South America Horticulture Lighting Market Drivers and Forecasts by 2027

The horticulture lighting market in SAM is expected to grow from US$ 161.6 million in 2019 to US$ 580.6 million by 2027; it is estimated to grow at a CAGR of 18.0% from 2020 to 2027.

Brazil and Argentina are major economies in SAM. Government initiatives on rise is expected to positively affect the SAM horticulture lighting market. Growing awareness about sustainable cropland increasing government initiatives in various developed as well as developing countries to support sustainability are expected to boost the adoption rate of SAM horticultural lighting systems during the forecast period. For example, horticulturalists across the Brazil, good exporter of agricultural products, 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 Argentina 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 all over SAM in the past few years is accelerating the growth of the market. In Argentina, cannabis purchases have been fully authorized across the country as well. SAM is among advanced region regarding cannabis legalization for medicinal purposes. Countries, such as Brazil, Argentina have fully legalized medical cannabis access. Such initiatives taken by the government is the primary driving factor for the SAM horticulture lighting market. Thus, the recent rise seen in government initiatives is expected to create a significant demand for horticulture lighting in the coming years, which is further anticipated to drive the market in SAM. Also, the COVID-19 pandemic is having severe impact over the SAM region. Brazil has the highest number of COVID-19 confirmed cases, followed by other countries such as Ecuador, Peru, Chile, and Argentina. The governments of various countries in SAM are taking several initiatives to protect people and to control COVID-19’s spread in the region through lockdowns, trade bans, and travel restrictions. These measures are expected to have a direct impact on the region’s economic growth as the region will face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to major trading partners such as China, Europe, and North America. At present, the total number of cases in Brazil accounted for 3,627,217 out of which 115,451 total deaths are recorded. The sharp decline in the sales of various horticulture lightning products in the region due to lockdown measures is expected to directly impact the growth of the horticulture lightning market in this region. The sharp decline in business activities and product sales are expected to directly affect the growth rate of the horticulture lightning market in SAM region for the next three to four quarters.

With the new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the South America horticulture lighting market. The MEA horticulture lighting market is expected to grow at a good CAGR during the forecast period.

SAM Horticulture Lighting Market Segmentation

SAM Horticulture Lighting Market – By Technology

• LED Lights
• High Intensity Discharge Lights
• Fluorescent Lamps

SAM Horticulture Lighting Market – By Application

• Greenhouses
• Vertical Farming
• Indoor Farming

SAM Horticulture Lighting Market – By Cultivation

• Fruits and Vegetables
• Floriculture

SAM Horticulture Lighting Market, by Country

• Brazil
• Argentina
• Rest of SAM

SAM Horticulture Lighting Market -Companies Mentioned

• General Electric Company
• Hubbell, Inc.
• Lumileds Holding B.V.
• OSRAM Licht AG
• Signify N.V.

South America Horticulture Lighting Report Scope