The Global Agricultural Lighting Market size is expected to reach $26.7 billion by 2030, rising at a market growth of 12.5% CAGR during the forecast period.
The European region is one of the leading regions in widely deploying agricultural lighting due to the availability of a large proportion of farming land. Consequently, Europe would acquire more than 29% share of the market by 2023. Agriculture is an industry that employs a significant portion of the local workforce in this region. Moreover, the growth of the regional market is due to the increasing adoption of agricultural lighting technology like Controlled Environment-Agriculture, which controls the environmental component. Some of the factors impacting the market are widely utilization of LED lighting fixtures in a controlled agricultural environment, Year-round crop production without consideration to the weather conditions, and significant need for diverse light wavelengths for various crops.
For plants to thrive and grow, there must be enough light with the right spectral spectrum to trigger photosynthesis. The plant's growth, development, and blossoming depend on various wavelengths. For plants to flourish, the time they are exposed to light is important. This means that the "natural daytime" can be extended with artificial light, leading to stronger development and bud formation. These elements are essential in the rising demand for LED grow lights in the market. The benefits of CEA and its capacity to assist in crop production all year, despite weather conditions, have expanded its acceptance in regions where the climate does not allow conventional farming. For instance, due to a lack of agricultural land and unfavorable weather, European nations import a significant portion of their fresh food requirements. In various nations around the world, changes in temperature and rainfall patterns could reduce agricultural productivity. As a result, all these factors are predicted to lead to a rise in the market in the forecasted time period.
However, light's multiple characteristics, including wavelength, intensity, duration, and direction, can affect how a plant grows and develops. The wavelength range between 400 to 750 nm, which includes red, orange, yellow, green, blue, indigo, and violet light, is typically used by plants. This is a significant challenge that may affect market growth significantly.
Based on offering, the market is segmented into hardware, software, and services. In 2022, the hardware segment dominated the market with the maximum revenue share. The enormous number of hardware elements, such as lighting fixtures (lamps, luminaires) and lighting controls necessary to set up any agricultural lighting system, be it in an application, horticulture, livestock, or aquaculture, is what is credited to the hardware offering.
On the basis of light source, the market is classified into fluorescent, HID, LED, and others (xenon, plasma, and induction lighting). In 2022, the LED segment held the highest revenue share in the market. The market is quickly switching from traditional lighting systems to LED lighting technologies. The use of LED technology in agriculture is still heavily influenced by energy efficiency, in addition to the advantages of low heat, a long lifespan, lightweight, and improved controllability.
By installation type, the market is categorized into new, and retrofit. In 2022, the retrofit segment covered a considerable revenue share in the market. Commercial greenhouses, vertical farms, and animal facilities can reduce energy usage and maintenance expenses by updating lighting systems. Low operating expenses are the consequence, as grow lights must operate for between 14 to 18 hours each day, depending on the type of plant being grown.
Based on wattage type, the market is fragmented into below 50w, 50-150w, and above 150w. In 2022, the 50-150w segment recorded a remarkable revenue share in the market. Due to the nature of the crops being cultivated, lighting solutions for agricultural applications usually need lower power. Numerous plant species require medium light intensity, particularly leafy greens, herbs, and young seedlings. The 50W-150W segment provides adequate light output for these crops without using excessive energy or producing heat. Because they use less energy, lighting systems with lower wattages use less money and electricity.
Based on sales channel, the market is segmented into retail/wholesale, direct sales, and online/e-commerce. The online/e-commerce segment projected a prominent revenue share in the market in 2022. The wide range of products available, ease of use & accessibility to each buyer, remote availability of product specifications & information, and the ability to compare that include products for cost-effective purchasing.
By application, the market is classified into horticulture, livestock, and aquaculture. In 2022, the horticulture segment projected a prominent revenue share in the market. Horticulture lighting provides artificial light to plants in order to promote, maintain, and facilitate their growth. Horticulture lighting enhances photosynthesis by supplementing natural daylight and raising growth light levels, which benefits plant growth and quality.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 10.6 Billion |
| Market size forecast in 2030 | USD 26.7 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 12.5% from 2023 to 2030 |
| Number of Pages | 319 |
| Number of Table | 619 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Installation, Light Source, Wattage Type, Sales Channel, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region held the highest revenue share in the market. The Asia Pacific region, which includes nations like China, India, Japan, and Southeast Asian countries, has some of the largest agricultural economies in the world. Strong agricultural sectors in these nations contribute significantly to their national economies. Large-scale agricultural operations in the region create a high demand for agricultural lighting solutions, which results in a sizable market share. Due to the wide range of lighting requirements for the numerous crops grown throughout the region, there are significant growth prospects for the market.
Free Valuable Insights: Global Agricultural Lighting Market size to reach USD 26.7 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Signify N.V., ams-OSRAM AG, Tetra Laval International S.A. (DeLaval), Heliospectra AB, Valoya Oy, California LightWorks (MWW Inc.), Gavita International B.V., Hortilux Schréder (Dool Industries), and CBM Lighting, Inc.
By Installation
By Light Source
By Wattage Type
By Sales Channel
By Offering
By Application
By Geography
This Market size is expected to reach $26.7 billion by 2030.
LED lighting fixtures are widely used in a controlled agricultural environment are driving the Market in coming years, however, Significant need for diverse light wavelengths for various crops restraints the growth of the Market.
Signify N.V., ams-OSRAM AG, Tetra Laval International S.A. (DeLaval), Heliospectra AB, Valoya Oy, California LightWorks (MWW Inc.), Gavita International B.V., Hortilux Schréder (Dool Industries), and CBM Lighting, Inc.
The Software segment has shown the high growth rate of 13.3% during (2023 - 2030).
The New segment is leading the Market by Installation in 2022 thereby, achieving a market value of $17.7 billion by 2030.
The Asia Pacific market dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $9.9 billion by 2030.
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