Horticulture Lighting Market by Technology (Fluorescent, HID, and LED), Application (Greenhouses, Vertical Farming, and Indoor Farming), Cultivation (Fruits & Vegetables and Floriculture), Lighting Type, Offering, and Region - Global Forecast to 2023

The overall horticulture lighting market was valued at USD 2.08 billion in 2017 and is expected to reach USD 6.21 billion by 2023, at a CAGR of 20.61% from 2018 to 2023.

“Latent markets in APAC to fuel the growth of the horticulture lighting market”

APAC is expected to be the fastest-growing market for horticulture lighting. Growing urbanization in the developing countries of this region positively affects the growth of the horticulture lighting market owing to the rapid population growth and availability of limited agricultural land. APAC constitutes thriving economies, such as Japan, China, India, and Australia, which are expected to register high growth rates in the horticulture lighting market.

Market Dynamics

Drivers

• Rapid population growth and availability of limited agricultural land
• A steady supply of crops despite unfavourable weather conditions for farming across geographies
• Government initiatives to support adoption of energy-efficient LEDs in horticulture
• Increased year-round high-quality yield
• Legalization of cannabis for medicinal purposes

Restraints

• High cost of energy-efficient LED grow light technologies
• Feasibility of cultivating limited number of crop species

Opportunities

• Retrofitting traditional lighting sources with LED grow lights
• Increasing awareness about vertical and indoor farming

Challenges

• Adoption of controlled-environment agriculture technique for large-sized fields
• Requirement for different light spectrums for certain crop varieties
• Scarcity of required technical know-how

The Objectives of the Study are as follows:

• To describe and forecast the horticulture lighting market, in terms of offering, technology, lighting type, cultivation, and application
• To describe and forecast the horticulture lighting market, in terms of value, by region—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
• To provide detailed information regarding major factors influencing market growth (drivers, restraints, opportunities, and industry-specific challenges)
• To strategically analyze micromarkets with regard to individual growth trends, prospects, and contributions to the total market
• To study the complete value chain of horticulture lighting
• To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing competitive landscape for market leaders
• To analyze strategic approaches such as product launches, acquisitions, contracts, agreements, and partnerships in the horticulture lighting market

The base year used for this study is 2017, and the forecast period considered is from 2018 to 2023.

Key Questions the Report Answers

• Most of the suppliers have opted product launch and development and acquisition as the key strategies as could be seen from the recent developments. Where will it take the industry in the mid-to-long term?
• Which are the key players in the market, and how intense is the competition?

Research Methodology

The research methodology used to estimate and forecast the global horticulture lighting market begins with obtaining data on key vendor revenues through secondary research. Some of the secondary sources used in this research include various journals and databases such as the International Artificial Grow Light Association (IAGLA), the Association for Vertical Farming, the Japan Plant Factory Association, the International Society for Horticultural Science (ISHS), IEEE journals, Factiva, Hoovers, and OneSource. Multiple on-field discussions have been conducted with key opinion leaders across each major company involved in the development of horticulture lighting for various applications in different regions to understanding the demand for horticulture lighting products in various regions. Then, the overall shipment of horticulture lighting solutions has been calculated based on the technology (fluorescent, HID, LED, and others). The average selling price was then calculated based on diverse types of horticulture lighting products. The overall horticulture lighting market size was arrived at by multiplying the total shipment derived with the average selling price (ASP) of the products. After arriving at the overall market size, the total market has been split into several segments and subsegments, which have then been further verified through primary research by extensively interviewing the key officials in the industry, such as CEOs, VPs, directors, and executives. The market breakdown and data triangulation procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of the profiles of primaries has been depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The horticulture lighting ecosystem comprises manufacturers, distributors, and service providers, such as Signify (Philips Lighting) (Netherlands), Gavita (Netherlands), GE Lighting (US), Osram (Germany), and Agrolux (Netherlands), Heliospectra (Sweden), Hortilux Schreder (Netherlands), Lumileds (Netherlands), PARsource (US), Illumitex (US), Hubbell (US), Maxigrow (UK), Bridgelux (US), Eye Hortilux (US), Lumigrow (US) for to various applications according to their specific requirements.

The Target Audience:

• Original equipment manufacturers (OEMs)
• Research organizations
• Start-up companies
• System integrators
• Government bodies, venture capitalists, and private equity firms
• Manufacturers of horticulture lighting solutions
• ODM and OEM technology solution providers
• Horticulture lighting distributors and retailers
• Technology standard organizations, forums, alliances, and associations
• Technology investors

“The study answers several questions for the target audiences, primarily which market segments to focus on in next 2 to 5 years for prioritizing the efforts and investments.

Report Scope:

In this report, the horticulture lighting market has been segmented into the following categories:

Horticulture Lighting Market, by Offering:

• Hardware
• Software & Services

Horticulture Lighting Market, by Technology:

• Fluorescent Lamps
• High-Intensity Discharge (HID) Lights
• LED Lights
• Other Technologies (Plasma and Induction)

Horticulture Lighting Market, by Lighting Type:

• Toplighting
• Interlighting

Horticulture Lighting Market, by Cultivation:

Get more insight on other
• Fruits & Vegetables
• Floriculture

Horticulture Lighting Market, by Application:

• Greenhouses
• Vertical Farming
• Indoor Farming
• Others (Research and Tissue Culture)

Horticulture lighting Market, by Geography:

• North America (US, Canada, Mexico)
• Europe (the UK, Germany, the Netherlands, Scandinavia (Sweden, Norway, Denmark, Finland, and Iceland), Rest of Europe (France, Switzerland, Russia, and Belgium)
• Asia Pacific (China, Japan, Australia, New Zealand, neighboring islands in the Pacific Ocean, and the Island of New Guinea), and Rest of APAC (Singapore, Taiwan, South Korea, India, Malaysia, Indonesia, and the Philippines)
• Rest of the World (the Middle East, South America, and Africa)

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information:

• Detailed analysis and profiles of additional market players

Product Analysis

• Product Matrix, which gives a detailed comparison of the product portfolio of each company

Company Information

• Detailed analysis and profiling of additional market players (up to 5)

Get more insight on other verticals of Semiconductor and Electronics Market Research Reports & Consulting

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Study Objectives
    1.2 Definition
    1.3 Markets Covered
           1.3.1 Years Considered
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 List of Major Secondary Sources
                    2.1.1.2 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Data From Primary Sources
           2.1.3 Secondary and Primary Research
                    2.1.3.1 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
                    2.2.1.1 Approach for Calculating Market Size Using Bottom-Up Analysis
                    2.2.1.2 Approach for Apprehending Company-Specific Information in Horticulture Lighting Value Chain
           2.2.2 Top-Down Approach
                    2.2.2.1 Approach for Calculating Market Size Using Top-Down Analysis
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 30)

4 Premium Insights (Page No. - 35)
    4.1 Attractive Opportunities in Horticulture Lighting Market
    4.2 Horticulture Lighting Market, By Offering and Cultivation
    4.3 Horticulture Lighting Market, By Technology
    4.4 Horticulture Lighting Market, By Application and Region
    4.5 Horticulture Lighting Market, By Lighting Type
    4.6 Horticulture Lighting Market, By Region

5 Market Overview (Page No. - 39)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Rapid Population Growth and Availability of Limited Agricultural Land
                    5.2.1.2 A Steady Supply of Crops Despite Unfavorable Weather Conditions for Farming Across Geographies
                    5.2.1.3 Government Initiatives to Support Adoption of Energy-Efficient LEDs in Horticulture
                    5.2.1.4 Increased Year-Round High-Quality Yield
                    5.2.1.5 Legalization of Cannabis for Medicinal Purposes
           5.2.2 Restraints
                    5.2.2.1 High Cost of Energy-Efficient LED Grow Light Technologies
                    5.2.2.2 Feasibility of Cultivating Limited Number of Crop Species
           5.2.3 Opportunities
                    5.2.3.1 Retrofitting Traditional Lighting Sources With LED Grow Lights
                    5.2.3.2 Increasing Awareness About Vertical and Indoor Farming
           5.2.4 Challenges
                    5.2.4.1 Adoption of Controlled-Environment Agriculture Technique for Large-Sized Fields
                    5.2.4.2 Requirement for Different Light Spectrums for Certain Crop Varieties
                    5.2.4.3 Scarcity of Required Technical Know-How

6 Industry Trends (Page No. - 46)
    6.1 Introduction
    6.2 Value Chain Analysis
           6.2.1 Spectrum Analysis
                    6.2.1.1 Partial Spectrum
                    6.2.1.2 Full Spectrum

7 Horticulture Lighting Market, By Offering (Page No. - 49)
    7.1 Introduction
    7.2 Hardware
    7.3 Software and Services

8 Horticulture Lighting Market, By Technology (Page No. - 56)
    8.1 Introduction
    8.2 Fluorescent
           8.2.1 T5
           8.2.2 Cfl
    8.3 High-Intensity Discharge (Hid)
           8.3.1 High-Pressure Sodium Lamp
           8.3.2 Metal-Halide Lamp
    8.4 LED
    8.5 Other Technologies

9 Horticulture Lighting Market, By Lighting Type (Page No. - 71)
    9.1 Introduction
    9.2 Toplighting
    9.3 Interlighting

10 Horticulture Lighting Market, By Cultivation (Page No. - 78)
     10.1 Introduction
     10.2 Fruits and Vegetables
     10.3 Floriculture

11 Horticulture Lighting Market, By Application (Page No. - 87)
     11.1 Introduction
     11.2 Greenhouses
     11.3 Vertical Farming
     11.4 Indoor Farming
     11.5 Others

12 Geographic Analysis (Page No. - 100)
     12.1 Introduction
     12.2 North America
             12.2.1 US
             12.2.2 Canada
             12.2.3 Mexico
     12.3 Europe
             12.3.1 UK
             12.3.2 Germany
             12.3.3 Netherlands
             12.3.4 Scandinavia
             12.3.5 Rest of Europe
     12.4 Asia Pacific
             12.4.1 China
             12.4.2 Japan
             12.4.3 Australasia
             12.4.4 Rest of APAC
     12.5 Rest of the World (RoW)
             12.5.1 Middle East
             12.5.2 Africa
             12.5.3 South America

13 Competitive Landscape (Page No. - 120)
     13.1 Overview
     13.2 Market Ranking Analysis 2017
     13.3 Competitive Scenario
     13.4 Recent Developments (Top 5 Players)
             13.4.1 Product Launches
             13.4.2 Partnerships/Collaborations/Agreements

14 Company Profiles (Page No. - 125)
     14.1 Key Players
(Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis)*
             14.1.1 Signify (Philips Lighting)
             14.1.2 Gavita Holland B.V.
             14.1.3 GE Lighting (GE Lighting + Current)
             14.1.4 OSRAM (Opto Semiconductors)
             14.1.5 Agrolux
             14.1.6 Heliospectra
             14.1.7 Hortilux Schreder B.V.
             14.1.8 Lumileds
             14.1.9 PARsource
               14.1.10 Illumitex
*Business Overview, Products Offered, Recent Developments, MnM View, SWOT Analysis Might Not Be Captured in Case of Unlisted Companies.
     14.2 Other Key Players
             14.2.1 Hubbell
             14.2.2 Maxigrow
             14.2.3 Bridgelux
             14.2.4 Eye Hortilux
             14.2.5 LumiGrow
     14.3 Start-Up Ecosystem
             14.3.1 AXP Technology
             14.3.2 Fluence Bioengineering
             14.3.3 Shenzhen Sanxinbao Semiconductor Lighting (Evergrow)
             14.3.4 Valoya
             14.3.5 Oreon
             14.3.6 Econolux

15 Appendix (Page No. - 154)
     15.1 Insights From Industry Experts
     15.2 Discussion Guide
     15.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.4 Author Details

List of Tables (65 Tables)

Table 1 Currency Table
Table 2 Horticulture Lighting Market, By Offering, 2015–2023 (USD Million)
Table 3 Horticulture Lighting Market in North America, By Offering, 2015–2023 (USD Million)
Table 4 Horticulture Lighting Market in Europe, By Offering, 2015–2023 (USD Million)
Table 5 Horticulture Lighting Market in APAC, By Offering, 2015–2023 (USD Million)
Table 6 Horticulture Lighting Market in RoW, By Offering, 2015–2023 (USD Million)
Table 7 Horticulture Lighting Market for Hardware, By Region, 2015–2023 (USD Million)
Table 8 Horticulture Lighting Market for Software and Services, By Region, 2015–2023 (USD Million)
Table 9 Horticulture Lighting Market, By Technology, 2015–2023 (USD Million)
Table 10 Horticulture Lighting Market, By Technology, 2015–2023 (Thousand Units)
Table 11 Horticulture Lighting Market in North America, By Technology, 2015–2023 (USD Million)
Table 12 Horticulture Lighting Market in Europe, By Technology, 2015–2023 (USD Million)
Table 13 Horticulture Lighting Market in APAC, By Technology, 2015–2023 (USD Million)
Table 14 Horticulture Lighting Market in RoW, By Technology, 2015–2023 (USD Million)
Table 15 Horticulture Lighting Market for Fluorescent Lights, By Region, 2015–2023 (USD Million)
Table 16 Horticulture Lighting Market for Fluorescent Lights in Greenhouses, By Region, 2015–2023 (USD Million)
Table 17 Horticulture Lighting Market for Fluorescent Lights in Vertical Farming, By Region, 2015–2023 (USD Million)
Table 18 Horticulture Lighting Market for Fluorescent Lights in Indoor Farming, By Region, 2015–2023 (USD Million)
Table 19 Horticulture Lighting Market for Fluorescent Lights in Other Applications, By Region, 2015–2023 (USD Million)
Table 20 Horticulture Lighting Market for Hid Lights, By Region, 2015–2023 (USD Million)
Table 21 Horticulture Lighting Market for LED Lights, By Region, 2015–2023 (USD Million)
Table 22 Horticulture Lighting Market for LED Lights in Greenhouses, By Region, 2015–2023 (USD Million)
Table 23 Horticulture Lighting Market for LED Lights in Vertical Farming, By Region, 2015–2023 (USD Million)
Table 24 Horticulture Lighting Market for LED Lights in Indoor Farming, By Region, 2015–2023 (USD Million)
Table 25 Horticulture Lighting Market for LED Lights in Other Applications, By Region, 2015–2023 (USD Million)
Table 26 Horticulture Lighting Market for Other Technologies, By Region, 2015–2023 (USD Million)
Table 27 Horticulture Lighting Market, By Lighting Type, 2015–2023 (USD Million)
Table 28 Horticulture Lighting Market in North America, By Lighting Type, 2015–2023 (USD Million)
Table 29 Horticulture Lighting Market in Europe, By Lighting Type, 2015–2023 (USD Million)
Table 30 Horticulture Lighting Market in APAC, By Lighting Type, 2015–2023 (USD Million)
Table 31 Horticulture Lighting Market in RoW, By Lighting Type, 2015–2023 (USD Million)
Table 32 Horticulture Lighting Market for Toplighting, By Region, 2015–2023 (USD Million)
Table 33 Horticulture Lighting Market for Interlighting, By Region, 2015–2023 (USD Million)
Table 34 Horticulture Lighting Market, By Cultivation, 2015–2023 (USD Million)
Table 35 Horticulture Lighting Market in North America, By Cultivation, 2015–2023 (USD Million)
Table 36 Horticulture Lighting Market in Europe, By Cultivation, 2015–2023 (USD Million)
Table 37 Horticulture Lighting Market in APAC, By Cultivation, 2015–2023 (USD Million)
Table 38 Horticulture Lighting Market in RoW, By Cultivation, 2015–2023 (USD Million)
Table 39 Horticulture Lighting Market for Fruits & Vegetables, By Region, 2015–2023 (USD Million)
Table 40 Horticulture Lighting Market for Floriculture, By Region, 2015–2023 (USD Million)
Table 41 Horticulture Lighting Market, By Application, 2015–2023 (USD Million)
Table 42 Horticulture Lighting Market for Fluorescent Lights, By Application, 2015–2023 (USD Million)
Table 43 Horticulture Lighting Market for Hid Lights, By Application, 2015–2023 (USD Million)
Table 44 Horticulture Lighting Market for LED Lights, By Application, 2015–2023 (USD Million)
Table 45 Horticulture Lighting Market for Other Lighting Technologies, By Application, 2015–2023 (USD Million)
Table 46 Horticulture Lighting Market for Greenhouses, By Technology, 2015–2023 (USD Million)
Table 47 Horticulture Lighting Market for Greenhouses, By Region, 2015–2023 (USD Million)
Table 48 Horticulture Lighting Market for Vertical Farming, By Technology, 2015–2023 (USD Million)
Table 49 Horticulture Lighting Market for Vertical Farming, By Region, 2015–2023 (USD Million)
Table 50 Horticulture Lighting Market for Indoor Farming, By Technology, 2015–2023 (USD Million)
Table 51 Horticulture Lighting Market for Indoor Farming, By Region, 2015–2023 (USD Million)
Table 52 Horticulture Lighting Market for Other Applications, By Technology, 2015–2023 (USD Million)
Table 53 Horticulture Lighting Market for Other Applications, By Region, 2015–2023 (USD Million)
Table 54 Horticulture Lighting Market, By Region, 2015–2023 (USD Million)
Table 55 Horticulture Lighting Market in North America, By Application, 2015–2023 (USD Million)
Table 56 Horticulture Lighting Market in North America, By Country, 2015–2023 (USD Million)
Table 57 Horticulture Lighting Market in Europe, By Application, 2015–2023 (USD Million)
Table 58 Horticulture Lighting Market in Europe, By Country, 2015–2023 (USD Million)
Table 59 Horticulture Lighting Market in APAC, By Application, 2015–2023 (USD Million)
Table 60 Horticulture Lighting Market in APAC, By Country, 2015–2023 (USD Million)
Table 61 Horticulture Lighting Market in RoW, By Application, 2015–2023 (USD Million)
Table 62 Horticulture Lighting Market in RoW, By Region, 2015–2023 (USD Million)
Table 63 Ranking of Key Players in Horticulture Lighting Market, 2017
Table 64 Product Launches, 2015–2018
Table 65 Partnerships/Collaborations/Agreements, 2014–2017
 
 
List of Figures (50 Figures)
 
Figure 1 Market Segmentation
Figure 2 Horticulture Lighting Market: Research Design
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation Methodology
Figure 6 Hardware Held Larger Share of Horticulture Lighting Market, Based on Offering, in 2017
Figure 7 LED Lights to Command Horticulture Lighting Market, Based on Technology, During Forecast Period
Figure 8 Toplighting Accounted for Larger Size of Horticulture Lighting Market, Based on Lighting Type, in 2017
Figure 9 Fruits & Vegetables Accounted for Larger Share of Horticulture Lighting Market Than Floriculture in 2017
Figure 10 Vertical Farming to Witness Highest CAGR in Horticulture Lighting Market, Based on Application, From 2018 to 2023
Figure 11 Global Horticulture Lighting Market, By Region, 2017
Figure 12 Increasing Vertical Farming Practices to Drive Horticulture Lighting Market Growth During 2018–2023
Figure 13 Hardware Held Larger Share of Market, Based on Offering, While Fruits and Vegetables Held Larger Share of Market, Based on Cultivation, in 2017
Figure 14 LED Lights Accounted for Largest Market Share, in Terms of Value, in 2017
Figure 15 Greenhouses and North America Held Largest Share of Market Based on Application and Region, Respectively, in 2017
Figure 16 Toplighting Held Larger Market Share Than Interlighting, in Terms of Value, in 2017
Figure 17 Horticulture Lighting Market in APAC Expected to Grow at Highest Rate From 2018 to 2023
Figure 18 Growing Population and Availability of Limited Arable Land Drives Demand for Horticulture Lighting Products
Figure 19 World Population Versus Arable Land
Figure 20 Value Chain Analysis: Major Value Added By Component Manufacturers and System Integrators
Figure 21 Horticulture Lighting Market, By Offering
Figure 22 Software and Services Segment to Exhibit Higher CAGR in Horticulture Lighting Market in APAC From 2018 to 2023
Figure 23 North America to Witness Highest CAGR in Horticulture Lighting Market for Software and Services During 2018–2023
Figure 24 Horticulture Lighting Market, By Technology
Figure 25 LED Lights to Dominate North American Horticulture Lighting Market During 2018–2023
Figure 26 APAC to Exhibit Highest CAGR in Horticulture Lighting Market for Fluorescent Technology From 2018 to 2023
Figure 27 APAC to Witness Highest CAGR in Horticulture Lighting Market for Hid Lights From 2018 to 2023
Figure 28 Horticulture Lighting Market, By Lighting Type
Figure 29 Toplighting Expected to Account for Larger Size of European Horticulture Lighting Market By 2023
Figure 30 APAC Expected to Witness Highest CAGR in Horticulture Lighting Market for Interlighting From 2018 to 2023
Figure 31 Horticulture Lighting Market, By Cultivation
Figure 32 Fruits & Vegetables to Account for Largest Size of Horticulture Lighting Market in APAC During Forecast Period
Figure 33 Europe to Hold Largest Size of Horticulture Lighting Market for Floriculture By 2023
Figure 34 Horticulture Lighting Market, By Application
Figure 35 Indoor Farming Expected to Exhibit Highest CAGR in Horticulture Lighting Market for LED Lights From 2018 to 2023
Figure 36 APAC Expected to Exhibit Highest CAGR in Horticulture Lighting Market for Greenhouses From 2018 to 2023
Figure 37 LED Lights to Witness Highest CAGR in Horticulture Lighting Market for Indoor Farming During Forecast Period
Figure 38 Horticulture Lighting Market, By Region
Figure 39 China to Witness Highest CAGR in Horticulture Lighting Market During Forecast Period
Figure 40 Geographic Snapshot of Horticulture Lighting Market in North America
Figure 41 Geographic Snapshot of Horticulture Lighting Market in Europe
Figure 42 Netherlands Estimated to Hold Largest Share of Horticulture Lighting Market in Europe By 2023
Figure 43 Geographic Snapshot of Horticulture Lighting Market in Asia Pacific
Figure 44 Vertical Farming Application to Witness Highest CAGR in Horticulture Lighting Market in RoW From 2018 to 2023
Figure 45 Companies Adopted New Product Launches as Key Growth Strategy From 2014 to 2018
Figure 46 Market Evaluation Framework of Top 5 Player: Collaborations and Partnerships Fuelled Growth and Innovation From 2016 to 2018
Figure 47 Signify (Philips Lighting): Company Snapshot
Figure 48 GE Lighting (GE + Current): Company Snapshot
Figure 49 OSRAM GmbH: Company Snapshot
Figure 50 Heliospectra: Company Snapshot

The overall horticulture lighting market is expected to grow from USD 2.43 billion in 2018 to USD 6.21 billion by 2023, at a CAGR of 20.61% from 2018 to 2023. The growth of this market is being fueled by the rapid population growth and availability of limited agricultural land.

The report covers the horticulture lighting market based on offering, technology, lighting type, cultivation, application, and geography. The horticulture lighting market based on application is expected to be led by greenhouses. Greenhouses allow horticulture to be practiced in a protected environment, ensuring optimum yield. Greenhouses are designed to trap natural sunlight and humidity and retain them, making it conducive for growing various types of plants.

Horticulture lighting systems consist of both hardware and software. Hardware includes lamps, fixtures, reflectors, reflective films, ballasts, and others. Software includes light controlling software, while services such as planning, installation, and maintenance have also been considered in the report. Hardware holds the largest share of the horticulture lighting market compared to software and services as software offerings and services are relatively newer in the market for horticulture lighting.

In 2017, LED lights accounted for the largest share of the horticulture lighting market based on technology since these lights are energy-efficient and also have additional benefits such as low heat, compact size, and a long operational life of 30,000 to 50,000 hours.

Toplighting is the most widely used lighting type in indoor cultivation. In this, lamps, with a particular spectrum of light, are positioned above the plants. Interlighting is a relatively new concept in horticulture lighting in which lights are placed inside the canopy of high-wire plants, which directs and focuses growth-stimulating light on the most vital parts of the crop, such as its leaves and veins. Toplighting, being the traditional method of lighting, holds a larger share of the horticulture lighting market.

Horticulture lights are being used for the cultivation of fruits and vegetable, and floriculture. The fruits and vegetables segment includes tomatoes, lettuce, basil, mint, mustard greens, collard greens, strawberries, and cucumbers. The floriculture segment includes roses, cannabis, African violets, poinsettia, and begonia. The cultivation of fruits and vegetables is done on a larger scale compared to floriculture; hence the fruits and vegetables segment held a larger share of the horticulture lighting market in 2017.

Demand for horticulture lighting systems in vertical farming applications is expected to increase during the forecast period. The rise in the growth of the vertical farming industry can be attributed to the interest shown by larger corporations in vertical farming operations. Toshiba (Japan) and Panasonic (Japan) have started providing financial and technical assistance to growers for setting up vertical farms. Such developments in vertical farming are boosting the horticulture lighting market growth. Hence, the vertical farming application is expected to witness the highest CAGR in the horticulture lighting market during the forecast period.

Europe is expected to continue to account for the largest share of the horticulture lighting market, in terms of value, in the coming years owing to the increased adoption of horticulture lighting in greenhouses, vertical farming, and indoor farming applications. The European Union’s initiatives to boost the adoption of LED grow lights are expected to create more opportunities for the manufacturers of LED modules and lamps in that region. Signify (Philips Lighting) (Netherlands) and Gavita (Netherlands) are the most prominent Europe-based lighting companies.

Rapid population growth and availability of limited agricultural land to drive the industry forward

Greenhouses

Greenhouses allow horticulture to be practiced in a protected environment, ensuring optimum yield. Greenhouses are designed to trap natural sunlight and humidity and retain them, making it conducive for growing various types of plants. Polyhouses/polytunnels are greenhouses made of polyethylene. Plants can be grown either by using soil as a base or by adopting the hydroponic technique. Plants grown in greenhouses are protected from external factors (dirt and natural elements), and with proper care, they can be protected from insects and pests as well. Thus, the greenhouses application accounted for the largest share of the horticulture lighting market in 2017.

Vertical Farming

Vertical farming is changing the outlook of food production. Increased use of LED horticulture lights is encouraging cultivators to adopt vertical farming on a large scale. In vertical farming, plants are stacked in layers one above the other, utilizing the available space in the best possible way. Consumer demand for high-quality, locally developed food that is free of pesticides and other harmful chemicals is increasing. With vertical farming, space is not a constraint, and cultivators can grow crops even in a square foot of area. Despite changing climatic conditions, vertical farming also allows cultivators to grow all types of crops throughout the year.

Indoor Farming

The ever-growing population worldwide is generating additional demand for food, which cannot be met only through conventional or outdoor farming. However, advancements in horticulture lighting technologies allow indoor farming to increase crop yield efficiently. Horticulture light systems act as the primary light source in indoor farming, in the partial or complete absence of natural light. Signify (Philips Lighting) (Netherlands) has established GrowWise, a city farm facility focusing on cultivating a variety of crops, such as strawberries, potatoes, herbs, and leafy vegetables. The company plans to use LED horticulture lights to increase crop production in its indoor farming facilities.

The key restraining factors impacting horticulture lighting market growth include the high cost of energy-efficient LED grow lights and the feasibility of cultivating a limited number of crop species. The impact of this restraint is high at present; however, in the future, the impact is expected to subside as the prices of LEDs are decreasing day by day.

A few major companies operating in the horticulture lighting market are Signify (Philips Lighting) (Netherlands), Gavita (Netherlands), GE Lighting (US), Osram (Germany), and Agrolux (Netherlands), Heliospectra (Sweden), Hortilux Schreder (Netherlands), Lumileds (Netherlands), PARsource (US), Illumitex (US), Hubbell (US), Maxigrow (UK), Bridgelux (US), Eye Hortilux (US), and Lumigrow (US).

Critical questions that the report answers:

• Where will all the current developments take the industry in the mid-to-long term?
• Will the suppliers continue to explore new avenues in the horticulture lighting market? 
• What are the upcoming products and technologies in horticulture lighting?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst