Growth drivers such as population boom, the adoption of improved agriculture methods, legalization of cannabis for medical purposes, and focus of governments on energy-efficient solutions are propelling the demand for horticulture lighting systems. Due to these factors, the horticulture lighting market will advance at a CAGR of 18.1% between 2020 and 2030 (forecast period). At this rate, the market value is expected to increase from $3.2 billion in 2019 to $20.3 billion by 2030.
Among the numerous advanced agricultural methods, vertical farming is the most prominent trend being observed in the horticulture lighting market. Vertical farming encompasses the cultivation of crops in containers kept one above the other, indoors, with artificial light the only source of illumination. The agricultural community is opting for this method due to the reduction in arable land and growth in population. The employment of this technique helps in maximizing the use of limited space, reducing the need for soil, and curtailing water consumption by nearly 90%.
Get More Insights: Horticulture Lighting Market Segmentation Analysis Report
The surging population is one of the prime factors driving the market growth. According to the United Nations, the global population is estimated to increase from 7.7 billion in 2019 to approximately 8.5 billion in 2030. Much of the population boom will be registered in Brazil, China, India, and the U.S. The increasing population has already raised the demand for food products, which can be met by shifting to indoor and greenhouse farming techniques. The adoption of these practices is, thus, augmenting the demand for horticulture lighting systems.
The categories under the technology segment of the horticulture lighting market include light-emitting diode (LED), fluorescent, high-intensity discharge (HID), and others. Amongst these, the LED category held the largest share in 2019 because of the low cost of LED lights, which is why their use in indoor and greenhouse agriculture is increasing significantly. These lights assist in improving the quality of the crops, as they are ideal for the growth of plants because of their intensity. Moreover, LED lights consume lesser energy in comparison to HIDs, incandescent, and fluorescent bulbs.
