Horticulture Light Market

Market Overview

The global horticulture light market size was valued at USD 6,581 million in 2021 and is anticipated to reach an expected value of USD 32,404 million by 2030 at a CAGR of 18.1% during the forecast period (2022-2030).

Horticulture lighting is utilized in indoor farming applications because it supplements natural sunlight as a source of crop light. Providing plants with artificial light promotes and enhances their growth. It is used in numerous urban agricultural applications, including greenhouses, vertical farming, and indoor agriculture. By providing artificial light for photosynthesis, horticulture lighting allows plants to develop without daylight. LED lighting is the more modern technology used in horticulture because it offers customers straightforward installation procedures and cost-effective options.

Arable land reserves per person have reduced because of rapid population growth and urbanization, dwindling water supplies, and continued climate change brought on by increased greenhouse gas emissions. Within the limits of urban, weather high-rise structures, food production technology aims to increase productivity while reducing environmental effects significantly. According to reports, such facilities have several potential advantages, such as a clean and environmentally friendly food supply, biosecurity, resistance to pests and droughts, and a reduced dependency on fossil fuels and transportation.

Highlights

• Top lighting dominates the market by Lighting Type.
• Fluorescent Lamp dominates the market in Lighting Technology.
• Greenhouses dominate the market by Application.
• Europe dominates the market by region.

Market Dynamics

Global Horticulture Light Market Drivers

Increasing Popularity of Vertical Farming and Population Boom

The most remarkable development in the horticulture lighting industry is vertical farming. As a result of population growth, there is a decreasing amount of arable land, forcing farmers to make the most of whatever available space. Indoors, crops are grown vertically, stacked on top of one another, with artificial light as their sole lighting source. This technique can help to make the most of small spaces, lessen the need for soil, and use up to 90% less water. The concept is expected to gain much traction in the coming years since these factors will lower agricultural workers’ costs.

In 2030, there will be 8.5 billion people on the earth, an increase from 7.7 billion in 2019. These predictions are from the United Nations. The most rapid population expansion will occur in China, India, the United States, and Brazil, with a large demand for food products. The need for horticulture lighting solutions is rising as more nations focus on greenhouse and indoor farming methods to boost agricultural productivity considerably.

Strong Government Support for Controlled-Environment Agriculture (CEA) Practices

Controlled-environment agriculture (CEA), once a niche technology, is increasingly useful for boosting food security and preserving the environment. The fast adoption of CEA technology is driven by the market need for locally grown food throughout the year and greenhouse and vertical farming technology advancements to maximize land, water, energy, labor, and capital use. Plants are cultivated in controlled conditions, such as greenhouses, indoor farms, or vertical farms in CEA, to provide fresh, premium fruits and vegetables. Now that CEA facilities are available, growing fruits and vegetables near where they will be consumed is possible.

Global Horticulture Light Market Restraints

High Horticulture Light Installation and Setup Costs

Horticulture lighting is increasingly used as more people become aware of its benefits. Several types of artificial illumination have been used to grow plants inside. In the past, efficient light sources for indoor farming included HPS and electric ballasts. LEDs are now widely employed and have replaced the shortcomings of high-pressure sodium (HPS), fluorescent (FL), metal halide, and electric ballast lighting. However, the initial investment required to purchase high-quality LED lights is higher than traditional lighting technologies like FL and high-intensity discharge (HID) lamps. This is mainly because each LED light unit incorporates arrays of LEDs designed specifically for use in horticulture. These gadgets usually employ several LED types with varying wattages and wavelengths to provide a broad spectrum of light and intensity for diverse plant species. For as little as $500, high-powered LED growth lights are available on the market. A top-notch, full-spectrum LED grow light may be the main source for commercial indoor growing.

Global Horticulture Light Market Opportunities

Launch of Innovative Products and Growing Demand from Developing Countries

Companies in the horticulture lighting market have recently unveiled several cutting-edge and innovative products to increase their customer base and revenue. For instance, in October 2019, Illumitex Inc. unveiled the NeoPAR-XO LED for horticulture. With its 2.6 mol/J efficiency, 1,820 photosynthetic photon flux (PPF) output, and AI platform, farmers can use an embedded camera to track the development of their crops. The ELB series 3535-ELC, 3030-ELB, 5630X-ELB, and 2835-ELB LED lights from Everlight Electronics Co. Ltd. were also released in March 2018. These products offer improved illumination, helping farmers hasten the growth of their crops.

Regional Analysis

The global horticulture light market is segmented by region into North America, Europe, Asia-Pacific, South America, the Middle East and Africa.

Europe Dominates the Global Market

Europe holds the largest market share and is expected to grow at a CAGR of 17.0% during the forecast period. The market for horticulture lighting systems in Europe is expanding steadily thanks to various uses, the bulk of which is today's general lighting systems. Using LED lighting sources instead of outdated traditional lamps is economically and financially viable, in addition to providing other significant benefits like decreased energy consumption, decreased CO2 emissions, decreased light pollution, and others, according to research on Rome's public lighting systems in Italy. On the other hand, the LED lighting business is witnessing a rising trend in the European horticulture sector. The market is anticipated to have fully expanded in the ensuing years. In European nations like the Netherlands, where natural sunshine is rare at certain times of the year, greenhouse supplemental lighting equipment is relatively widespread.

Asia-Pacific is the fastest growing and is expected to grow at a CAGR of 21.1% during the forecast period. The Asia-Pacific lighting market is primarily driven by the rising usage of horticulture lighting in various applications, including supplemental illumination, urban farming, cultivation without daylight, and multilayer cultivation. These lights work as expected under environmental conditions, meeting safety, and performance standards. The market is growing faster due to the rise in sustainability awareness. Additionally, the growth of the Asia-Pacific market is supported by the increase in initiatives taken by researchers, organizations, and governments to improve horticulture with effective and efficient lighting. Increased lighting use in floriculture and fruit and vegetable farming is anticipated to impact market expansion positively.

North America stands third. The expansion of the horticulture lighting market in North America is anticipated to be aided by population growth, improvements in greenhouse and indoor farming methods, and other factors. The demand for food goods is expected to rise in the upcoming years due to the population boom. Many North American nations use greenhouse and indoor farming techniques to boost agricultural productivity. The market for horticulture lighting in North America is anticipated to grow shortly as more farmers adopt big data technologies, predictive analytics, the Internet of Things, and automation in their farming practices. This is due to horticulture and indoor crop cultivation's growing popularity. For instance, a robot that harvests mushrooms is now being tested by the Canadian research group The Vineland Research and Innovation Centre. The horticultural lighting market in North America is expanding due to these innovations and research projects.

Segmental Analysis

The global horticulture light market is segmented based on Lighting Type, Technology, Application, and Country.

Based on Lighting Type, the market is segmented by Toplighting and Interlighting.

Top lighting dominated the market and is expected to register a CAGR of 16% over the forecasted period. The plants receive sunlight-like illumination from above. The objective is to increase growth light levels and supplement natural daylight in greenhouses to boost photosynthesis, plant growth, and quality. Additional top illumination is typical with conventional light sources like high-pressure sodium (HPS). A considerable space must be maintained between the light source and the plants due to the high power and heat output of HPS luminaires. Conventional luminaires' photon flux can reach 2000 mol/s. LED luminaires typically disperse their lower photon flux among several luminaires rather than producing a single luminaire with comparably high photon flux.

The best light source for inter illumination is LED technology. In this case, the light sources are positioned between the leaves and the plants. This raises the amount of light even on the lower leaves by reducing the shading of the leaves that may be caused by top illumination. The low temperatures of the LED light do not harm the plants in any way, unlike hot HPS luminaires.
Based on Lighting Technology, the market is segmented by Fluorescent Lamp, HID Light, LED Lights, and Others.

Fluorescent Lamp the market and is expected to register a CAGR of 18.5% over the forecasted period. Fluorescent lamps, whether tubular or compact, provide light by transferring energy through a gas in a tube. Fluorescent lamps use optical fluorescence's physical characteristics to generate visible light using a low-pressure mercury-vapor gas discharge. When an orbital electron of a molecule, an atom, or a nanostructure emits a photon from an excited singlet state, it relaxes to its ground state and exhibits fluorescence.

Horticultural luminaires powered by light-emitting diodes (LEDs) are becoming more prevalent. These device producers usually tout energy savings10 and longer lifespans as the main advantages of moving away from high-intensity discharge (HID) sources like HPS and MH. The immense potential of LEDs as a lighting system for controlling plant growth, development, and metabolism has just come to light in research on LEDs.

Based on Application, the market is segmented by Indoor and Vertical Farming, City Farming, Greenhouses, and Others.

Greenhouses dominated the market and are expected to register a CAGR of 18.3% over the forecasted period. Horticulture crops grown in controlled surroundings are produced using electric lighting. The most popular greenhouse lamp is still high-pressure sodium, although more energy-efficient LEDs are being utilized more frequently because of their favorable economics. Technology for horticulture lighting could lower greenhouse operating costs and enhance their economic viability. Induced intracanopy mutual shadowing and unfavorable environmental circumstances for plant growth are caused by intensive growing systems utilized for greenhouse production and light absorption by cladding materials or other devices. 

Plants can now be grown inside without sunlight thanks to innovative agricultural technologies. This method of farming, referred to as "city farming," is excellent for growing strong crops, young plants, and healthier, pesticide-free produce. It maximizes output by lighting multiple layers of crops with cutting-edge horticultural lighting, producing more with less space.

Recent Developments

• Feb 2023- General Electric revealed that it will spend USD 50 million building a new R&D facility in Niskayuna, New York. The facility's main goal will be to provide new technology for the horticulture lighting industry.
• Aug 2022- Hortilux Schréder announced that it agreed with Daeyoung GS. Under the distribution agreement, Daeyoung GS is authorized to sell Hortilux products to its customers in South Korea. With this, Hortilux Schréder strengthens its presence in South Korea.