Horticulture Lighting Market - By Type (Toplighting, Interlighting), By Technology (Fluorescent, High-Intensity Discharge [HID], Light-Emitting Diode [LED]), By Application (Fruits & Vegetables, Floriculture, Cannabis), By End-use Industry & Forecast, 2024 - 2032

Horticulture Lighting Market Size

Horticulture Lighting Market was valued at over USD 6.5 billion in 2023 and is anticipated to grow at a CAGR of over 16.1% between 2024 and 2032. This dynamic growth is attributed to its critical function in increasing agricultural productivity.
 

Innovative agricultural technology such as smart lighting systems optimize resource utilization, resulting in higher yields and better crop quality. Furthermore, these advancements allow year-round cultivation, which alleviates seasonality constraints. Horticulture lighting is becoming increasingly important as the global need for fresh fruits is increasing. Furthermore, concerns about sustainability drive the use of energy-efficient and ecologically friendly lighting systems that are compatible with modern farming techniques. As a result, increased capital infusion into these technologies is driving the horticulture lighting industry demand. For instance, in March 2020, Signify collaborated with Planet Farms, Europe’s largest vertical farm, to boost crop quality and yield using the Philips GreenPower LED production module managed by the Philips Grow Wise Control System. This enables Planet Farms to produce and deliver the tastiest aromatic herbs & lettuce to its customers in Italy all year round.
 

Horticulture lighting refers to the use of artificial light sources, typically LEDs or high-intensity discharge lamps, to provide controlled & supplemental lighting for plant growth in indoor or greenhouse settings. This specialized lighting technology is designed to mimic natural sunlight and optimize the photosynthesis process, promoting plant growth, flowering & fruiting. It allows for year-round cultivation, enabling farmers & horticulturists to extend growing seasons and improve crop quality, making it a crucial component of modern agriculture and urban farming practices.

Horticulture lighting systems increase growers' operational costs and reduce their profitability. They increase environmental problems by raising carbon footprints and burdening the electricity systems, leading to energy shortages. Furthermore, excessive energy use limits scalability, inhibiting market expansion. The increased wear & tear of the lighting systems also raises the maintenance costs. The imposition of regulations by governments on horticultural lights to prevent energy waste may cause regulatory complications. Excessive energy use may harm economic & environmental sustainability and inhibit industry expansion.
 

Horticulture Lighting Market Trends

Light Emitting Diode (LED) technology has gained popularity due to its efficiency and versatility. LEDs provide wavelengths of light that promote plant growth, increasing energy efficiency while reducing waste heat. The ability to modify light spectra has allowed growers to optimize crop growth and development, making LED grow lights a preferred choice in the horticulture lighting industry. Moreover, they are cost-effective and allow producers to fine-tune illumination to suit different plant species & growth stages.
 

The Internet of Things (IoT) integration brought smart lighting systems to the forefront. These systems enable remote monitoring and control, aiding growers to fine-tune lighting schedules and spectra based on real-time data & plant needs. Data collection and analytics play a crucial role in optimizing crop yields and resource utilization. Automation and precise control over lighting parameters streamline operations and reduce human error. Smart lighting also contributes to the overall efficiency and sustainability of horticultural practices by ensuring that the light is used only when and where it is most needed.
 

Horticulture Lighting Market Analysis

Based on technology, the market is segmented into fluorescent, high-intensity discharge (HID), light-emitting diode (LED), and others. The light-emitting diode (LED) segment dominated the market with a share of over 30% in 2023.
 

• LED lights are highly energy-efficient, producing light while consuming less electricity. This not only reduces operational costs for growers but also contributes to sustainability and environmental responsibility. LEDs have a significantly longer lifespan compared to traditional lighting technologies, reducing maintenance and replacement costs.
   
• LED grow lights produce minimal heat, reducing the risk of damage to plants and the need for additional cooling systems. Ongoing research and development have led to continuous improvements in LED technology, making it even more efficient and cost-effective for horticultural applications.                                                                                              

Based on application, the market is divided into fruits & vegetables, floriculture, and cannabis. The cannabis segment is anticipated to register a CAGR of over 19% through 2032.
 

• The increasing legalization of cannabis for medicinal & recreational purposes in various regions has led to a surge in cannabis cultivation. This necessitates advanced horticultural lighting solutions to optimize crop yields and quality.
   
• Cannabis cultivation requires precise control over lighting conditions to maintain consistent cannabinoid and terpene profiles. Horticulture lighting offers the capability to tailor light spectrums for specific strains and growth stages, ensuring product consistency. The demand for high-quality cannabis products has driven research into optimal lighting strategies, fostering innovation in the horticulture lighting industry.

North America dominated the global horticulture lighting industry with a share of over 30% in 2023. The region has witnessed a surge in controlled environment agriculture (CEA), including vertical farming and greenhouse cultivation, which demands specialized lighting solutions for year-round crop production. The increasing emphasis on sustainable and energy-efficient farming practices aligns with the adoption of advanced horticultural lighting technologies. Favorable government incentives, such as energy-efficient lighting rebates, encourage growers to invest in modern lighting systems. Technological innovations and research collaborations in the field of horticulture lighting have created a conducive environment for market expansion.
 

Horticulture Lighting Market Share

Horticulture Lighting Market Companies

• Signify Holding (Philips)
• OSRAM GmbH
• Samsung Electronics Co. Ltd.
• Lumileds Holding BV
• Everlight Electronics Co. Ltd.
• Gavita International BV
• Heliospectra AB

Horticulture Lighting Industry News

• In October 2022, Current and The Hernandez Lab at North Carolina State University (NCSU) extended their partnership for a new study focusing on the potential of supplemental LED lighting to support commercial cannabis production.
   
• In August 2022, Hortilux Schreder partnered with Daeyoung GS. Under this distribution agreement, Daeyoung GS is authorized to sell Hortilux products to its customers in South Korea. With this move, Hortilux Schréder strengthened its presence in South Korea.
   

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

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Market, By Type

• Toplighting
• Interlighting

Market, By Technology

• Fluorescent
• High-Intensity Discharge (HID)
• Light-Emitting Diode (LED)
• Others

Market, By Application

• Fruits & Vegetables
• Floriculture
• Cannabis

Market, By End-use Industry

• Vertical Farming
• Greenhouses
• Indoor Farms
• Others

The above information is provided for the following regions and countries:

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