Horticulture Lighting Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030

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Horticulture Lighting Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030

Status : February, 2022 | Industrial

Report Digest


Introduction:

Horticulture lighting is a system specially designed for providing spectrum and intensity of light to ensure efffective growth of plants such as crops, fruits, vegetables and flowers. It allows the cultivation of plants without any daylight by provision of artificial light for photosynthesis . It stimulates the growth of plants by tuning the light according to the requirement of LED lighting that boosts the crop yield throughout the year. Horticulture lighting systems are useful in urban farming, multi-layer cultivation, indoor farming, vertical farming, greenhouses, cultivation without daylight, supplemental lighting etc.

The market is gaining taction due to wide appplications of horticulture lighting like low energy cost, low power consumption, better quality, enhanced production and efficiency of crops etc. Investment in this market is rising due to high demands for horticulture lighting systems in agricultural operations. Further the rising awareness regarding sustainability and  government efforts to improve horticulture is encouraging  the global investors to invest in this market.

The horticulture lighting market is expected to grow at a high CAGR rate through 2030. At present, it is witnessing significant growth across the globe and is predicted  to further expand formidably providing immense opportunities to the leading players in this market.

Key Drivers:

Government initiatives towards the adoption of advanced and automated technologies in farming practices is stimulating the global demand for horticulture lighting systems. Horticulture lighting improves the crop yield, efficiency and growth and helps in providing better quality yield even in unfavourable climatic conditions by providing an  artificial climate according to the need of different crops.
Rapid growth of population in many developing economies is creating strong demands for food supply. Horticulture lighting helps in meeting the global food demands by increasing production of crops  resulting in surging the market progress.

Horticulture Lighting Market

Awareness regarding sustainability and fastest supply of crops among the manufacturers is accelerating high demands for horticulture lighting  systems as it helps in producing  fastest and superior varieties of crops, flowers, fruits as well as vegetables despite unsupportive weather conditions.

Rising demands from vertical and indoor farming for the cultivation of crops under LED light with no pesticides is expected to bring lucrative progress in horticulture lighting market.

Key Restraints:

The one time installation cost of LED light technologies is high which may not be affordable by small-scale manufacturers and farmers.

In horticulture lighting systems,  there is  restriction of cultivating limited amount of crop species which can hamper the market progress poising a challenge to the key players in this market.

COVID-19 Impact:

Covid-19 pandemic has created a slighter impact on this market. The pandemic impacted the operations of several horticulture lighting manufacturers and vendors by disrupting the production units, supply chains, distribution, warehousing and transportation facilities. The impact was not much as before the pandemic the market for  horticulture lighting had witnessed oversupply in  its sales. In the earlier phase of corona virus disease, the manufacturers  faced decline in their production, distribution and profits due to lockdown imposed by the government.

The manufacturers are now recovering their losses by undertaking various strategies to cope with the ongoing crisis. The adoption of new and improved strategies and methods has created an opportunistic environment for the manufacturers as the sales of  horticulture lighting is increasing. The market is predicted to experience considerable growth in the pandemic and drive more opportunities for social distance controlling infrared sensors, germicidal UVC LEDs etc.

Region-Wise Forecast:

It is anticipated that Europe will continue to experience the fastest growing CAGR rate along with considerable progress in this market through 2030 owing to growing usage of horticulture lighting in green-houses, urban cultivation, indoor farming  and vertical farming. Awareness regarding sustainable developments  followed by government efforts to adopt this system in cultivating plants is boosting the growth opportunities in Germany. Europe is estimated to occupy one third of  market share in horticulture lighting  market. Rising adoption of automation in agricultural practices is surging the demand for horticulture lighting  systems in Italy and France creating immense opportunities for market progress. Some other factors that attributes to the growing demands in Europe includes rising population, urbanisation and investments in horticulture lighting. The growing population in Europe is creating a force to import fruits and vegetables in frozen form from Africa and Asia leading to more need for horticulture lighting systems.

In addition to Europe, China is expected to see considerable market progress on account of  increasing population and urbanisation.The rising population demands more food supply to feed the population leading to growing demands for horticulture lighting systems to stimulate fastest crop growth and increased yield. On the other side, the increasing emission of green-house gases in India is having adverse impact on the climatic conditions which in turn influences agricultural yield. Horticulture lighting systems provides an artificial environment to the plants enabling them to grow faster to meet the needs. It is forecasted that Asia Pacific will grab the second position in this market through 2030.

Furthermore, the growing adoption of  automated farming methods like indoor and vertical farming in United States and Mexico is estimated to provide potential opportunities to the market players in North America to attain high growth rate in this market. Due to awareness programs and other initiatives held by the government to promote investment in horticulture lighting systems, the market is witnessing immense progress in U.S.. North America is forecasted to register high   CAGR rate through the predicted time.

Latin America is projected to flourish with reasonable progress in the market on account of  rising adoption of LED lights, increasing demands for food, rising population and concern regarding steady supply of crops despite unfavourable weather.

Market Segmentation:

By Offering:

  • Hardware
  • Software
  • Services

By Technology:

  • Fluorescent
  • High-intensity discharge
  • LED
  • Others

By Lighting Type:

  • Toplighting
  • Interlighting

By Cultivation:

  • Fruits and vegetables
  • Floriculture

By Application:

  • Greenhouse
  • Vertical farming
  • Indoor farming

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America

Competitive Landscape:

The horticulture lighting market is moderately fragmented. Many new entrants are joining this market creating more tight space. Leading players in this market are incorporating both organic as well as inorganic strategies and practices to lead the global market for horticulture lighting.

Some of the prominent manufacturers in this market includes Signify Holdings, Gavita Corporation, GE Lighting, Osram GmbH, Agrolux Limited, Heliospectra AB Corporation, Hortilux Schreder Corporation, Lumileds Limited, PARsource Corporation, Illumitex Limited, TESLUX Lighting Systems Private Limited, Samsung, Forge Europa, Cropmaster LED, TE Connectivity Limited, Dicon Lighting, Valoya Corporation, Everlight Incorporation, BSSLED Manufacturing Limited, Hubbel Corporation, Maxigrow Limited, Bridgelux Limited, Eye Hortilux, Lumigrow, Opto Semiconductors GmbH, Edison Opto Corporation, Active Grow LLC, Future LED GmbH etc.

These key players are making investments in research and development activitiesto come up with advancements and improvisations in horticulture lighting systems. They are focusing on strategic alliances, expansions, product upgradations, automating technologies, joint ventures, mergers and acquisitions, new product introductions, innovations etc to obtain largest market share and improve their profitability in the market.

For instance, Heliospectra AB expanded its LED solutions and included ELIXIA 600W high-voltage adjustable spectrum light to be used in indoor horticulture applications. The company established its research and development institute in Sweden to improve its products and market postion.

In addition to Heliospectra, Hortilux Schreder collaborated with LetsGrow for HortiSense software platform to collect and analyse data from green-house sensors enabling the customers to link their data to hortisense software platform. This collaboration helped in providing digital solutions for green-house customers which resulted in expanding the global presence of the company. Agrolux on the other hand entered into a partnership agreement with Nature Fresh Farms to supply flexible mounting systems for supplemental lighting. It increased the average light level to produce best quality vegetables every year.This partnership has strengthened the image of the corporation among the customers.

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5-Point Growth Formula

The 5-point growth formula developed by TMR Research provides an insight to the stakeholders and CXOs about the current situation in the market. The growth formula makes the report a perfect companion for the stakeholders and CXOs.

The 5-point growth formula includes the following points:

  • Current and Future Threats
  • Accurate Trend Analysis
  • Regional Assessment
  • Industrial Analogy
  • COVID-19 Impact

Current and Future Threats

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Accurate Trend Analysis

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Regional Assessment

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Industrial Analogy

The analysts at TMR Research conduct an all-round analysis on the competitive landscape of the market. The observations recorded by the analysts are added to the reports so that every stakeholder gets a glimpse of the competitive scenario and frame their business plans according to the situation.

COVID-19 Impact

The COVID-19 outbreak has changed the growth projections of numerous sectors and businesses. The analysts at TMR Research have conducted a conscientious survey on the markets after the pandemic struck. The analysts have put forth their brilliant and well-researched opinions in the report. The opinions will help the stakeholders to plan their strategy accordingly.

The reports offer answers to the top 7 questions that revolve around the growth of the market

  • What are the diverse growth parameters influencing the market?
  • Which regions will contribute largely to the growth of the market
  • What are the recent innovations and technological advancements in the market?
  • What are the emerging trends across the market?
  • How has COVID-19 affected the market?
  • What will be the post-pandemic scenario of the market?
  • What are the major threats that will dent the growth prospects of the market?