The horticultural LED market has become one of the fastest-growing lighting markets in 2020, says TrendForce, with revenue expected to reach $158 million in 2020, a 39.7% increase YoY.

There are two pressing issues that need to be addressed in the indoor agricultural industry: increasing crop yield and decreasing lighting equipment cost.
Major  horticultural LED brands include Signify, Fluence by OSRAM, GE Current, Illumitex, Heliospectra, and Sananbio.
For nontraditional agriculture, the cost of repairing LED lighting equipment represents a relatively expensive part within the overall long-term operating cost. That is why lighting equipment manufacturers need to also take into account the useful life of lighting equipment.

In addition, the optoelectronic conversion efficiency of LEDs, especially red-light LEDs, is important in lowering the manufacturing cost of lighting equipment. Current mainstream solutions in the market consist of medium-and high-power LEDs, while better solutions for lowering manufacturing costs may emerge.
The photosynthetic photon efficiency (PPE, measured in µmol/J) of horticultural LED, in conjunction with the specific light spectrum required for plant growth, represents an important determinant of agricultural production capacity.
Major suppliers of horticultural LED components include OSRAM, Samsung LED, CREE, Seoul Semiconductor, Lumileds, Nichia, and Everlight, and each of these suppliers holds a differentiating competitive advantage in terms of product offerings. In particular, OSRAM and Samsung LED hold leadership positions over their competitors in this industry.
Most LED suppliers are likely to see double-digit YoY growths in their horticultural LED revenue, in turn bringing about a second wave of growth for the market.