Domestic LED plant lighting market problems to be solved
April 25, 2023
An urban white-collar worker came home from work, lit a light on the window, the light was shining on the pot, and the vegetables began to grow rapidly. The mystery is not the nutrition in the water, but the light in the window.
In July 2012, at the 2012 Japan Facility Horticulture and Plant Factory Exhibition, exhibitors launched LED lighting modules for greenhouse multi-layer cultivation and plant factories. For a time, LED plant lighting has become a hot spot in the industry.
At present, plant lighting is mainly used in agricultural breeding, including plant production, aquaculture, microalgae cultivation, and edible fungus production. In addition to agricultural breeding, in fact, currently viewing plant LED lighting is gradually entering the market. According to Yang Deli, chairman of Shenzhen West Deli Technology Co., Ltd. (hereinafter referred to as West Deli), the LED replacement market for domestic breeding lighting will reach 30 billion yuan in the next few years.
Despite such a good market prospect, it needs to be realized in the future for a long time.
At present, the field of plant lighting application is commercial, and plants enter the home and decoration field, and it takes at least five years. Yang Deli said that there are many factors limiting the domestic LED plant lighting.
According to statistics from the High-tech LED Industry Research Institute (GLII), the output value of LED plant lighting in China in 2011 was about 300 million yuan, of which more than 90 were exported. The LED plant lighting factory is currently in the Chinese market and is still in the cognitive and running-in period, and the next two to three years will be the rapid rise of the LED plant lighting market.
The success rate of new entrants is low. In 2010, the State Council issued Document No. 1 "Several Opinions of the CPC Central Committee and the State Council on Strengthening the Coordination of Urban and Rural Development to Further Consolidate the Foundation of Agricultural and Rural Development", which clearly stated that it is necessary to actively support the transformation of agricultural development mode and improve agriculture. Technological innovation and promotion capabilities. This paper document has also been interpreted by the major agricultural research institutes as a policy leader for the development of China's LED plant lighting industry. Many companies are targeting this market.
According to GLII statistics, as of the end of June 2012, there were about 40 LED plant lighting companies in China with a certain scale. As early as 2009, there were only two or three companies engaged in LED plant lighting in China. China is the world's fourth largest plant factory, and the future of LED plant lighting is considerable. According to an industry insider, or based on optimistic judgments about future market scenarios, the number of companies engaged in LED plant lighting has increased year by year since 2009.
These new entrants only see the appearance of high-margin LED plant lighting. In Yang Deli's view, although the current gross profit margin of LED plant lighting exceeds 100, there are not many successful cases. The success rate is only a single digit.
The reason is that the current domestic market model of plant lighting is based on the cooperation between enterprises and the Academy of Agricultural Sciences, that is, the research institutes are looking for some professional LED plant lighting companies, and we jointly develop some standards for product development.
If you do not have certain channels and resources, it is difficult for new entrants to participate in market competition. LED plant lighting involves multidisciplinary fields, including semiconductors, spectroscopy, biology, etc., and these areas are completely different industries, LED lighting companies must be lacking. Yang Deli said that it takes at least three to five years for LED lighting companies to successfully enter the field of plant lighting.
In fact, in overseas markets, many foreign LED manufacturers have already laid out agricultural lighting, and market competition is quietly taking place. On the one hand, with the development of LED technology, governments of various countries have taken LED agricultural lighting applications as an important development direction and actively deployed. On the other hand, the strong support of the resource-scarce countries represented by Japan to the plant lighting industry is also rapidly promoting the development of the local market.
With the improvement of agricultural environmental protection requirements, technological progress, and price decline, the plant lighting market will soon usher in a new round of growth. Taiwan's plant lighting representative company Li Laideng general manager You Liantian predicted that there will be an outbreak of plant lighting market next year.
Take Li Lai Deng as an example. In 2011, the company's revenue at the plant lighting factory was NT$100 million. In the first half of this year, the company received a foreign government order of nearly NT$100 million.
The input-output ratio of enterprises is low. The output value of 300 million yuan in China is compared with the output value of hundreds of billions of ordinary lighting. Many people in the industry use the hut to see the big house to describe it. You Liantian said that the reason for the low penetration rate of the domestic plant lighting market is that, for domestic enterprises, plant lighting is completely an emerging market.
At present, the sales market of LED plant lights in China is mainly concentrated in countries and regions with less agricultural personnel such as Japan, South Korea, Central America and Europe.