Market Challenges And Opportunities

Low light intensity is the major drawback that will restrain the growth of LED lighting horticulture market

Conventional alternatives that includes specifically includes HPS are associated with additional costs owing to their short lifecycles, requirement to alter the lights almost every year and high labor costs. However, these are expected to remain in the industry for long owing to their high intensity and low light degradation that is 1% every thousand hours of utilization. However, long term warranties of the LED counterparts only ensures only 70% of the initial lumen output over its lifecycle. This is expected to remain as the major restraining factor for the industry over the forecast period. Moreover, low overall initial outputs also require the plants to be located in the close proximity. This in turn can lead to blocking of the naturally available sunlight, which may lead to 24 hours requirement of these lights. This may hamper the overall yield up to 30% which is not ideal for growers who want to maintain the annual yield which may in turn lead to decreased consumer inclinations.

These factors are anticipated to be most likely be dealt with the utilization of increased intensity with certain product developments over the next few years. Moreover, aforementioned benefits outweigh these drawbacks and LED lighting horticulture market is expected to gain highest traction over the coming years.

U.S. is expected to remain the most lucrative regional business segment owing to the unfavorable climatic conditions for conventional agriculture methodology

U.S has legalized the cultivation of marijuana in locations away from public spaces, along with certain other countries in the Americas. In conjunction with this demands for high nutrition foods, will drive the requirement for vegetable and fruits over the next few years. Owing to unfavorable weather conditions, requirements to meet these demands, construction of commercial greenhouses and LED lighting equipment will drive the market growth through the forecast period.