Global Horticulture Lighting Market

Horticulture Lighting Market Size, Share, Growth Analysis, By Technology(Fluorescent, HID, LED), By Spectrum(Partial and Full) - Industry Forecast 2024-2031


Report ID: SQMIG45K2069 | Region: Global | Published Date: March, 2024
Pages: 197 | Tables: 61 | Figures: 77

Horticulture Lighting Market Insights

Global Horticulture Lighting Market size was valued at USD 4.15 Billion in 2022 and is poised to grow from USD 5.69 Billion in 2023 to USD 71.54 Billion by 2031, at a CAGR of 37.21% during the forecast period (2024-2031).

Due to their simple installations and affordable solutions, LED lights are the more cutting-edge technology employed in the horticulture sector. Compared to other artificial light sources, lights are also more affordable. LEDs don't burn out like regular light bulbs, although they do gradually lose some lumen output. LEDs may function for more than 50,000 hours (depending on the application), whereas light bulbs typically fail after a year. High reliability is guaranteed by the longer lifetime. The development of vertical farms in the area is anticipated to be sparked by expanding consumer demand for food and growing public knowledge of their advantages. Researchers in the Netherlands are evaluating the economic viability of vertical farming in urban settings. For instance, in April 2022, ams-OSRAM planned to invest an additional EUR 800 million in Malaysia (at the Kulim Hi-Tech Park) to support the production of breakthrough LED technologies and microLEDs. Additionally, by 2030, ams Osram hopes to be carbon neutral. Due to the decreasing supply of fertile agricultural land and the growing population, increased awareness of the need for alternative farming is one of the important reasons projected to drive industry demand.

Market snapshot - 2024-2031

Global Market Size

USD 4.15 Billion

Largest Segment

Partial

Fastest Growth

Partial

Growth Rate

37.21% CAGR

Global Horticulture Lighting Market 2021-2030 ($ Bn)
Country Share for Europe Region- 2021 (%)
Global Horticulture Lighting Market Size By Spectrum 2021-2030 ($ Bn)
Global Horticulture Lighting Market Size By Spectrum 2021-2030 (%)

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Horticulture Lighting Market Segmental Analysis

Global Horticulture Lighting Market is segmented on the basis of technology, application, system, spectrum and region. By technology, the market is segmented into fluorescent, HID, LED. By application, market is segmented into greenhouse, vertical farms, indoor farms. By system, the market is segmented into hardware and software. By spectrum, the market is segmented into partial and full. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis by System

With a market share of almost 75% in terms of revenue in 2022, the hardware segment dominated the sector. Over the course of the forecast, it is likely to continue to rule. Grow lights come in a variety of forms, including LED, plasma, high intensity discharge (HID), and ballast grow lights. The software segment, however, is anticipated to increase at the fastest rate during the projection period. This expansion is attributable to Controlled-Environment Agriculture's (CEA) growing use of software to manage numerous environmental conditions.

Controlled-Environment Agriculture (CEA), which regulates multiple environmental parameters like humidity, temperature, water, and light, is a software section of the horticulture lighting business. To enhance plant quality, grow lights employ software solutions. When it comes to the ideal lighting duration and intensity that would maximize the yield of the plants, each plant has various needs. The best use of the grow lights can be achieved by developing specialized software based on the characteristics of each plant. Numerous businesses in the market also supply services like software support for the given solutions as well as horticulture lighting maintenance and repair.

Analysis by Spectrum

With a market share of roughly 42% in 2022, the partial spectrum segment held a tenuous lead over the overall sector. A certain spectrum of light, such as yellow, blue, or green, is emitted by partial spectrum horticulture lighting. At various plant growth phases, these light spectrums are helpful. These are designed to target particular phases of plant development, and they significantly shorten the length of time that plants need to grow while simultaneously increasing yields. The vegetative growth stage is best served by red and blue wavelengths, whereas the flowering stage is better served by red and far-red wavelengths.

The full spectrum category, however, is anticipated to dominate during the projected period. In comparison to the partial spectrum, a larger CAGR is anticipated for growth. Sunlight-like light is produced by full-spectrum lamps. These lights are helpful for plants at all stages of development. The wavelengths of 400 nm to 700 nm are covered by full spectrum light. It is known as PAR, or Photosynthetic Active Radiation. In addition to providing plants with pleasant illumination, full spectrum light can also be used for other purposes. It might let farmers turn down or even turn off extra light sources in the growing area.

Global Horticulture Lighting Market Size By Spectrum 2021(%), 2023 (%)

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Horticulture Lighting Market Regional Insights

Europe commanded a market share of more than 32% in terms of revenue in 2022, and it is anticipated that it will continue to dominate the industry during the projected period. Since there is a shortage of fertile agricultural land and there is an increase in population, these two factors are expected to drive demand for the business. Growing awareness of the need for alternative farming is one result.

Due to the rapidly expanding use of genetically modified crops, the Asia Pacific regional market is predicted to have significant growth throughout the estimated period. Additionally, in order to decrease energy use, a number of nations in this region are switching to LED lights. LEDs would help to reduce greenhouse gas emissions if conventional incandescent light bulbs were replaced with them.

Global Horticulture Lighting Market Size By Geography, 2021-2030, 2024-2031
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Horticulture Lighting Market Dynamics

Drivers

Rising Adoption of LED Technology

  • The shift from traditional lighting technologies to LED lighting is a major driver in the horticulture lighting market. LED lighting offers energy efficiency, longer lifespan, and the ability to customize light spectra, allowing growers to create optimal lighting conditions for specific crops.

Demand for High-Quality and Locally Grown Produce

  • Consumers are increasingly seeking fresh, locally grown, and pesticide-free produce. Horticulture lighting enables growers to cultivate high-quality crops closer to urban areas, reducing transportation costs and ensuring a steady supply of fresh produce.

Restraints

Complexity in Spectrum Management

  • While LED lighting allows for customizable light spectra, effectively managing the light spectrum for different crops and growth stages requires knowledge and expertise. Inadequate spectrum management can lead to suboptimal plant growth and lower yields.

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Horticulture Lighting Market Competitive Landscape

The major market participants use tactics like joint ventures and the introduction of new products to increase their market share. To improve their position in the market, companies are also buying up rival companies.

Top Player’s Company Profiles

  • Heliospectra AB (Sweden)
  • Cree, Inc. (United States)
  • Valoya Oy (Finland)
  • California LightWorks (United States)
  • Hubbell Incorporated (United States)
  • LumiGrow, Inc. (United States)
  • Illumitex Inc. (United States)
  • Everlight Electronics Co., Ltd. (Taiwan)
  • GE Lighting Solutions, LLC (United States)
  • Hortilux Schréder B.V. (Netherlands)
  • Gavita International B.V. (Netherlands)
  • Current, powered by GE (United States)
  • BIOS Lighting (United States)
  • Agrolux (Netherlands)
  • Fluence by OSRAM (United States)
  • PARsource (United States)
  • Plessey Semiconductors Ltd. (United Kingdom)
  • Lumileds Holding B.V. (Netherlands)
  • Illumitex (United States)

Recent Developments

  • With a market-leading wall plug efficiency of 78.8% in June 2023, ams-OSRAM AG.'s fifth-generation OSLON Square Hyper Red LED lowers indoor crop growth expenses and energy consumption. With its exceptional durability and Q90 lifespan of 102,000 hours, it solidifies its position as the industry leader in horticultural lighting. With the help of this invention, farmers may reduce their energy expenses while maintaining excellent crop yields and optimizing their lighting systems.

  • Leading global lighting company Signify Holding helped Topline Gerbera Nursery make the switch from HPS to fully LED lighting in June 2023. The year-round use of the Philips GreenPower LED toplighting system was made possible by its substantial energy savings and improved illumination. It cuts down on electricity use by forty percent. This helps the business by showcasing its strengths and enhancing its reputation.

  • In March 2023, Signify Holding announced that it had launched a new LED grow light for greenhouses. The new light, called the Philips GreenPower LED GrowStar 1000E, is designed to provide high-quality light for a variety of crops.

  • In February 2023, OSRAM announced that it had launched a new LED grow light for indoor farms. The new light, called the OSRAM Sylvania LEDina Grow, is designed to provide high-quality light for a variety of crops.

Horticulture Lighting Key Market Trends

  • Vertical Farming and Controlled Environment Agriculture (CEA) The growing use of LED technology in horticulture lighting systems is a significant industry trend. Due to its energy efficiency, extended lifespan, and fine control over light spectrum, LED (Light Emitting Diode) illumination has become increasingly popular in horticulture. Growing numbers of growers are switching from HPS lamps, a common traditional lighting source, to LEDs. With the use of LEDs, producers may adjust light wavelengths to different stages of plant development, increasing crop yields and quality. Furthermore, since LEDs generate less heat, they don't require as much cooling, which further reduces energy consumption. The industry is anticipated to develop in the upcoming years as a result of this shift towards LED horticulture lighting.

Horticulture Lighting Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analyses, the global horticulture lighting market has been expanding rapidly. The market size is expected to reach substantial figures due to the rising demand for controlled environment agriculture and the need for year-round crop production. The market is projected to experience continued growth as more growers recognize the benefits of horticulture lighting and invest in advanced lighting systems. While the horticulture lighting market is growing, challenges remain. These include the high initial investment costs associated with implementing lighting systems, the complexity of managing light spectra for optimal plant growth, and the lack of universal standards and regulations. However, these challenges also present opportunities for innovation, cost reduction, and the development of industry standards and guidelines. The adoption of LED technology, advancements in spectrum customization, and the expansion of indoor and vertical farming practices are expected to drive market growth. As the demand for high-quality, locally grown produce increases, horticulture lighting will play a crucial role in meeting the needs of the modern agriculture industry.

Report Metric Details
Market size value in 2023 USD 4.15 Billion
Market size value in 2031 USD 71.54 Billion
Growth Rate 37.21%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Technology
    • Fluorescent, HID, LED
  • Spectrum
    • Partial and Full
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Heliospectra AB (Sweden)
  • Cree, Inc. (United States)
  • Valoya Oy (Finland)
  • California LightWorks (United States)
  • Hubbell Incorporated (United States)
  • LumiGrow, Inc. (United States)
  • Illumitex Inc. (United States)
  • Everlight Electronics Co., Ltd. (Taiwan)
  • GE Lighting Solutions, LLC (United States)
  • Hortilux Schréder B.V. (Netherlands)
  • Gavita International B.V. (Netherlands)
  • Current, powered by GE (United States)
  • BIOS Lighting (United States)
  • Agrolux (Netherlands)
  • Fluence by OSRAM (United States)
  • PARsource (United States)
  • Plessey Semiconductors Ltd. (United Kingdom)
  • Lumileds Holding B.V. (Netherlands)
  • Illumitex (United States)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Horticulture Lighting Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Horticulture Lighting Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Horticulture Lighting Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Horticulture Lighting Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Horticulture Lighting Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Horticulture Lighting Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Horticulture Lighting Market size was valued at USD 4.15 Billion in 2022 and is poised to grow from USD 5.69 Billion in 2023 to USD 71.54 Billion by 2031, at a CAGR of 37.21% during the forecast period (2024-2031).

The major market participants use tactics like joint ventures and the introduction of new products to increase their market share. To improve their position in the market, companies are also buying up rival companies. 'Signify NV (Netherlands)', 'OSRAM GmbH (Germany)', 'General Electric Company (United States)', 'Heliospectra AB (Sweden)', 'Cree, Inc. (United States)', 'Valoya Oy (Finland)', 'California LightWorks (United States)', 'Hubbell Incorporated (United States)', 'LumiGrow, Inc. (United States)', 'Illumitex Inc. (United States)', 'Everlight Electronics Co., Ltd. (Taiwan)', 'GE Lighting Solutions, LLC (United States)', 'Hortilux Schréder B.V. (Netherlands)', 'Gavita International B.V. (Netherlands)', 'Current, powered by GE (United States)', 'BIOS Lighting (United States)', 'Agrolux (Netherlands)', 'Fluence by OSRAM (United States)', 'PARsource (United States)', 'Plessey Semiconductors Ltd. (United Kingdom)', 'Lumileds Holding B.V. (Netherlands)', 'Illumitex (United States)'

The shift from traditional lighting technologies to LED lighting is a major driver in the horticulture lighting market. LED lighting offers energy efficiency, longer lifespan, and the ability to customize light spectra, allowing growers to create optimal lighting conditions for specific crops.

Vertical Farming and Controlled Environment Agriculture (CEA) The growing use of LED technology in horticulture lighting systems is a significant industry trend. Due to its energy efficiency, extended lifespan, and fine control over light spectrum, LED (Light Emitting Diode) illumination has become increasingly popular in horticulture. Growing numbers of growers are switching from HPS lamps, a common traditional lighting source, to LEDs. With the use of LEDs, producers may adjust light wavelengths to different stages of plant development, increasing crop yields and quality. Furthermore, since LEDs generate less heat, they don't require as much cooling, which further reduces energy consumption. The industry is anticipated to develop in the upcoming years as a result of this shift towards LED horticulture lighting.

Europe commanded a market share of more than 32% in terms of revenue in 2022, and it is anticipated that it will continue to dominate the industry during the projected period. Since there is a shortage of fertile agricultural land and there is an increase in population, these two factors are expected to drive demand for the business. Growing awareness of the need for alternative farming is one result.

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Global Horticulture Lighting Market

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