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Horticulture Lighting Market - 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, 2023 - 2032

  • Report ID: GMI7134
  • Published Date: Oct 2023
  • Report Format: PDF

Horticulture Lighting Market Size

Horticulture Lighting Market was valued at over USD 4 million in 2022 and is anticipated to grow at a CAGR of over 18% between 2023 and 2032. This dynamic growth is attributed to its critical function in increasing agricultural productivity.
 

Horticulture Lighting Market

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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.

 

COVID-19 Impact

The COVID-19 pandemic had multiple effects on the horticulture lighting market. Initially, supply chain interruptions caused delays in manufacturing and distribution, slowing market growth. On the other hand, the increased interest in home gardening and food security during lockdowns raised demand for horticulture lighting solutions. As a result, the sector witnessed an increase in sales, particularly small-scale indoor gardening systems. The pandemic also encouraged the use of modern technologies for sustainable and efficient plant growing such as LED lighting. Overall, while COVID-19 presented hurdles at first, it eventually fostered innovation and increased awareness, resulting in a more resilient & optimistic future for the horticulture lighting business.
 

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

Horticulture Lighting Market Size, By Technology, 2021-2032, (USD Billion)

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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 2022.
 

  • LED lights are highly energy-efficient, producing light while consuming less electricity. This not only reduces operational costs for growers but also contributes to sustainability and environmental responsibility. LEDs have a significantly longer lifespan compared to traditional lighting technologies, reducing maintenance and replacement costs.
     
  • LED grow lights produce minimal heat, reducing the risk of damage to plants and the need for additional cooling systems. Ongoing research and development have led to continuous improvements in LED technology, making it even more efficient and cost-effective for horticultural applications.
                                                               
Horticulture Lighting Market Share, By Application, 2022

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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.
 

  • The increasing legalization of cannabis for medicinal & recreational purposes in various regions has led to a surge in cannabis cultivation. This necessitates advanced horticultural lighting solutions to optimize crop yields and quality.
     
  • Cannabis cultivation requires precise control over lighting conditions to maintain consistent cannabinoid and terpene profiles. Horticulture lighting offers the capability to tailor light spectrums for specific strains and growth stages, ensuring product consistency. The demand for high-quality cannabis products has driven research into optimal lighting strategies, fostering innovation in the horticulture lighting industry.
     

Horticulture Lighting Market Regional Analysis

US Horticulture Lighting Market Size, 2021-2032, (USD Billion)

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North America dominated the global horticulture lighting industry with a share of over 30% in 2022. 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

Players operating in the horticulture lighting industry focus on implementing different growth strategies to strengthen their offerings and expand their market reach. These strategies involve new product developments & launches, partnerships & collaborations, mergers & acquisitions, and customer retention. These players also heavily invest in research & development to introduce innovative and technologically advanced solutions in the market. Some of the major players operating in the horticulture lighting industry are mentioned below:

  • Signify Holding (Philips)
  • OSRAM GmbH
  • Samsung Electronics Co. Ltd.
  • Lumileds Holding BV
  • Everlight Electronics Co. Ltd.
  • Gavita International BV
  • Heliospectra AB

Horticulture Lighting Industry News

  • In October 2022, Current and The Hernández Lab at North Carolina State University (NCSU) extended their partnership for a new study focusing on the potential of supplemental LED lighting to support commercial cannabis production.
     
  • In August 2022, Hortilux Schréder partnered with Daeyoung GS. Under this distribution agreement, Daeyoung GS is authorized to sell Hortilux products to its customers in South Korea. With this move, Hortilux Schréder strengthened its presence in South Korea.
     

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

  • Toplighting
  • Interlighting

Market, By Technology

  • Fluorescent
  • High-Intensity Discharge (HID)
  • Light-Emitting Diode (LED)
  • Others

Market, By Application

  • Fruits & Vegetables
  • Floriculture
  • Cannabis

Market, By End-use Industry

  • Vertical Farming
  • Greenhouses
  • Indoor Farms
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Singapore
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • GCC
    • South Africa
    • Rest of MEA

 

Authors: Suraj Gujar , Sandeep Ugale

Frequently Asked Questions (FAQ) :

The market size for horticulture lighting was valued at over USD 4 million in 2022 and is anticipated to grow at a CAGR of over 18% between 2023 and 2032 as it plays a critical function in increasing agricultural productivity.
The Light-Emitting Diode (LED) segment accounted for over 30% market share in 2022, as they are highly energy-efficient and produce minimal heat, with benefits like reduced operational costs, longer lifespan, lower maintenance and replacement costs.
North America dominated the global horticulture lighting market with a share of over 30% in 2022, backed by the surge in Controlled Environment Agriculture (CEA), including vertical farming and greenhouse cultivation, alongside the increasing emphasis on sustainable and energy-efficient farming practices.
Signify Holding (Philips), OSRAM GmbH, Samsung Electronics Co. Ltd., Lumileds Holding BV, Everlight Electronics Co. Ltd., Gavita International BV, and Heliospectra AB.

Horticulture Lighting Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 328
  • Countries covered: 21
  • Pages: 210
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