Extracted from: Horticultural LED Lighting: Market, Industry, And Technology Trends report, Yole Group of companies including PISEO and Yole Développement - 2017
LYON, France – February 19, 2018: The horticultural LED lighting market reached almost US$3.8 billion in 2017, currently driven mainly by greenhouse applications. The future should be different however. Indeed Yole Développement (Yole) and PISEO, both part of the Yole Group of companies, investigated this domain and analyzed related LED-based technologies and market demands. According to their Horticultural LED Lighting report (1), greenhouse applications will not maintain their leadership in the mid and long term and are only the tip of the iceberg. Emerging applications, including urban farming, are likely to make the horticultural lighting market boom with a 16.4% CAGR between 2018 and 2023.
In this context, it is not surprising to discover Jeff Bezos’ support for a vertical farms project in China. In a recent article (2), a journalist announced a 300 vertical farms project in China, supported by Amazon Chief Executive Jeff Bezos and Alphabet Executive Chairman Eric Schmidt. According to this article, a start-up named Plenty has raised more than $200 million, thanks to the Softbank Group and investment funds. Entering the Chinese market, Plenty hopes to tap into the country’s growing demand for organic foods…
"Vertical farms, especially developed in cities, is probably the most relevant solution we found to produce fresh food and vegetables”, comments Pierrick Boulay, Technology & Market Analyst at Yole."The world population is growing and almost 80% of the world’s population will live in cities and megacities by 2050. As a consequence, vertical farms will clearly be part of our future.”
"LED technology is a key enabler for the development of the vertical farming industry”, adds Joël Thomé, General Manager at PISEO. "Thanks to optical radiation versatility, easier integration, and long-life span, crop yields under artificial LED lighting will increase dramatically.”
Indoor farming should develop strongly in the largely urbanized Asian areas, especially in China, as this region faces severe soil and water pollution. The Plenty start-up is but one example.
Penetration of this market by Amazon and Alphabet is not an isolated example and must be strongly considered by others in the future. According to Yole and PISEO, the horticultural lighting market is expected to reach US$17 billion by 2027 thanks to a boom in indoor and vertical farming applications. Such figures clearly highlight the attractiveness of this sector.
Amazon’s new positioning confirms the added-value of vertical farms in answer to the evolution of the world’s population and food resources. But it is also strong confirmation of the diversification strategy of the giant Amazon in penetrating the whole foods grocery chain. Let us see what the next step will be!
A detailed description of the Horticultural LED Lighting report is available on i-micronews.com, solid-state lighting reports section.
LED: Light Emitting Diode
CAGR: Compound Annual Growth Rate
(1) Horticultural LED Lighting: Market, Industry, And Technology Trends report, Yole Développement & PISEO, 2017
(2) Quartz Media - A startup is about to build 300 vertical farms in China, thanks in part to Jeff Bezos (Written by Chase Purdy - Posted On Jan. 26, 2018)