Impact of COVID-19 on the Plasma Lighting Market
Plasma lighting finds some innovative applications, such as in indoor farming, which is because the land available for food cultivation is expected to be insufficient for the ever-growing urban population. Advanced plasma lighting is one of the latest types of grow lights and boasts a full spectrum. It is designed to emit a close-to-full spectrum of light required for plant growth and is known for its low energy usage, long lifespan, and deep light penetration. The plasma lighting market recorded a CAGR of around 18 percent in 2018.
The outbreak of COVID-19 in the Q1 of 2020 has affected both production and demand in the global economy, created supply chain and market disruptions, and has impacted the firms financially. The construction of highways and roads is a key supporting factor for the outdoor applications of plasma lighting. The COVID-19 pandemic has hindered infrastructure development projects in most of the affected countries, while also disrupting the supply of electronic components from original equipment manufacturers (OEMs), particularly those based in China. There is an acute shortage of electronic components, such as electronic chips used in these lightings. Due to this, the demand-supply equation has been disrupted as the factories are closed, and logistics have been delayed.
MRF predicts that the overall demand for plasma lighting will start rising in the last quarter of 2020 and will stabilize by the second quarter of 2021. Further, the current utility-owned plasma lightings have been affected by the COVID-19 pandemic due to limited financial incentives. The majority of the projects in the US, China, South Korea, and Germany have been delayed due to operational difficulties and lack of site access. China is a prominent market for the chemical industry. However, the Asia-Pacific market is expected to face challenges due to the spread of COVID-19 in its major economies, including China, Japan, and India.
Plasma Lighting Market, Market Size and YoY Trend Forecast
Source: MRFR Analysis