Global Horticulture Lighting

Global Horticulture Lighting Market Research Report: Forecast (2023-2028)

By Application (Indoor Farming, Greenhouse, Vertical Farming), By Technology (High-Intensity Discharge (HID) (LED, High-Pressure Sodium Lamp), Fluorescent (T5, CFL)), By Offering (Hardware, Software, Read more

  • Environment
  • Nov 2022
  • 184
  • ET55025

Market Definition

Horticulture mainly deals with ornamental plants, garden crops, fruits, and vegetables. And artificial lights deployed to enable photosynthesis in such settings, when lacking natural daylight, are referred to as Horticulture lighting.

These are adopted in numerous urban farming applications such as indoor farming, vertical farming, greenhouses, and others to upscale the plants' growth. Since this practice requires specialized lighting, usually a mix of different wavelengths needed for plant development, the manufacturers focus on several parameters that help in measuring the optimal lighting and photosynthetic photon flux (PPF).

Market Insights

The Global Horticulture Lighting Market is projected to grow at a CAGR of around 21.1% during the forecast period, i.e., 2023-28. The market is driven by the exponentially rising population throughout the world entwined with a rapid climate change, resulting in greater food demand and immense pressure on the agriculture industry. Such swift augmentation in need can only be satiated through additional modern ways like indoor farming that requires horticulture lighting. Additionally, the growing propensity for home-grown fruits and vegetables fuels the market during the forecast period.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 21.1%
Regions Covered North America: USA, Canada, Mexico
South America: Brazil, Argentina, Chile, Rest of South America
Europe: The UK, Germany, France, Spain, Italy, Rest of Europe
Asia-Pacific: China, India, Japan, South Korea, Rest of Asia-Pacific
Middle East & Africa: Saudi Arabia, UAE, South Africa, Rest of Middle East & Africa
Key Companies Profiled Bridgelux Inc., EYE Hortilux, Maxigrow Ltd, Hortilux Schreder, Osram Licht AG, Gavita International BV, Lumileds, Agrolux, PARsource, Heliospectra, Signify, Valoya, California Lightworks, LumiGrow, EYE Hortilux, Others
Unit Denominations USD Million/Billion

 

Besides, with the government demonstrating keenness in promoting the adoption of Controlled Environment Agriculture (CEA) practices and SSL technology, the market for horizontal lighting is anticipated to grow substantially in the forecast years. In addition, the vast influx of funds encouraging vertical farms & greenhouses projects, alongside the ongoing legalization of cannabis cultivation is further boosting the foothold of the players in the market.

Another prominent factor observing a positive influence on the market is a sudden rise in health consciousness after the pandemic, leading to more inclination toward healthy and organic food and thus furthering horticulture practices.

Moreover, the sudden shift towards sustainable living leads to the adoption of such light as they comply with the proper safety and performance requirements, further contributing to the market expansion. Furthermore, practices such as vertical framing and greenhouse are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Horticulture Lighting Market during the projected time frame.

Market Segmentation

Based on Lighting Type

  • Top lighting
  • Inter lighting
  • Supplemental Lighting
  • Sole-Source Lighting
  • Photoperiodic Lighting

Here, Inter lighting segment acquires the major revenue share in the market during the forecast period. Such dominance can be credited to its consummate ability to proportionally distribute the lights in the canopy that otherwise tends to receive lesser lights in lower and middle levels. With relatively improved light efficacy, the Inter lighting led to higher yields as compared to other variants. Besides, the sudden rise in the number of greenhouses for cucumber and tomato agriculture further acts as a catalyst to the market.

Based on Application

  • Indoor Farming
  • Greenhouse
  • Vertical Farming

Among all, the Vertical Farming segment is anticipated to drive the Global Horticulture Lighting Market in the historical period. It owes principally to its immense potential in coping with unpredictable land areas and environmental growth. On top of it, the insignificant requirement of soil and water projected by Vertical Farming ultimately leads to enhanced crop harvest, further bolstering the market growth. Such minimal maintenance makes them the most suitable for urban farming, citing lesser available area in urban setup for growing crops, thereby facilitating market expansion.

On the other hand, the Greenhouse segment procured a substantial revenue share in the Global Horticulture Lighting Market in 2021. Owing to their compatibility with plants that need no extra care with stable climatic conditions, greenhouses are considered the better options, among others, as they autonomously regulate the temperature and prevent plants from perishing. Probably, it is why the Greenhouse segment is anticipated to let the market flourish during the forecast period.

Regional Projection

Geographically, the Global Horticulture Lighting Market expands across:

  • North America
  • South America
  • Europe
  • Middle East & Africa
  • Asia-Pacific

Europe demonstrates a significant shareholding and thereby dominates the Global Horticulture Lighting Market in the historical period. Such dominance can be attributed to numerous factors. One would be the availability of relatively larger areas for cultivation. In addition, being the home to one of the strongest economies enables the region to attract substantial investment from neighborhoods and poses higher capital investment capabilities.

In fact, countries like France, Italy, Netherlands, and Spain, inhibiting massive area under greenhouse cultivation, emerges as an area of remunerative opportunities for the leading players in the Global Horticulture Lighting Market.

Besides, the frequent adoption & upgradation of LED horticulture lights from being additional lighting sources to a primary light sources for indoor farming. Moreover, to fulfill the emerging needs for frozen fruits & vegetables demonstrated by the region’s growing population, the farmers plan to reduce the import dependency by producing them domestically instead. For instance,

  • In 2019, Osram Licht AG revealed a horticulture LED line with broader purple and white spectra. The purple LED produces red and blue spectral energy facilitative to photosynthesis.

Recent Developments in the Global Horticulture Lighting Market

  • In 2022, Signify, the behemoth in lighting, has finally acquired Fluence, one of the brands from AMS OSRAM. The acquisition seems to strengthen the global Agriculture lighting growth platform and extends the position of Signify in the attractive North American horticultural lighting market.
  • In Oct 2020, California LightWorks unveiled its MegaDrive, a new professional grow light system, which claims to facilitate precise outcomes while drastically lowering both up-front & long-term operating costs. Additionally, the new system constitutes a central power unit joined to a series of up to 30 LED fixtures in a chain. The best part is, High voltage three-phase power can connect straight to the central power unit, eliminating power drops to each fixture.
  • In September 2020, Valoya, one of the key grow light manufacturers, expanded its product line of RX-Series line of greenhouse LEDs with two latest models - RX500 & RX600, that are claimed to be producing minimal shading over the canopy. Also, equipped with an Ingress Protection rating of IP65 (wet location), these luminaires are purely dust-tight & can demonstrate omnidirectional fight spraying with water jets.

Market Dynamics

Key Driver: Widespread Adoption of Horticulture Lighting in Numerous Agricultural Applications

The increased deployment of horticulture lighting in numerous agricultural applications, including urban farming, supplemental lighting, cultivation without daylight, and multilayer cultivation, provides the necessary impetus to the market for the projected timeframe. Further, the growing vertical farming applications and greenhouse projects enthrall the market. Additionally, the population boom for the past few years, instigating the farmers to go indoors and utilize every bit of resource to cater to the up-scaling needs, further propels the market through 2028.

Possible Restraint:  Need for Well-Equipped Infrastructure for CEA

Intricacies involved in deploying CEA technology tend to hinder market growth as it poses additional requirements in terms of nutrients, light, water, and climate control devices for plants' overall development, resulting in enhanced costs for overall harvest. That said, it is quite challenging to supervise and facilitate such practices, especially in larger fields. It directly impacts the design and development of horticulture lighting fixtures for plant growth. Therefore, the increased cost and effective management pose challenges to the stakeholders.

Opportunity: Growing farm-to-table trends encouraging the need for horticulture lights.

With the advent of the farm-to-table concept, access to local food in cafeterias, restaurants, food joints, and other locations has become easier and more flexible. Hence, people are now developing an affinity for locally grown foods which is why they are expected to gain popularity across different markets within the hospitality industry in the coming years. And therefore, the need for such grow lights facilitating on-time delivery of yield in the case of farm-to-table restaurants arises. Such trends owing to their significant impact, are supposed to amplify market growth.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Horticulture Lighting Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Horticulture Lighting Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Horticulture Lighting Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Global Horticulture Lighting Market study?

Frequently Asked Questions

A. The Horticulture Lighting Market is projected to grow at a CAGR of around 21.1% during 2023-28.

A. The growing propensity for home-grown fruits and vegetables, widespread adoption of horticulture lighting in numerous agricultural applications, and surge in the number of government initiatives to encourage the adoption of CEA practices and SSL technology are the possible factors expected to drive the Horticulture Lighting Market during 2023-28.

A. The leading players in the Horticulture Lighting Market are Bridgelux Inc., EYE Hortilux, Maxigrow Ltd, Hortilux Schreder, Osram Licht AG, Gavita International BV, Lumileds, Agrolux, PARsource, Heliospectra, Signify, Valoya, California Lightworks, LumiGrow, EYE Hortilux, Others.

A. ‘Vertical Farming’ is anticipated to emerge as an area of remunerative opportunities for the leading players in the Horticulture Lighting Market during the forecast period.

A. Europe is expected to dominate the Horticulture Lighting Market during 2023-28.

A. Growing farm-to-table trends encourage the need for horticulture lights and thereby drive the Horticulture Lighting Market through 2028.

A. Intricacies involved in deploying CEA technology and higher capital cost tend to hinder market growth during 2023-28.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Preface
  4. Executive Summary
  5. Global Controlled Environment Agriculture Industry Outlook
    1. By Regional Analysis
    2. By Government Initiatives
  6. Global Horticulture Lighting Market Trends & Insights
  7. Global Horticulture Lighting Market Dynamics
    1. Growth Drivers
    2. Challenges
  8. Global Horticulture Lighting Market Hotspot & Opportunities
  9. Global Horticulture Lighting Market Policies & Regulations
  10. Global Horticulture Lighting Market Supply Chain Analysis
  11. Global Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
        1. Indoor Farming
        2. Greenhouse
        3. Vertical Farming
      2. By Technology
        1. High-Intensity Discharge (HID)
          1. LED
          2. High-Pressure Sodium Lamp
        2. Fluorescent
          1. T5
          2. CFL
      3. By Offering
        1. Hardware
        2. Software
        3. Services
      4. By Cultivation
        1. Vegetable
        2. Fruits
        3. Floriculture
        4. Others (Medicinal plants, Aromatic, etc.)
      5. By Lighting Type
        1. Top lighting
        2. Inter lighting
        3. Supplemental Lighting
        4. Sole-Source Lighting
        5. Photoperiodic Lighting
      6. By Region
        1. North America
        2. South America
        3. Europe
        4. The Middle East & Africa
        5. Asia-Pacific
      7. By Competitors
        1. Competition Characteristics
        2. Market Share & Analysis
  12. North America Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
      2. By Technology
      3. By Offering
      4. By Cultivation
      5. By Lighting
      6. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The US Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    4. Canada Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    5. Mexico Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
  13. South America Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
      2. By Technology
      3. By Offering
      4. By Cultivation
      5. By Lighting
      6. By Country
        1. Brazil
        2. Argentina
        3. Chile
        4. Rest of South America
    3. Brazil Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    4. Argentina Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    5. Chile Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
  14. Europe Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
      2. By Technology
      3. By Offering
      4. By Cultivation
      5. By Lighting
      6. By Country
        1. The UK
        2. Germany
        3. France
        4. Italy
        5. Spain
        6. Rest of Europe
    3. The UK Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    4. Germany Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    5. France Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    6. Italy Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    7. Spain Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
  15. The Middle East & Africa Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
      2. By Technology
      3. By Offering
      4. By Cultivation
      5. By Lighting
      6. By Country
        1. The UAE
        2. Saudi Arabia
        3. South Africa
        4. Rest of Middle East & Africa
    3. The UAE Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    4. Saudi Arabia Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    5. South Africa Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
  16. Asia-Pacific Horticulture Lighting Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
    2. Market Share & Analysis
      1. By Application
      2. By Technology
      3. By Offering
      4. By Cultivation
      5. By Lighting
      6. By Country
        1. China
        2. Japan
        3. South Korea
        4. India
        5. Rest of Asia Pacific
    3. China Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    4. Japan Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    5. South Korea Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
    6. India Horticulture Lighting Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. Market Revenues (USD Million)
      2. Market Share & Analysis
        1. By Cultivation
        2. By Application
  17. Global Horticulture Lighting Market Key Strategic Imperatives for Success & Growth
  18. Competition Outlook
    1. Competition Matrix
      1. Target Markets
      2. Research & Development
      3. Collaborations & Strategic Alliances
      4. Key Business Expansion Initiatives
      5. Business Restructuring- Mergers, Acquisitions, JVs
      6. Strategic Initiatives
    2. Company Profiles (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Bridgelux Inc.
      2. EYE Hortilux
      3. Maxigrow Ltd
      4. Hortilux Schreder
      5. Osram Licht AG
      6. Gavita International BV
      7. Lumileds
      8. Agrolux
      9. PARsource
      10. Heliospectra
      11. Signify
      12. Valoya
      13. California Lightworks
      14. LumiGrow
      15. EYE Hortilux
      16. Others
  19. Disclaimer
Horticulture Lighting Market Segmentation Slide