Horticulture Lighting Market is expected to generate a revenue of USD 25.06 Billion by 2031, Globally, at 17% CAGR: Verified Market Research®

The convergence of advanced LED technologies, growing adoption of controlled-environment agriculture, and strong government incentives—especially in Europe—creates fertile ground for market expansion. However, high initial investment and low awareness in developing regions highlight the need for strategic partnerships, education campaigns, and tiered product offerings. Players aiming for global growth should prioritize developed markets for early ROI while building presence in emerging economies through localized strategies, cost-effective solutions, and regulatory navigation to unlock long-term scalability and adoption.

/EIN News/ -- Lewes, Delaware, May 12, 2025 (GLOBE NEWSWIRE) -- The Global Horticulture Lighting Market Size is projected to grow at a CAGR of 17% from 2024 to 2031, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 7.14 Billion in 2023 and is expected to reach USD 25.06 Billion by the end of the forecast period.

The Horticulture Lighting Market is evolving rapidly as growers turn to energy-efficient lighting solutions to improve crop yields. This shift is largely propelled by the growing popularity of vertical farming and the need for sustainable food production practices.

Key Highlights of the Report:

• Market Size & Forecast: In-depth analysis of current valuation and expected CAGR through 2031.
• Growth Drivers: Explores how sustainability, vertical farming, and tech innovation fuel demand.
• Regional Analysis: Detailed insight into North America, Europe, Asia-Pacific, and emerging regions.
• Competitive Landscape: Profiles of key players, their strategies, and recent developments.
• Technology Trends: Covers LED, HPS, and new adaptive lighting technologies.
• End-User Segmentation: Insights into commercial greenhouses, indoor farms, and research centers.

Why This Report Matters:

This report equips industry stakeholders with actionable insights, enabling strategic decision-making based on technological trends, regional opportunities, and competitive benchmarking in the horticulture lighting space.

Who You Should Read This Report:

Ideal for lighting manufacturers, agritech firms, greenhouse operators, B2B buyers, venture capitalists, and policymakers seeking data-backed insights for investment and innovation in horticultural practices.

For more information or to purchase the report, please contact us at: https://www.verifiedmarketresearch.com/download-sample?rid=6458

Browse in-depth TOC on “Global Horticulture Lighting Market Size”

202 - Pages

126 – Tables

37 – Figures

Report Scope

REPORT ATTRIBUTES	DETAILS
STUDY PERIOD	2020-2031
BASE YEAR	2023
FORECAST PERIOD	2024-2031
HISTORICAL PERIOD	2020-2022
UNIT	Value (USD Billion)
KEY COMPANIES PROFIELD	Hubbell, Inc., Signify Holding, OSRAM GmbH, Koninklijke Philips NV, Heliospectra AB, Cree LED, Epistar Corp., Acuity Brands, Inc., Current Lighting Solutions, Inc., LEDiL Oy, Samsung Electronics Co. Ltd, Everlight Electronics Co. Ltd, Gavita International BV, Lumileds Holding BV.
SEGMENTS COVERED	By Lighting Type, By Lighting Technology, By Application, And By Geography.
CUSTOMIZATION SCOPE	Free report customization (equivalent to up to 4 analyst working days) with purchase. Addition or alteration to country, regional & segment scope

Global Horticulture Lighting Market Overview

Market Driver

Rising Demand for Controlled-Environment Agriculture (CEA): The worldwide transition to Controlled-Environment Agriculture (CEA) is markedly increasing the demand for sophisticated horticultural lighting systems. As urbanization intensifies, land becomes scarce, and climate conditions become erratic, cultivators are using indoor agricultural techniques like as vertical farming, hydroponics, and greenhouse growing to guarantee stable crop production. Horticultural lighting facilitates meticulous regulation of plant development conditions, regardless of season or location, establishing it as a fundamental technology in Controlled Environment Agriculture (CEA) systems. The increasing demand for pesticide-free produce and sustainable agricultural techniques further propels adoption. Commercial cultivators and agritech companies perceive horticultural lighting as a strategic investment for safeguarding food supply chains, particularly in urban areas.

Technological Advancements in LED and Smart Lighting Solutions: Ongoing advancements in LED technology have transformed the horticultural lighting sector. Contemporary LED systems provide spectrum-tunable illumination customized for several plant growth phases: seedling, vegetative, and blooming. These innovations enable cultivators to enhance photosynthesis, decrease energy usage by up to 60% relative to conventional illumination, and elevate crop quality. Furthermore, the amalgamation of IoT and AI with horticultural lighting systems facilitates real-time monitoring, automation, and energy optimization. These intelligent lighting systems are increasingly adopted by extensive commercial agricultural operations seeking to optimize return on investment through enhanced operational efficiency. With the decrease in LED prices and the advancement of technology, adoption is anticipated to rise in both developed and emerging countries.

Government Support and Sustainability-Driven Incentives: Governments in North America, Europe, and certain regions of Asia-Pacific are actively advocating for sustainable farming methods via subsidies, tax incentives, and policy frameworks. Targeted funding initiatives for energy-efficient agricultural infrastructure and research and development grants for vertical farming are directly facilitating the expansion of the horticulture lighting sector. The European Union's Green Deal and the USDA's endorsement of urban agriculture promote the adoption of environmentally sustainable technologies, including LED grow lights. Moreover, ESG (Environmental, Social, and Governance) compliance mandates are compelling agribusinesses to implement low-impact alternatives. This regulatory support diminishes entry barriers for new cultivators while enhancing long-term market stability and investor trust in horticulture technology enterprises.

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Market Restraint

High Initial Capital Expenditure and Long ROI Periods: A primary obstacle to the implementation of horticultural lighting systems is the substantial initial capital expenditure needed. The expenses associated with acquiring and installing sophisticated LED lighting systems, integrated sensors, climate control units, and software platforms can be considerable, particularly for small and medium-sized cultivators. Despite the long-term savings provided by LEDs through diminished energy use and reduced maintenance, the payback period may span several years, contingent upon crop kind and market prices. This induces reluctance among cultivators with constrained capital or ambiguous market access. Moreover, restricted access to agricultural financing in developing areas intensifies the issue, hindering the use of lighting technologies despite the acknowledged agronomic advantages.

Limited Awareness and Technical Know-How in Emerging Markets: Although horticultural lighting has achieved considerable popularity in industrialized nations, knowledge is still limited in numerous developing areas throughout Africa, Southeast Asia, and Latin America. Small-scale farmers frequently lack access to the technical expertise necessary for the implementation and optimization of lighting systems. Moreover, there exists a fallacy that horticultural illumination is exclusively appropriate for specialized or premium crops, hindering widespread acceptance. The absence of training programs, restricted vendor availability, and inadequate presentations of successful case studies all lead to a protracted learning curve. Consequently, numerous prospective users persist in utilizing conventional agricultural methods, so forgoing the productivity enhancements and resource efficiency provided by contemporary lighting technology.

Regulatory Fragmentation and Absence of Industry-Wide Standards: The horticultural lighting sector has a significant impediment due to the absence of consistent rules and certifications in international markets. Some countries possess clearly established standards for agricultural lighting systems, whilst others exhibit a deficiency in legislative clarity, resulting in inconsistencies in product quality and compliance. Manufacturers frequently need to tailor items or manage intricate import regulations for each location, so elevating time-to-market and operational expenses. The lack of standardized indicators for performance, safety, and energy efficiency complicates procurement decisions for purchasers. This legislative fragmentation impedes cross-border expansion for lighting providers and diminishes buyer confidence in emerging nations.

Geographical Dominance

Europe occupies a preeminent position in the Horticulture Lighting Market, propelled by substantial government subsidies for energy-efficient agriculture, extensive implementation of controlled-environment agriculture, and a significant presence of prominent LED manufacturers. The region's emphasis on sustainability, sophisticated R&D infrastructure, and rigorous environmental restrictions create an optimal environment for high-tech horticultural discoveries and commercial greenhouse developments.

Key Players

The “Global Horticulture Lighting Market” study report will provide a valuable insight with an emphasis on the global market. The major players in the market are Hubbell, Inc., Signify Holding, OSRAM GmbH, Koninklijke Philips NV, Heliospectra AB, Cree LED, Epistar Corp., Acuity Brands, Inc., Current Lighting Solutions, Inc., LEDiL Oy, Samsung Electronics Co. Ltd, Everlight Electronics Co. Ltd, Gavita International BV, Lumileds Holding BV.

Horticulture Lighting Market Segment Analysis

Based on the research, Verified Market Research has segmented the global market into Lighting Type, Lighting Technology, Application, and Geography.

• Horticulture Lighting Market, by Lighting Type
  • Top lighting
  • Interlighting
    
    
• Horticulture Lighting Market, by Lighting Technology
  
  
  • LED
  • HID (MH (Metal Halide)
  • HPS (High-Pressure Sodium) Light

• Horticulture Lighting Market, by Application
  • Vegetables and Fruits
  • Floriculture
  • City Farming
  • Greenhouses
  • Indoor & Vertical Farming

• Horticulture Lighting Market, by Geography
  • North America
    • U.S
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Rest of Asia Pacific
  • ROW
    • Middle East & Africa
    • Latin America

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