Horticulture Lighting Market Trends, Size, Analysis 2021-2031
The horticulture lighting market size is projected to reach US$ 24.14 billion by 2031 from US$ 5.38 billion in 2023. The market is expected to register a CAGR of 20.7% in 2023–2031. The growing demand for fresh and organic food among consumers worldwide is likely to remain a key horticulture lighting market trend.
Horticulture Lighting Market Analysis
The horticulture lighting market is growing at a rapid pace due to increasing urbanization, high food costs, environmental degradation, rising investment in modern horticulture techniques, and demand for customized lighting solutions. The market is expanding steadily, driven by the growing demand for energy-efficient farming devices and government initiatives to support indoor farming. Moreover, the rising demand for indoor farming and the expanding DIY & home gardening industry is providing lucrative opportunities for market growth.
Horticulture Lighting Market Overview
Horticulture lighting is the use of artificial light sources to help plants grow in controlled conditions such as greenhouses, indoor farms, and growth chambers. These lights play a critical role in supplying the light spectrum, duration, and intensity to simulate or augment natural sunshine, hence improving plant photosynthesis and general development.
Horticultural lighting is an important technique for increasing agricultural yields, prolonging growing seasons, and maintaining consistent plant quality. Businesses can establish optimal circumstances for diverse crops by utilizing innovative lighting technologies, such as LED systems that provide precise control over light settings, regardless of external weather or geographic constraints. Furthermore, the data-driven nature of current horticulture lighting systems enables organizations to monitor and modify lighting conditions in real-time, resulting in better-informed decision-making and resource allocation.
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Horticulture Lighting Market: Strategic Insights
Market Size Value in US$ 2,730.8 Million in 2019 Market Size Value by US$ 11,383.5 Million by 2027 Growth rate CAGR of 20.2% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Horticulture Lighting Market: Strategic Insights
| Market Size Value in | US$ 2,730.8 Million in 2019 |
| Market Size Value by | US$ 11,383.5 Million by 2027 |
| Growth rate | CAGR of 20.2% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Horticulture Lighting Market Drivers and Opportunities
Increasing Urbanization, High Food Costs, and Environmental Degradation is Driving the Market
Rising rapid urbanization increases horticultural production to meet food demand, which is likely to drive market expansion. In addition, the lack of irrigation water for farms and rising food prices shifting farmers' preference to horticulture farming is driving the market. According to the U.S. Department of Agriculture, the Consumer Price Index (CPI) rose 8.5% in July 2022. This CPI and food prices climbed by 1.1% between June 2022 and July 2022, while food prices increased by 10.9% in July 2021. Increasing consumer demand for natural and nutritious meals surges the urban horticulture product supply. The increasing usage and development of environmentally friendly and energy-efficient LEDs in horticulture to enhance crop output by reducing energy consumption drives the market during the forecast period. The DesignLights Consortium Organization estimates that horticultural lighting optimization might save up to USD 240 million in electricity each year. This encourages market players to create energy-efficient lighting for horticulture applications to fulfill rising food demand, boosting the market.
Rising Demand for Indoor Farming – An Opportunity in the Horticulture Lighting Market
The rising demand for making healthy and nutritious food at home encourages consumers to adopt indoor farming techniques, creating opportunities in the market. Indoor farming is becoming more popular in metropolitan settings as a response to food scarcity. Consumers all over the world are prioritizing the growth of the horticulture sector in order to meet food scarcity demands and encourage global horticultural exports. Increasing horticultural exports surged the demand for agriculture technology that eased indoor farming activities. The introduction of novel agriculture technology, such as LED lighting used for controlled climates in indoor farming. Thus, generating significant growth opportunities for the market growth during the forecast period.
Horticulture Lighting Market Report Segmentation Analysis
Key segments that contributed to the derivation of the horticulture lighting market analysis are technology, application, and cultivation.
- Based on technology, the horticulture lighting market is divided into fluorescent lamps, high intensity discharge lights, and LED lights. The LED lights segment held a larger market share in 2023.
- On the basis of application, the market is segmented into greenhouses, vertical farming, and indoor farming. The greenhouses segment held a larger market share in 2023.
- In terms of cultivation, the market is categorized as fruits and vegetables and floriculture. The fruits and vegetables segment held a larger market share in 2023.
Horticulture Lighting Market Share Analysis by Geography
The geographic scope of the horticulture lighting market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, Europe accounted for the largest horticulture lighting market share, due to the presence of major lighting manufacturers such as Osram Licht AG, Valoya, Gavita, and others. These players focus on developing energy-efficient and sustainable lighting used in horticulture, which is expected to drive the market. Furthermore, countries such as Spain, the Netherlands, France, and Italy have extensive greenhouse cultivation areas. These countries employ LED lights to boost the growth of plants for indoor farming. Growing cultivation of food grains, fruits, and vegetables to supply the growing food demand in European countries increases the demand for horticulture lighting for indoor farming is propelling the market.
Horticulture Lighting Market Report Scope
Horticulture Lighting Market News and Recent Developments
The horticulture lighting market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for horticulture lighting and strategies:
- In June 2023, ams-OSRAM AG introduced the fifth generation of its popular OSLON Square Hyper Red horticulture LED designed to offer faster plant growth and enable optimized system cost. The company continues to provide important innovation based on customer input by creating LED solutions that produce high photosynthetic photon flux (PPF) at higher efficacy than the previous generation of Hyper Red 660 nm LEDs. The new OSLON Square Hyper Red LED is intended for use in all horticultural lighting applications, including greenhouse top lighting and inter lighting, sole source lighting, and vertical farming applications. (Source: ams-OSRAM AG, Press Release, 2023)
Horticulture Lighting Market Report Coverage and Deliverables
The “Horticulture Lighting Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology , Application , Cultivation and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global horticulture lighting market was estimated to be US$ 5.38 billion in 2023 and is expected to grow at a CAGR of 20.7% during the forecast period 2023 - 2031.
The increasing urbanization, high food costs, environmental degradation, rising investment in modern horticulture techniques, and demand for customized lighting solutions are the major factors that propel the global horticulture lighting market.
The growing demand for fresh and organic food among consumers worldwide to play a significant role in the global horticulture lighting market in the coming years.
The key players holding majority shares in the global horticulture lighting market are Agrolux, Bridgelux, Inc., General Electric Company, Heliospectra AB, and Hortilux Schrader B.V.
The global horticulture lighting market is expected to reach US$ 24.14 billion by 2031.
The incremental growth expected to be recorded for the global horticulture lighting market during the forecast period is US$ 18.77 billion.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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