Horticulture Lighting Market By Offering (Hardware, Software & Services), By Technology (Fluorescent, LED, HID), By Cultivation Type (Floriculture, Fruits & Vegetables, Cannabis) By Application (Vertical Farms, Greenhouses, Indoor Farms), and by Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Horticulture Lighting Market was valued at USD 3.6 billion in 2023-e and will surpass USD 14.3 billion by 2030; growing at a CAGR of 21.8% during 2024 - 2030.

The horticulture lighting market is an essential segment of the broader agriculture technology landscape, driven by the increasing demand for high-quality crops and the rising need for efficient and sustainable farming practices. As global food production faces challenges due to climate change, urbanization, and limited arable land, innovative solutions in horticulture lighting have emerged to support plant growth, enhance crop yield, and extend growing seasons. By employing advanced technologies such as LED and fluorescent lighting, growers can optimize plant health and productivity throughout various growth stages, ensuring a stable supply of fresh produce.

This growth is primarily fueled by increasing investments in vertical farming and greenhouse operations, advancements in lighting technologies, and rising awareness of energy-efficient solutions. As the market evolves, several segments, including greenhouse lighting, vertical farming lighting, and indoor farming lighting, will play significant roles in shaping the future of horticulture lighting.

Greenhouse Lighting Segment is Largest Owing to Increased Adoption of Controlled Environment Agriculture

The greenhouse lighting segment represents the largest share of the horticulture lighting market, driven by the growing adoption of controlled environment agriculture (CEA) practices. As traditional farming methods face challenges from climate variability and limited land availability, greenhouse facilities are increasingly being utilized to create optimal growth conditions for various crops. Greenhouse lighting systems enable growers to manage light quality, quantity, and photoperiod, ensuring that plants receive the necessary light spectrum to maximize growth and yield.

Additionally, the expansion of the global greenhouse industry has propelled the demand for specialized lighting solutions. Greenhouses equipped with advanced horticulture lighting systems allow for year-round cultivation, leading to higher productivity and reduced reliance on seasonal produce. The use of LED lighting in greenhouses, which offers energy efficiency and customizable light spectra, has further solidified this segment's position as the largest within the horticulture lighting market. As growers continue to invest in greenhouse technologies, this segment is expected to maintain its dominance through the forecast period.

Vertical Farming Lighting Segment is Fastest Growing Owing to Urban Agriculture Trends

The vertical farming lighting segment is the fastest-growing sub-segment in the horticulture lighting market, spurred by the rapid rise of urban agriculture. As cities expand and the demand for locally sourced produce increases, vertical farming has emerged as a sustainable solution that maximizes space and resource efficiency. This innovative farming method relies heavily on artificial lighting to create optimal conditions for plant growth in indoor settings, making horticulture lighting an indispensable component of vertical farming systems.

Advancements in LED technology have significantly enhanced the performance and efficiency of vertical farming lighting. LED systems not only consume less energy compared to traditional lighting options but also offer customizable light spectrums tailored to the specific needs of various crops. This adaptability enables vertical farms to optimize growth rates and improve crop quality, further driving market growth. As urbanization trends continue to reshape food production landscapes, the vertical farming lighting segment is poised for accelerated expansion, with a projected CAGR surpassing 15% over the forecast period.

Indoor Farming Lighting Segment is Fastest Growing Owing to Rising Demand for Local Produce

The indoor farming lighting segment is experiencing rapid growth due to the increasing demand for local produce and the need for efficient food production methods. Indoor farming, which encompasses a variety of growing systems such as hydroponics and aquaponics, allows growers to cultivate crops in controlled environments, free from the limitations of traditional agriculture. This segment benefits from the ability to produce food year-round, irrespective of weather conditions, making it a preferred choice for urban consumers seeking fresh produce.

The adoption of advanced horticulture lighting technologies, particularly LED lights, has been a key driver in this segment's growth. These lighting systems provide energy-efficient solutions that can be tailored to meet the unique lighting requirements of different crops, ensuring optimal growth and yield. Furthermore, as consumers increasingly prioritize sustainability and local sourcing, the indoor farming lighting segment is expected to witness a surge in demand, with projections indicating a CAGR of around 14% from 2024 to 2030.

Horticulture Lighting Market in North America is Largest Owing to Technological Advancements

North America is the largest region in the horticulture lighting market, driven by significant investments in agricultural technology and a strong focus on innovation. The region's advanced agricultural infrastructure and high adoption rates of new technologies have contributed to the growing demand for specialized horticulture lighting solutions. In particular, the United States and Canada have emerged as key players in the market, with a diverse range of horticulture lighting applications, including greenhouses, vertical farms, and indoor farming systems.

Moreover, the increasing emphasis on sustainable farming practices and the quest for energy-efficient lighting solutions have spurred the development of advanced horticulture lighting technologies in North America. The region's favorable regulatory environment and the presence of leading manufacturers have further accelerated market growth. As consumer preferences shift towards locally sourced and high-quality produce, the North American horticulture lighting market is expected to continue expanding, maintaining its position as the largest regional market through 2030.

Competitive Landscape and Leading Companies in the Horticulture Lighting Market

The horticulture lighting market is characterized by a competitive landscape featuring several key players that are continuously innovating to capture market share. The leading companies in this space include Signify Holding, OSRAM GmbH, Philips Lighting, Gavita, and General Electric, among others. These companies focus on developing cutting-edge horticulture lighting solutions that enhance plant growth while minimizing energy consumption.

In addition to these established players, a host of emerging companies are also making significant contributions to the market, particularly in the LED lighting segment. Companies like Illumitex, Fohse, and Cree, Inc. are recognized for their innovative approaches to horticulture lighting, emphasizing sustainability and efficiency. The competitive landscape is marked by strategic collaborations, product launches, and advancements in technology, all aimed at meeting the diverse needs of growers and responding to the growing demand for sustainable agriculture solutions.

Top 10 Companies in the Horticulture Lighting Market

1. Signify Holding: A global leader in lighting solutions, specializing in innovative LED horticulture lighting technologies.
2. OSRAM GmbH: Renowned for its high-performance lighting products, OSRAM focuses on providing efficient and reliable horticulture lighting systems.
3. Philips Lighting: A pioneer in the field of horticulture lighting, Philips offers a range of advanced lighting solutions designed for various growing applications.
4. Gavita: Known for its professional horticulture lighting solutions, Gavita's products are widely used in commercial greenhouse and indoor farming operations.
5. General Electric: A major player in the lighting market, GE is committed to developing energy-efficient lighting technologies for horticultural applications.
6. Illumitex: A leading manufacturer of LED lighting solutions, Illumitex focuses on optimizing plant growth through advanced lighting technologies.
7. Fohse: Specializing in high-performance LED horticulture lighting, Fohse provides innovative solutions for indoor growers and commercial operations.
8. Cree, Inc.: Known for its cutting-edge LED technology, Cree develops lighting solutions that enhance plant growth while reducing energy consumption.
9. Hydrofarm Holdings: A key distributor of horticultural products, Hydrofarm also offers a range of lighting solutions tailored for indoor and greenhouse applications.
10. Lumigrow: Focusing on smart horticulture lighting, Lumigrow's products are designed to maximize crop yield while minimizing energy use.

As the horticulture lighting market continues to evolve, competition among these leading companies is expected to intensify. Innovations in lighting technology, coupled with the increasing demand for sustainable and efficient farming practices, will drive growth and shape the future of the horticulture lighting landscape.

Report Objectives:

The report will help you answer some of the most critical questions in the Horticulture Lighting Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the horticulture lighting market?
3. What is the size of the horticulture lighting market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia Pacific, Middle East, and Rest of the World?
5. What are the market opportunities for stakeholders after analyzing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: