Horticulture Lighting Market Size & Share 2024 - 2032
Market Size by Type (Toplighting, Interlighting), by Technology (Fluorescent, High-Intensity Discharge [HID], Light-Emitting Diode [LED]), by Application (Fruits & Vegetables, Floriculture, Cannabis), by End Use Industry & Forecast.
Report ID: GMI7134
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Published Date: April 2024
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Report Format: PDF
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Authors:
Suraj Gujar, Sandeep Ugale
Horticulture Lighting Market Size
Horticulture Lighting Market was valued at over USD 6.5 billion in 2023 and is anticipated to grow at a CAGR of over 16.1% between 2024 and 2032. This dynamic growth is attributed to its critical function in increasing agricultural productivity.
Horticulture Lighting Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Innovative agricultural technology such as smart lighting systems optimize resource utilization, resulting in higher yields and better crop quality. Furthermore, these advancements allow year-round cultivation, which alleviates seasonality constraints. Horticulture lighting is becoming increasingly important as the global need for fresh fruits is increasing. Furthermore, concerns about sustainability drive the use of energy-efficient and ecologically friendly lighting systems that are compatible with modern farming techniques. As a result, increased capital infusion into these technologies is driving the horticulture lighting industry demand. For instance, in March 2020, Signify collaborated with Planet Farms, Europe’s largest vertical farm, to boost crop quality and yield using the Philips GreenPower LED production module managed by the Philips Grow Wise Control System. This enables Planet Farms to produce and deliver the tastiest aromatic herbs & lettuce to its customers in Italy all year round.
Horticulture lighting refers to the use of artificial light sources, typically LEDs or high-intensity discharge lamps, to provide controlled & supplemental lighting for plant growth in indoor or greenhouse settings. This specialized lighting technology is designed to mimic natural sunlight and optimize the photosynthesis process, promoting plant growth, flowering & fruiting. It allows for year-round cultivation, enabling farmers & horticulturists to extend growing seasons and improve crop quality, making it a crucial component of modern agriculture and urban farming practices.
Horticulture lighting systems increase growers' operational costs and reduce their profitability. They increase environmental problems by raising carbon footprints and burdening the electricity systems, leading to energy shortages. Furthermore, excessive energy use limits scalability, inhibiting market expansion. The increased wear & tear of the lighting systems also raises the maintenance costs. The imposition of regulations by governments on horticultural lights to prevent energy waste may cause regulatory complications. Excessive energy use may harm economic & environmental sustainability and inhibit industry expansion.
Horticulture Lighting Market Trends
Light Emitting Diode (LED) technology has gained popularity due to its efficiency and versatility. LEDs provide wavelengths of light that promote plant growth, increasing energy efficiency while reducing waste heat. The ability to modify light spectra has allowed growers to optimize crop growth and development, making LED grow lights a preferred choice in the horticulture lighting industry. Moreover, they are cost-effective and allow producers to fine-tune illumination to suit different plant species & growth stages.
The Internet of Things (IoT) integration brought smart lighting systems to the forefront. These systems enable remote monitoring and control, aiding growers to fine-tune lighting schedules and spectra based on real-time data & plant needs. Data collection and analytics play a crucial role in optimizing crop yields and resource utilization. Automation and precise control over lighting parameters streamline operations and reduce human error. Smart lighting also contributes to the overall efficiency and sustainability of horticultural practices by ensuring that the light is used only when and where it is most needed.
Horticulture Lighting Market Analysis
Based on technology, the market is segmented into fluorescent, high-intensity discharge (HID), light-emitting diode (LED), and others. The light-emitting diode (LED) segment dominated the market with a share of over 30% in 2023.
Based on application, the market is divided into fruits & vegetables, floriculture, and cannabis. The cannabis segment is anticipated to register a CAGR of over 19% through 2032.
North America dominated the global horticulture lighting industry with a share of over 30% in 2023. The region has witnessed a surge in controlled environment agriculture (CEA), including vertical farming and greenhouse cultivation, which demands specialized lighting solutions for year-round crop production. The increasing emphasis on sustainable and energy-efficient farming practices aligns with the adoption of advanced horticultural lighting technologies. Favorable government incentives, such as energy-efficient lighting rebates, encourage growers to invest in modern lighting systems. Technological innovations and research collaborations in the field of horticulture lighting have created a conducive environment for market expansion.
Horticulture Lighting Market Share
Horticulture Lighting Market Companies
Horticulture Lighting Industry News
The horticulture lighting market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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Market, By Type
Market, By Technology
Market, By Application
Market, By End-use Industry
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
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Industry databases
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Regulatory filings
Government procurement records and policy documents
Academic research
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Company reports
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Expert interviews
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →