The global market for light-emitting diode (LED) luminaires for horticultural applications is expected to grow to $2.8bn by 2024, according to the report 'LED Lighting for Horticultural Applications' from Navigant Research.
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. Despite being more expensive than other technologies, LEDs are now the preferred lighting technology in an increasing number of facilities, because of advantages that can increase energy efficiency and crop yields, notes the report.
"The United States and Canada are seeing some of the fastest adoption rates for LEDs in horticultural applications," says principal research analyst Benjamin Freas. "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, forecasts the report. Of the other horticultural applications, indoor cannabis production, which is forecast to grow steadily worldwide and quickly in North America as legalization laws change, can particularly benefit from the dramatically lower costs associated with LED lighting.
