Horticulture Lighting

Global Horticulture Lighting Market to Reach US$21.4 Billion by 2030

The global market for Horticulture Lighting estimated at US$5.7 Billion in the year 2023, is expected to reach US$21.4 Billion by 2030, growing at a CAGR of 20.9% over the analysis period 2023-2030. Hardware Component, one of the segments analyzed in the report, is expected to record a 23.3% CAGR and reach US$11.5 Billion by the end of the analysis period. Growth in the Software Component segment is estimated at 19.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.5 Billion While China is Forecast to Grow at 26.8% CAGR

The Horticulture Lighting market in the U.S. is estimated at US$1.5 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.8 Billion by the year 2030 trailing a CAGR of 26.8% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.5% and 18.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 17.3% CAGR.

Global Horticulture Lighting Market - Key Trends and Drivers Summarized

Why Is Horticulture Lighting Essential for Modern Agriculture?

Horticulture lighting plays a critical role in controlled environment agriculture, such as greenhouses and indoor farming, where natural sunlight is either insufficient or unavailable. These lighting systems are designed to mimic the wavelengths of natural sunlight that are essential for plant growth, including photosynthesis, flowering, and fruiting processes. With the rise of vertical farming and year-round crop production, horticulture lighting has become indispensable in modern agriculture. Growers can optimize light intensity, duration, and spectrum to enhance crop yields, improve plant health, and accelerate growth cycles. As global demand for food increases and urbanization limits arable land, horticulture lighting offers a sustainable solution for maximizing agricultural output in limited spaces.

How Are Technological Innovations Transforming the Horticulture Lighting Market?

Advancements in LED technology have revolutionized the horticulture lighting market, offering energy-efficient, long-lasting, and customizable lighting solutions for indoor farming. LEDs outperform traditional lighting systems such as high-pressure sodium (HPS) lamps in terms of energy consumption, heat emission, and lifespan. Moreover, LED lights can be fine-tuned to emit specific wavelengths that promote plant growth at various stages, from seedling to harvest. These innovations have also led to the development of smart horticulture lighting systems, which integrate with sensors and automated controls to optimize light exposure based on plant needs. Additionally, research into UV and far-red spectrum lighting is expanding the capabilities of horticulture lighting to influence not just plant growth but also nutritional content and flavor.

How Do Market Segments Influence the Growth of the Horticulture Lighting Market?

Lighting types include top lighting, interlighting, and supplemental lighting, with top lighting holding the largest market share due to its widespread use in greenhouses and vertical farming. Technology segments include LED, fluorescent, and HID (high-intensity discharge) lighting, with LED technology leading the market thanks to its superior efficiency and spectrum control. Applications of horticulture lighting span across commercial greenhouses, vertical farms, and research labs, with vertical farming experiencing rapid growth due to its ability to produce high yields in urban environments. The market is also segmented by crop type, including fruits, vegetables, flowers, and cannabis, with the cannabis cultivation sector showing substantial growth driven by legalization in several regions.

What Factors Are Driving the Growth in the Horticulture Lighting Market?

The growth in the horticulture lighting market is driven by several factors, including the increasing adoption of controlled environment agriculture, advancements in LED technology, and the rising global demand for year-round crop production. The expansion of urban farming and vertical farming is a key driver, as horticulture lighting enables food production in densely populated areas where arable land is scarce. Additionally, the growing legalization of cannabis cultivation, particularly in North America and Europe, is fueling demand for advanced lighting systems to optimize plant growth and potency. Technological advancements in energy-efficient LED systems, along with smart lighting solutions that can be automated and customized, are further contributing to market growth. The push for sustainable agriculture and reduced water usage in farming practices is also accelerating the adoption of horticulture lighting systems worldwide.

Select Competitors (Total 37 Featured) -

• Agrolux
• Bridgelux
• Eye Hortilux
• Gavita Holland B.V.
• GE Lighting (GE Lighting + Current)
• Heliospectra
• Hortilux Schreder B.V.
• Hubbell
• Illumitex
• LumiGrow
• Lumileds
• Maxigrow
• OSRAM (Opto Semiconductors)
• PARsource
• Signify (Philips Lighting)

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