The global horticulture lighting market had a valuation of $3.2 billion in 2019 and is predicted to generate a revenue of $20.3 billion by 2030. As per the forecast of the market research organization, P&S Intelligence, the market will demonstrate a CAGR of 18.1% between 2020 and 2030. The increasing enactment of favorable government policies regarding energy-efficient lights, the decriminalization of marijuana, and the soaring requirement for agricultural products are the main factors driving the progress of the market.
One of the major factors fueling the expansion of the market is the surging population levels all over the world. According to the observations of the United Nations, the global population will surge from 7.7 billion in 2019 to 8.5 billion in 2030. Because of the huge population growth in the U.S., China, Brazil, and India, the requirement for food products is skyrocketing in these countries. This is, in turn, fueling the growing popularity of indoor and greenhouse farming methods.
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These methods considerably augment the agricultural yield, which, in turn, propels the requirement for horticulture lighting devices. The increasing usage of advanced farming methods in emerging economies is creating a potential growth opportunity for the market players. Currently, the utilization of artificial lights for agricultural purposes is very low, especially in South Africa, Brazil, and India. However, the demand for these products will surge in the coming years, due to the rising popularity of indoor crop cultivation and horticulture techniques.
Based on type, the horticulture lighting market is divided into interlighting and top lighting. Between these, the interlighting category is predicted to demonstrate faster growth in the market in the coming years. This is ascribed to the rapidly rising usage of light-emitting diodes (LEDs) in farming operations and the subsequent rise in the demand for interlighting. Because of their low energy coefficients, the LEDs provide optimal environment for crop growth.
When application is taken into consideration, the horticulture lighting market is classified into greenhouse farming and vertical/indoor farming. Of these, the greenhouse farming category is predicted to register the highest revenue growth in the market in the forthcoming years. This is because a majority of the horticulture activities take place inside these installations. The total greenhouse area under vegetable farming grew from 1.21 million acres in 2017 to 1.23 million acres in 2019.
Inside such installations, the crops are protected from intense sunlight and heat, snow, hail, and rain. Geographically, the horticulture lighting market is predicted to exhibit the highest growth in Europe in the upcoming years. This will be because of the fact that the production and exports of vegetables, fruits, and flowers are the highest in Europe. Furthermore, several companies that develop horticulture lights such as Signify N.V. and Osram Licht AG have their headquarters in the region.
Hence, it is safe to say that the market will record substantial growth in the future years, on account of the rising requirement for advanced farming methods, due to the growing demand for higher crop yield and agricultural productivity across the world.
