The overall horticulture lighting market is estimated to grow from USD 2.43 billion in 2018 to USD 6.21 billion by 2023, at a CAGR of 20.61% between 2018 and 2023.
Horticulture lighting is gaining a lot of traction since these lights are designed to accelerate plant growth by emitting the spectrum ideal for photosynthesis. Horticulture lighting technology is deployed in the case of extreme weather conditions and scarcity of arable land to achieve faster growth of crops and a year-round supply of fresh food. Fulfilling a huge demand for food is a big challenge as land is a limited resource, and agricultural lands are continuously decreasing. To meet the rising demand for food and to achieve production targets, greenhouse cultivators, as well as vertical and indoor farm owners, are increasingly using horticulture lights.
Horticulture lighting systems consist of 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 pertaining to horticulture lighting systems. The crop controlling and horticulture lighting-related software is comparatively newer in this market; hence, the market for this segment is expected to grow at a higher rate.
High-intensity discharge (HID) lamps, fluorescent lights (FLs), light-emitting diodes (LEDs) lights, and other lighting technologies, such as induction and plasma lighting, are a few major technologies used in horticulture lighting. Energy efficiency continues to be the main factor behind the adoption of LED technologies in the horticulture lighting market. Additional benefits, such as their low heat and controllability, are expected to accelerate their demand in the growing horticulture market. LED grow lights are suitable for vertical farming applications owing to their compact and highly directional design, and adjustable light spectrum. Due to these advantages, the horticulture lighting market for LEDs is expected to grow at the highest CAGR in the coming years.
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Toplighting is the conventional lighting method in controlled-environment agriculture. Toplighting is the most widely used lighting type in indoor cultivation. Over 97–99% of the global crop production uses toplighting. In toplighting lamps, with a particular spectrum of light, are positioned above the plants. Interlighting is a relatively new concept in horticulture lighting. In this type of lighting, lights are placed inside the canopy of high-wire plants so that growth-stimulating light can be directed or focused on the most vital parts of the crop, such as its leaves and veins. As interlighting is a relatively new concept in the horticulture lighting market, the interlighting method is expected to witness a higher growth rate in the horticulture lighting market during the forecast period.
Horticulture lights are used in the cultivation of fruits and vegetables and flowers. Some varieties of crops cultivated in urban/greenhouse farming are tomatoes, lettuce, basil, mint, mustard greens, collard greens, strawberries, and cucumbers. Flowers commonly grown using horticulture lights are roses, cannabis, African violets, and others. The floriculture segment is expected to witness a higher CAGR owing to the legalization of cannabis in North America.
Horticulture lights are being used in applications, namely, greenhouses, vertical farming, indoor farming, and others. 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. Thus, the market for the vertical farming application is expected to grow at the highest rate during the forecast period.
APAC is expected to be the fastest-growing market for horticulture lighting applications. Growing urbanization in the developing countries of this region positively affects the growth of the horticulture lighting market owing to the rising demand for food and increasing scarcity of arable 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.