Horticulture Lighting Market Research Report Information by Offering (Hardware, Software, and Services), By Technology (Fluorescent, High-Intensity Discharge, and LED), By Lighting Type (Toplighting, and Interlighting), By Cultivation (Fruits & Vegetables, and Floriculture) By Application (Greenhouse, Vertical Farming, and Indoor Farming) and By Region (North America, Europe, Asia-Pacific, And Rest of The World) – Market Forecast Till 2030.

Global Horticulture Lighting Market Overview:

The horticulture lighting market size was valued at USD 3.1 billion in 2021. The horticulture lighting market industry is projected to grow from USD 3.82 Billion in 2022 to USD 16.35 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 23.10% during the forecast period (2022 - 2030).The surge in awareness regarding sustainability and the rise in initiatives taken by researchers, organizations, and governments for enhancing horticulture are the key market drivers enhancing market growth for horticulture lighting.


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Horticulture Lighting Market Trends

• Growing demand for indoor farming for a huge range of applications to boost market growth

The growing demand for cultivating nutritious and healthy food at home is increasing across the globe. Indoor farming is gaining popularity in the increasing urban areas to meet the demand for food scarcity. As per Investor's PitchBook, in the last quarter of 2021, more than 11 indoor farming venture capital firms were funded around USD 489.6 million, which was more than 7%, corresponded to the last quarter in 2020. Consumers around the globe are prioritizing the enhancement of the horticulture sector to meet the food scarcity demand and promote horticultural exports globally. In addition, the rapid improvement of lighting technology with higher luminaire efficiencies is gaining the potential to enhance the horticulture lighting market CAGR across the globe in recent years.

Further, growing urbanization brings the opportunity for horticultural production to satisfy the food demand, which is expected to boost the market growth for horticulture lighting. Also, agricultural practitioners are adopting horticulture farming owing to the absence of availability of irrigation water for farms and increased food prices. As per the US Department of Agriculture, the Consumer Price Index raised by 8.5% in July 2022. This CPI and food prices expanded by 1.1% from June 2022 to July 2022, and food costs were enhanced by 10.9% in July 2021. Further, the delivery of horticultural products to urban areas is growing owing to rising consumer demand for natural and healthy foods

Additionally, Increasing adoption and development of environmentally friendly and energy-efficient LEDs in horticulture to maximize crop yield and reduce energy consumption drives the market growth. According to the Design Lights Consortium Organization, the efficiency of sustainable indoor farming could save up to around USD 240 million of energy annually through horticultural lighting optimization.

However, the increase in demand for horticulture lighting systems in vertical farming applications to set up efficient operations is another factor driving the growth of the horticulture lighting market revenue.

Horticulture Lighting Market Segment Insights:

Horticulture Lighting Offering Insights

The horticulture lighting market segmentation, based on offering, includes hardware, software, and services. The hardware segment held the majority share in 2021 contribution to the horticulture lighting market revenue as hardware is considered the primary need for deploying horticulture lighting. However, software was the fastest-growing category over the forecast period. This growth is attributed to the increasing penetration of Controlled-Environment Agriculture (CEA) to control various environmental factors using the software.

Horticulture Lighting Technology Insights

The horticulture lighting market segmentation, based on technology, includes fluorescent, high-intensity discharge, and LED. The high-intensity discharge segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The HID is majorly used for commercial growing, such as commercial greenhouses and vertical farms. However, LED is the fastest-growing category over the forecast period due to increasing urban cultivation, and government initiatives to adopt energy-efficient LEDs are expected to drive the LED segment. The most efficient LED lamps at a higher price point positively impact market growth for horticulture lighting.

Horticulture Lighting Type Insights

The horticulture lighting market data has been bifurcated by lighting type into toplighting and interlighting. The toplighting segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030, as it acts as an important source of plant growth, which helps the plant to prepare food through the artificial method. However, the interlighting category accounts for the second-largest share due to the growing number of greenhouses for tomatoes and cucumber cultivation.

Figure 2: Horticulture Lighting Market by Lighting Type, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Horticulture Lighting Cultivation Insights

Based on cultivation, the horticulture lighting industry has been segmented into fruits & vegetables and floriculture. Fruits & vegetables held the largest segment share in 2021 due to the rising demand for fresh vegetables, which has resulted in increased vegetable production. However, floriculture is the fastest-growing category due to the rise in the use of lighting for the cultivation of floriculture.

Horticulture Lighting Application Insights

Based on application, the horticulture lighting industry has been segmented into greenhouse, vertical farming, and indoor farming. Vertical farming held the largest segment share in 2021 due to rising awareness among people to grow their food to eat. However, greenhouse is the fastest-growing category due to the rising adoption of these lightings across greenhouse farming around the globe.

Horticulture Lighting Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America horticulture lighting market accounted for USD 1.26 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is owing to the rising demand from the waste recycling plants with the early adoption and development of the advanced technology-based sorter in this region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: HORTICULTURE LIGHTING MARKET SHARE BY REGION 2021 (%)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe horticulture lighting market accounts for the second-largest market share due to the presence of leading lighting manufacturers such as Osram Licht AG, Gavita, Valoya, and others. Further, the Germany horticulture lighting market held the largest market share, and the UK horticulture lighting market was the fastest-growing market in the European region.

The Asia-Pacific horticulture lighting Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to growing food demand in populated countries, including China and India. In the Asia Pacific, the agriculture industry is a critical part of development, accounting for approximately 4% of the gross domestic product (GDP). Moreover, China horticulture lighting market held the largest market share, and the India horticulture lighting market was the fastest-growing market in the Asia-Pacific region.

Horticulture Lighting Key Market Players & Competitive Insights

Major market players are spending a huge amount of money on R&D to enhance their product lines, which will help the horticulture lighting market grow even more. Market players are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaboration with other firms. Competitors in the horticulture lighting industry must provide cost-effective items to enhance and survive in an increasingly competitive and growing market environment.

One of the primary business strategies manufacturers adopt in the market for horticulture lighting to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In the horticulture lighting market, major players such as Bridgelux Inc. (US), LumiGrow Inc. (US), EYE Hortilux (US), and others are working on expanding the market demand by investing in research and development activities.

California LightWorks is an American company focused on the research, design, development, and manufacturing of advanced energy-efficient LED greenhouse lights. Their vision is to apply for the latest advances in high-efficiency lighting and controls technology to all their products. The company uses innovative manufacturing techniques to deliver highly beneficial, differentiated products at competitive prices to the professional greenhouse and indoor horticulture lighting. In February 2022 California Lightworks, Inc. established the latest MegaDrive Vertical series for indoor cannabis cultivators. This patented LED system provides indoor cultivators and greenhouses a return on investment and reduces heat, energy consumption, and carbon footprint.

Also, Osram is one of the guiding lights in the technological development and manufacturing of high-quality products. For nearly four decades, the high-tech company has been investing in research and developing new products on the technological cutting edge, enabling ams Osram to set international standards in the fields of illumination, visualization and sensor technology. InJune 2021, Osram expanded its horticulture lighting portfolio with the launch of Osconiq S 5050. It addresses a key problem of using white LEDs resulting in lower energy costs and more efficient lighting for indoor farmers.

Key Companies in the Horticulture Lighting market include

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  Heliospectra AB (Sweden)

  
  


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  excite LED Grow Lights (Switzerland)

  
  


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  Greens Hydroponics (UK)

  
  


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  UPSHINE Lighting (China)

  
  


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  TESLUX Lighting s.r.o. (Czechia)

  
  


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  Hortisystems UK Ltd (UK)

  
  


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  ProGrowTech (US)

  
  


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  Ronfell Group (UK)

  
  


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  GENERAL ELECTRIC (US)

  
  


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  Agrolux (Netherlands)

  
  


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  SAMSUNG (South Korea)

  
  


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  Hortilux Schréder B.V. (Netherlands)

  
  


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  OSRAM GmbH (Germany)

  
  


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  Cree, Inc. (US)

  
  


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  DiCon Lighting (US)

  
  


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  Valoya (Finland)

  
  


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  EVERLIGHT (Taiwan)

  
  


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  Gavita (Norway), among others

  
  

Horticulture Lighting Industry Developments

March 2020: Signify lighting solutions provider along with Planet Farms Italy-based vertical farm operator in Europe. With this collaboration, the company is anticipated to deliver Philips Greenpower LED modules with Planet Farms to offer horticulture lighting LED lights to its additional five vertical farms.

August 2020: Signify signed an agreement with Yunnan AiBiDa Greenhouse Technology Co., Ltd (China), a greenhouse floriculture production company. Through this agreement, the company aims to expand Philips's horticulture lighting research partner network in China and serve its Chinese floriculture business.

Horticulture Lighting Market Segmentation:

Horticulture Lighting Offering Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

Horticulture Lighting Technology Outlook

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  Fluorescent

  
  


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  High-Intensity Discharge

  
  


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  LED

  
  

Horticulture Lighting Lighting Type Outlook

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  Toplighting

  
  


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  Interlighting

  
  

Horticulture Lighting Cultivation Outlook

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  Fruits & Vegetables

  
  


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  Floriculture

  
  

Horticulture Lighting Application Outlook

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  Greenhouse

  
  


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  Vertical Farming

  
  


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  Indoor Farming

  
  

Horticulture Lighting Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
  • 
    

    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America