Horticulture Lighting Market (Updated Version Available)

Key Market Overview:

Horticulture Lighting Market is estimated to reach over USD 19.20 Billion by 2030 from a value of USD 5.57 Billion in 2022, growing at a CAGR of 16.7% from 2022 to 2030.

Horticulture lighting refers to the use of artificial lighting during the cultivation of plants. Horticulture lighting has varied applications such as providing supplement natural light to optimize plant growth and development. It is therefore important in controlled environment agriculture, such as greenhouses and indoor farms. Additionally, horticulture lighting is used to extend the growing season, which enables growers to produce crops in the entire year. Different types of horticultural lighting include LED (light-emitting diodes), high-intensity discharge (HID) lamps, high-pressure sodium (HPS) lamps, and compact fluorescent lamps (CFLs). LED lights are becoming increasingly popular in horticulture due to energy efficiency, long lifespan, and ability to provide specific wavelengths of light that promote plant growth.

The increasing global population and urbanization are leading to a growing demand for food security, thus driving the need for horticulture lighting across the globe. Furthermore, advances in horticultural lighting technology, such as the development of energy-efficient LED lights are driving market growth. For instance, in January 2021, Osram launched its new HortiLED Top LED light for use in vertical farms and greenhouse applications. The product is designed to provide a high level of light intensity and a full spectrum of light for optimal plant growth and development.

Report Attributes	Report Details
Study Timeline	2016-2030
Market Size in 2030 (USD Billion)	19.20 Billion
CAGR (2022-2030)	16.72 %
Base Year	2021
By Lighting Type	Top-Lighting and Inter-Lighting
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Heliospectra AB, excite LED Grow Lights, Greens Hydroponics, UPSHINE Lighting, TESLUX Lighting s.r.o., Hortisystems UK Ltd, ProGrowTech, Ronfell Group, GENERAL ELECTRIC, Agrolux

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Market Dynamics:

Driver:

The growing adoption of precision farming and controlled environment agriculture is driving the demand for horticulture lighting. Moreover, increasing organic farming practices, that rely on the use of natural methods and products requires artificial lighting which is driving the growth of the market. Furthermore, governments around the world are providing subsidies and tax incentives to promote sustainable agricultural practices, which is driving the growth of the horticulture lighting market.

Restraint:

The high initial costs associated with purchasing and installation of horticulture lighting systems are among the major barrier for some farmers and growers, making it difficult for them to adopt such technologies. Furthermore, horticulture lighting systems are quite complex and difficult to operate, which acts as a barrier for some farmers and growers lacking technical expertise to use them. Another factor restraining the growth of the market is lack of awareness among farmers regarding the benefits and potential of horticulture lighting thus limiting the adoption of these technologies.

Opportunities

Increasing demand for organic food products is expected to provide opportunities for the market growth of horticulture lighting. Moreover, the scope of incorporating IoT-based technologies to monitor the farm remotely will further provide lucrative opportunities for the market growth. Moreover, technological advancements in LED lighting systems will lead to increasing adoption of such technologies during the forecast period.

Horticulture Lighting Market Segmentation:



By Lighting Type

Based on the lighting type, the market is segmented into top-lighting and inter-lighting. Top lighting is the largest segment of the market, as it is widely used in commercial indoor horticulture applications, such as in greenhouses, indoor grow rooms and vertical farms. Top lighting is placed above the plants and is used to provide overall light coverage for the plants typically used during the vegetative growth stage of plants. It includes LED, HID, and fluorescent lights. On the other hand, inter-lighting is expected to grow at a faster CAGR during the forecast period as it is increasingly being used to supplement top lighting and provide additional light to the lower leaves of plants. This type of lighting is placed between the layers of plants or within the plant canopy.

By Technology

Based on technology, the market is segmented into LED lights, fluorescent lights, HID lights, and others. LED lights segment is expected to grow at the higher CAGR during the forecast period as LEDs are energy-efficient and have a longer lifespan as compared to other lighting types. LED lights are widely used in indoor horticulture applications such as greenhouses. On the other hand, high intensity discharge (HID) lights provide a high intensity of light and are suitable for all stages of plant growth in various indoor horticulture applications. Furthermore, fluorescent lights are also used in indoor horticulture, mostly in small-scale setups such as home gardens as they are less energy-efficient and less expensive as compared to LED and HID lights.

By Offering

Based on the offering, the market is segmented into hardware, software, and services. The hardware segment is the largest segment of the market, as horticulture lighting is the primary requirement for indoor and outdoor agriculture. The hardware segment includes all the physical components of horticulture lighting systems such as lights, controls, and other equipment. Moreover, the software segment is expected to grow at fastest CAGR during the forecast period. Software systems include monitoring and control systems, data analytics software, and other applications that are used to optimize plant growth and improve the efficiency of the lighting systems. Furthermore, the services segment includes installation, maintenance, and repair services for horticulture lighting systems. It also includes other services such as technical consulting, training, and support services.

By Spectrum

Based on the spectrum, the market is segmented into full spectrum, red spectrum, blue spectrum, and others. Full spectrum provides a balance of all spectrums of light and is suitable for all growth stages of plants and are widely used in indoor horticulture. Furthermore, the red spectrum is rich in red wavelengths and are essential for the blooming and fruiting stages of plants used for flowering and fruiting plants such as tomatoes and peppers. In addition to this, the blue spectrum is rich in blue wavelengths, which are essential for vegetative growth and the development of leaves and stems used for leafy green plants such as lettuce and herbs. Other spectrums include the white spectrum which is essential for the overall growth and development of plants.

By Application

Based on application, the market is segmented into vertical, indoor, and greenhouse farming. Vertical farming refers to the practice of growing plants using artificial lighting such as LEDs to provide the necessary light for plant growth. On the other hand, indoor farming refers to the practice of growing plants indoors using LED lights. Indoor farming is well suited for year-round production, regardless of weather conditions, and are used to grow a wide variety of crops, such as vegetables, fruits, and herbs. Furthermore, greenhouse farming refers to the practice of growing plants in a controlled environment, using natural light supplemented with artificial lighting using high pressure sodium vapor (HPS) and high intensity discharge (HID) lighting.

By Region

The Asia Pacific region is expected to be the fastest-growing market for horticulture lighting during the forecast period due to the increasing adoption of indoor horticulture and the growing trend of precision agriculture in the region. The growing demand for organic produce in the region is expected to drive the market for horticulture lighting.



The horticulture lighting market in North America is accounted to hold considerable market share in the year 2021 due to technological adoptions across the horticulture segment. The United States is the major market for horticulture lighting in the region due to the increasing adoption of indoor horticulture and the growing trend of precision agriculture in the country.

Horticulture Lighting Market Competitive Landscape:

The market of horticulture lighting is highly competitive and features a large number of players. The data provides information about product innovations, business partnerships, and strategies adopted by competitors. These factors offer a deep understanding of current market conditions. Following are the major market players that comprise the latest market concentration–

• Heliospectra AB
• excite LED Grow Lights
• Greens Hydroponics
• UPSHINE Lighting
• TESLUX Lighting s.r.o.
• Hortisystems UK Ltd
• ProGrowTech
• Ronfell Group
• GENERAL ELECTRIC
• Agrolux

Recent Developments

• In 2020, Signify Holding BV launched a new horticulture lighting product, Philips GreenPower LED top-lighting, aimed at boosting crop yields and quality.

• In 2018, LumiGrow Inc. launched a new LED horticulture lighting product, the SmartPAR, which is designed to optimize plant growth and energy efficiency.