Global Agricultural Lighting Market by Light Source (Fluorescent, HID, LED), Application (Horticulture, Livestock, Aquaculture), Offering (Hardware, Software, Services), Installation Type, Wattage Type, Sales Channel and Region - Forecast to 2028

Rising Number of Government Initiatives Promoting Agricultural Lighting Bodes Well for Market Growth

The global 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 market has a promising growth potential due to several factors, including the technological advancements in LED technology, rising number of government initiatives to promote agricultural lighting, growing demand for food owing to the increasing population. All these factors could play a key role in driving the growth of the agricultural lighting market.

Rising penetration of LED lights in agricultural lighting due to their long lifespan, spectrum adjustability, and energy efficiency

The LED technology segment is projected to grow by light source at the highest CAGR from 2023 to 2028 for the agricultural lighting market. LED lighting allows precise control over the light spectrum, enabling growers to tailor the light output to specific crop requirements. Different stages of plant growth, such as vegetative growth and flowering, benefit from different light spectra. LED technology enables the customization of light wavelengths to optimize plant growth, yield, and quality. LED lighting offers dimming capabilities, allowing growers to adjust the light intensity according to the crop's needs. This flexibility facilitates precise control over light levels, mimicking natural light variations and providing optimal conditions for photosynthesis and plant development.

Rising requirement of software for agricultural automation to witness highest CAGR during the forecast period

The software segment is projected to grow at the highest CAGR during the forecast period. Software-driven agricultural lighting systems collect data on lighting performance, energy consumption, and crop responses. Analyzing this data provides valuable insights into crop growth patterns, lighting efficiency, and resource allocation. With data-driven decision-making, farmers and growers can optimize their lighting strategies, identify improvement areas, and maximize operational efficiency.

Rising demand for below 50W lighting product segment during between 2023 and 2028

The below 50W segment provides affordable entry-level solutions for small-scale and novice growers starting their agricultural operations. These cost-effective lighting options enable newcomers to invest in lighting systems without significant upfront expenses, making it easier to enter the market and establish their agricultural setups.

Increasing demand for new installations to witness larger market share in 2023

Farmers and growers are increasingly recognizing the significant impact of lighting on crop growth, yield, and quality. Proper lighting is vital in optimizing photosynthesis, promoting plant development, and influencing plant physiology. As awareness of the benefits of specialized lighting solutions spreads, there is a rising demand for new installations of agricultural lighting systems.

Increasing demand for online/e-commerce sales channel due to increased convenience during the forecast period

Online platforms provide detailed product information, specifications, and customer reviews. Farmers and growers can gather comprehensive information about different lighting solutions, compare features, and read feedback from other customers. This helps make informed purchasing decisions based on the specific requirements of their agricultural operations. With the availability of internet access increasing in rural areas worldwide, buyers will find it easier to buy products online, which will further lead to the growth of the online/e-commerce segment.

Rising requirement of fresh farm food will tend the horticulture segment to witness highest CAGR during the forecast period

The horticulture segment is projected to grow at the highest CAGR during the forecast period. Increased food demand across the world with the increasing global population will lead to the growth of this segment. Growth of horticulture lighting in the agricultural lighting market is driven by the growing adoption of controlled environment agriculture, the awareness of crop-specific lighting requirements, advancements in LED technology, the focus on crop quality and yield, market demand for locally grown and specialty crops, environmental benefits and sustainability, technological advances, and government support. These factors collectively contribute to the expanding scope and opportunities in the horticulture lighting sector of the agricultural lighting market.

Asia-Pacific is projected to become the largest geographical market between 2023 and 2028

APAC is projected to hold the largest market for agricultural lighting market during the forecast period. This can be attributed to its continuously increasing population, leading to rising food demand from Asia-Pacific. This has led to an increase in the adoption of advanced farming technologies such as CEA to supply fresh fruits and vegetables throughout the year. The Asia-Pacific region has a growing focus on sustainable and eco-friendly agricultural practices. Energy-efficient lighting solutions like LED lights are favored for their reduced energy consumption and lower environmental impact. The alignment of agricultural lighting with sustainability objectives encourages the adoption of such solutions, further driving market growth.

Breakdown of profiles of primary participants:

• By Company: Tier 1 = 35%, Tier 2 = 45%, and Tier 3 = 20%
• By Designation: C-level Executives = 40%, Directors = 35%, and Others (sales, marketing, and product managers, as well as members of various organizations) = 25%
• By Region: Americas = 40%, Europe = 30%, Asia-Pacific = 20% and RoW = 10%

Major Players Profiled in the Report

The agricultural lighting market is dominated by a few established players such as 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).

Research Coverage

This report offers detailed insights into the agricultural lighting market based on offering (Hardware, Software, Services), light source (Fluorescent, HID, LED and Others), wattage type (Below 50W, 50 - 150W, Above 150W), sales channel (Retail/Wholesale, Direct Sales, Online/E-commerce), application (Horticulture, Livestock, Aquaculture), installation type (New, Retrofit), and region (North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW) which includes the Middle East, Africa, and South America.

The report also comprehensively reviews market drivers, restraints, opportunities, and challenges in the agricultural lighting market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Reasons to Buy the Report

The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall agricultural lighting market and related segments and sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the agricultural lighting market and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

• Analysis of key drivers (Strong government support; Heightened demand for fresh food; Increased investments in vertical farms and greenhouses; Widespread use of automated and energy-efficient lighting fixtures to minimize energy costs and regulate plant growth), restraints (High setup and installation costs, Complex requirement for varied light spectra for different crops), opportunities (Consolidating trend of farm-to-table concept, Year-round crop production, Gradual emergence of agriculture lighting software and calculators) and challenges (Effective integration of different components, Lack of standard testing practices)
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the agricultural lighting market
• Market Development: Comprehensive information about lucrative markets - the report analyses the agricultural lighting market across varied regions
• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the agricultural lighting market
• Competitive Assessment: In-depth assessment of market shares, growth strategies and product offerings of leading players like 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) among others