Horticulture Lighting Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The horticulture lighting market size is projected to reach US$ 24.14 billion by 2031 from US$ 5.38 billion in 2023. The market is expected to register a CAGR of 20.7% in 2023–2031. The growing demand for fresh and organic food among consumers worldwide is likely to remain a key horticulture lighting market trend.

Horticulture Lighting Market Analysis

The horticulture lighting market is growing at a rapid pace due to increasing urbanization, high food costs, environmental degradation, rising investment in modern horticulture techniques, and demand for customized lighting solutions. The market is expanding steadily, driven by the growing demand for energy-efficient farming devices and government initiatives to support indoor farming. Moreover, the rising demand for indoor farming and the expanding DIY & home gardening industry is providing lucrative opportunities for market growth.    

Horticulture Lighting Market Overview

Horticulture lighting is the use of artificial light sources to help plants grow in controlled conditions such as greenhouses, indoor farms, and growth chambers. These lights play a critical role in supplying the light spectrum, duration, and intensity to simulate or augment natural sunshine, hence improving plant photosynthesis and general development.

Horticultural lighting is an important technique for increasing agricultural yields, prolonging growing seasons, and maintaining consistent plant quality. Businesses can establish optimal circumstances for diverse crops by utilizing innovative lighting technologies, such as LED systems that provide precise control over light settings, regardless of external weather or geographic constraints. Furthermore, the data-driven nature of current horticulture lighting systems enables organizations to monitor and modify lighting conditions in real-time, resulting in better-informed decision-making and resource allocation.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Get 10% FREE CUSTOMIZATION

Horticulture Lighting Market: Strategic Insights

Market Size Value in	US$ 2,730.8 Million in 2019
Market Size Value by	US$ 11,383.5 Million by 2027
Growth rate	CAGR of 20.2% from 2020-2027
Forecast Period	2020-2027
Base Year	2020

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

 Speak to Analyst

Horticulture Lighting Market Drivers and Opportunities

Increasing Urbanization, High Food Costs, and Environmental Degradation is Driving the Market

Rising rapid urbanization increases horticultural production to meet food demand, which is likely to drive market expansion. In addition, the lack of irrigation water for farms and rising food prices shifting farmers' preference to horticulture farming is driving the market. According to the U.S. Department of Agriculture, the Consumer Price Index (CPI) rose 8.5% in July 2022. This CPI and food prices climbed by 1.1% between June 2022 and July 2022, while food prices increased by 10.9% in July 2021. Increasing consumer demand for natural and nutritious meals surges the urban horticulture product supply. The increasing usage and development of environmentally friendly and energy-efficient LEDs in horticulture to enhance crop output by reducing energy consumption drives the market during the forecast period. The DesignLights Consortium Organization estimates that horticultural lighting optimization might save up to USD 240 million in electricity each year. This encourages market players to create energy-efficient lighting for horticulture applications to fulfill rising food demand, boosting the market.

Rising Demand for Indoor Farming – An Opportunity in the Horticulture Lighting Market

The rising demand for making healthy and nutritious food at home encourages consumers to adopt indoor farming techniques, creating opportunities in the market. Indoor farming is becoming more popular in metropolitan settings as a response to food scarcity. Consumers all over the world are prioritizing the growth of the horticulture sector in order to meet food scarcity demands and encourage global horticultural exports. Increasing horticultural exports surged the demand for agriculture technology that eased indoor farming activities. The introduction of novel agriculture technology, such as LED lighting used for controlled climates in indoor farming. Thus, generating significant growth opportunities for the market growth during the forecast period.

Horticulture Lighting Market Report Segmentation Analysis

Key segments that contributed to the derivation of the horticulture lighting market analysis are technology, application, and cultivation.

• Based on technology, the horticulture lighting market is divided into fluorescent lamps, high intensity discharge lights, and LED lights. The LED lights segment held a larger market share in 2023.
• On the basis of application, the market is segmented into greenhouses, vertical farming, and indoor farming. The greenhouses segment held a larger market share in 2023.
• In terms of cultivation, the market is categorized as fruits and vegetables and floriculture. The fruits and vegetables segment held a larger market share in 2023.

Horticulture Lighting Market Share Analysis by Geography

The geographic scope of the horticulture lighting market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

In terms of revenue, Europe accounted for the largest horticulture lighting market share, due to the presence of major lighting manufacturers such as Osram Licht AG, Valoya, Gavita, and others. These players focus on developing energy-efficient and sustainable lighting used in horticulture, which is expected to drive the market. Furthermore, countries such as Spain, the Netherlands, France, and Italy have extensive greenhouse cultivation areas. These countries employ LED lights to boost the growth of plants for indoor farming. Growing cultivation of food grains, fruits, and vegetables to supply the growing food demand in European countries increases the demand for horticulture lighting for indoor farming is propelling the market.

Horticulture Lighting Market Report Scope

Horticulture Lighting Market News and Recent Developments

The horticulture lighting market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for horticulture lighting and strategies:

• In June 2023, ams-OSRAM AG introduced the fifth generation of its popular OSLON Square Hyper Red horticulture LED designed to offer faster plant growth and enable optimized system cost. The company continues to provide important innovation based on customer input by creating LED solutions that produce high photosynthetic photon flux (PPF) at higher efficacy than the previous generation of Hyper Red 660 nm LEDs. The new OSLON Square Hyper Red LED is intended for use in all horticultural lighting applications, including greenhouse top lighting and inter lighting, sole source lighting, and vertical farming applications. (Source: ams-OSRAM AG, Press Release, 2023)

Horticulture Lighting Market Report Coverage and Deliverables

The “Horticulture Lighting Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles