategies" to quickly provide horticultural lighting solutions and related marketing tools using their traditional LED product lines, such as UV, visible and near infrared (LEDs) Such as a dedicated data table, 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 (eg, carefully modulated wavelengths, multiple wavelength combinations, etc.).
At present, the missing part of the industrial chain is mainly in the module level. There is no real module-level supplier in the horticultural lighting LED industry in 2017, so the market is still an emerging market with a young industry and a lack of relevant Standards and regulations. In this context, individual lighting system manufacturers are designing their own LED lighting modules with specific wavelength combinations / solutions.
Some vendors are positioning themselves as solution providers, providing not only lighting systems but also global solutions with integrated sensors (humidity, oxygen content, etc.) and data management software. The goal of these smart lighting systems is to further increase the production of greenhouses and urban farms.
Horticultural lighting supply chain