A recent report from Navigant Research suggests that LED luminaire sales for horticultural applications are expected to total $2.8 billion by 2024.
The next five years are expected to bring great opportunity for lighting companies as new indoor growing facilities are built and as new horticultural market entrants make decisions on available brands. Light-emitting diodes (LEDs) are now the preferred lighting technology in an increasing number of facilities, despite being more expensive than other technologies, because of advantages that can increase energy efficiency and crop yields.
“The United States and Canada are seeing some of the fastest adoption rates for LEDs in horticultural applications,” says Benjamin Freas, principal research analyst with Navigant Research. “With high labor rates and land near population centers at a premium, even a small increase in crop yield can have a big impact on net revenue.”
Indoor space used to grow food crops is expected to more than triple in the coming decade, according to the report. Of the other horticultural applications, indoor cannabis production, which is forecast to grow steadily worldwide and quickly in North America as legalisation laws change, can particularly benefit from the dramatically lower costs associated with LED lighting.
The report, LED Lighting for Horticultural Applications, analyses the global market for lighting within horticultural applications. The study provides an analysis of the market issues, including drivers and trends, barriers, cost issues, and technological developments, associated with lamps and luminaires intended for horticultural use. Global market forecasts for unit sales and revenue, segmented by region, horticultural type, lamp type, equipment type, and construction type, extend through 2024. The report also examines the key codes and standards and regional influences related to horticultural lighting, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.