The key players operating in the Agricultural Lighting Market are agricultural lighting market is projected to grow from USD 11.8 billion in 2023 to USD 21.4 billion by 2028; it is expected to grow at a CAGR of 12.5% from 2023 to 2028. The key factors fueling the growth of this market include rising number of government initiatives to promote the adoption of CEA practices and SSL technology, surging demand for food owing to the continuously increasing population, extensive deployment of LED fixtures in controlled agricultural environment increased funding to develop vertical farms and greenhouses, gradual emergence of agriculture lighting software and widespread use of automated and energy-efficient lighting fixtures to minimize energy costs and regulate plant growth. , Driver: Extensive deployment of LED fixtures in controlled agricultural environment , Sufficient light with the correct spectral range stimulates photosynthesis and is necessary for plant growth. Different wavelengths are important for the plant's growth, shape, development, and blossoming. The time period during which the plants are exposed to light is also significant for plant growth. The “natural daytime” can, thus, be extended with the aid of artificial light, resulting in stronger growth and increased bud development. With LED technologies, it is possible to maximize plant exposure to the precise wavelength that promotes photosynthesis and optimum growth. In controlled indoor environments, such as hydroponics, greenhouses, and indoor farms, LEDs have always been effective as they consume less power than other lights. Additionally, LEDs are reliable, compact, and have fast-switching operations. LED technology offers several long-term benefits in agricultural lighting, such as compact size, low power consumption, and high durability; it can potentially reduce the carbon footprint in agriculture farms. In Europe, the greenhouse industry is one of the largest energy consumers, using artificial lighting. To reduce energy consumption, European governments are studying the benefits of LED technology for greenhouse plants. This study aims at replacing HPS lamps with LED grow lights to improve energy efficiency in greenhouses. All these factors contribute to the growing demand for LED grow lights in the agriculture lighting market. , Restraint: Complex requirement for varied light spectra for different crops , Different characteristics of light, such as wavelength, intensity, duration, and direction, can influence plant growth and development. Plants generally utilize the light spectrum between 400 and 750 nm, which includes red, orange, yellow, green, blue, indigo, and violet light. Some spectra stimulate vegetative growth and others increase the yield in flowers and fruits. Blue light helps in the photosynthesis and development of roots and vegetative growth, while red light promotes flower and fruit production. In some cases, blue light is not useful during the flowering and budding phases, which may yield fewer plant buds. Compared to HID lights, compact fluorescent lamps (CFLs) and LEDs are more useful as they efficiently provide full-spectrum light. LED lights help growers scale plant production due to their full-light spectrum capabilities, low heat waste and maintenance, and extended lifespan. The selection of the wrong type of LEDs affects plant growth. HPS lights promote better plant growth but offer a poor color rendering index (CRI). Plants grow elongated due to the lack of blue/ultraviolet radiation from HPS lights. , The advent of patented spectra is expected to diminish the impact of this factor in the coming years. For example, Valoya has developed spectra for all plant requirements, from seed to sale. The company’s patented spectra are designed to optimize the growth of a variety of plants in different applications. In addition to photosynthesis, the company’s spectra give valuable information about plants, their environment, allowing control of plant morphology and physiological traits. , Opportunity: Year-round crop production, irrespective of weather conditions , CEA's benefit and ability to help produce crops throughout the year, without depending on the weather conditions, have increased its adoption in regions where the climate does not support traditional farming. For instance, European countries import a substantial share of their fresh produce requirements due to the unavailability of farming land and unfavorable weather conditions. Rain patterns and temperature changes could diminish agricultural output in several countries worldwide. With weather patterns becoming more unpredictable and warming being a major challenge, CEA is expected to emerge as an ideal option and effective solution for cities or countries that depend highly on imports of various essential greens. With the help of agriculture lighting, year-round crop production can be achieved in any region of the world. As the production process is not dependent on the weather, controlled environment farming eliminates the concept of seasonal crops. It also reduces the harvest time and increases the production volume without compromising flavor or quality. , Challenge: Effective integration of different components and technologies used in CEA facilities , CEA facilities, such as vertical farms and greenhouses, combine technologies such as HVAC systems, sensors, and LED grow lights. The effective integration of all these elements is challenging as different companies provide systems with additional attributes to control the environment of these facilities. Thus, these companies need to work together to develop compatible systems to control environments of such facilities for maximum yields. Some companies such as Certhon (Netherlands) and Nexus Corporation (US) provide commercial greenhouses. Other companies such as Logiqs B.V. (Netherlands) provide greenhouse material handling logistics. Companies such as LumiGrow Inc. (US) and Heliospectra A.B. (Sweden) offer LED grow lights. Thus, it becomes challenging for agriculturists and growers to receive different components from different companies and integrate them effectively. , Agricultural Lighting Market Ecosystem , The prominent players in the agricultural lighting market are Signify Holding (Netherlands), ams-OSRAM GmbH (Germany), Gavita International B.V. (Netherlands), Valoya (Finland), California LightWorks (US), DeLaval (Sweden), CBM Lighting (Canada), Heliospectra AB (Sweden), Hortilux Schréder (Netherlands). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint. , Retrofit installations segment is expected to register a higher CAGR during the forecast period , Retrofit installations segment is expected to register a higher CAGR during the forecast period by installation type. The retrofitting of light fixtures in commercial greenhouses, vertical farms, livestock facilities helps in energy consumption, reduction in maintenance costs. This, in turn, results in low operating costs as grow lights require to operate for nearly 14 to 18 hours daily, depending on the types of plants that are being cultivated. The retrofitting of HID lamps with LED grow lights results in their high efficiency, lightweight, and long life. These factors are expected to drive the growth of the retrofit installations market globally. , Software offering segment to grow at the highest CAGR during the forecast period , Light-controlling software and technical services are relatively new in the market. The software segment of the agricultural lighting market is projected to grow at a higher CAGR than the hardware segment during the forecast period owing to the increasing adoption of automation solutions in the agriculture sector to minimize labor costs and enhance production efficiency. With the increasing demand and awareness to conserve energy and save energy costs, the concept of automated lighting solutions is bound to boom in the upcoming years. This is possible with the integration of lighting fixtures with dedicated software, leading to the growth of software segment in the forecast period. , LED light source is expected to hold the largest market share throughout the forecast period , The agricultural lighting market is experiencing a rapid transition from conventional lighting technologies to LED lighting technology. Energy efficiency continues to be a key factor for adopting LED technology in agriculture, along with additional benefits in low heat, long lifespan, light weight, and enhanced controllability. Vertical farms are gaining traction across urban localities in Americas, Europe, Asia Pacific, and the Middle East & Africa as farmers strive to meet the demand for fresh fruits and vegetables throughout the year. LED grow lights are suitable for vertical farming applications owing to their compact and highly directional design and adjustable light spectrum. In addition to this, the LED lights are suitable for livestock facilities as they require 12-16 hours of lighting per day, in such cases LED lights are essential owing to their energy efficiency characteristics. As a result, the LED segment is projected to account for the largest size of the agricultural lighting market from 2023 to 2028. , Retail/Wholesale sales channel to hold the largest market share in 2022 , The retail/wholesale segment is projected to account for the largest size of the agricultural lighting market from 2023 to 2028, owing to the increased convenience of conventional buying or sales channel. The after-sales-support and guidance is more as compared to other sales channels. Most of the buyers have traditional buying methods which tend them to prefer retail or wholesale methods of sales over the others, leading too this segment holding the largest market share. , Below 50W lamps are expected to hold the largest market share throughout the forecast period , Below 50W lamps and lighting have the largest market share in the agricultural lighting for wattage type segment, owing to lesser electricity consumption by these lamps. Additionally, with the rising adoption of LED lighting in agricultural applications, brighter and more sufficient lighting is available in lesser-wattage LED lamps. This results in significant cost savings and energy efficiency, leading to increased profitability for farmers. , Livestock segment to hold the largest market share in 2022 , The livestock segment holds the largest market share for the agricultural lighting market, owing to the increased requirement for milk, meat, eggs, and poultry, especially in European and American countries. Since the amount of meat and eggs consumed is much more in American and European countries, clubbed with the fact that the population is increasing by the day, the livestock segment held the largest market share in 2022. , Europe is projected to register the highest CAGR between 2023 and 2028 , Europe is expected to grow at the highest CAGR during 2023 and 2028 since the region has the strongest economies in the world, along with flourishing industries that lead to increased capital investment capabilities. Countries such as the Netherlands, Spain, France, and Italy have large areas under greenhouse cultivation and have significantly higher amount of livestock facilities for milking, poultry etc. The use of LED grow lights in this region is gradually increasing from being a supplemental lighting source to becoming a primary light source for indoor farming. The population of Europe has expanded rapidly in recent years, and countries of the region are importing fruits and vegetables in frozen form from Africa and Asia. , Recent Developments , In February 2023, ams-OSRAM AG, leader in optical solutions, announced a collaboration using the OSLON Square platform and OSLON SSL LEDs with Revolution Microelectronics (US), a controlled agriculture environment designer, to provide lighting for GreenCare Collective’s new futuristic facility. A perpetual harvest methodology developed by GreenCare Collective's cutting-edge facility uses seasonal programmed spectrum controls and cutting-edge crop steering techniques to produce an extra harvest of plants every year. , In January 2023, Energous Corporation (US), a leading developer of RF-based charging for wireless power networks, and ams-OSRAM AG, a leader in optical solutions, announced a collaboration on a wirelessly powered multi-spectral light sensor for Controlled-Environment Agriculture and vertical farming. These sensors allow farmers to manage their lighting in the most efficient way possible. , In December 2021, Hortilux collaborated with LLC DTK, a Russia’s leading rose company to provide them Hortilux’s HPS NXT2 fixtures which is perfect match for the company requirement: they have good light distribution, are easy to maintain, and they’re extremely reliable. By now the NXT2 1000W fixtures have been installed over a three-hectare area. , In January 2023, California LightWorks, partnered with Virex Technologies (Spain) to expand European distribution. This partnership is made to implement crop illumination, lower installation costs, and save energy by producing less heat. , In September 2022, Signify Saudi Arabia signed an MoU with MEWA to meet the growing demands of agriculture in the kingdom of Saudi Arabia. It mainly focuses on Smart animal farms with Dynamic lighting system, Horticulture smart farms with high tech GrowWise control system for Sustainable, predictable quality and locally produced crops; and Aquaculture smart farms with lighting control system using tailored lighting conditions to optimize aquatic environment. , In May 2022, ams-OSRAM AG expanded its lighting solutions and products by adding OSLON LED horticulture lighting products to its portfolio. OSLON Optimal LEDs balance performance and cost with robustness, high reliability, and excellent lifetime. The new products are based on the same advanced InGaAlP Thin film chip technology. It has a larger spherical lens which produces a wide 120° viewing angle, providing an even distribution of light over crops without ‘hot spots’ of concentrated light. , In February 2022, California LightWorks launched its new MegaDrive Vertical series for indoor cannabis cultivators. This patented new LED system offers indoor cultivators the same technology that greenhouses across the nation have adopted from California Lightworks to achieve dramatically lower total installed cost while boosting return on investment by reducing heat, energy consumption, and carbon footprint. , In December 2021, Hortilux collaborated with LLC DTK, Russia’s leading rose company, to provide them Hortilux’s HPS NXT2 fixtures, which match the company’s requirement perfectly. By now, the NXT2 1000W fixtures have been installed over a 3-hectare area. , In September 2021, HORTILED Multi Fusion is an LED grow light system that is perfectly suited to indoor farming. wide beam angle, ensuring uniform light distribution. This in turn results in a more uniform crop. It also means that fewer light sources are required. It also ensures a high light output combined with significant energy savings. , KEY MARKET SEGMENTS , By Offering , Hardware , Software , Services , By Light Source , Fluorescent , HID , LED , Others (xenon, plasma, and induction lighting) , By Wattage Type , Below 50W , 50 – 150W , Above 150W , By Installation Type , New , Retrofit , By Sales Channel , Retail/Wholesale , Direct Sales , Online/E-commerce , By Application , Horticulture , Livestock , Aquaculture , By Region , Americas , Europe , Asia Pacific , RoW, KEY MARKET PLAYERS , Signify Holding , ams-OSRAM GmbH , Gavita International B.V. , Valoya , California Lightworks , DeLaval , CBM Lighting , Heliospectra AB , Hortilux Schreder.
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