LED Farming Market Latest Trends, Industry Insights, and Growth Opportunities Forecast Report 2023-2030
The major companies contributing to the global LED farming market include Koninklijke Philips N.V., Gavita International B.V., General Electric Company, OSRAM Opto Semiconductors GmbH, Heliospectra AB, Hortilux Schreder B.V., and Illumitex, among others.
LED Farming Market Overview:
According to the USD Analytics published latest research report, the global “LED Farming Market” is expected to grow at a tremendous CAGR of 12.2% during the forecast period 2023-2030.
It has been discovered that enhanced illumination works best in agricultural situations. LED grow lights are one kind of artificial illumination used in farms. They are also very energy efficient in their operation. As a result, this business is also known as the LED farming or LED grow lights market. LED lights also assist in prolonging typical agricultural hours beyond daylight hours, which helps to increase production.
LED lights are used in four main types of farming: vertical farming, indoor farming, commercial greenhouses, and turf and landscaping. Because of their plastic encasing, LED grow lights are more durable than traditional light bulbs. Increased demand for food goods and the adoption of environmentally friendly fruit and vegetable cultivation are the key drivers of this market’s development.
Market Drivers:
The rising use of controlled environment agriculture, such as vertical farming and indoor farming, has significantly increased demand for LED agricultural goods. Another element contributing to this rising need is the world’s growing population. As the world’s population continues to expand, so will the need for agricultural products. However, with limited land resources, there is a need for alternative farming techniques, such as vertical farming and indoor farming, which use smaller sections of agricultural land, including indoor farms, to produce greater crops.
LED lights contribute to increased harvest quality and quantity by delivering superior energy efficiency, more dependability in terms of visibility and durability, and lower long-term expenses. Cannabis is one such plant that is often produced utilizing controlled environment agriculture, and the legalization of cannabis in several countries will also assist in increasing demand for LED lighting for agricultural reasons. As a consequence of such initiatives, key enterprises in this industry have witnessed a growth in revenue over the last several years. According to their annual reports, Hubbell’s consumer and industrial lighting business generated around $509.4 million in sales in 2021.
Market Restraints:
A key difficulty confronting this business is the high cost of initial setup and installation of LED lights for agricultural uses, which serves as a barrier to the industry’s development by adversely impacting demand. Furthermore, various kinds of crops have distinct illumination needs, making it impossible to utilize them for all sorts of crops. There are no established worldwide standards for LED grow lights at the moment, but they are being created and applied over time. The COVID epidemic also had a substantial effect on this business since it interrupted the product supply chain, albeit the market has been rebounding after the lockdown limitations were released.
Recent Industry Developments:
- Polymatech Electronics, one of India’s largest semiconductor chip makers, offered a new line of horticulture LED products powered by in-house LED chips in January 2023. This will help vertical farming and greenhouse agricultural operations. It is also designed to be a lower-cost alternative to current market alternatives for LED farming, and it is said to give greater efficiency and plant growth.
- Thrive Agritech, an industry leader in horticulture lighting, released its newest 600W Pinnacle LED Grow Light in March 2021. This device is touted to be capable of meeting harsh lighting needs and is predicted to benefit clients via minimal maintenance, great energy efficiency, simplicity of installation, and increased yields.
- Valoya, a research-driven horticulture LED grow lamp manufacturer, launched two new products to its portfolio of greenhouse LEDs in September 2020: the RX500 and RX600. The items are intended to give enhanced illumination across a wider radius and to be long-lasting, with claims of peak performance lasting 36,000 hours and 90% intensity lasting 50,000 hours.
Segmentation Analysis:
As per the research analysis, the global LED farming market is segmented by application into Vertical farming, Indoor Farming, Commercial Greenhouse, and Turf and Landscaping; by wavelength into Blue Wavelength, Red Wavelength, and Far Red Wavelength; and by crop type into Fruits & Vegetables, Herbs & Microgreens, Flowers & Ornamentals, and Other Crop Types.
Vertical Farming to Lead the LED Farming Market
Vertical farming has started a breakthrough trend for light-emitting diode (LED) technology. Because of the economical and effective LED lighting propelling the agricultural technology industry, there has been a quick movement in Controlled Environment Agriculture (CEA) from just high-value crops like cannabis to a diverse range of crops such as microgreens and vegetables. According to the US Department of Energy, the price of LEDs fell by 90% between 2010 and 2014, but their efficiency rose by a factor of two. LEDs are 40% to 70% more energy-efficient and ideal for vertical farms than high-pressure sodium (HPS) or metal halide (MH) lamps, according to empirical findings.
According to the European Research Council, lighting accounted for 35.8% of total income from vertical farming in 2016, estimated at USD 268.0 million. This indicates that LED lights have played an important role in vertical farming and are projected to increase rapidly throughout the projection period
Geographical Analysis:
The global LED farming market is segmented into North America, Europe, South America, Asia Pacific, and Middle East & Africa.
North America LED Farming Market:
North America is predicted to account for a sizable market share, and similar trends are likely to continue over the projection period. This market share is due to increased demand for farm-to-table goods and rising consumer disposable income. Energy efficiency awareness is also an important component in North American market development.
According to US Department of Agriculture statistics, the proportion of agricultural land in the total land area has been continuously declining. As a result, there is a larger need for vertical farming and other innovative agricultural methods. All of these reasons lead to the North American region’s growing market share in the LED farming industry. Due to growing expenditures in agricultural technologies in these countries, the Asia-Pacific region is also predicted to develop rapidly.
Competitive Landscape:
The major companies contributing to the global LED farming market include Koninklijke Philips N.V., Gavita International B.V., General Electric Company, OSRAM Opto Semiconductors GmbH, Heliospectra AB, Hortilux Schreder B.V., and Illumitex, among others.
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