Horticulture Lighting Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Technology Type (LED Grow Lights, HID Lights (HPS, Metal Halide), Fluorescent Lights, Other Technologies), By Light Spectrum (Full Spectrum, Broad Spectrum, Customizable Spectrum), By Application (Greenhouses, Indoor Farms, Vertical Farms, Research, Commercial Operations), By Crop Type (Fruits, Vegetables, Herbs, Flowers, Cannabis, Others By Control System (Manual Control, Automated Control, Smart Lighting Systems) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Horticulture Lighting Market was valued at USD 3,040.3 Million in 2022 and is anticipated to reach a value of USD 13,367.6 Million by 2030 expanding at a CAGR of 20.4% between 2023 and 2030.

The demand, for high quality lighting solutions in the agriculture and horticulture sector has seen a surge in recent times. Nowadays one can find these types of lights across the globe as the market continues to expand. These products and technologies that aim to enhance crop yields promote plant growth and improve the overall quality of harvested produce. Farmers now have the ability to customize lighting conditions through lighting systems, which allows more control over factors such as light spectra, intensity and duration. In essence these systems provide plants everything they need to thrive. The driving forces, behind this markets growth can be attributed to surge in the adoption of various agricultural practices such as indoor farming, vertical agriculture, greenhouse farming and other. Horticulture lighting solutions presents a huge assistance in maintaining food security, optimizing crop yield and ensuring consistent high quality harvest for sustaining huge population. 

Horticulture lighting market Major Driving Forces

Indoor & Vertical Farming: Indoor farming and vertical agriculture have become increasingly popular driving the demand, for horticulture lighting. These innovative farming methods rely on efficient lighting solutions to ensure crop yields throughout the year regardless of external weather conditions.

Demand for Year-Round Crop Production: The growing consumer demand for fresh produce year round combined with the need for crop cultivation has motivated agriculturists to invest in horticulture lighting. By utilizing this technology, farmer can extend their growing seasons and enhance production levels consistently.

Energy Efficiency: One significant benefit of horticulture lighting is its energy efficiency. With advancements, in LED lighting systems growers can reduce electricity consumption and operational costs while promoting sustainability.

Customization Options: Another driver in horticulture lighting is that they offer customization options. Farmer can now tailor the spectra to meet the requirements of different plants. By having this level of control over the source they can enhance crop quality accelerate growth rates and maximize resource utilization effectively.

Horticulture lighting market Key Opportunities

Increasing indoor farming: The increasing adoption of agricultural practices such as greenhouses have greatly necessitated the use of horticulture light. These approaches helps to reduce seasonality effects and facilitate crop production all year long and thus mitigate the dependency on seasons in regards to food production. Indoor farming produces steady yields but improvement of lighting efficiency is required towards lowering electrical power usage. 

Energy-efficient solutions: There is a huge opportunity exist in the market of innovations in energy-saving in horticultural lighting systems. With sustainability gaining prominence, low-energy consumption and cost efficient technological solutions are highly sought after.

Emerging Technologies: Continuous development of better quality LED and smart lighting provides the manufacturers an opportunity to better manage light’s spectrum and intensity. Therefore, companies that work on innovations may attract market share.

Horticulture lighting market Key Trends

·         LED Dominance: Due to its reduced energy consumption and customizable qualities, light-emitting diode technology has become the lighting method of choice.

·         Smart Lighting Innovations: Agricultural yields are being boosted as they can be remotely managed by Internet of Things and optimized according to each crop's requirements.

·         Sustainable Growing: There exists demand for eco-friendly lighting alternatives powered by renewables such as the solar solutions in place of fossil fuels to illuminate indoor farms.  

·         Vertical and Indoor Agriculture Expansion: Off-season urban agricultural ventures are proliferating as their market expands, with indoor vertical farms utilizing artificial lights year-round.

·         Constantly Evolving Options: Ongoing study is constantly yielding ever more personalized lighting solutions tailored for specific crops' varied development phases indoors and out.

Region-wise Market Insights

Europe accounted for the largest market share at 35.6% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 22.6% between 2023 and 2030.

North America is among the leading candidate in the horticulture lighting market due to widely adopted advanced lighting technologies across the United States and Canada. Substantial market growth has stemmed from North America's thriving indoor farming sector which enables year-round crop production and sustainability efforts. In Europe, nations such as the Netherlands and United Kingdom that pioneered greenhouse and indoor growing methods have driven lighting demand. European growers prioritize energy efficiency heavily, spurring extensive LED lighting adoption. These energy-smart solutions allow crops to be cultivated regardless of outdoor conditions, empowering continuous production.

In Asia-Pacific horticulture lighting sector is developing fast due to the need for food security, high urbanization as well as reduced arable land. This investment is attributable to increased markets in countries such as China and Japan where they have invested much on vertical agriculture and greenhouse farming which has increased market in the region. In Latin America horticulture lighting industry is growing in countries such as Mexico, Brazil and Chile, where agriculture constitutes an important part of economy. Lighting technologies are used in these countries to improve the chances for the exports, increase growing seasons and enhance quality of crops.

Market Competition Landscape

The global horticulture lighting market is characterized by high degree of competition among a large number of manufacturers. The global horticulture lighting market is a dynamic and competitive industry that is being driven by rising demand for energy-efficient lighting solutions to support indoor agriculture, urban farming, and controlled environment agriculture (CEA). Prominent players in the market include:

·         Signify (formerly Philips Lighting)

·         Osram

·         Heliospectra AB

·         Cree, Inc.

·         Lumigrow

·         GE Current, a Daintree Company

·         Illumitex

·         Valoya

·         California LightWorks

·         Fluence by OSRAM

·         Gavita International

·         Black Dog LED

·         Acuity Brands, Inc.

·         Topledgrowlight

·         Iwasaki Electric Co., Ltd.

·         Bionova

·         Illuminarium Lighting

·         Current, powered by GE

·         SANlight

·         Agrolux

Signify (formerly Philips Lighting) commonly identified for its inventive use of LED illumination, takes one of the top positions in the horticulture lighting industry. In this regard, growers have a chance to create desired light spectra for each type of product and make yields grow higher than usual. The other competitor in this market is Osram which is renowned for providing cutting-edge horticulture lighting solutions. They provide superior grade LED bulbs and smart light designs for green-house applications and indoor cultivation.