Market Analysis of China's LED Plant Lighting Industry in 2023

The increase in global population, extreme weather, and geopolitical crises in recent years have brought food demand crises. LED plant lighting can help increase the yield per unit area of crops. It is regarded as a key solution to the food crisis, and companies from various countries have actively invested in it. The scale of the domestic LED plant lighting market is growing rapidly, reaching 3.558 billion yuan in 2022.

With the development of LED innovative applications, many companies have shifted from the fiercely competitive general lighting market to special lighting applications such as plants and UV LEDs. Lighting giants at home and abroad have also deployed in the field of plant lighting, and their application markets have gradually become the new development of the LED industry. direction.

Although horticultural lighting is an emerging market, foreign giants have developed relatively maturely, and have already carried out strict layout in terms of patents, especially the core patents in the upstream chip field. In terms of development mode, it is basically a mode in which LED light source companies cooperate with plant factories.

At present, LED plant lighting enterprises are dominated by international LED companies with strong comprehensive strength. The common feature of these manufacturers is strong capital and LED technology, and some have advantages in industrial chain integration. Representative companies include Signify, Mitsubishi Chemical, Panasonic, and Showa Denko.

The development of the domestic plant lighting field has just begun, and the concept of plant factories has only gradually been accepted by people in recent years. Although some large domestic manufacturers have developed plant lighting products, most of them are "heavy on LEDs, light on plants" development model, lacking Restricted by factors such as technical talents, high input costs, lack of core patents, and difficulty in exporting products, the progress is slow.

Domestic enterprises are represented by Sanan Optoelectronics, a leading LED chip company. Xiamen Sanan Optoelectronics has a joint venture with the Institute of Botany, Chinese Academy of Sciences to build a plant factory to produce high-quality safe vegetables, health products, and anti-tumor and other major disease pharmaceutical intermediate materials.

In recent years, the scale of the global LED plant lighting market has continued to rise. The prospect of LED plant lighting is good, but the main reason for the explosive growth of the industry in the first half of 2020 and 2021 is driven by the demand for medical and recreational marijuana cultivation in North America.

From the second half of 2021, plant lighting will begin to show signs of cooling down. There are three main reasons for this: first, there is a shortage of high-end LED chips for plants; second, the delay in shipping schedules affects product delivery and delivery; third, North America has stepped up efforts to crack down on illegal indoor marijuana cultivation. In June 2022, Thailand officially announced the legalization of growing and smoking marijuana, and the demand for plant lighting in Thailand has gradually increased.

In the domestic market, affected by repeated epidemics and shortages of upstream chips in 2022, the growth rate of market demand for LED plant lighting applications will slow down, and the industry is still in the demonstration project stage. Considering the high electricity costs and the urgent need to improve the overall intelligence, plant lighting has only formed a large-scale demand in the field of industrial hemp in the short term.

But in the long run, due to the shortage of global food supply and land resources, and benefiting from the development of smart agriculture, the construction of plant factories and vertical farms is booming around the world. In the future, with the gradual decline in costs and the advancement of intelligent control technology, LED technology will gradually penetrate the plant lighting market and expand more application fields.

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