Market for Horticultural LEDs blooming

There are several sectors where LED lighting product development initiatives are going at a steadily increasing pace, including outdoor and architectural lighting, office and residential lighting, industrial and retail. The horticultural LED sector (grow lights), however, is different from the others. While the other sectors first mentioned are dominated by several big vendors, the sector for horticultural applications of LED lighting does not contain big market share players like Samsung, OSRAM, or Philips. Instead, the horticultural LED lighting market has many small regional vendors – each of whom has the market share in their local regions. This was announced in an October report by leading market research company, Technavio.

At this stage, the Technavio report says, the small LED grow lights vendors are still in the process of “increasing the awareness about the usage of lighting systems in the horticulture sector”, engaging the help of local horticulturists in promoting and disseminating knowledge on the application of LED grow lights in horticulture – especially underscoring LED lighting’s energy efficiency and remarkably long life-expectancy – traits that are sure to sway those who own commercial greenhouses, indoor/vertical farms, and horticultural researchers.


However, players are moving into position to ultimately be poised to dominate even the global horticultural LED market. In the report, Technavio has named the top ten vendors in the horticultural LED lighting sector who are most likely to lead the market up to 2020:

 

·       Cree

·       Fluence Bioengineering

·       Heliospectra

·       Hubbell Lighting

·       Illumitex

·       Kessil Lighting

·       Lemnis Oreon

·       LumiGrow

·       OSRAM SYLVANIA Smart Grow Technologies

Of the ten, Cree and Osram Sylvania are the biggest names – not yet the biggest players in the grow LEDs sector, but not for long.


The Technavio report also states that the Americas will be a major source of demand for LED grow lights, followed by the Asia-Pacific region, and then by Europe, the Middle East, and Africa. The growing acceptance of marijuana and the demand for nutritious fruits and vegetables are said to be fueling the demand for LED grow lights in the Americas, particularly the United States.


Currently, the U.S. grow LED lights market is estimated to be worth US $575 million (comprising 32% of the LED grow light market), according to LEDinside magazine. This can still go up to US $1.42 billion – especially with the Nov 9 legalisation of recreational marijuana in Massachusetts, Nevada, and California. In California, the law dictates that recreational marijuana can only be grown indoors and in fully enclosed spaces – away from public eyes. And this means LED grow lights.


Here’s hoping that the LED grow lights sector would not rush things up just for the sake of profits but, instead, consider the impact of LED lights on health as the main priority. We should avoid a repeat of what Pervaiz Lodhie, founder of LEDtronics, Inc. cautioned when he said “every Tom, Dick and Harry, without background knowledge, has jumped into it” – costing people their money and health.

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