Agricultural Lighting Market Size - By Component (Hardware, Software, Services), Light Source (Fluorescent, High Intensity Discharge, LED, Others), Installation Type (New, Retrofit), Application (Horticulture, Livestock, Aquaculture) & Forecast, 2024 – 2032

Agricultural Lighting Market Size

Agricultural Lighting Market size was valued at USD 1 billion in 2023 and is estimated to register a CAGR of over 11% between 2024 and 2032. Ongoing advancements in lighting technology, particularly the development of energy-efficient LEDs and smart lighting systems, drive growth in the market. These technological innovations enhance crop yields, improve energy efficiency, and offer greater control over growing conditions. With continuous improvements in lighting efficiency, spectrum tunability, and automation capabilities, growers are incentivized to invest in modern agricultural lighting solutions to optimize their production and stay competitive in the market.
 

In May 2022, ams OSRAM introduced OSLON Optimal family of LEDs, based on the latest ams OSRAM 1mm2 chip for horticulture lighting, that provides a combination of high efficiency, great value, and reliable performance. The product is available in Far Red and Hyper Red colors. Further, the integration of smart technologies such as sensors, automation, and data analytics are transforming agricultural lighting systems into intelligent, adaptive solutions. Smart lighting systems enable growers to monitor environmental conditions, track crop growth metrics, and adjust lighting parameters in real-time based on data-driven insights. These systems improve operational efficiency, reduce resource waste, and optimize crop performance, ultimately increasing yields and profitability in agricultural operations.
 

Optimizing light spectra, intensities, and photoperiods for different crops requires specialized knowledge and expertise in horticulture, lighting technology, and environmental control. Additionally, integrating lighting systems with other components such as climate control systems and irrigation systems adds another layer of complexity. Growers may encounter challenges in designing, installing, and maintaining lighting setups that meet the specific needs of their crops while maximizing efficiency and productivity. This complexity can be a barrier to adoption for growers who lack the necessary expertise or resources to implement agricultural lighting solutions effectively.
 

Agricultural Lighting Market Trends

The prominent trend in the agricultural lighting industry is the widespread adoption of light-emitting diode (LED) technology. LED lighting offers several advantages over traditional lighting sources such as high-pressure sodium (HPS) lamps, including greater energy efficiency, longer lifespan, and customizable spectral outputs. LED fixtures can be tailored to emit specific wavelengths of light optimized for plant growth, allowing growers to fine-tune lighting conditions for different crops and growth stages.
 

Additionally, LEDs produce less heat, reducing the need for additional cooling systems and minimizing the risk of heat stress in plants. As the cost of LED technology continues to decrease and awareness of its benefits grows, more growers are transitioning to LED-based lighting solutions to optimize crop production, improve resource efficiency, and remain competitive in the agricultural lighting market.
 

The integration of smart lighting systems in agricultural settings. Smart lighting solutions leverage sensors, data analytics, and automation technologies to monitor environmental conditions and adjust lighting parameters in real-time. These systems enable growers to precisely control light intensity, spectrum, and photoperiod based on factors such as plant growth stage, weather conditions, and energy availability. By optimizing lighting conditions dynamically, smart lighting systems can enhance crop yields, reduce energy consumption, and improve resource utilization efficiency.
 

Moreover, smart lighting systems can be integrated with other components of smart agriculture systems, such as climate control systems and irrigation systems, to create fully automated and interconnected growing environments. As demand for precision agriculture solutions grows, the adoption of smart lighting systems is expected to increase, driving innovation and growth in the agricultural lighting market.
 

For instance, In Jan-2023, California LightWorks announced a partnership with Virex Technologies, a company engaged in providing different services based on the requirements of each client for professional horticultural projects. Under this partnership, both companies aim to broaden European distribution. Moreover, the partnership enables California LightWorks to bring its unique, patented MegaDrive technology to the quickly broadening European market for grow lights.
 

Agricultural Lighting Market Analysis

Based on the component, the hardware segment is poised to expand at 11% CAGR through 2032. The hardware segment in the market encompasses a wide range of components and equipment used in lighting systems for agricultural applications This includes various types of lighting fixtures such as LED, fluorescent, high-pressure sodium (HPS), metal halide, and incandescent lights designed specifically for use in agricultural settings. These fixtures may vary in terms of size, shape, power output, and spectral characteristics to accommodate different crops and growth stages.
 

Mounting and support structures are hardware components used to install and position lighting fixtures within agricultural facilities. This may include overhead trusses, mounting brackets, adjustable hangers, and rail systems designed to support the weight of lighting fixtures and ensure proper positioning for optimal light distribution.  
 

Based on the light source, the fluorescent segment held over 40% of the agricultural lighting market share in 2023. The fluorescent lighting segment in the market is witnessing notable advancements and adoption, albeit facing competition from emerging LED technology. Fluorescent lighting systems have traditionally been used in indoor farming setups due to their affordability and widespread availability. These fixtures emit broad-spectrum light, covering a range of wavelengths beneficial for plant growth. While fluorescent lights offer relatively low upfront costs and are suitable for general lighting purposes, they have limitations compared to LEDs.
 

Fluorescent lights consume more energy, have shorter lifespans, and produce less intensity and efficiency compared to LED counterparts. However, in certain applications where cost is a primary concern or specific spectral requirements are not critical, fluorescent lighting remains a viable option. Nonetheless, as LED technology continues to improve in terms of efficiency, spectrum customization, and cost-effectiveness, the fluorescent lighting segment may face challenges in maintaining its market share in the agricultural lighting industry.
 

Europe agricultural lighting market accounted for 30% of the revenue share in 2023. With growing concerns about food security, sustainability, and climate change, there is a rising demand for locally grown produce in Europe. Agricultural lighting enables year-round cultivation in indoor or controlled environments, allowing growers to produce fresh fruits, vegetables, and herbs close to urban centers regardless of seasonality or external weather conditions.
 

Europe is home to several leading manufacturers and innovators in lighting technology. Ongoing advancements in LED lighting, smart lighting systems, and spectral tuning capabilities are driving growth in the market. These technological innovations enhance energy efficiency, optimize plant growth conditions, and improve crop yields, making agricultural lighting systems increasingly attractive to growers in Europe.
 

Agricultural Lighting Market Share

Savant Systems Inc., signify holds a significant market share in the agricultural lighting industry. offering innovative lighting solutions tailored for livestock, greenhouse cultivation. Leveraging its expertise in lightings system, signify provides a wide range of agricultural lighting designed to optimize plant growth and enhance crop yields.
 

Major players, such as Some of the key market players are OSRAM Licht AG, Heliospectra AB, Savant Systems Inc., Signify, are constantly implementing strategic measures including geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches.
 

Agricultural Lighting Market Companies

Major companies operating in the agricultural lighting industry are:

• Agrolux
• California LightWorks
• Cree, Inc.
• Current, powered by GE
• Fluence by OSRAM
• Gavita International
• GE Current, a Daintree Company
• Heliospectra AB
• Hortilux Schréder B.V.
• Illumitex Inc.
• LumiGrow Inc.
• OSRAM GmbH
• Savant Systems Inc., Signify
• Valoya Ltd.
• VividGro
   

Agricultural Lighting Industry News

• In Jun-2023: ams OSRAM unveiled OSLON® Square Hyper Red LED, designed to provide faster plant growth and allow optimized system cost. The launched product is intended for utilization in all horticultural lighting applications consisting of greenhouse top lighting and inter lighting, sole source lighting, and vertical farming applications.
   
• In Mar-2023: Signify took over Intelligent Lighting Controls, Inc., a US-based manufacturer of wired control systems. The acquisition adds a well-established technology and competitive portfolio to fuel the uptake of energy-saving solutions in the attractive North American market.
   

The agricultural lighting market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component, 2018 - 2032

• Hardware
• Software
• Services

Market, By Light Source, 2018 – 2032

• Fluorescent
• High intensity discharge
• LED
• Others

Market, By Installation Type, 2018 – 2032

• New
• Retrofit

Market, By Application, 2018 – 2032

• Horticulture
• Livestock
• Aquaculture

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA