According to a new report from Navigant Research, by 2027, global luminaire revenue for horticultural applications is projected to reach $3.8 billion. The report points out that LEDs offer improved efficiency and enhanced crop yields for higher profits. Furthermore, the firm says that lighting manufacturers are supplying tunable solutions of LEDs that support plants during various stages of their growth cycles.
This added adjustability lets farmers modify the light output to find the ideal light recipe to maximize yield and various types of crop growth.
“Market growth in horticultural LED applications has helped lower installation costs for luminaires, driving further adoption for LED technology,” said Courtney Marshall, research analyst with Navigant Research. “This feedback loop between more affordable prices and greater adoption rates has created a market environment marked by innovation and experimentation as vendors look to upgrade their offerings with quality research.”
Navigant notes that the industry does not have an existing one-size-fits-all approach, and this lack of such an approach offers an opportunity for collaboration among startups, incumbents, and universities to give customers proven and scalable lighting for horticulture.
The economies of scale created with more efficient grow operations drawn big-name investors such as Amazon and Alphabet (Google). Furthermore, Navigant says that developing countries in parts of the Asia Pacific region have shown interest in using better grow technology, especially for areas suffering issues of pollution, water scarcity, and food security. The growing number of indoor farming facilities are arising around the world, has lead to the realization of the market potential for indoor farming, resulting in increased adoption rates for LED-base horticultural lighting.
