The overall recovery of the LED general lighting application market and the continuous increase in niche market demand have enabled the global LED general lighting, LED plant lighting and LED smart lighting to usher in varying degrees of growth in the market size from 2021 to 2022.
Significant recovery in general lighting market demand
With the gradual popularization of vaccines in various countries, the market economy has begun to recover. Since 1Q21, the LED general lighting market demand has significantly recovered. It is estimated that the global LED lighting market will reach 38.199 billion US dollars in 2021, with an annual growth rate of 9.5%.
The main growth momentum of the general lighting market comes from four factors:
1.With the gradual popularization of vaccines in various countries, the market economy has gradually recovered, especially in commercial, outdoor, and engineering lighting.
2. The price of LED lighting products has risen: With the pressure of rising raw material costs, lighting brand manufacturers continue to increase product prices by 3-15%.
3. With the support of energy-saving and emission-reduction policies in various countries around the world, in order to achieve the goal of "carbon neutrality", LED energy-saving retrofit projects have been gradually launched, and the penetration rate of LED lighting has continued to increase. In 2021, the penetration rate of the LED lighting market will increase to 57%.
4.Under the epidemic situation, LED lighting manufacturers are accelerating their deployment towards digital intelligent dimming and control of lamps. In the future, the lighting industry will also pay more attention to the systemization of connected lighting products and the added value brought by human health lighting.
The prospects of the plant lighting market are quite optimistic
The market prospect of LED plant lighting is quite optimistic. In 2020, the global LED plant lighting market will grow 49% annually to reach 1.3 billion US dollars. It is estimated to be 4.7 billion US dollars in 2025, and the compound growth rate from 2020 to 2025 is 30%. Mainly divided into two major growth drivers:
1. Driven by the policy, LED plant lighting in North America has been expanded into the recreational cannabis and medical cannabis cultivation markets.
2.Frequent extreme weather changes and epidemic factors have increasingly highlighted the importance of consumers for food safety and localized crop production and supply, thus driving agricultural growers' market demand for leafy vegetables, strawberries, tomatoes and other crops.
Globally, Americas and EMEA are the areas with the largest demand for plant lighting, and they are expected to account for 81% in 2021.
Americas: During the epidemic, North America has accelerated the process of lifting the ban on cannabis, which has played a significant role in promoting the demand for plant lighting. The Americas will continue to maintain a rapid growth trend in the next few years.
EMEA: The Netherlands, the United Kingdom and other European countries actively advocate the establishment of plant factories and propose relevant subsidy policies to boost the willingness of agricultural growers. They have built plant factories in Europe to increase the demand for plant lighting. In addition, the Middle East region represented by Israel and Turkey, and the African region represented by South Africa, have been increasing their own agricultural output due to intensified climate change factors, and are gradually increasing investment in facility agriculture.
APAC: In response to COVID-19 and the needs of the localized agricultural market, Japanese plant factories have received renewed attention, developing high-economic crops such as leafy vegetables, strawberries, and grapes. Plant lighting in China and South Korea continues to shift to the cultivation of high-economic crops such as Chinese medicinal materials and ginseng to improve the economic benefits of their products.
The penetration rate of smart street lights continues to increase
In order to alleviate economic difficulties, governments of various countries have increased infrastructure construction, including North America and China. Roads are a major item of social infrastructure investment expenditure. In addition, as the penetration rate of smart street lights increases and the price rises, it is estimated that wisdom will be in 2021. The size of the street lamp market is growing by 18% annually, and the compound growth rate (CAGR) for 2020-2025 will be 14.7%, which is higher than the overall general lighting average.
Finally, from the perspective of lighting manufacturers’ revenue, although the current COVID-19 still brings many uncertainties to the global economic development, it is still in danger. Many lighting manufacturers are gradually adopting "lighting products" + "digital system" professional lighting The solution provides a healthier, smarter and convenient lighting experience, and continues to bring stable growth momentum to the revenue growth of lighting manufacturers. It is expected that the revenue of lighting manufacturers will show a 5-10% annual growth in 2021.
Post time: Sep-09-2021