The report "Horticulture Lighting Market by Installation type (New Installations, Retrofit Installations), Lighting Type (Toplighting, Interlighting), Offering (Hardware, Software & Service), Cultivation Type, Technology, Application, Region - Global Forecast to 2028" The horticulture lighting market is expected to reach USD 10.4 billion by 2028 from USD 3.7 billion in 2023, at a CAGR of 22.4% during the 2023–2028 period. Many companies are investing in horticulture lighting which gives an opportunity for growth in the horticulture lighting market. The horticulture lighting market is in the development phase at present, with the presence of multiple players offering horticulture lighting products. Europe is likely to contribute significantly to the growth of the horticulture lighting market. Similarly, the North America, Asia Pacific and RoW regions are expected to be the growing market for the forecasted period.
Browse 171 market data Tables and 57 Figures spread through 255 Pages and in-depth TOC on "Horticulture Lighting Market by Installation type (New Installations, Retrofit Installations), Lighting Type (Toplighting, Interlighting), Offering (Hardware, Software & Service), Cultivation Type, Technology, Application, Region - Global Forecast to 2028"
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The horticulture lighting software & service segment by offering is expected to grow at the highest CAGR of the horticulture lighting market during the forecast period.
Farming software has become an integral component of the horticulture lighting market, serving to interpret and analyze collected data and visually represent the information in a user-friendly manner. These software solutions offer data management and crop monitoring functionalities, delivering valuable insights to vertical farming growers. Equipped with analysis tools, the software can highlight the connections between yields, hardware, and application data, providing a comprehensive view of the farming operations. By utilizing farming software, growers can efficiently monitor and control their fields remotely through smartphones, desktops, or laptops, significantly reducing the need for human intervention. This technology has replaced traditional paperwork, as various agricultural software solutions streamline calculations and management tasks with ease. In the horticulture lighting market, software solutions play a crucial role, enabling intelligent lighting control.
Key service providers in the horticulture lighting market include ams-OSRAM International GmbH (Germany), Gavita International B.V.(Netherlands), and Signify Holding (Netherlands). These companies offer comprehensive services to assist growers in optimizing their horticulture lighting systems and achieving the best possible results in their indoor farming operations. For instance, in April 2021, Heliospectra AB announced the launch of heliospectra 2.0., the newly upgraded state-of-the-art plant science software for leading commercial growers and research institutions globally.
Retrofit Installations is expected to have a significant growth in horticulture lighting market.
The retrofitting of light fixtures in commercial greenhouses and vertical farms offers several benefits, including energy savings, improved plant quality through supplemental light, and reduced maintenance and labor costs. This results in overall lower operating costs for these agricultural facilities. Grow lights typically operate for 14 to 18 hours daily, depending on the specific plants being cultivated. Continuous usage of conventional grow lights, like compact fluorescent lamps (CFLs) and high-intensity discharge (HID) bulbs, can lead to a drop in their intensity or damage due to the humid environments in greenhouses and vertical farms. Hence, regular retrofitting of grow lights after a thorough assessment of the existing lighting system is essential.
Growers prefer to use high-quality grow lights in their farms, and LED grow lights have become a popular choice due to their advantages. LED grow lights emit less heat compared to traditional lighting options like CFLs and HID bulbs, leading to reduced power consumption and increased crop productivity. Retrofitting HID lamps with LED grow lights offers higher efficiency, lighter weight, and longer lifespan, making it a favorable option for growers seeking higher yields and profitability. Governments and companies are introducing various incentive programs and product launches to encourage growers to shift from traditional to energy-efficient LED lights. For example, the Independent Electricity System Operator (IESO) offers an enhanced LED Grow Light incentive to greenhouses in specific areas of Canada through the Save on Energy Retrofit program. These initiatives aim to support new greenhouse projects and encourage the adoption of energy-efficient lighting technologies in agricultural operations.
Europe is expected to have the highest market share in the forecasting year.
During the forecast period, Europe is expected to have the highest market share for the horticulture lighting market. The expansion of the horticulture lighting sector in Europe can be attributed to multiple factors, including heightened food demand, ongoing urbanization, unfavorable weather conditions for traditional agriculture, efforts to reduce reliance on imported fresh horticultural products, and an increased interest in innovative farming techniques. The consistently growing population in Europe has resulted in higher imports of frozen fruits and vegetables from regions like Africa and Asia. Consequently, the adoption of indoor farms, vertical farms, and greenhouses is gaining significant traction in the region due to the escalating need for locally sourced fresh horticultural products. This surge in demand, in turn, is driving the need for advanced horticulture lighting systems across Europe.
The utilization of horticulture lights in Europe is undergoing a gradual shift, transitioning from being an auxiliary light source to becoming the primary lighting solution in Controlled Environment Agriculture (CEA) facilities. The region is witnessing a substantial number of intelligent greenhouse and vertical farm projects being undertaken. Prominently, numerous leading companies in the greenhouse and vertical farming domains conduct extensive operations on a global scale within Europe. Notably, Cathon, for instance, has successfully executed 38 smart greenhouse projects within the European market.
In June 2023, Europe based country ams-OSRAM International GmbH (Austria) has launched the next generation of OSLON square hyper red LED achieves market-leading wall plug efficiency of 78.8% and is known for its compact size, robustness, and superior performance. Also, in June 2023 launched OSLON optimal 640 nm red LED which enables broader spectral coverage for better growth of common plant types that are grown under artificial lighting.
During the forecast period, Interlighting is expected to grow at the highest growth rate.
The positioning of lights is a critical factor in commercial greenhouses and indoor farms, as supplemental lighting plays a crucial role in providing plants with the necessary energy for robust growth and achieving desired crop yields. One relatively recent concept in horticulture lighting is interlighting, which is gaining traction. Interlighting is specifically employed for high-wired crops and high-density cultivation crops, such as single-truss tomatoes grown with high plant density. Its main objective is to increase light exposure in the middle or lower levels of the plant canopies, where light is typically less abundant. Unlike toplighting, which casts shadows on lower leaves, interlighting utilizes bidirectional lights to ensure adequate light reaches the lower parts of the plants. This design allows plants to absorb light rays from the entire spectrum, resulting in higher light efficacy and, consequently, increased yields compared to toplighting. LED lights are commonly used in interlighting systems due to their ability to maintain lower temperatures, making them safe for plants.
Interlighting is particularly suitable for tall and leafy plants such as tomatoes, cucumbers, peppers, and paprika and can be utilized during both the growing and flowering stages of the crops. Signify (Philips Lighting), Hortilux Schréder, and Atop Horticulture Lighting are key players offering horticulture interlighting products.
The report profiles major players in the horticulture lighting market with a significant global presence include Signify Holding (Phillips Lighting) (Netherlands), Gavita International B.V.(Netherlands), Heliospectra(Sweden), ams-OSRAM International GmbH(Austria), California LightWorks(US), Valoya (Finland), Hortilux Schréder(Netherlands), ILUMINAR Lighting(US), Current Lighting Solutions, LLC.(US), GE Lighting (SAVANT TECHNOLOGIES LLC.)(US), ACUITY BRANDS, INC.(US), Lumileds Holding B.V.(Netherlands), Cree LED an SGH company(US), TCP Lighting(US), PARsource(US), EconoLux Industries Ltd.(China), Oreon (Netherlands), GlacialLight – Division of GlacialTech Inc.(Taiwan), Black Dog Horticulture Technologies & Consulting(US), ViparSpectra(US), Active Grow(US), Agnetix(US), Thrive Agritech(US), Bridgelux, Inc.(US), and Kroptek(UK).
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