The Prospect of LED Plant Lighting Market in 2023
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%.