Global Horticulture Lighting Market Overview:
The horticulture lighting market size was valued at USD 3.1 billion in 2021. The horticulture lighting market industry is projected to grow from USD 3.82 Billion in 2022 to USD 16.35 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.10% during the forecast period (2024 - 2032).The surge in awareness regarding sustainability and the rise in initiatives taken by researchers, organizations, and governments for enhancing horticulture are the key market drivers enhancing market growth for horticulture lighting.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Horticulture Lighting Market Trends
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Growing demand for indoor farming for a huge range of applications to boost market growth
The growing demand for cultivating nutritious and healthy food at home is increasing across the globe. Indoor farming is gaining popularity in the increasing urban areas to meet the demand for food scarcity. As per Investor's PitchBook, in the last quarter of 2021, more than 11 indoor farming venture capital firms were funded around USD 489.6 million, which was more than 7%, corresponded to the last quarter in 2020. Consumers around the globe are prioritizing the enhancement of the horticulture sector to meet the food scarcity demand and promote horticultural exports globally. In addition, the rapid improvement of lighting technology with higher luminaire efficiencies is gaining the potential to enhance the horticulture lighting market CAGR across the globe in recent years.
Further, growing urbanization brings the opportunity for horticultural production to satisfy the food demand, which is expected to boost the market growth for horticulture lighting. Also, agricultural practitioners are adopting horticulture farming owing to the absence of availability of irrigation water for farms and increased food prices. As per the US Department of Agriculture, the Consumer Price Index raised by 8.5% in July 2022. This CPI and food prices expanded by 1.1% from June 2022 to July 2022, and food costs were enhanced by 10.9% in July 2021. Further, the delivery of horticultural products to urban areas is growing owing to rising consumer demand for natural and healthy foods
Additionally, Increasing adoption and development of environmentally friendly and energy-efficient LEDs in horticulture to maximize crop yield and reduce energy consumption drives the market growth. According to the Design Lights Consortium Organization, the efficiency of sustainable indoor farming could save up to around USD 240 million of energy annually through horticultural lighting optimization.
However, the increase in demand for horticulture lighting systems in vertical farming applications to set up efficient operations is another factor driving the growth of the horticulture lighting market revenue.
Horticulture Lighting Market Segment Insights:
Horticulture Lighting Offering Insights
The horticulture lighting market segmentation, based on offering, includes hardware, software, and services. The hardware segment held the majority share in 2021 contribution to the horticulture lighting market revenue as hardware is considered the primary need for deploying horticulture lighting. However, software was the fastest-growing category over the forecast period. This growth is attributed to the increasing penetration of Controlled-Environment Agriculture (CEA) to control various environmental factors using the software.
Horticulture Lighting Technology Insights
The horticulture lighting market segmentation, based on technology, includes fluorescent, high-intensity discharge, and LED. The high-intensity discharge segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The HID is majorly used for commercial growing, such as commercial greenhouses and vertical farms. However, LED is the fastest-growing category over the forecast period due to increasing urban cultivation, and government initiatives to adopt energy-efficient LEDs are expected to drive the LED segment. The most efficient LED lamps at a higher price point positively impact market growth for horticulture lighting.
Horticulture Lighting Type Insights
The horticulture lighting market data has been bifurcated by lighting type into toplighting and interlighting. The toplighting segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032, as it acts as an important source of plant growth, which helps the plant to prepare food through the artificial method. However, the interlighting category accounts for the second-largest share due to the growing number of greenhouses for tomatoes and cucumber cultivation.
Figure 1: Horticulture Lighting Market by Lighting Type, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Horticulture Lighting Cultivation Insights
Based on cultivation, the horticulture lighting industry has been segmented into fruits & vegetables and floriculture. Fruits & vegetables held the largest segment share in 2021 due to the rising demand for fresh vegetables, which has resulted in increased vegetable production. However, floriculture is the fastest-growing category due to the rise in the use of lighting for the cultivation of floriculture.
Horticulture Lighting Application Insights
Based on application, the horticulture lighting industry has been segmented into greenhouse, vertical farming, and indoor farming. Vertical farming held the largest segment share in 2021 due to rising awareness among people to grow their food to eat. However, greenhouse is the fastest-growing category due to the rising adoption of these lightings across greenhouse farming around the globe.
Horticulture Lighting Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America horticulture lighting market accounted for USD 1.26 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is owing to the rising demand from the waste recycling plants with the early adoption and development of the advanced technology-based sorter in this region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: HORTICULTURE LIGHTING MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe horticulture lighting market accounts for the second-largest market share due to the presence of leading lighting manufacturers such as Osram Licht AG, Gavita, Valoya, and others. Further, the Germany horticulture lighting market held the largest market share, and the UK horticulture lighting market was the fastest-growing market in the European region.
The Asia-Pacific horticulture lighting Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to growing food demand in populated countries, including China and India. In the Asia Pacific, the agriculture industry is a critical part of development, accounting for approximately 4% of the gross domestic product (GDP). Moreover, China horticulture lighting market held the largest market share, and the India horticulture lighting market was the fastest-growing market in the Asia-Pacific region.
Horticulture Lighting Key Market Players & Competitive Insights
Major market players are spending a huge amount of money on R&D to enhance their product lines, which will help the horticulture lighting market grow even more. Market players are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaboration with other firms. Competitors in the horticulture lighting industry must provide cost-effective items to enhance and survive in an increasingly competitive and growing market environment.
One of the primary business strategies manufacturers adopt in the market for horticulture lighting to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In the horticulture lighting market, major players such as Bridgelux Inc. (US), LumiGrow Inc. (US), EYE Hortilux (US), and others are working on expanding the market demand by investing in research and development activities.
California LightWorks is an American company focused on the research, design, development, and manufacturing of advanced energy-efficient LED greenhouse lights. Their vision is to apply for the latest advances in high-efficiency lighting and controls technology to all their products. The company uses innovative manufacturing techniques to deliver highly beneficial, differentiated products at competitive prices to the professional greenhouse and indoor horticulture lighting. In February 2022 California Lightworks, Inc. established the latest MegaDrive Vertical series for indoor cannabis cultivators. This patented LED system provides indoor cultivators and greenhouses a return on investment and reduces heat, energy consumption, and carbon footprint.
Also, Osram is one of the guiding lights in the technological development and manufacturing of high-quality products. For nearly four decades, the high-tech company has been investing in research and developing new products on the technological cutting edge, enabling ams Osram to set international standards in the fields of illumination, visualization and sensor technology. InJune 2021, Osram expanded its horticulture lighting portfolio with the launch of Osconiq S 5050. It addresses a key problem of using white LEDs resulting in lower energy costs and more efficient lighting for indoor farmers.
Key Companies in the Horticulture Lighting market include
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Heliospectra AB (Sweden)
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excite LED Grow Lights (Switzerland)
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Greens Hydroponics (UK)
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UPSHINE Lighting (China)
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TESLUX Lighting s.r.o. (Czechia)
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Hortisystems UK Ltd (UK)
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ProGrowTech (US)
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Ronfell Group (UK)
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GENERAL ELECTRIC (US)
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Agrolux (Netherlands)
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SAMSUNG (South Korea)
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Hortilux Schréder B.V. (Netherlands)
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OSRAM GmbH (Germany)
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Cree, Inc. (US)
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DiCon Lighting (US)
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Valoya (Finland)
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EVERLIGHT (Taiwan)
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Gavita (Norway), among others
Horticulture Lighting Industry Developments
November 2023: The acquisition of Arize horticulture lighting products from Current Lighting Solutions, LLC was announced by Acuity Brands, which said that it has struck an agreement to purchase these products. At the same time, the firm will continue to maintain a distribution partnership with Hort Americas, which is located in Texas, for the aim of ensuring that Arize products are sold and supported across the North American region.
"Acuity Brands will be in a position to significantly increase our product offering to the fast developing controlled environment agricultural sector as a result of the addition of these high-powered, greenhouse-focused luminaires to our range of horticulture lighting. Tony Gineris, vice president and general manager of industrial and outdoor lighting for Acuity Brands Lighting and Lighting Controls, stated that the company will be able to take advantage of its expertise in lighting and controls to assist growers in increasing their productivity while simultaneously reducing their energy consumption. This will be possible because of the company's ability to take advantage of its expertise in lighting and controls.
The purchase of Arize solutions by Acuity is comparable to the purchase of Fluence by Signify, which took place after ams Osram made the decision to withdraw from the CEA lighting product market. Both acquisitions took place after the CEA lighting product industry was officially finished. Fagerhult Group, which is based in Sweden, has just placed its under-the-radar horticultural lighting business on hold owing to the small profits it has been producing. This decision was made because of the company's recent financial situation. While Acuity is relatively new to the CEA business, having released its Verjure brand of full-spectrum horticulture luminaires at the beginning of 2022, Signify has a well-established market for its grow lights that were branded with the Philips name. Signify's grow lights were marketed under the Philips name.
February 2023: Chromacity lately announced a strategic collaboration arrangement with Edmund Optics for the supply and sale of its ultrafast lasers worldwide recently at Photonics West. The announcement is timed to the debut of Chromacity's newest 920 nm-emitting ultrafast laser. The global channels & optical imaging network of Edmund Optics will actively market and disseminate the line of fixed wavelength femtosecond lasers from Chromacity. One of the top manufacturers and suppliers of optical, imaging, and photonics-enabled technologies for the semiconductor, security, biomedical, industrial inspection, and R&D industries is Edmund optical.
November 2022: 'Time-lens' developed by Harvard SEAS produces ultrafast laser pulses. Harvard's John A. Paulson SEAS researchers have created a high-performance, on-chip femtosecond pulse generator utilizing a device known as a "time lens" that looks to be right out of science fiction. The size of pulsed lasers that emit intense, brief bursts of variously colored light has remained high. They chose to employ a cutting-edge integrated photonics platform which they have built to scale down a well-known method used to realize traditional — and enormous — femtosecond sources in order to make these sources more practical.
July 2022: A distinguished Fulbright U.S. Scholar Award was given to Associate Professor Jie Qiao to improve the field of ultrafast laser material processing. To create innovative optical components and integrated photonic circuitry, Qiao creates ultrafast laser systems & techniques. She will collaborate on research involving ultrafast lasers in the gigahertz range, which use incredibly brief light pulses for the non-contact material removal. According to Qiao, this might revolutionize the way that materials are cut, drilled, welded, polished, and structured for use in semiconductors, medical devices, sensors, and other technologies. Qiao expects it will act as a spur to enhance gender parity in the laser, optics, and photonics industries. It is possible to fine-tune material interaction process & eliminate the heating impact using a laser that emits 1 billion pulses per second.
Horticulture Lighting Market Segmentation:
Horticulture Lighting Offering Outlook
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Hardware
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Software
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Services
Horticulture Lighting Technology Outlook
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Fluorescent
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High-Intensity Discharge
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LED
Horticulture Lighting Lighting Type Outlook
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Toplighting
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Interlighting
Horticulture Lighting Cultivation Outlook
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Fruits & Vegetables
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Floriculture
Horticulture Lighting Application Outlook
Horticulture Lighting Regional Outlook
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2021 |
USD 3.1 billion |
| Market Size 2022 |
USD 3.82 billion |
| Market Size 2032 |
USD 16.35 billion |
| Compound Annual Growth Rate (CAGR) |
23.10% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Offering, Technology, Lighting Type, Cultivation, Application and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Greens Hydroponics (UK), UPSHINE Lighting (China), TESLUX Lighting s.r.o. (Czechia), Hortisystems UK Ltd (UK) and ProGrowTech (US) |
| Key Market Opportunities |
Rising use in various agricultural applications |
| Key Market Dynamics |
Rising urbanization and food costs to elevate industry growth Growing awareness regarding sustainability |
Frequently Asked Questions (FAQ) :
The horticulture lighting market size was valued at USD 3.1 Billion in 2021.
The market is projected to grow at a CAGR of 4.7% during the forecast period 2024-2032.
North America had the largest share of the market
The key players in the market for horticulture lighting are Greens Hydroponics (UK), UPSHINE Lighting (China), TESLUX Lighting s.r.o. (Czechia), Hortisystems UK Ltd (UK), and ProGrowTech (US).
The hardware category dominated the market in 2021.
The high-intensity discharge had the largest share of the market.
The toplighting category dominated the market in 2021.
Fruits & vegetables had the largest share of the market.
Vertical farming had the largest share of the market.
