The global horticulture lighting market is projected to grow from USD 3.1 billion in 2022 to USD 9.4 billion by 2027; it is expected to grow at a CAGR of 24.5% from 2022 to 2027. The market has a promising growth potential due to several factors, including the technological advancements in LED technology, rising number of government initiatives to promote the adoption of CEA practices, growing demand for food owing to the continuously increasing population, and ongoing legalization of cannabis cultivation. Moreover, increasing the adoption of CEA facilities to meet the growing demand for fresh produce due to COVID-19, and increasing awareness regarding benefits provided by LED technology to grow crops through the year amid the COVID-19 pandemic could play a key role in driving the growth of the horticulture lighting market.
“Rising penetration of LED lights in indoor farming due to their long lifespan, spectrum adjustability, and energy efficiency”
The LED technology segment is projected to grow at the highest CAGR from 2022 to 2027 for horticulture lighting market, by technology. Energy efficiency continues to be a key factor for the adoption of LED technology in the horticulture sector, along with additional benefits in the form of low heat, long lifespan, light weight, and enhanced controllability. This is expected to boost their adoption across various applications during the forecast period.
“Fruits and vegetables is estimated to hold the largest share of the market during the forecast period”
The fruits and vegetables segment is projected to account for the largest size of the horticulture lighting market from 2022 to 2027, by cultivation. Increasing demand for quick and fresh horticultural produce owing to population growth and loss of arable land is a key factor driving the growth of this segment of the market. The surging number of vertical farms and greenhouses is also expected to contribute to the growth of this segment of the market.
“Asia Pacific is projected to become the fastest geographical market between 2022 and 2027”
APAC is projected to grow at the highest CAGR for horticulture lighting market during the forecast period. The growth of the market in this region can be attributed to its continuously increasing population, which leads to rising demand for food from APAC. This has led to an increase in the adoption of advanced farming technologies such as CEA to enable the supply of fresh fruits and vegetables throughout the year. Moreover, high pressure on cultivators to improve agricultural yields with limited available resources and increased requirements to protect crops from unexpected climatic changes are also contributing to the adoption of horticulture lighting in APAC during the forecast period.
Breakdown of profiles of primary participants:
- By Company: Tier 1 = 35%, Tier 2 = 45%, and Tier 3 = 20%
- By Designation: C-level Executives = 40%, Directors = 35%, and Others (sales, marketing, and product managers, as well as members of various organizations) = 25%
- By Region: North America = 40%, APAC = 30%, Europe=20%, and ROW=10%
Major players profiled in this report:
The horticulture lighting market is dominated by a few established players such as Signify (Netherlands), OSRAM (Germany), Gavita (Netherlands), Valoya (Finland), California Lightworks (US), and Helliospectra AB (Sweden).
This report offers detailed insights into the horticulture lighting market based on technology (Fluorescent, HID, and LED), application (Greenhouses, Vertical Farms, and Indoor Farms), cultivation (fruits and vegetables, floriculture, and cannabis), lighting type (toplighting and interlighting), offering (hardware, and software and services), installation type (new installations and retrofit installations), and region (North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW) which includes the Middle East, Africa, and South America.
The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the horticulture lighting market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the horticulture lighting market and provides them information on key market drivers, restraints, challenges, and opportunities.