Food security and global policies fuel LED grow light demands: TrendForce

Food security concerns and global government policies are driving the demand for LED grow lights, specifically North America's medical and recreation-use marijuana markets, TrendForce's new 2021 Global LED Market Report-LED-grade packaging, and LED products for 2H21 has found.

The increased demand has led to an explosive uptick in 2020's global grow light LED market, rounding up the industry value to USD$301 million, a 57% annual growth. TrendForce expects this round of growth to continue into the end of 2021, and build the annual industry value to USD$399 million, a yearly 33% increase.

A notable find from TrendForce's statistics is how automotive and infrared LED markets' explosive growth has been, gaining over the grow lights supply. Delays in sea freight shipping and regulations imposed on illegally indoor-grown cannabis have also stunted product delivery performance. Suppliers of LED plant lights have opted to scale back production and material inventory as a result, however LED suppliers continue to look favorably at the market despite the short-term considerations. TrendForce points to a potential bounceback in terms of profits at the end of Q3.

On the other hand, TrendForce pointed to increasing demand for indoor, vertical agriculture, where grow lights would prove crucial for ensuring food security. Decreasing LED costs as the technology becomes more widely adopted could become a driving force behind the new market trends for LED lighting applications.