LED Lighting


2021-09-08

Increased Demand on Food Safety Projected to Propel Annual Horticultural Lighting LED Revenue for 2021 to US$399 Million, Says TrendForce

LED

Thanks to favorable policies by governments worldwide as well as massive adoption of horticultural LED lighting products in the medical and recreational marijuana markets in North America, horticultural lighting LED revenue saw an explosive growth in 2020, reaching US$301 million, a 57% YoY increase, according to TrendForce’s 2021 Global LED Lighting Market Outlook – Light LED and LED Lighting Market Trend report. This growth is expected to maintain its momentum throughout 2021, during which the market is expected to reach US$399 million in revenue, a 33% YoY increase.

However, it should be pointed out that horticultural red light LED chips, especially high-end ones, will likely suffer a shortage in 3Q21, as suppliers’ production capacities for these chips are constrained by other products, including automotive and infrared LED products. At the same time, demand for horticultural LED lighting products cannot be fully met due to the ongoing shortage of PMICs. Furthermore, delayed ocean freight schedules and North American governments’ crackdown on illegal indoor marijuana cultivations have also impacted the shipment of these end-products, thereby leading certain horticultural LED lighting suppliers to slow down their production plans and component procurement activities. Even so, LED suppliers are still optimistic towards the current market. Although changes in the global environment are expected to hinder market demand in the short run, LED suppliers believe that such hindrance will likely be ameliorated by the end of 3Q21.

TrendForce’s investigations indicate that horticultural lighting LED package suppliers include ams-OSRAM, Samsung LED, CREE LED, Seoul Semiconductor, Lumileds, Everlight, LITEON, and lightning. On the other hand, horticultural LED chip suppliers include Epistar, San’an, HC Semitek, HPO, and Epileds. The vast majority of the aforementioned companies were able to benefit from the horticultural lighting market and posted remarkable earnings performances in 1H21.

Looking ahead, the demand on food safety will bring about a shortened food supply chain via such developments as indoor farming and build-outs of vertical farms, with a corresponding rise in the global horticultural lighting LED market. In addition, TrendForce believes that, as operators of greenhouses or emerging vertical farms continue to adopt LED lighting equipment in the long run, and LED lighting costs continue to decline, more and more indoor farmers will be convinced to replace their traditional lighting equipment with LED lighting equipment. The replacement demand from these operators will, in turn, become the key driver of the horticultural lighting LED market’s future growth.

For more information on reports and market data from TrendForce’s Department of Optoelectronics Research, please click here, or email Ms. Grace Li from the Sales Department at graceli@trendforce.com

(Cover image source: Pixabay)

2021-03-25

Global Automotive LED Revenue Projected to Reach Nearly US$3 Billion in 2021 Owing to High Demand for Headlights and Display Panels, Says TrendForce

LED

The COVID-19 pandemic heavily impacted the global auto market and in turn damaged the automotive LED industry in 1H20, according to TrendForce’s latest investigations. In 2H20, however, the gradual recovery of vehicle sales as well as the development of NEVs provided some upward momentum for the automotive LED industry, whose revenue for the year reached US$2.572 billion, a 3.7% decline YoY. Automotive LED revenue for 2021 is projected to reach $2.926 billion, a 13.7% growth YoY, thanks to the increasing demand for automotive headlights and display panels. As automakers continue to incorporate LED lighting solutions into new car models, the penetration rate of automotive LED will continue to undergo a corresponding increase as well.

TrendForce analyst Joanne Wu indicates that, in the automotive LED player revenue ranking of 2020, OSRAM Opto Semiconductors, Nichia, and Lumileds remained the top three largest automotive LED suppliers, respectively, with a combined market share of 71.9%. In particular, European and American automakers favored OSRAM’s solutions for their high-end vehicle models and NEVs due to the high quality of OSRAM products. Adoption by these automakers subsequently became the main revenue driver of OSRAM’s automotive LED business.

On the other hand, the pandemic caused Japanese automakers to suspend their operations and therefore had a direct impact on the revenues and market shares of Japanese LED suppliers, such as Nichia and Stanley, in 2020. Nichia and Stanley saw their revenues decline by 9.8% YoY and 7% YoY, respectively, and were the two suppliers among the top 10 last year to have shown relatively noticeable declines. Seoul Semiconductor’s nPola and Wicop LED products were adopted by Chinese automakers, including CCAG, SAIC-GM, and NIO, due to these products’ high brightness and compact sizes. Seoul Semiconductor’s market share reached 5.1% in 2020. Finally, not only did other suppliers, including Samsung LED and CREE, deliver consistent performances in the automotive aftermarket (AM) and performance market (PM) segments, but they also gradually began entering the automotive Original Equipment Manufacturer (OEM) lighting market. Samsung LED and CREE each took seventh and ninth place on the 2020 ranking with a 2.8% and 1.1% market share, respectively.

On the whole, TrendForce finds that automotive demand has been recovering since 4Q20. Accordingly, LED suppliers indicate that their booking orders appear bullish throughout 2021, meaning most LED suppliers now need to extend their product lead times in response. At the same time, LED players indicated that double booking might happen in the near future. Thereby, they will make decisions in light of the actual booking order quantity to see the possibility of increasing prices.

(Cover image source: OSARM)

For more information on reports and market data from TrendForce’s Department of Optoelectronics Research, please click here, or email Ms. Grace Li from the Sales Department at graceli@trendforce.com

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