LED Farming Market - Forecasts from 2024 to 2029

LED Farming Market - Forecasts from 2024 to 2029

The LED farming market is expected to grow at a CAGR of 18.19% reaching a market size of US$12.760 billion in 2029 from US$3.961 billion in 2022.

Increased lighting is optimal for agricultural environments. One such method for giving farms artificial lighting is the use of LED grow lights. They use less energy when using them. As a result, this market is frequently called the LED grow lights or farming lights market. Additionally, LED lights contribute to extending regular farming hours past daylight hours, which raises yield. Four types of farming—vertical farming, indoor farming, commercial greenhouses, and turf and landscaping—are applications for LED lights. LED grow lights' plastic casing makes them more robust than regular light bulbs. The adoption of environmentally friendly practices for fruits and vegetables and rising food product demand are the main factors propelling this market's expansion.

The market is also expanding as a result of expanding urban cultivation, vertical farming, and the acceptance of environmentally friendly fruit and vegetable production. The demand for urban agriculture has also increased as a result of the world's population growing at an unprecedented rate. Additionally, the industry is expanding due to the practice of vertical farming, which involves growing food in a vertically stacked layer inside an abandoned skyscraper, warehouse, or shipping container.

Increase in demand for food products

The widespread adoption of controlled environment agriculture, including vertical farming, and indoor farming, has played a major role in boosting the demand for LED farming products. The growth in world population is also another contributing factor to this increased demand. As the population keeps growing, the demand for agricultural produce will also increase exponentially. However, with finite land resources, there is a need for alternative farming methods like vertical farming and indoor farming where smaller areas of farming land, including indoor farms, can be utilized to produce more harvest. LED lights help to increase the quality and quantity of such harvest by providing higher energy efficiency, more reliability in terms of visibility and durability, and reduced long-term costs. Cannabis is one such plant that is mostly grown using controlled environment agriculture, and the legalization of cannabis in various countries will also help boost the demand for LED lights for farming purposes. Key businesses in this market have seen an increase in income over the past few years as a result of such efforts.

Increasing demand for vertical farming

The growing acceptance of vertical farming, which allows farmers to cultivate crops in a controlled environment with little water and no soil, is one of the key trends propelling the LED farming market. As LED lighting provides the necessary light spectrum for plant growth, it is essential to vertical farming. The increasing use of smart lighting systems, which allow farmers to remotely monitor and control lighting conditions to boost productivity and efficiency, is another trend. Light-emitting diode (LED) technology has seen a revolutionary trend with the advent of vertical farming.

With the advent of inexpensive and effective LED lights driving the agricultural technology market, Controlled Environment Agriculture (CEA) has seen a swift shift from focusing only on high-value crops like cannabis to a wide range of crops like microgreens and vegetables. For instance, in July 2022, Crop One, Emirate, opened Dubai's world's largest vertical farm. The over 330,000-square-foot facility is located in Dubai, United Arab Emirates, close to Al Maktoum International Airport at Dubai World Central. It can yield over 2 million pounds of leafy greens annually. ECO 1 will focus on growing supply chain challenges and food security issues while presenting millions of new consumers with the advantages of vertically farmed produce.

Rising need for environment-friendly production

In the upcoming years, it is anticipated that product demand will increase due to an increase in urban cultivation and vertical farming, as well as the growing acceptance of environmentally friendly fruit and vegetable production. The demand for urban agriculture has grown due to the world's population growth, which is unprecedented and contributes to market expansion. The industry players can benefit greatly from growing awareness of the significance of alternative farming due to a shortage of arable land and population growth. LED farming is the newest technology in the agricultural sector, offering low-cost customer solutions and installation. Currently, there is a surge in agricultural lighting for uses such as urban farming, supplemental lighting, and daytime cultivation.

These lights give the crop the right amount of light while maintaining the necessary level of safety. For instance, as a reputable grower, GoodLeaf consistently produces micro and baby greens that are nutrient-dense, pesticide-free, and fresh. In Guelph, Ontario, the company runs a 4,000-square-meter indoor vertical farm that is currently fully operational, supplying some of the biggest retail chains in Canada. McCain Foods is a strategic investor in GoodLeaf.

Rising greenhouse farming

Growing in popularity is greenhouse farming, which uses LED lighting to enhance natural light and give plants the full spectrum of light they need to grow. The size of the greenhouse and the degree of customization needed determine how much LED lighting systems for greenhouse farming will cost. LED lighting systems for indoor farming are typically more expensive than those for greenhouse farming. Furthermore, farmers may experience considerable long-term cost savings from LED lighting systems due to their higher yield potential and energy savings.

Asia Pacific is witnessing exponential growth during the forecast period

Due to the scarcity of farmland and the ensuing need for higher crop productivity, the United States accounted for the largest share of the total revenue generated in the region. The Agricultural Research Service has started a project to use LED lights to improve the quality of tomato production in other protected environments and increase tomato production in the United States, according to the United States Department of Agriculture (USDA).

Furthermore, a preference for fresh-from-farm-to-table food has prompted several Canadian businesses, including Modular Farms, Goodleaf Farms, TruLeaf in Nova Scotia, and Ecobain Gardens, to turn to urban agriculture as a temporary solution to the nation's food shocks.

Moreover, two providers of controlled environment agriculture (CEA) services announced a partnership in December 2022. Greener Crop provides data-driven hydroponic farm management solutions, and Agritecture provides CEA planning, research, and strategy services. They are collaborating to facilitate the establishment and management of greenhouses in the United States and the six Gulf Cooperation Council (GCC) member nations. Through this collaboration, Agritecture will be able to assist its clients in managing farms by utilizing Greener Crop's Farming-as-a-Service offerings, expanding its scope beyond its primary competence of farm planning.

Market key launches
In February 2023, the Farming with Native Biodiversity pilot project was launched by NZLT-led Farming to the public. This creative project helps farmers discover win-win strategies for managing biodiversity and educates them about native biodiversity. The Living Water Partnership (Fonterra and the Department of Conservation), Silver Fern Farms, the BioHeritage National Science Challenge, the Ministry for Primary Industries Sustainable Food and Fibre Futures fund, and the NZ Landcare Trust are all supporting the project.
In January 2023, Polymatech Electronics, the pioneer semiconductor chip manufacturer in India with a focus on opto-semiconductors, recently revealed the introduction of its latest horticultural LED products, which include monochromatic and full-spectrum Ravaye modules and packages. With a wider spectrum of light for quicker and healthier plant growth, better farming conditions, and lower lighting system costs, these products redefined the standard for enhanced greenhouse and vertical farming lighting for professional horticultural applications.
A blend of wavelengths from yellow to green to blue to red makes up full-spectrum light, which speeds up photosynthesis, boosts plant immunity, and increases nutritional value to encourage healthier plant growth. With their RavayeTM line of lighting, Polymatech provides a broad range of wavelength combinations to satisfy the various design requirements of horticulture lighting manufacturers.

Segmentation:

By Application
Vertical farming
Indoor Farming
Commercial Greenhouse
Turf and Landscaping
By Wavelength
Blue Wavelength
Red Wavelength
Far Red Wavelength
By Crop Type
Fruits & Vegetables
Herbs & Microgreens
Flowers & Ornamentals
Other Crop Types
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
Japan
China
India
South Korea
Indonesia
Thailand
Others