Horticulture Lighting Market Size and Growth Report 2027

Horticulture Lighting Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Technology (Fluorescent Lamps, High Intensity Discharge Lights, and LED Lights), Application (Greenhouses, Vertical Farming, and Indoor Farming), Cultivation (Fruits and Vegetables and Floriculture) and Geography

Publication Month : Aug 2020

  • Report Code : TIPRE00005263
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 161
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[Research Report] The horticulture lighting market was valued at US$ 2,730.8 million in 2019 and is expected to reach US$ 11,383.5 million by 2027; it is estimated to grow at a CAGR of 20.2% during 2020–2027.

Horticultural lighting is used in urban agriculture, multi-layer cultivation, supplemental lighting, and daylight-free cultivation. Due to increasing awareness about sustainable farming, researchers, governments, and organizations have taken global initiatives to improve horticulture with efficient and adequate lighting. Increase in demand for advanced lighting-related technologies is expected to boost the growth of the horticulture lighting market. Toshiba and Panasonic have started to support the farmers by providing financial and technical support to establish vertical farms. Such developments in vertical agriculture are boosting the growth of the horticulture lighting market.

The horticulture lighting market is segmented based on technology, application, and cultivation. Based on technology, the market is segmented into LED lights, highintensity discharge (HID) lights, and fluorescent lamps. The LED lights segment led the horticulture lighting market in 2019, and is anticipated to grow at the highest CAGR during the forecast period.In terms of application, the market is categorized into greenhouses, vertical farming, and indoor farming. The greenhouses segment held the largest market share in 2019.The vertical farming segment is anticipated to grow at the fastest CAGR during the forecast period. Based on cultivation, the market is segmented into fruits and vegetables and floriculture. The fruits and vegetables segment is expected to dominate the market due to increase in demand for fresh vegetables.

Key players operating in the horticulture lighting market include Agrolux; Bridgelux, Inc.; Signify N.V.; Heliospectra AB;PARsource;Lumileds Holding B.V.;HortiluxSchréder B.V.; OSRAM Licht AG; General Electric Company; and Hubbell, Inc.

Few recent developments are:

·      Current, powered by GE, partnered with Jones Food Company in June 2018, to launch an indoor farm for the market in Europe. The company is focused on offering a new technical solution to improve the productivity and quality of vertical agriculture. This would help them build a strong brand presence in the European market.

·      Hortilux Schréder, a company providing horticulture solutions, collaborated with LetsGrow for a software platform – HortiSense in November 2018. The platform is being developed to gather and analyze greenhouse sensor data. LetsGrow customers can link their data to the HortiSense platform software. 

Impact of COVID-19 Pandemic on Horticulture Lighting Market

According to the latest situation report from the World Health Organization (WHO), the US, Spain, Italy, France, Germany, UK, Russia, Turkey, Brazil, Iran, and China are some of the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan, China, during December 2019, and since then, it has spread at a fast pace across the globe. As of August 12, 2020, there are around 20,162,474 confirmed COVID-19 cases globally, with ~737,417 total deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in 2020, which is likely to have impact on 2021 as well. The pandemic has disturbed horticulture businesses and suppliers around the globe. Fresh vegetables and fruits have become increasingly scarce in various regions since the COVID-19 pandemic has hampered the global movement of crops and the people required to gather crops.

Lucrative Regional Horticulture Lighting Market

Lucrative Regional Horticulture Lighting Market
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Market Insights–Horticulture Lighting Market

Government Initiatives

Growing awareness about sustainable crops and increasing government initiatives in various developed as well as developing countries to support sustainability are expected to boost the adoption rate of horticultural lighting systems during the forecast period. For example, horticulturalists across the Netherlands, the second-largest exporter of agricultural products after the U.S., are experimenting with the use of multi-colored LEDs for potential yield enhancement, product quality and taste improvement, as well as cost reduction of greenhouse energy. Similarly, the Dutch government is focusing on the deployment of a geothermal heat plant, which involves drilling at great depths through stratum and installing heat exchangers. Through various incentives, such as soft loans and tax breaks, the government has supported the growers.

Furthermore, the legalization of cannabis for medicinal purposes by various governments globally over the past few years is accelerating the growth of the market. In the U.S., in 33 states, including Alaska, Arizona, Connecticut, Delaware, Columbia District, Arkansas, California, Colorado, Florida, Hawaii, and Illinois, the government has legalized medical cannabis. In Canada, cannabis purchases have been fully authorized across the country as well. Europe is the most advanced region regarding cannabis legalization for medicinal purposes. Countries, such as the Netherlands, Germany, Italy, Romania, Norway, Poland, and Greece, have fully legalized medical cannabis access. Such initiatives taken by the government is the primary driving factor for the global horticulture lighting market.

Technology-BasedInsights

Based on technology, the horticulture lighting market is segmented into fluorescent lamps, high intensity discharge lights, and LED lights.LED lights held the largest share of the horticulture market. The unique properties of LED lights, such energy-efficiency, low heat production, compact size, and lifespan up to 50,000,are anticipated to drive their demand in horticulture lighting application during the forecast period.

Horticulture Lighting Market, by Technology– 2019 and 2027

Horticulture Lighting Market, by Technology– 2019 and 2027
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Application-Based Insights

Based on application, the horticulture lighting market is segmented into greenhouses, vertical farming, and indoor farming. The greenhouses allow horticulturists to carry out their practices in a covered and controlled environment that ensures optimum yield. Greenhouses trap and retain sunlight and moisture. This makes it a preferred choice for farming professionals to grow different plant types.

Cultivation-Based Insights

Based on cultivation, the horticulture lighting market is segmented into fruits and vegetables and floriculture.The fruits and vegetables segment includes a variety of entities, including tomatoes, basil, mint, mustard greens, lettuce, and cucumbers. On the other hand, the floriculture segment comprises roses, African violets, cannabis, poinsettia, and begonia. The cultivation of fruits and vegetables is carried out on a much larger scale than the floriculture. Thus, the former segment holds a larger market share and is likely to continue the same in the coming years.

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Horticulture Lighting Market: Strategic Insights

horticulture-lighting-market
Market Size Value inUS$ 2,730.8 Million in 2019
Market Size Value byUS$ 11,383.5 Million by 2027
Growth rateCAGR of 20.2% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.

  • In 2020, Signify expanded its collaboration with Planet Farms, a leading European operator of vertical farms based in Italy. Planet Farms would boost the quality and yield of the crops using the Philips GreenPower LED production module managed by the Philips GrowWise Control System.
  • In 2019, Heliospectra AB announced the formation of Heliospectra Japan Co., Ltd and the opening of Tokyo, Japan office. The new office would help the company achieve a strong market position.

Horticulture Lighting Market – By Technology

  • LED Lights
  • High Intensity Discharge Lights
  • Fluorescent Lamps

Horticulture Lighting Market – By Application

  • Greenhouses
  • Vertical Farming
  • Indoor Farming

Horticulture Lighting Market – By Cultivation

  • Fruits & Vegetables
  • Floriculture

Horticulture Lighting Market –Company Profiles

  • Agrolux
  • Bridgelux, Inc.
  • General Electric Company
  • Heliospectra AB
  • Hortilux Schréder B.V
  • Hubbell, Inc. 
  • Lumileds Holding B.V.
  • OSRAM Licht AG
  • PARsource
  • Signify N.V
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Technology , Application , Cultivation and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
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


Which region led the horticulture lighting market in 2019?

Europe led the horticulture lighting market in 2019. The governments in Europe are highly investing in the horticulture field for economic progress. The European Union initiatives are accelerating the adoption of LED lights and are likely to generate market opportunities for the manufacturers of LED modules and lamps in Europe. Several companies based in the region are highly involved in building market strategies to gain traction in the global market.

Which factor is driving the horticulture lighting market?

Growing awareness about sustainable crop and increasing government initiatives in various developed as well as developing countries to support sustainability are expected to boost the adoption rate of horticultural lighting systems during the forecast period. For example, horticulturalists across the Netherlands, the second-largest exporter of agricultural products after the U.S., are experimenting with the use of multi-colored LEDs for potential yield enhancement, product quality and taste improvement, as well as cost reduction of greenhouse energy.

Which technology led the horticulture lighting market?

The LED lights is the leading technology in the market. LED lights hold the largest share of the horticulture market. The unique properties of LED lights, such energy-efficiency, low heat production, compact size, and lifespan up to 50,000 is anticipated to drive their demand in horticulture lighting application during the forecast period.

The List of Companies - Horticulture Lighting Market

  1. Agrolux
  2. Bridgelux, Inc.
  3. Signify N.V.
  4. HeliospectraAB
  5. PARsource
  6. Lumileds Holding B.V.
  7. HortiluxSchréder B.V.
  8. OSRAM Licht AG
  9. General Electric Company
  10. Hubbell, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. 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.

  1. 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:

Research Methodology

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.

  1. 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.

  1. 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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