Horticulture Lighting Market Forecasts to 2028 – Global Analysis By Product (Floriculture, Fruits, Vegetables and Other Products), Application (Greenhouses, Indoor Farming and Other Applications), Outlook, Technology, Offering and By Geography
According to Stratistics MRC, the Global Horticulture Lighting Market is accounted for $3.2 billion in 2022 and is expected to reach $12.38 billion by 2028 growing at a CAGR of 25.3% during the forecast period. Horticulture lighting is used in the indoor farming applications as it acts as supplement light for crops instead of natural daylight. It supports and enhances the plants growth by illuminating them with artificial light. It allows the cultivation of the plants without any need of daylight through providing them artificial lights for the photosynthesis process in plants. The LED lights are the more advanced technology which is used in the horticulture industry.
According to the Energy Saving Trust, the horticulture lighting contributes to almost 20% of total energy use of the worldwide due to the increase in urban farming as well as technological advancements in farming machinery
Market Dynamics:
Driver:
Awareness regarding sustainability
The rise in initiatives taken by researchers, organizations and governments for enhancing horticulture with the effective and efficient lighting accelerate the market growth. The increase in the use of horticulture lighting in various applications such as supplemental lighting, urban farming, cultivation without daylight and multilayer cultivation is one of the major factors driving the growth of horticulture lighting market.
Restraint:
Environmental problems
The exclusive ecological conditions of vertical farms pose a number of consistency challenges for manufacturers. Complexities with consumption of controlled environment agriculture technology in large fields and lack of standard testing practices for accessing product quality of horticulture lights are projected to challenge the horticulture lighting market in the forecast period.
Opportunity:
Expansion of Floriculture
Increase in the cultivation of flowers raised the demand for horticulture lighting. It set ups efficient operations and these lights meet proper safety and performance requirements as they perform under the specific environmental conditions. High usage of flowers during festivals, events, parties, weddings and funerals anticipated to propel the market growth.
Threat:
High installation costs
High setup and installation costs associated with the LED horticulture lights and complex requirement for varied light spectra for different crops and material surface cost of energy-efficient LED light innovations are expected to obstruct the market growth. Lighting for small selection of crop species is also challenging the market growth.
Covid-19 Impact
Corona virus epidemic has relatively slighter impact on the industry due to oversupply in the past few years. But it is not likely to see many changes in the ecosystem and supply chain structure of the LED industry. COVID-19 pandemic has drive more application opportunities for the LED industry including germicidal UVC LEDs, social distance controlling infrared sensors, and horticulture lighting to back food supply.
The LED lights segment is expected to be the largest during the forecast period
The LED lights segment is estimated to have a lucrative growth, due to its cost efficiency and high light emission. It shows immense possibility as horticultural lighting fixtures because of low energy consumption, cool operation and the capability to customize the spectral output to emit the specific wavelengths usable by plants and also ensures high reliability which is propelling the market growth.
The vertical farming segment is expected to have the highest CAGR during the forecast period
The vertical farming segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the booming population, arable land is reducing, which is pushing farmers to make the maximum use of whatever space they have. It involves the growing of crops indoors, in layers stacked atop each other, with artificial light. It reduces the consumption of water and uses limited space and soil.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period owing to the rising population which is increasing awareness of benefits and rising demand for food. Government of this region is also promoting plant factory and providing subsidies to spur the local demands which are creating more opportunities for the providers of LED lights for the horticulture sector and widening the market share.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing the rising requirement for agricultural products in this region. It is witnessing a robust increase in the population and disposable income, which is why the agrarian community is swiftly turning to indoor and greenhouse farming.
Key players in the market
Some of the key players profiled in the Horticulture Lighting Market include OSRAM GmbH, LumiGrow Inc , Gavita International BV, Royal Philips Electronics BV, Epistar Corp, Illumitex Inc, Grow LED Hydro, Samsung Electronics Co. Ltd, Heliospectra AB, LEDiL Oy, Hubbell Inc, Everlight Electronics Co. Ltd, Lumileds Holding BV, Signify Holding (Koninklijke Philips NV), Cree Inc, Broadcom Inc, General Electric Company, Hortilux Schréder B.V, California Lightworks, Valoya
Key Developments:
In February 2022, California Networks launched its new Mega Drive Vertical series patented LED system for indoor farming. This technology lowers the total installation cost while boosting return on investments by reducing heat, energy consumption and their carbon footprint.
In December 2021, Signify and Osram ventured into a joint project for the horticulture lighting market. This acquisition will strengthen Signify’s growth platform and extend position in the attractive North American horticulture lighting market.
Products Covered:
• Floriculture
• Fruits
• Vegetables
• Other Products
Outlooks Covered:
• Infrared
• Red
• Blue
• Red + White
• Other Outlooks
Offerings Covered:
• Software
• Hardware
• Other Offerings
Technologies Covered:
• LED
• High Intensity Discharge
• Fluorscent Lighting
• Other Technologies
Applications Covered:
• Greenhouses
• Indoor Farming
• Vertical Farming
• City Farming
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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