LED Farming Market Size, Share, Opportunities, And Trends By Application (Vertical Farming, Indoor Farming, Commercial Greenhouse, Turf And Landscaping), By Wavelength (Blue Wavelength, Red Wavelength, Far Red Wavelength), By Crop Type (Fruits & Vegetables, Herbs & Microgreens, Flowers & Ornamentals, Other Crop Types), And By Geography - Forecasts From 2023 To 2028
- Published : May 2023
- Report Code : KSI061615400
- Pages : 148
It is found that agricultural environments function best with increased lighting. LED grow lights are one such way to provide artificial lighting to farms. They are also energy efficient in their usage. Thus, this market is commonly referred to as the LED farming or LED grow lights market. LED lights also help in extending the normal farming hours beyond the daylight timings which helps in increasing the yield. LED lights find their applications in four different forms of farming, namely, vertical farming, indoor farming, commercial greenhouses, and turf and landscaping. LED grow lights are more durable than conventional light bulbs because of their plastic encasing. The major drivers for the growth of this market include increased demand for food products and the adoption of environment-friendly production of fruits and vegetables.
The surge in demand for food products and the adoption of controlled environment agriculture are positively impacting market growth.
The widespread adoption of controlled environment agriculture, including vertical farming, and indoor farming, has played a major role in boosting the demand for LED farming products. The growth in world population is also another contributing factor to this increased demand. As the population keeps growing, the demand for agricultural produce will also increase exponentially. However, with finite land resources, there is a need for alternative farming methods like vertical farming and indoor farming where smaller areas of farming land, including indoor farms, can be utilized for producing more harvest. LED lights help to increase the quality and quantity of such harvest by providing higher energy efficiency, more reliability in terms of visibility and durability, and reduced long-term costs. Cannabis is one such plant that is mostly grown using controlled environment agriculture, and the legalization of cannabis in various countries will also help in boosting the demand for LED lights for farming purposes. Key businesses in this market have seen an increase in income over the past few years as a result of such efforts. For instance, according to their yearly reports, Hubbell produced revenues in their consumer and industrial lighting segment of roughly US$509.4 million in 2021.
High costs of installation are expected to restrain the industry’s expansion.
A significant challenge faced by this industry relates to the high costs involved in the initial setup and installation of LED lights for agricultural purposes which acts as a hindrance to the growth of the industry as it negatively impacts the demand. In addition, different types of crops have differing varying requirements related to lighting which makes it difficult to use them for all types of crops. There is also a lack of predetermined international standards for LED grow lights, however, these are being developed and implemented over time. This industry also faced a significant impact due to the COVID pandemic as it disrupted the supply chain of the products, although the market has been recovering since the lockdown restrictions were relaxed.
- In January 2023, Polymatech Electronics, one of India’s leading semiconductor chip manufacturers, launched its new range of horticulture LED products that will be powered by their in-house LED chips. This will act as a boost to vertical farming and greenhouse farming activities. It is also intended to be a relatively lower-cost alternative for LED farming compared to the existing market options and is claimed to provide increased efficiency and enhance the growth of plants.
- In March 2021, Thrive Agritech, an industry leader in horticultural lighting, launched its latest 600W Pinnacle LED Grow Light. This product is said to be able to meet extreme lighting requirements and is expected to benefit the customers with its low maintenance, high energy efficiency, ease of installation, and improved yields.
- In September 2020, Valoya, a research-driven horticulture LED grow lights manufacturer, added two new products to its line of greenhouse LEDs namely, RX500 and RX600. The products are designed to provide improved lighting over a larger radius and are meant to be long-lasting, claiming to perform at peak performance for 36,000 hours and continue at 90% intensity till 50,000 hours.
The North American region is anticipated to have a major market share.
North America is expected to constitute a significant market share and similar trends are expected to be followed in the forecast period. This market share is owed to an increase in the demand for farm-to-table products and the higher disposable income of consumers. Awareness of energy efficiency is also a key factor in the market growth for North America. As per estimates from the United States Department of Agriculture, the percentage of agricultural land in the total land area has been falling steadily. Therefore, there is a greater need for vertical farming and other alternative approaches to farming. These factors all contribute to increasing the market share of the North American region in the LED farming market. The Asia-Pacific region is also expected to grow at a fast rate, due to increased investments in agricultural technology in these regions.
- By Application
- Vertical farming
- Indoor Farming
- Commercial Greenhouse
- Turf and Landscaping
- By Wavelength
- Blue Wavelength
- Red Wavelength
- Far Red Wavelength
- By Crop Type
- Fruits & Vegetables
- Herbs & Microgreens
- Flowers & Ornamentals
- Other Crop Types
- By Geography
- North America
- United States
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. LED FARMING MARKET, BY APPLICATION
5.2. Vertical farming
5.3. Indoor Farming
5.4. Commercial Greenhouse
5.5. Turf and Landscaping
6. LED FARMING MARKET, BY WAVELENGTH
6.2. Blue Wavelength
6.3. Red Wavelength
6.4. Far Red Wavelength
7. LED FARMING MARKET, BY CROP TYPE
7.2. Fruits & Vegetables
7.3. Herbs & Microgreens
7.4. Flowers & Ornamentals
7.5. Other Crop Types
8. LED FARMING MARKET, BY GEOGRAPHY
8.2. North America
8.2.1. United States
8.3. South America
8.4.1. United Kingdom
8.5. The Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.1. Koninklijke Philips N.V.
10.2. General Electric Company
10.3. OSRAM Opto Semiconductors GmbH
10.4. Heliospectra AB
10.5. Hortilux Schreder B.V.
10.9. California Lightworks
Koninklijke Philips N.V.
General Electric Company
OSRAM Opto Semiconductors GmbH
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