Horticulture Lighting Market Size, Share, Industry, Forecast and outlook (2024-2031)

Horticulture Lighting Market is Segmented By Installation Type (New Installation, Retrofit Installation), By Offering (Hardware, Software & Services), By Lightning (Top Lightning, Inter Lightning), By Cultivation (Fruits & Vegetables, Floriculture, Cannabis), By Technology (Fluorescent, High-Intensity Discharge, Light-emitting Diode, Others), By Application (Greenhouses, Vertical Farms, Indoor Farms, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Horticulture Lighting Market Size

Horticulture Lighting Market reached USD million in 2021 and is expected to record significant growth by reaching up to USD million by 2029, growing at a CAGR of 28.80% during the forecast period (2024-2031).

Horticulture Lighting Market Scope

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Horticulture lighting activates many kinds of photoreceptors in plants to promote photosynthesis, photomorphogenesis, photoperiodism, and phototropism in plants. All plants—including those that produce flowers, fruits, and vegetables—need light, water, carbon dioxide, and nutrients for survival and growth. Plants need light to catalyze the chemical reaction between carbon dioxide and water, creating the carbohydrates necessary for growth, for their metabolism to function properly, for active development to occur, plant quality to be maintained, and for maximum yields, plants need enough light. Artificial light sources meet plant growth needs because sunlight's strength and spectrum are frequently variable. The seeds can be used in addition to the sun or as the only light source for photosynthetic and photomorphogenic processes.

As per DataM Intelligence, the Horticulture Lighting Market study analysis offers an in-depth outlook on the market containing quantitative and qualitative data. It gives an outlook and forecast of the global market based on market segmentation. It also provides global Horticulture Lighting Market size, and growth, along with the latest trends, opportunities, and forecast till 2029 for the global market with esteem to major countries such as the United States, Canada, Brazil, Germany, Italy, Spain, United Kingdom, Russia, European countries, United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and rest of the countries over the globe.

Among all regions, the North American region is expected to hold the largest share of the global market over the forecast period. Horticulture Lighting Market in the United States and Canada produces the utmost share. Whereas the European Horticulture Lighting Market is projected to continue its presence globally from 2022 to 2029.

Horticulture Lighting Market Dynamics

The rapidly increasing number of government initiatives to encourage the adoption of CEA practices and the rising importance of the farm-to-table concept are all driving the horticulture lighting market forward. However, the high costs required for setup and installation may hamper its growth.

Growing emphasis on the "farm to table" idea

A food philosophy known as "farm-to-table" emphasizes the flavor and nutritional benefits of locally grown, fresh foods. Restaurant operators may need more work to have a reliable supply chain, but the investment may be well worth it. According to a recent Nielsen poll, 51% of consumers prefer to support local businesses dining out. Most farm-to-table restaurants source their vegetables and dairy products from areas between 50 and 200 miles away from the restaurant. 

There may eventually be a need for more locally produced goods across a range of markets in the hotel sector. Horticulture lighting is necessary for farm-to-table restaurants to guarantee timely output availability. Even though demand is growing, controlled environment agriculture can still provide food at the desired quality and quantity. Future years are expected to see a greater influence of this factor due to the rising demand for locally farmed food.

Growing acceptance for controlled-environment agriculture (CEA)

The creation of completely controlled settings for plant growth is known as CEA. Artificial systems supply water, temperature, humidity levels, ventilation, light, and CO2 for plants at all stages of growth. Crops are grown inside a CEA facility under LED grow lights, with hydroponic systems supplying water and nutrients. To control the best-growing climates, heaters, ventilators, dehumidifiers, CO2 enrichment, humidifiers, and coolers are used.

With the traceability and integrity required by food supply chains, CEA enables locally grown, quickly-to-market produce that can be purchased and consumed where it is produced. Food may be delivered with uniform quality and quantity using CEA. To preserve fresh food consumer-ready, no preservatives or wax coatings are required.

High installation and setup costs

High-pressure sodium (HPS), fluorescent (FL), metal-halide, and electric ballast lights have constraints that LEDs don't have. However, compared to conventional lighting technologies like fluorescent and high-intensity discharge (HID) bulbs, the initial expenditure required to buy high-quality LED lights is greater. While some LED grows lights cost around US$100, some are far more expensive. A top-notch, full-spectrum LED grow light can also be installed as the main lighting source for commercial indoor growing.

COVID-19 Impact on Horticulture Lighting Market Growth

The global health issue has increased the popularity of leisure activities, including spending more time with flowers and decorative plants. Access to green spaces in cities is growing due to the COVID-19 recovery plans' recognition of its importance. One of the best hobbies for reducing the detrimental effects of social isolation brought on by COVID-19 on people's emotional well-being was gardening. 

During the pandemic, home food production from gardening and foraging had increased, which was good for diet quality and food security. Government and non-government organizations have occasionally donated seeds to the populace during a lockdown to encourage home gardening, particularly in underprivileged and impoverished areas. However, COVID-19 has impacted the whole LED lighting supply chain, from upstream chip producers to packaging and lighting OEMs, due to the emergence and propagation of the virus.

Horticulture Lighting Market Segmentation Analysis

By technology, the horticulture lighting market is segmented into fluorescent, high-intensity discharge, light-emitting diodes, and others.

Growing experiments with LED lighting for plant development

LEDs are extremely promising as primary or secondary illumination sources for interplanetary and terrestrial agricultural operations. Due to their small size, durability, long operational lifetime, wavelength specificity, relatively cold emitting surfaces, and linear photon output with electrical input current, these solid-state light sources are ideal for plant lighting systems.

Due to the NASA plant growth research employing LED lighting, the light-emitting diode technology is gaining popularity in the horticultural sector. It has potential as a horticultural lighting fixture due to its low energy consumption, cool operation, and flexibility to change the spectrum output to emit the specific wavelengths needed by plants.

Horticulture Lighting Market Geographical Analysis

Food demand in Europe is on the rise

Europe dominates the market for horticulture lighting and this trend is anticipated to remain in the foreseeable future. The summers of 2017, 2018, and 2019 provide evidence of dramatic disparities in weather conditions across Europe, based on the press release of the European Association of Fruit and Vegetable Processors on the impact of climate change. According to the European Environmental Agency's 2019 study, the impact of climate change might cause a loss of up to 16% in agricultural revenue in the EU by 2050. European farmers will have to use organic and cutting-edge farming techniques, such as horticulture lighting, to preserve sustainable agriculture.

Local LED lighting manufacturers are also developing a broad line of horticulture items and growing their network of collaborators. European farmers use new kinds and cutting-edge technology to lengthen their growing season. For instance, strawberries are often always accessible, despite being substantially more expensive in the winter. Their availability is maximized by greenhouse production and various early, mid-season, and late cultivars.

The Hungarian lighting technology business Tungsram has decided to increase its knowledge of commercial strawberry farming. The company has sealed up with the University of Reading, one of the UK's most renowned horticulture-related higher education institutions, to examine the benefits of using LED lighting for strawberry development.

Horticulture Lighting Companies and Competitive Landscape 

The top horticultural lighting companies are increasing their market share by introducing new products and forming business partnerships or acquisitions. For instance, the European Commission approved the acquisition of Osram by the Austrian optical sensor maker AMS in July 2020, stating that the combination would not threaten competition in the European Economic Area.

Major global horticulture lighting market companies include Royal Philips Electronics BV, Heliospectra AB, OSRAM GmbH, Illumitex Inc., LumiGrow Inc., Everlight Electronics Co. Ltd, Gavita International BV, Epistar Corp., Grow LED Hydro and Samsung Electronics Co. Ltd.

Heliospectra AB

Overview: Heliospectra was formed in 2006 in Sweden by plant scientists and biologists with a single goal: to improve crop production intelligence and efficiency. Heliospectra is the global leader in intelligent LED lighting systems for plant science and horticulture applications, with customers on six continents. Heliospectra products are based on a thorough understanding of plant physiology, photosynthesis, and novel applications of contemporary LED technology.

Product Portfolio: Heliospectra provides LED grow lights created with a fixed and adaptable spectrum of light to meet the needs of all crops and stages of growth.

Critical Development: In September 2019, Heliospectra AB will launch the MITRA series, a high-intensity, high-performance LED lighting system in North America. The groundbreaking MITRA LED lighting solution from Heliospectra is offered in Vegetative, Flowering, and Broad Spectrum, with a square shape for indoor growing and use in vertical tiers and a linear form for easy installation with greenhouse unistrut structures.