The market outlook of LEDs used in plant lighting is quite optimistic, and the market scale will grow quickly. In 2017, global market revenue of LED in plant lighting was USD 52 million and is expected to reach USD 150 million by 2022, at a CAGR of 24%.

Among plant lighting applications, compared with other light sources, LED has obvious advantages in spectrum characteristics, lifetime and environmental protection. Due to price reduction of LED in recent years, the market acceptance has become higher, and the volume of plant factories is growing. Besides, owing to food safety issues, household plant factory is gradually emerging.

In recent two years, Chinese market has gradually become the regional market that foreign and domestic manufacturers have actively developed. For example, Japan-based Mitsubishi Chemical cooperated with Jingdong to build plant factories and sell vegetables; domestic manufacturer Sanan Sino-Science invested huge funds in the construction of plant factory. In the markets such as the US and Mexico, growing marijuana is the potential demand; in addition, the demand of greenhouse lighting is the main source due to the lack of sunshine and other factors.