Market barriers include inconsistent cannabis legalization, cost, limited access to capital, and technology uncertainty but are outweighed by growth factors
BOULDER, Colo., July 27, 2021--(BUSINESS WIRE)--A new report from Guidehouse Insights provides a study of the global market potential for horticultural lighting with a focus on LEDs for three types of horticultural applications and five technology types.
The rising acceptance of LED technology and the increase in cannabis cultivation in the US, Europe, and Asia Pacific are the two primary factors driving the horticulture lighting market in 2021. According to a new report from Guidehouse Insights, worldwide horticulture LED lighting shipments are expected to grow at a CAGR of 33% by 2030.
"In the coming months and years, lighting experts anticipate the use of LED lighting will increase and dominate the market, with legacy technologies falling behind," says Krystal Maxwell, research director with Guidehouse Insights. "This trajectory will likely continue as more US states and other world regions legalize cannabis and growers of other crops better understand the benefits of LED technology for their operations."
While there are many growth factors, a few dynamics are preventing the market from growing as fast as it could. These barriers include inconsistent cannabis legalization, cost, limited access to capital, and technology uncertainty. As the rise of the LED lighting market continues, especially if cannabis is legalized on the federal level in the US, lighting industry experts foresee a consolidation of the market through merger and acquisition activity, with companies that do not meet emerging standards going out of business.
The report, LED Lighting for Horticultural Applications, provides a study of the global market potential for horticultural lighting with a focus on LEDs, covering unit sales and revenue. The report considers three types of horticultural applications: cannabis, produce, and floriculture. This report also covers five technology types: LED, HPS, fluorescent, metal halide, and other. All major global regions of the world—North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa—are included, and the forecast period extends through 2030. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges and navigate significant regulatory pressures with a focus on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that prepare our clients for future growth and success. The company has more than 10,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.
* The information contained in this press release concerning the report, LED Lighting for Horticultural Applications, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
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