Horticulture Lighting

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

The global market for Horticulture Lighting estimated at US$6.7 Billion in the year 2024, is expected to reach US$21.4 Billion by 2030, growing at a CAGR of 21.2% over the analysis period 2024-2030. Hardware, one of the segments analyzed in the report, is expected to record a 23.6% CAGR and reach US$11.5 Billion by the end of the analysis period. Growth in the Software segment is estimated at 20.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.7 Billion While China is Forecast to Grow at 27.2% CAGR

The Horticulture Lighting market in the U.S. is estimated at US$1.7 Billion in the year 2024. 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 27.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.7% and 19.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 17.5% 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.

SCOPE OF STUDY:

The report analyzes the Horticulture Lighting market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Hardware, Software, Services); Technology (LED, Fluorescent, HID, Other Technologies); Cultivation (Fruits & Vegetables, Floriculture, Cannabis); Application (Greenhouses, Vertical Farms, Indoor Farms, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

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)

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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