According to the United Nations Department of Economic and Social Affairs (UN-DESA), the world's population is expected to rise to 8.5 billion by 2030. The increase in disposable income in parallel with the increasing population will cause an increase in food products.
In order to increase the efficiency in agricultural production, in addition to making the best use of existing agricultural lands, many countries are also developing indoor agricultural practices and production technicians.
With the impact of population growth and the increase in indoor agricultural practices, the agricultural lighting market, which was $ 3.2 billion in 2019, is expected to increase to $ 20.3 billion in 2030.
Currently, the dominant lighting system in indoor vertical farming is LED systems. These systems, which allow growers to control the light intensity to suit different plants and crops, will continue to hold the largest revenue share in indoor vertical farming until 2030, with the advantage of cost-effectiveness.
With the increasing demand for flowers and decorative cut flowers until 2030, the lighting market is expected to grow significantly in this sector as well. Today, flower exports generate the highest income in Europe, followed by Latin America, Asia-Pacific, the Middle East, Africa and North America.
In the coming periods, it is predicted that the increase in population and urbanization will shrink the agricultural lands and as a result, vertical agriculture in closed areas will increase. As a result of this shrinkage, the society will have to adopt indoor farming methods.
Between 2014-2019, Europe was also the largest market for greenhouse lighting, as it was a producer and exporter of fruits, vegetables, flowers. Considering disposable income and annual growth rates in the 2030 forecast period, this market is expected to shift to Asia-Pacific countries. Countries in this region have seriously entered the process of researching greenhouse cultivation and vertical farming application techniques as a result of increasing population and decreasing arable land.
Related Products
Between 2014 and 2019, Europe was the largest lighting market for greenhouses and horticulture. This is because it is the world's largest exporter and also a producer of fruits, flowers and vegetables. During the forecast period, Asia-Pacific will experience the highest CAGR (Compound Annual Growth Rate) at 21.1%, due to its increasing disposable income and population. Also, as a result of the reduction of arable land, many countries in the region are seriously studying modern farming techniques such as indoor gardening, greenhouse cultivation and vertical farming.
In recent years, many players serving in the greenhouse lighting market have sought new customer acquisitions to increase their sales and strengthen their position in the industry.
It is thought that the competition in the global greenhouse and agricultural lighting market will be between players such as Cree, Samsung Electronics, Lumileds, EPISTAR Corporation, Everlight Electronics, Osram, Signify, Broadcom, Hortilux SchrderBV, LumiGrow and Heliospectra.