LED Lighting for Horticultural Applications

Advanced Lighting Technology for Food Crops, Floriculture, Cannabis,
and Livestock: Global Market Analysis and Forecasts

The market for horticultural LEDs is beginning to pick up steam under the combined drivers of greater LED adoption rates and the expanded use of indoor farming facilities. The low heat output of LED lighting allows growers to place lights closer to plants without singeing leaves and without needing additional heating, ventilating, and air conditioning (HVAC) equipment, allowing a much greater density of plants within vertical indoor facilities. At the same time, the fine-tuned application of specific wavelengths of light from LEDs can increase crop yield by up to 30% depending on the plant species. LED technology is therefore able to greatly improve the profitability of indoor farming, which is leading to a boom in the growth of such facilities.

While horticultural LED products have been commercially available for roughly 10 years, early products were quite disappointing. As LED technology has improved, however, the quality of horticultural LEDs has quickly outpaced that of high-intensity discharge (HID) or fluorescent alternatives. LEDs are now significantly more efficient, and the additional benefit of supplying the correct wavelengths of light to improve crop yield has made them the lighting technology of choice in an increasing number of facilities. Navigant Research expects LEDs to make up more than half of new horticultural luminaire sales by as early as 2017 in some markets and regions, with the rest of the market and world not far behind.

This Navigant Research report analyzes 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.

Key Questions Addressed:
  • How quickly is LED lighting expected to spread across various horticultural types and global regions?
  • What are the key drivers encouraging the rapid adoption of LED lighting for horticultural applications?
  • How are the various lighting companies positioning themselves for success in this changing market?
  • How will the adoption of LEDs affect how food crops and cannabis are grown indoors?
  • What factors affect lighting decisions in different types of horticulture and different regions of the world?
  • What is the outlook for horticultural lamps and luminaires in each global geographic region?
  • What technology trends may affect the future of the horticultural lighting market?
Who needs this report?
  • Lamp and luminaire vendors
  • Lighting industry associations
  • Lighting designers, architects, and engineering firms
  • Horticultural farmers
  • Energy service companies (ESCOs)
  • Utilities
  • Energy regulators and policymakers
  • Investor community

Table of Contents

1. Executive Summary

1.1  Introduction

1.2  Key Market Drivers

1.3  Forecast Highlights

2. Market Drivers

2.1  Market Overview

2.2  Considerations by Type of Agriculture

2.2.1  Food Crops

2.2.2  Floriculture

2.2.3  Cannabis

2.2.4  Livestock

2.3  Market Drivers

2.3.1  Business Case for Indoor Agricultural LEDs

2.3.2  Local Production

2.3.3  Insects and Pests

2.3.4  Year-Round Production

2.3.5  Climate Uncertainty

2.4  Market Barriers

2.4.1  Capital Costs

2.4.2  Customer Mistrust/Perception of Quality

2.4.3  Lack of Performance Standard

2.5  Codes and Standards

2.5.1  Regulating Energy Consumption for Cannabis Growing

2.6  Trends by Geography

2.6.1  North America

2.6.2  Europe

2.6.3  Asia Pacific

2.6.4  Latin America

2.6.5  Middle East & Africa

3. Technology Issues

3.1  Incumbent Lamp Technologies

3.1.1  Incandescent

3.1.2  Fluorescent

3.1.3  HID

3.2  LED Technology Issues

3.2.1  UV Light Production

3.2.2  Light Spectrum

3.2.3  Heat Generation

3.2.4  Lifespan

3.2.5  Cost

3.2.6  Plant Yield

3.3  Luminaire Types

3.3.1  Strip Lighting

3.3.2  High Bay Lighting

3.4  Lighting Controls for Horticulture

4. Key Industry Players

4.1  Vendor Profiles

4.1.1  Apache Tech

4.1.2  BML Horticulture

4.1.3  California Lightworks

4.1.4  Digital Lumens

4.1.5  EYE HORTILUX

4.1.6  Gavita

4.1.7  GE Lighting

4.1.8  Hubbell Lighting

4.1.9  Hydrofarm

4.1.10  iGROW Lights

4.1.11  Illumitex

4.1.12  LumiGrow

4.1.13  OSRAM

4.1.14  Philips Lighting

4.1.15  Sunlight Supply

4.1.16  Valoya

4.2  Research Organizations

4.3  Industry Associations

4.4  Government: Regulators and Programs

5. Market Forecasts  

5.1  Forecast Overview

5.2  Forecast Components

5.3  Horticulture Luminaire Shipments by Lamp Type

5.4  Unit Shipments by Horticulture Type

5.5  Unit Shipments by Construction Type

5.6  Replacement Lamp Unit Shipments

5.7  Revenue Forecasts by Region

5.7.1  North America

5.7.2  Europe

5.7.3  Asia Pacific

5.7.4  Latin America

5.7.5  Middle East & Africa

5.8  Conclusions and Recommendations

6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Europe: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, Europe: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Asia Pacific: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, Asia Pacific: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Latin America: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, Latin America: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Middle East & Africa: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, Middle East & Africa: 2015-2024
  • Vertical Warehouse Lettuce Growing Using LED Lights
  • Cannabis Production under LED Strip Lighting of Differing Wavelengths
  • Different Colored Lights in Different Parts of Feed Lot Facility
  • Indoor Food Production in a Facility in Chicago in Winter
  • Denver Marijuana Cultivators’ Annual Energy Use: 2012-2014
  • Agricultural Share of Total Employment in Percent: 2005-2010
  • CFL Designed for Horticultural Applications
  • Light Spectrum Emitted by HPS and LED Lighting
  • Example of Close Vertical Layers in an Indoor Lettuce Farm
  • Example of an LED Strip Light from Philips
  • Example of a 4-foot Fixture from Illumitex
  • Layout of LumiGrow Control System
  • LED Luminaire Unit Shipments by Type of Horticulture, World Markets: 2015-2024
  • Covered Agricultural Space by Type of Horticulture, World Markets: 2015-2024
  • Horticultural Luminaire Unit Shipments by Lamp Type, World Markets: 2015-2024
  • Horticultural Lamp Unit Shipments by Lamp Type, World Markets: 2015-2024
  • LED Luminaire Unit Shipments by Type of Horticulture, World Markets: 2015-2024
  • Horticultural LED Luminaire Unit Shipments by Construction Type, World Markets: 2015-2024
  • Replacement Horticultural Lamp Unit Shipments by Lamp Type, World Markets: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, North America: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, North America: 2015-2024

List of Tables

  • Covered Agricultural Space by Type of Horticulture and Region, World Markets: 2015-2024
  • Covered Agricultural Space by Type of Horticulture, World Markets: 2015-2024
  • Horticultural Luminaire Unit Shipments by Lamp Type and Region, World Markets: 2015-2024
  • Horticultural Luminaire Unit Shipments by Lamp Type, World Markets: 2015-2024
  • Horticultural Lamp Unit Shipments by Lamp Type and Region, World Markets: 2015-2024
  • Horticultural Lamp Unit Shipments by Lamp Type, World Markets: 2015-2024
  • LED Luminaire Unit Shipments by Type of Horticulture and Region, World Markets: 2015-2024
  • LED Luminaire Unit Shipments by Type of Horticulture, World Markets: 2015-2024
  • Horticultural LED Luminaire Unit Shipments by Construction Type and Region, World Markets: 2015-2024
  • Horticultural LED Luminaire Unit Shipments by Construction Type, World Markets: 2015-2024
  • Replacement Horticultural Lamp Unit Shipments by Lamp Type and Region, World Markets: 2015-2024
  • Replacement Horticultural Lamp Unit Shipments by Lamp Type, World Markets: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, North America: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Europe: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Asia Pacific: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Latin America: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, Middle East & Africa: 2015-2024
  • Horticultural Lighting Revenue by Equipment Type and Lamp Type, World Markets: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture and Region, World Markets: 2015-2024
  • LED Luminaire Revenue by Type of Horticulture, World Markets: 2015-2024
  • Research Organizations
  • Summary of Industry Associations
  • Summary of U.S. Department of Energy (DOE) Regulators and Programs

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