According to TrendForce's latest report "2021 Global Lighting LED and LED Lighting Market Outlook-2H21", the LED general lighting market is fully recovered, and the demand for niche lighting has increased, driving the growth of the global LED general lighting, horticultural lighting, smart lighting and other markets. Different levels of lighting in 2021-2022.

Significant recovery in the general lighting market

With the increase in vaccination coverage in various countries, the global economy has begun to recover. Since the first quarter of 2021, the LED general lighting market has experienced a strong recovery. TrendForce predicts that the global LED lighting market will reach USD 38.199 billion in 2021, a year-on-year increase of 9.5%.

The following four factors make the general lighting market flourish:

1. With the increase in global vaccination rates, the economy has recovered; the commercial, outdoor and engineering lighting markets have recovered particularly fast.

2. Rising prices of LED lighting products: With the increase in raw material costs, lighting brand companies continue to increase product prices by 3% to 15%.

3. With the government's energy-saving and carbon-reduction policies aimed at carbon neutrality, LED-based energy-saving projects have been launched, which has stimulated the growth of LED lighting penetration. As TrendForce pointed out, the market penetration rate of LED lighting will reach 57% in 2021.

4. The epidemic has prompted LED lighting companies to turn to the production of lighting fixtures with digital intelligent dimming and controllable functions. In the future, the lighting industry will pay more attention to the added value of products brought about by the systemization of interconnected lighting and human-oriented lighting (HCL).

The horticultural lighting market has a bright future

TrendForce's latest research shows that the global LED horticultural lighting market will grow by 49% in 2020, and the market size will reach 1.3 billion US dollars. By 2025, the market size is expected to reach USD 4.7 billion, with a compound annual growth rate of 30% from 2020 to 2025. Two factors are expected to drive such significant growth:

1. Due to policy incentives, LED horticultural lighting in North America has expanded to the entertainment and medical marijuana markets.

2. The increasing frequency of extreme weather events and the COVID-19 pandemic have highlighted the importance of consumer food safety and the localization of the agricultural product supply chain, which in turn stimulated the demand for food growers to grow leafy vegetables, strawberries, and tomatoes.

Globally, the Americas and Europe, the Middle East and Africa will become the main markets for horticultural lighting; by 2021, these two regions will account for 81% of global demand.

Americas: During the pandemic, North America accelerated the legalization of cannabis, thereby driving demand for horticultural lighting products. In the next few years, the horticultural lighting market in the Americas is expected to expand rapidly.

Europe, the Middle East and Africa: European countries such as the Netherlands and the United Kingdom vigorously promote the construction of plant factories through relevant subsidies, spur agricultural enterprises to set up plant factories in Europe, and drive the increase in demand for horticultural lighting. In addition, countries in the Middle East (usually represented by Israel and Turkey) and Africa (the most representative of South Africa)-where climate change is getting worse-are increasing investment in facility agriculture to increase domestic agricultural production.

Asia-Pacific: In response to the COVID-19 pandemic and the growing demand for local food, Japanese plant factories have regained public attention and focused on growing leafy vegetables, strawberries, grapes and other high-value cash crops. Plant factories in China and South Korea have switched to growing valuable Chinese herbal medicines and ginseng to improve the cost-effectiveness of their products.

Figure. Percentage of horticultural lighting demand in Americas, EMEA and APAC 2021-2023

The penetration rate of smart street lights continues to grow

In order to overcome economic turmoil, governments around the world have expanded infrastructure construction projects, including those in North America and China. Especially road construction is the most invested. In addition, the penetration rate of smart street lights and the rise in prices are rising. Based on this, TrendForce predicts that the smart street lamp market will grow by 18% in 2021, and the compound annual growth rate for 2020-2025 will be 14.7%, which is higher than the overall average level of the general lighting market.

Finally, despite the uncertainty of the impact of COVID-19 on the global economy, many lighting manufacturers use professional solutions that combine lighting products with digital systems to create a healthier, smarter, and more convenient lighting experience. As a result, the income of these companies has grown steadily. The revenue of lighting companies is expected to grow by 5%-10% in 2021.（Source：LEDinside）