Animal Lighting Market

According to MarketsandMarkets, the global Animal lighting market size is estimated to be valued at USD XXX.X million in 2024 and is projected to reach USD XXX.X million by 2029, recording a CAGR of X.X%.

The convergence of regulatory mandates, technological innovations, and industry demands are reshaping livestock farming practices. For example, the European Union, in its Directive 2007/43/EC, has made some provisions regarding lighting in poultry keeping, which forces farmers to use advanced lighting systems. Good lighting can enhance egg production by 10%, according to the United States Department of Agriculture, thus presenting the productivity enhancement driving market adoption. The interest in LED lighting, according to the US Department of Energy, is increasing as the running cost of LED lights is cheaper by using 75% fewer energy resources and lasting 25 times longer than traditional incandescent lighting. Of course, the interest in such a technological shift is further fanned by the search for sustainable agriculture since, in the case of energy-efficient lighting, the interest seems to favorably dovetail with such global environmental goals. Governments are also becoming more supportive of food production that is considered 'ethical'; the USDA's Organic Certification, for example, requires some basic lighting standards that are conducive to animal welfare. Coupled with this, increasing growth in intensive farming in developing markets, especially in the Asia-Pacific region, remains a continuous demand for a controlled lighting environment. The FAO projects 15% growth in the world's meat production by 2027. There are a few factors at play that, all combined, push the animal lighting market further as farmers and producers work to comply with regulations, improve productivity, reduce costs, and gain efficiency toward the dawn of ethical and sustainable food production.

Key players are increasingly entering into strategic collaborative arrangements that help build capacity and extend their reach in the animal lighting market. For instance, in July 2024, Signify and Gila Al Tawakol Electric jointly announced a Joint Venture to develop a regional manufacturing base in Egypt. The facility, Signify Gila Lighting Technologies, will institute accessibility and efficiency that accelerate the delivery of advanced animal lighting solutions. The new venture, in which Signify will own 60% and have operational control, will contribute significantly to the growth of new lighting technologies in Europe, Africa, and the Middle East.

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ANIMAL LIGHTING MARKET DYNAMICS

Drivers: Increasing Animal Welfare Regulations in Europe and North America Drive Demand for Advanced Lighting Systems in Livestock Farming Industry.

Animal lighting is the increasing enforcement of animal welfare regulations, especially in developed regions like Europe and North America. Governments are increasingly tightening the regulations to have specified lighting conditions that can increase the welfare and productivity of livestock.

An example is the European Union's Directive 2007/43/EC, among whose requirements on the welfare of broiler chickens is that poultry houses should be adequately lit to provide at least 20 lux of light intensity during a day of at least 8 hours. At least one period of uninterrupted darkness of not less than 6 hours should be provided to simulate natural day-night cycles as well. These requirements are meant to be in place such that they reduce stress, minimize aggression, and enhance general health besides boosting productivity in poultry, hence the advanced lighting systems for use in poultry farming.

The same trends are observed in North America. The USDA, under the Animal Welfare Act and its guidelines, states that good lighting is critical in its efforts to ensure the humane treatment of animals. For example, the USDA Organic Certification program, requirements of which often include some form of specific lighting to raise the animals in such conditions that their natural behaviors are encouraged, hence organic farms started investing in high technological lighting.

The implementations of these regulations have carried the demand for special solutions in animal lighting that may cover governments' exact requirements. Following these regulations, farmers and producers will continue providing the market anyway with animal lighting technologies, including those based on LED and smart lighting.

Restraints: High setup and installation costs of LED animal lights

The use of animal lighting is increasing with the rising awareness about the benefits offered by these solutions. Different sources of artificial light have been used to grow plants indoors. Earlier, high-pressure sodium (HPS) and electric ballasts were widely used in indoor farming as effective sources of light. Nowadays, LEDs are in trend; these lights overcome the drawbacks of (HPS), fluorescent (FL), metal-halide lights, and electric ballasts. However, the initial capital required to purchase good-quality LED lights is higher than that of conventional lighting technologies, such as FL and high-intensity discharge (HID) lamps. This is mainly because each LED light unit contains arrays of LEDs, specially designed for horticultural applications. These units often contain different types of LEDs with variations in watts and wavelengths to provide a broad range of light spectrum and intensity for different types of plants. High-powered LED grow lights are available at starting prices of around USD 500 on the market. A high-quality, full-spectrum LED grow light can be installed for the mainstream light installed for indoor growing commercially. This would have a cost of around USD 2,000 and above, depending on power output and any other given specifications. A high-powered induction grow light would cost over USD 1,300, while a high-powered plasma grow light would cost about USD 3,000. The grow lights are far more expensive compared to the 1,000-watt HPS light, which is sold for a price ranging from USD 100 to around USD 150 in the market and is capable of offering more than enough light for the photosynthesis process. This huge cost difference deters growers from using energy-efficient grow light technologies like LEDs, induction lighting, and plasma lighting.

Opportunities: The poultry sector, which is highly based on the process of light management to enhance egg production and overall poultry health.

Correct lighting has been properly documented to dramatically affect the processes of reproduction, growth, and even behavioral patterns related to poultry. For instance, LED lighting systems with specified wavelengths will be able to stimulate egg production and enhance the feed conversion ratio, leading to a much more efficient and profitable operation.

According to the USDA, one study in particular showed that intensity and spectrum of light are very important, key elements in controlling the reproductive cycle of laying hens. It emerged that red-spectrum LED lights may improve egg production by up to 5-10% over traditional fluorescent lighting. Moreover, systems are far more energy-intensive, saving electricity costs by as much as 20-30%, which is key to large poultry farms that intend to reduce operation costs.

Government initiatives aimed at promoting energy efficiency and animal welfare are further fueling the trend towards LED and smart lighting systems. For instance, Horizon 2020 of the European Union-funded several projects developing sustainable farming technologies inclusive of state-of-the-art animal lighting solutions. Add to that kind of regulatory support the growing consumer demand for ethical production of eggs and poultry products, and it becomes the very receptive ground for innovation and adoption of new lighting technologies.

For example, one German poultry farm has increased its egg production by 7% and reduced energy consumption by 25% simply by switching to smart LED lighting. This illustrates the real added value and further market potential for advanced lighting solutions in poultry farming.

Challenges: Lack of standard testing practices for assessing product quality of animal lights and their fixtures.

One of the biggest hurdles in the lighting technology industry is a universal testing methodology to measure product quality, especially for new technologies in lights, such as LED, induction, and plasma. The quality of a product with Luminaire has to be validated, mainly for the lumen output and the operating life. Manufacturers of LED grow lights have, based on their several years of research and testing, claimed their products can run from as low as 30,000 hours to 50,000 hours. However, every manufacturer has their own technique for manufacturing LEDs; hence, their testing practices also differ. In response, the failure to accurately validate the LED grow light lifespan may make the manufacturer false claim for a particular product. Consequently, mutual agreements and the designing of standardized testing have to be formed to check quality. It is also leading to the raising of trade barriers and trying to influence the adaptation of LED technology across the world in lighting, vehicle, and agrarian applications.

The US and most other developed countries do have channels like institutions that monitor quality assurance. Still, many emerging economies do not have quality assurance. For example, ANSI has worked with the US Department of Energy to develop standards for Solid-State light and the same department with NEMA and the IES on other standards. ASABE is one of the standardization bodies accredited with ANSI. Its Animal Lighting Committee promulgated a standard, Lighting Systems Ford Agricultural, that includes the Section Greenhouse Lighting System Design that covers three critical, from a design perspective, design objectives of greenhouse lighting systems: instantaneous light level, remote times often printed as the value of the photoperiod. and uniformity ( critical for both instantaneous and photoperiod lighting). In early 2015, ASABE established a new Plant Growth LED Lighting Committee, with the overall goal being: "What metrics can be measured properly, by establishing a standardization committee to create LED animal lighting standards". This challenge would likely be damped during the next few years because big standard organizations are involved in the process of creating standard testing practices that would help in recognizing the quality of animal lighting systems.

LED segment is projected to grow at a significant rate in the light source segment of the animal lighting market.

The market for LED is projected to grow at a significant CAGR during the forecast period, both in terms of value and volume. This is due to significant energy savings and longer durability. They are more energy-efficient, with one-fifth of the power consumption of incandescent bulbs. Hence, the livestock farm owners are switching toward LED technology, owing to their high energy efficiency, minimal maintenance, fully dimmable, availability in multicolor, high-speed response, and longer lifespan.

By offering hardware, it is expected to hold a significant market share in the forecasted period.

Animal lights act as supplementary lights to accelerate the growth of milk and meat production from cattle, poultry, swine, and fish production. The hardware segment of the animal lighting market has been classified into lighting fixtures (lamps, luminaires) and lighting controls.

In December 2022, Signify Holding launched GreenPower LED technology for VAXA – Iceland’s first vertical farm. Similarly, DeLaval provides an energy-saving LED lighting solution –- DeLaval Linear LED light LL3000, which provides the right type and intensity of light to improve every area of a dairy farm. On similar lines with artificial lighting hardware, Lely unveiled a brand-new 125-watt LED fixture with an 18,000-lumen maximum output. The Lely L4C LED 125 was created specifically for workstations, low barns, dry cows, and beef cattle. Each fixture has a link to a control box, and the LED lights are dimmable. Depending on where each lamp is in the barn, the amount of light is controlled independently. The system uses a light sensor to determine how much light is required and adjusts the output of the fixtures to match the changing light conditions. The control box may even replicate a natural dawn and sunset to ensure optimum animal performance.

The cattle segment by livestock category holds a significant market share in the animal lighting market

The rising demand for dairy & dairy-based products includes milk, cheese, yogurt, and butter in both developed and developing countries, which is projected to drive the usage of lighting in cattle farms. The duration and intensity of light needed by the cattle depend upon the age of the cattle as well as the purpose for which they are domesticated. For example, dairy cattle farmed for milk production requires 150-200 lux for 16-18 hours per day, followed by eight hours of darkness, whereas beef cattle that are farmed for meat require only 80-100 lux for 16 hours per day, followed by eight hours of darkness. This duration and intensity of light improve fertility, restraint toward disease, and heat perception in the cattle. Moreover, the correct light duration also shortens the calving period in cattle. In this study, the market for cattle is sub segmented into two, i.e., dairy cattle and beef cattle.

Asia Pacific is poised to experience a significant market share in the Animal lighting market during the forecast period.

The rapid expansion of intensive farming in the region, growing awareness about animal welfare, and supportive government policies that enhance agricultural productivity.

Intensive farming operations have positive surge across the region, particularly in China, India, and Vietnam. According to FAO, poultry and livestock farming dominate Asia as the largest producer, accounting for almost 45% of the world's total meat production. This huge scale of production demands that modern farming technologies be employed in all aspects, including specialized lighting systems, so as to establish the most suitable conditions for the growth and productivity of farm animals. The FAO further reports that more than 20% of the world's meat is produced in China only, thus stating the huge scale of livestock operation in the region.

The Ministry of Agriculture and Rural Affairs of China has launched a number of programs to modernize farming practices with regard to energy efficiency and welfare enhancement technologies. In 2021, one of the key policy directives, entitled "No. 1 Central Document," focused on promoting agricultural technologies to enhance productivity and sustainability in farming. These initiatives will help increase farmers' awareness of and encourage the adoption of animal lighting solutions offering optimum productivity and welfare objectives.

Asia Pacific: Animal lighting market SNAPSHOT

Key Market Players

Key players in this market include Signify Holding (Netherlands), ams-OSRAM GmbH (Germany), Gavita International B.V. (Netherlands), Valoya (Finland), California LightWorks (US), DeLaval (Sweden), CBM Lighting (Canada), Heliospectra AB (Sweden), Hortilux Schréder (Netherlands). These players have adopted strategies of product launches, expansions, agreements/partnerships, and mergers and acquisitions to grow in the market. All key product manufacturers that are part of the Animal lighting ecosystem have been considered under the company profiles section.

Recent Developments

• In July 2023, ams OSRAM has introduced the OSIRE E3731i intelligent RGB LED, revolutionizing automotive interior lighting. This LED features a digital core that enables low-latency communication with any microcontroller through a new license-free Open System Protocol (OSP). It supports dynamic color and intensity effects across up to 1,000 LEDs, reducing implementation costs and complexity. The OSIRE® E3731i promises enhanced decorative and functional lighting effects in vehicles.
• In July 2024, Signify and Gila Al Tawakol Electric launched a joint venture to establish a regional manufacturing base in Egypt. This partnership aims to strengthen Signify's presence in the Middle East and Africa, enhancing the production and distribution of advanced animal lighting solutions. The venture aligns with regional demands for energy-efficient technologies and is expected to contribute significantly to the growth of the animal lighting market in these regions.
• In June 2024, Signify partnered with the Climate Group and other entities to launch the Renovation Revolution within the European Union. This initiative focuses on increasing renovation rates to support the EU's 2050 net-zero targets. As part of this effort, Signify is expected to promote advanced lighting solutions, including animal lighting, that enhance energy efficiency and sustainability, thus driving demand in the EU market.

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