Horticulture Lighting Market

Horticulture Lighting Market Overview

The horticulture lighting market size is projected to grow from $ 6.26 billion in 2024 to $ 42.7 billion by 2035, representing a CAGR of 19.07%, during the forecast period 2024-2035.

To learn more about this report, request a free sample copy

The new research study consists of industry trends, detailed market analysis, key market trends of horticulture lighting market, SWOT analysis and value chain analysis.

Constantly rising global population, urbanization, and climate change around the world are causing challenges for food production in the agriculture industry. These growing concerns have paved the way for farmers to explore modern farming technologies, such as hydroponic lightings, aquaponics, vertical farming, indoor vertical gardens, and greenhouse framing. The key highlight of these controlled environment agriculture technologies is that such farming methods heavily rely on horticulture lighting solutions to provide plants with the essential light spectrum for photosynthesis and growth. Horticulture lighting is a specialized artificial lighting source that is used to promote plant growth specifically in vertical or indoor farming settings. These lighting solutions are designed to imitate or supplement natural sunlight which is crucial for the photosynthesis process and plant growth lighting yield and quality.

Moreover, the growing adoption of vertical farming has unleashed the potential of the horticulture lighting market to expand dynamically worldwide. The variety of lighting solutions, including LED grow lights, high-intensity discharge, fluorescent, and metal halide are advanced lighting technologies that offer different wavelengths of light and colors that impact several aspects of plant growth lighting and development. In addition, an upsurge in indoor farming to cultivate cannabis, floriculture, fruits & vegetables is creating potential opportunities for the horticulture lighting market growth. Furthermore, ongoing technological advancements in LED lighting systems with integrated IoT platforms are likely to generate lucrative opportunities for the industry players in the horticulture market. Notably, in April 2024, Aledia showcased a significant breakthrough in micro-LED  technology focusing on improving energy efficiency, improved resolution and reducing costs for manufacturers. Also, the increasing number of greenhouse farms, research centers for botany, and indoor farms, and the rise in popularity of controlled environment agriculture practices are projected to elevate the growth of the horticulture lighting market during this forecast.

Horticulture Lighting Market Share Insights

The market report presents an in-depth analysis of the various service providers that are involved in offering horticulture lighting market, across different segments, as defined in the table below:

Horticulture Lighting Market: Report Attributes / Market Segmentations

Horticulture Lighting Market Key Segments

Horticulture Lighting Market Share by Type of Lighting 

The global horticulture lighting market is bifurcated into various types of lighting namely inter lighting, supplemental lighting, and top lighting. The top lighting segment is expected to capture the maximum horticulture lighting market share and dominate the segment throughout this forecast period. The upsurge in commercial vertical farming and indoor vertical gardens has fueled the demand for top lighting as it is widely used specifically for larger installations provides adequate light from above and promotes photosynthesis throughout the plant’s growth cycle. However, the supplement lighting segment is anticipated to register a higher CAGR due to an increase in commercial greenhouse farms and controlled environment agriculture practices in which supplement lighting offers enhanced light intensity and uniformity across plants, particularly in low light or cloudy weather is likely to drive the demand for horticulture lighting significantly 

Horticulture Lighting Market Share by Type of Technology

This segment underscores the distribution of the global horticulture market based on various technologies, such as fluorescent, high-intensity discharge (HID) lights, light-emitting diode (LED), metal halide, and others. LED technology is predicted to be a leading segment with the majority of the market share. The advantages of horticulture LED lighting market in energy efficiency, cost-effectiveness, customizable light spectrum, and longer life space with low heat emission make LED lighting a popular choice in the vertical farming industry. Also, the latest technological advancements in LED technology continue to improve the light output, spectrum quality and efficiency which complement them for diverse horticulture applications. While high-intensity discharge (HID) is projected to grow at a faster growth rate over this projection period with higher demand in commercial greenhouses and vertical farms owing to its ability to provide light in a larger setting. 

Horticulture Lighting Market Share by Type of Offering

On the basis of the type of offering, the global market for horticulture lighting is split into two types of offerings including hardware and software & services. As per market research, the hardware segment obtained the major share of the market and is anticipated to lead the segment till 2035. Primarily, the extensive demand for LED fixtures, light bulbs & tubes, cooling systems, sensors, and other essential hardware components significantly boosts the segment growth. Additionally, the importance of inter-lighting systems and top lighting systems in indoor farming largely contributes to uplifting the market demand. Therefore, these factors are estimated to continue to fuel the horticulture lighting market growth throughout this forecast period.

Horticulture Lighting Market Share by Type of Cultivation

The horticulture lighting market has various types of cultivation options such as cannabis, floriculture, fruits & vegetables. Cultivation for the cannabis segment is the dominating segment and is projected to acquire the majority of the share in terms of revenue. The therapeutic elements of cannabis and their increasing use in pharmaceutical, medical, and recreational industries have propelled the demand for cannabis. To meet this rising demand, several farmers are increasingly cultivating cannabis within their limited space by leveraging advanced cultivation techniques which exceptionally support the growth of the segment. Nevertheless, the rise in individuals’ interest in growing fresh fruits and vegetables at home is further poised to foster the growth of this segment at a noteworthy CAGR over this forecast period. 

Horticulture Lighting Market Share by Type of Installation 

This horticulture lighting market features different types of installation. The first is new installations and the other one is retrofit installations. According to market research, the retrofit segment captures the highest share and leads the segment mainly due to its affordability as retrofitting in existing facilities with new energy-efficient lighting systems provides cost-efficiency compared to building a new installation from scratch. However, the ascending popularity of vertical farming or greenhouse farming is anticipated to lift the demand for new installations for commercial vertical farming companies. Hence, the new installation segment is likely to witness an extensive growth rate in the upcoming decade. 

Horticulture Lighting Market Share by Type of Application

This segment highlights the distribution of the horticulture lighting market across greenhouses, indoor farms, and vertical farms. and others. Vertical farm applications are projected to gain the maximum share of the market and will dominate the segment throughout the forecast 2024-2035. A prevailing trend of vertical farming in the horticulture industry particularly, in urban areas is the major factor in elevating the growth of the segment. The growing awareness of various types of controlled environment agriculture techniques is likely to fuel the demand for vertical farms which greatly support the horticulture lighting market growth. Also, the high-quality food production in confined spaces is a vital aspect of vertical farms which will incredibly aid the growth of the segment. Moreover, commercial greenhouse farms are further predicted to experience a higher growth rate during this projection period. This can be ascribed to the benefits of greenhouse farms in extending the growing season which allows farmers to grow crops outside of their natural growing seasons which helps in increasing productivity and market supply. 

Horticulture Lighting Market Share by Type of Geographical Regions

This segment highlights the distribution of the horticulture lighting market across various geographical regions such as North America, Europe, Asia, Latin America, Middle East and North Africa horticulture lighting market and rest of the world. As per market review, Europe is projected to gain the largest horticulture lighting market share and continue to dominate the global market for horticulture lighting. The upsurge in the adoption of advanced agriculture practices and vertical farming due to limited arable land and unfavorable climate conditions are credited to fuel the market growth in the region. Along with this, greater emphasis on sustainable farming and the presence of industry players are likely to foster market growth in the region. Furthermore, North America is anticipated to rise at a moderate CAGR throughout this projection timeframe. The early acceptance of innovative technologies coupled with large-scale commercial farming operations and climate variability are some of the leading factors to augment the market growth in North America. 

Horticulture Lighting Market Key Insights

The “Horticulture Lighting Market, Till-2035: Distribution by Type of Lighting (Inter Lighting, Supplemental Lighting, and Top Lighting), Type of Technology (Fluorescent, High-Intensity Discharge (HID), Light-emitting diode (LED), Metal Halide, and Others), Type of Offering (Hardware and Software & Services), Type of Cultivation (Cannabis, Floriculture, and Fruits & Vegetables), Type of Installation (New Installations and Retrofit Installations), Type of Application (Greenhouse, Indoor Farms, Research Vertical Farms, and Others), and Key Geographical Regions (North America, Europe, Asia, Latin America and Middle East and North Africa and Rest of the World): Industry Trends and Global Forecasts” report features an extensive study of the current market landscape, market size and future opportunity within the horticulture lighting market, during the given forecast period. The market report highlights the efforts of several stakeholders involved in this rapidly emerging segment of the service providers industry. The key takeaways of the horticulture lighting market report are briefly discussed below.

Market Trends in Horticulture Lighting Market

The growing trend of vertical farming around the world, driven by the limited arable land and climate changes, has opened up a new window for the horticulture lighting market worldwide. Also, the rise in the adoption of home gardening and increasing interest among individuals to grow their fresh crops, vegetables, and herbs that require horticulture lighting for crops to grow, are increasingly generating lucrative opportunities for horticulture lighting manufacturers. In addition to this, with the growth in the adoption of LED technology and continuous advancements in smart lighting and IoT integration, manufacturers are developing advanced LED lighting for specific farming requirements. These lighting systems empower cultivators to control the indoor environment and optimize crop production during the farming period, reducing the dependency on seasonal changes and external environment. By influencing these factors, small and commercial vertical farming companies and horticulture lighting manufacturers are substantially collaborating, which is likely to enhance the growth of the horticulture lighting market over this projection period. For instance, In July 2024, Bloemteknik (a leading company in providing customized horticultural lighting solutions) collaborated with Ecopromt (a vertical farm designer and constructor) to deliver tailored lighting solutions for vertical farm operators globally. 

Competitive Landscape of Horticulture Lighting Manufacturers

The competitive landscape of the horticulture lighting market is categorized by several small and giant LED lighting manufacturers from prominent multinational companies to niche tech startups. Some of the leading key players such as OSRAM Licht AG, General Electric Lighting, and Signify dominate the market with their broad product folio. On the other hand, innovative startup firms like Helicospectra, LumiGrow, and others are adopting innovative approaches and niche solutions to cater to specific horticultural requirements. Moreover, to stay ahead of the market competition, these companies employ competitive strategies, such as capital investment for product innovation, collaboration and partnership with other key players to expand market reach, and mergers and acquisitions to leverage the expertise & technologies of niche players. For instance, in May 2024, Philips Horticulture LED Solutions collaborated with Hoogendoorn Growth Management to maximize the benefits of smart lighting in vertical farming. Combining Philips Horticulture LED’s expertise in cutting-edge LED lighting solutions and Hoogendoorn’s prowess in climate automation, the partnership aims to optimize crop growth in indoor farming.

Key Drivers of Horticulture Lighting Market 

Numerous factors contribute to the horticulture lighting market growth, however, expanding urbanization and shrinking arable land primarily encourage vertical farming, significantly driving the demand for horticulture lighting. Additionally, propelling demand for food production worldwide due to the increasing global population fueling the need for efficient and sustainable agricultural practices. Along with this, technological advancements in lighting and the growing adoption of controlled environment agriculture practices are further expected to elevate the growth of the horticulture lighting market during this forecast period. 

Regional Analysis: Europe is Anticipated to Capture the Highest Market Share with its Advanced Agricultural Practices

With respect to regional insights, Europe is poised to acquire the maximum share of the horticulture lighting market in the global marketplace. The lack of agricultural land and unfavorable climate conditions are the major factors that fuel the demand for horticulture lighting in Europe. The high adoption of vertical farming which essentially requires horticulture lighting further boosts the market demand. Moreover, Europe is known for its advanced and innovative agricultural practices, including the extensive adoption of greenhouse and indoor farming which advance the demand for horticulture lighting. Besides, government support and subsidies, high adoption of technology, and increasing focus on sustainable agricultural practices are substantially attributed to the increased growth of the horticulture lighting market in the region. The presence of established key players and the emergence of startups with the launch of their advanced horticulture lighting technologies and solutions are likely to influence the market. For instance, in April 2024, a newly established Dutch lighting company, NLight introduced the RV1000 LED grow light, which aims to lead the industry with its focus on LED technology.

Horticulture Lighting Manufactures in the Horticulture Lighting Market 

Examples of key service providers involved in the Horticulture Lighting Market (which have also been captured in this market report, arranged in alphabetical order) include California LightWorks (USA), Everlight Electronics (Taiwan), Gavita International (Netherlands), General Electric (GE) Lighting (USA), Heliospectra AB (Sweden), Hortilux Schreder (Netherlands), ILUMINAR Lighting (USA), LumiGrow (US), Agrolux (Netherlands), OSRAM Licht (Germany), Signify (Netherlands), Spectrum King LED (US), Thrive Agritech (US), Valoya Oy (Finland). This market report includes an easily searchable Excel database of all the companies who have adopted the horticulture lighting market.

Horticulture Lighting Market Report Coverage

The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain, across different segments. Amongst other elements, the market report includes:

• A preface providing an introduction to the full report, horticulture lighting market, 2019-2023 (Historical Trends) and 2024-2035 (Forecasted Estimates).
• An outline of the systematic research methodology adopted to conduct the study on the Horticulture Lighting Market, providing insights on the various assumptions, methodologies, and quality control measures employed to ensure the accuracy and reliability of our findings.
• An overview of economic factors that impact the overall horticulture lighting market, including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
• An executive summary of the insights captured during our research. It offers a high-level view of the current state of the market for horticulture lighting and its likely evolution in the mid-long term.
• A detailed assessment of the horticulture lighting market landscape, based on several relevant parameters, including year of experience, company size, location of headquarters, and ownership structure.
• Elaborate profiles of prominent players engaged in the horticulture lighting market, featuring information on their year of establishment, location of headquarters, company size, company mission, company footprint, management team, contact details, financial information, operating business segments, horticulture solution and service portfolio, moat analysis, recent developments, and an informed future outlook. 
• A value chain analysis featuring a discussion on various stakeholders involved in the development of the horticulture lighting market, from suppliers to end-users.
• A discussion on affiliated trends, key drivers, and challenges, under a SWOT framework, which are likely to impact the industry’s evolution, along with a Harvey ball analysis, highlighting the relative effect of each SWOT parameter on the overall horticulture lighting market.
• A detailed estimate of the current market size and the future growth potential of the horticulture lighting market over the next decade. Based on multiple parameters we have provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunities within the horticulture lighting industry. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s growth.
• Detailed projections of the current and future horticulture lighting market across various types of lighting such as inter lighting, supplemental lighting, and top lighting.
• Detailed projections of the current and future horticulture lighting market across various types of technology, such as fluorescent, high-intensity discharge (HID), light-emitting diode (LED), metal halide, and others.
• Detailed projections of the current and future horticulture lighting market across various types of offerings such as hardware and software & services.
• Detailed projections of the current and future horticulture lighting market across various types of cultivation such as cannabis, floriculture, and fruits & vegetables.
• Detailed projections of the current and future horticulture lighting market across various types of installation such as new installations and retrofit installations.
• Detailed projections of the current and future horticulture lighting market across various types of applications such as greenhouse, indoor farms, research vertical farms, and others.
• Detailed projections of the current and future market for horticulture lighting across various key geographical regions, such as North America horticulture lighting market (US, Canada, Mexico and other American countries), Europe horticulture lighting market (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, UK and other European countries), Asia horticulture lighting market (China, India, Japan, Singapore, South Korea and other Asian countries), Middle East and North Africa horticulture lighting market (Egypt, Iran, Iraq, Israel, Kuwait, Saudi Arabia, UAE and other MENA countries), Latin America horticulture lighting market (Brazil, Chile, Colombia, Venezuela, and other Latin American countries) and rest of the world (Australia, New Zealand, and other countries).

Recent Developments in Horticulture Lighting Market

• In July 2024, Huisman Chrysanten integrated the Philips GrowWise Control System with Hoogendoorn’s IIVO climate computer to optimize LED lighting for their crops. This integration allows accurate adjustment of Philips LED’s intensity and spectrum according to crop requirements. 
• In June 2024, MechaTronix introduced a new Coolstack Growlight by incorporating Osram OSCONIQ P3737 LEDs for high-wire crops. These LEDs are complemented by newly designed optics specifically suited for tall-growing crops such as tomatoes and cucumbers.
• In May 2024, Valoya India partnered with LettUs Grow to offer an integrated solution for vertical farming companies. This partnership aims to offer enhanced crop quality, boost in yields, and reduce water consumption through aeroponic technology.
• In November 2023, Acuity Brands aquired Arize horticultural lighting from Current Lighting Solutions to enhance its portfolio in the controlled environment agriculture market

Authors: Ronit Sharma, Rishav Thakur

Customization Opportunities

At Roots Analysis, we genuinely care about your success and understand that your business requirements are unique. While our market research reports provide valuable insights, we recognize that they might not cover every aspect you need to make well-informed strategic decisions. To account for that, we offer 15% free report customization tailored to your specific needs. Whether you require additional quantitative analysis, qualitative insights, or any other information related to the horticulture lighting market, reach out to us today at: support@rootsanalysis.com