Horticulture Lighting Market

The Horticulture Lighting Market is valued at USD 7.1 Bn in 2026 and is projected to reach USD 24.3 Bn, growing at a CAGR of 19% by 2033.

Growing Emphasis of Governments on Adopting CEA Practices Elevates Growth Prospects of Horticulture Lighting Market

To increase crop yield and cut energy use, horticulture is seeing an increase in demand for energy-efficient light emitting diodes (LEDs), a major driver of horticulture lighting market revenue growth. Another factor driving up demand for horticulture lights is the consistently changing and unfavorable weather patterns for farming across geographical regions. These conditions make it difficult to maintain a controlled environment suitable for agriculture. The horticulture lighting market is anticipated to increase due to rising government initiatives to encourage the adoption of Controlled Environment Agriculture (CEA) practices. The growing need for horticulture lighting techniques and systems is a result of the indoor crop cultivation trend and precision farming. Due to the rapid increase in the global population, the ability of non-conventional practices to ensure some level of food security at the moment is driving the market growth. Farmers are cultivating crops using unconventional methods due to the rising need for quicker access to fresh produce.

Due to strict environmental regulations and many limitations imposed by conventional farming methods, farmers are increasingly adopting indoor and outdoor agricultural strategies. A few things to think about include implementing strict government regulations regarding chemical fertilizers and their impact on the environment, the need for sizable tracts of arable land, reasonable amounts of water, and the damaging effects of chemical pesticides and fertilizers on the environment. These elements influence indoor farming practises' popularity and viability and boost their adoption, as well as the use of horticulture lighting, such as LED lighting systems. Additionally, it is anticipated that the development of digital control technologies for LED horticulture lights will continue to stimulate the horticulture lighting market expansion.

Horticulture Lighting Market: COVID-19 Impact

Various nations' governments have implemented global lockdowns due to labor shortages, traffic problems, and restricted access to local horticulture lighting markets. The harvesting, processing, distribution, and cultivation of horticultural goods in urban environments have all been greatly impacted by this aspect. Additionally, traditional farming is today confronted with the historically unprecedented issue of feeding a population projected to grow by 6.7 billion people by 2050 and reside in urban areas. The COVID-19 pandemic has significantly influenced the food supply chain, which has given indoor agriculture infrastructure plenty of opportunity to develop globally. Global horticulture LED revenue was US$4.78 Bn in 2020, a 1.0% minor fall from the previous year. Consumers can grow their food indoors during a lockdown, which improves food security. This is made possible by horticulture LED lighting. The market-driven transformation of agriculture utilizing LED lighting for horticulture is rising together and growing quickly.

Increasing Demand for Indoor Farming to Support Horticulture Lighting Market Growth

Around the world, there is an increasingly high demand for growing wholesome food at home. As metropolitan areas expand, indoor farming is becoming more and more popular to address the demand for food scarcity. In the final quarter of 2021, more than 11 indoor farming venture capital companies received funding of USD 489.6 million, an increase of more than 7% over the same period in 2020, according to Investor's PitchBook. Global consumers are prioritizing the horticulture industry's expansion to meet the demand created by the food shortage and encourage horticultural exports. Additionally, the potential for the horticulture lighting market growth in horticultural lighting is increased by the quick advancement of lighting technology with improved luminaire efficiency. The global food crisis problem is being addressed by developing cutting-edge agriculture technology for vertical farming based on LED lights for a controlled climate. For global farming and food production needs, several influential players are creating improved LED lighting.

Growing Urbanization, Rising Food Prices, and Environmental Deterioration Support Horticulture Lighting Market Expansion

Horticultural production has the potential to supply the growing need for food as a result of increased urbanization, which is anticipated to support the horticulture lighting market expansion. Additionally, because irrigation water is scarce for fields and food prices have soared, agricultural professionals and farmers are switching to horticulture farming. According to the U.S. Department of Agriculture, the Consumer Price Index rose 8.5% in July 2022. Food costs rose by 10.9% in July 2021 and by 1.1% between June 2022 and July 2022, according to the CPI. Due to growing customer demand for organic and nutritious foods, horticulture items are also being supplied in greater quantities to metropolitan areas. Horticulture is increasingly adopting and developing energy- and environmentally-friendly LEDs to optimize crop productivity and reduce energy use. Through the optimization of horticulture lighting, the DesignLights Consortium Organization estimates that sustainable indoor farming could save up to US$240 Mn in electricity annually. Leading companies are also working on energy-efficient lighting for horticulture applications to fulfill the rising food needs.

High Manufacturing Costs Necessitate Significant Capital Investment to Limit Horticulture Lighting Market Expansion

These lighting devices are expanding as more people recognize the benefits of horticulture lighting. Indoor gardening involves the use of various artificial lighting systems. In the past, HPS, and electric ballasts were frequently employed as effective light sources for indoor agriculture. High-pressure sodium (HPS), fluorescent (FL) lights, metal halides, and electric ballasts all have limits that LEDs do not. Compared to previous lighting technologies like fluorescent bulbs and high-intensity discharge (HID) lamps, the initial expenditure needed to buy high-quality LED lights is higher. Each LED light unit includes a customized LED array for horticulture.

Interlighting Category Dominates Horticulture Lighting Market as Greenhouse Activities Increase

The interlighting category held the largest revenue share, and it is anticipated that it will continue to rule the market during the forecast period. The need for LED interlighting systems is being driven by the ability to grow and harvest veggies like tomatoes and cucumbers wherever they are. In the Mediterranean region, LED interlighting increases greenhouse tomato productivity and precocity. The horticulture lighting market is anticipated to rise due to the positive effects of LED interlighting on the development of vegetable and crop yield and the growth and quality of fruits. The use of LED interlighting systems is being driven by the legalization of cannabis for medical purposes. With sideways-facing LEDs focusing on growth and enabling the placement of light between plants, including high-wire greenhouse plants like cucumbers and tomatoes, major lighting product manufacturers like Philips are introducing LED interlighting systems that are anticipated to increase yield during the darker period of the year. These elements are anticipated to have a key role in the interlighting system segment's revenue growth throughout the projected period.

Indoor Farming Category Leads Horticulture Lighting Market in the Wake of Concerns Around Food Security

The indoor farming category held the largest market share, and it is anticipated that it will continue to rule the horticulture lighting market during the forecast period. Due to the possibility of increasing food security and meeting the growing need for instant access to fresh produce, farmers are embracing indoor farming technologies at an increasing rate. The horticulture industry is seeing an increase in the variety of applications for LED lighting as indoor farming becomes more popular. The demand for greater crop production and the expanding use of horticulture lighting in indoor farming facilities are anticipated to continue this segment's revenue growth. Farmers in major European nations have been expanding their investments in horticulture lighting for indoor farms to enhance the amount of fresh farm food. Other factors influencing the increase in deployment and shift to indoor farming operations include the availability of restricted agricultural land and the growing need to conserve water.

Europe Dominates Horticulture Lighting Market with Presence of Top Lighting Products Manufacturers

Over the forecast period, it is anticipated that the European horticulture lighting market will account for the largest revenue share because reputable lighting companies like Osram Licht AG, Gavita, and Valoya are present. Large greenhouse cultivation regions are also present in nations like Italy, France, Spain, and the Netherlands. These nations employ LED grow lights for indoor farming to support plant development. According to the European Commission Organization, despite the COVID-19 pandemic, the E.U. produced about 67.8 million tonnes of harvested maize and corn in 2020, roughly a 5.0% rise in the harvested area to 9.4 million hectares. The market here has expanded as a result of the expansion in the production of food grains, fruits, and vegetables to meet the rising food demand in European nations.

Asia Pacific horticulture lighting market is anticipated to experience stable revenue growth throughout the forecast period because of the increase in food consumption in populated nations like India, and China. The agriculture industry contributes about 4% of the global GNP to development in the Asia Pacific region (GDP). Additionally, almost 25% of the GDP was contributed by some of the least developed nations in the Asia Pacific area. Additionally, the climate in the Asia Pacific region is ideal for growing fruits, vegetables, and food grains. Horticulture lighting also aids in plant cultivation, lowering the need for additional work when harvesting the area.

Global Horticulture Lighting Market: Competitive Landscape

In June 2021, Hortipar and Signify worked together to create lighting projects for horticultural products worldwide. Hortipar expanded its global portfolio by incorporating Philips GreenPower LED grow lights. With the help of this collaboration, Signify was able to provide its customers with a comprehensive horticulture lighting solution for their greenhouse. Similarly, in June 2021, the Osconiq S 5050 sophisticated horticulture lighting portfolio was introduced by Osram Licht AG. The primary issues with standard white LEDs are addressed by this product, leading to reduced energy costs and effective lighting for indoor farmers.

A few of the players in the horticulture lighting market are:

• Signify Holding
• OSRAM GmbH
• Gavita International B.V.
• Heliospectra AB
• Lumileds Holding B.V.
• Everlight Electronics Co., Ltd.
• Samsung Electronics Co., Ltd.
• Valoya Oy
• LumiGrow Inc.
• Illumitex Inc.
• Hortilux Schréder
• California LightWorks
• Fluence Bioengineering, Inc.
• GE Lighting
• Agrolux

Global Horticulture Lighting Market is Segmented as Below:

By Type

• Hardware
• Software
• Services

By Deployment

• Turnkey Solutions
• Retrofit Solutions

By Lighting Type

• Toplighting
• Interlighting
• Photoperiodic Lighting
• Supplemental Lighting
• Sole-Source Lighting

By Cultivation

• Fruits
• Vegetables
• Floriculture

By Technology

• High-Intensity Discharge (HID)
• Fluorescent
• Others

By Application

• Greenhouses
• Vertical Farming
• Indoor Farming
• Others

By Region

• North America
• Europe
• Asia Pacific
• LAMEA