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LED Lighting for Horticultural Applications

The market for horticultural LEDs is beginning to pick up steam under the combined drivers of greater LED adoption rates and the expanded use of indoor farming facilities. The low heat output of LED lighting allows growers to place lights closer to plants without singeing leaves and without needing additional heating, ventilating, and air conditioning (HVAC) equipment, allowing a much greater density of plants within vertical indoor facilities. At the same time, the fine-tuned application of specific wavelengths of light from LEDs can increase crop yield by up to 30% depending on the plant species. LED technology is therefore able to greatly improve the profitability of indoor farming, which is leading to a boom in the growth of such facilities.

While horticultural LED products have been commercially available for roughly 10 years, early products were quite disappointing. As LED technology has improved, however, the quality of horticultural LEDs has quickly outpaced that of high-intensity discharge (HID) or fluorescent alternatives. LEDs are now significantly more efficient, and the additional benefit of supplying the correct wavelengths of light to improve crop yield has made them the lighting technology of choice in an increasing number of facilities. Navigant Research expects LEDs to make up more than half of new horticultural luminaire sales by as early as 2017 in some markets and regions, with the rest of the market and world not far behind.

The Navigant Research report analyzes the global market for lighting within horticultural applications. The study provides an analysis of the market issues, including drivers and trends, barriers, cost issues, and technological developments associated with lamps and luminaires intended for horticultural use. Global market forecasts for unit sales and revenue, segmented by region, horticultural type, lamp type, equipment type, and construction type, extend through 2024. The report also examines the key codes and standards and regional influences related to horticultural lighting, as well as the competitive landscape.

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