North America Horticulture Lighting Market Outlook, 2029

The history of horticulture lighting in North America can be tracked back to the beginning of the 21st century, when the scope of indoor farming and controlled environment agriculture (CEA) started to expand exponentially. The occurrences signified very clear tangible transitions within the practice of agriculture, which major driving forces were achievements in tailor-made lighting technologies for indoor plant growth optimization. With the growing demand for fresh produces locally and in cities, where the demands are made for fresh supply throughout the year, proper and effective lighting solutions became of essence.

As a start, lighting solutions were centered around the provision of adequate light spectra and intensity that ensures the stimulation of natural sunlight, necessary for photosynthesis and crop development in an indoor setting. The horticulture lighting ethos has developed over time from demands generated by broader industry needs. The more rapid innovations lie in the energy efficiency, scalability, and crop-specific lighting requirements. In parallel, the developments regarding the environmental concern acquire interest, similar to the issues raised for energy consumption and carbon footprints for agricultural practices.

This concern has been brought by consumers as well as regulatory bodies that have urged for sustainable solutions, thereby promoting the development of LED technologies for the reduction of energy consumed and environmental impact from traditional methods. The uses of advanced technologies are favoring huge changes in the horticulture lighting sector. Smart lighting systems integrating internet of things applications are creating an ability of real-time monitoring of environmental and plant responses to grow crops with optimal resource utilization. Digital controls available for growers to regulate lighting cycles and the spectra result in better productivity and quality of the crops while maintaining the wastage in energy.

The constant change in horticulture lighting reflects a commitment to balancing innovation and environmental stewardship. The market is in a state of constant change, moving towards more efficiency, having less environmental impact, and increasing demands for sustainable agricultural production in the future. The general direction toward more sustainable agricultural technologies prepares the ground for a future with more stringent environmental compliance in the indoor horticulture lighting industry in North America.

According to the report, the North America Horticultural lighting market was valued at more than USD 5 Billion in 2023. Horticultural lighting is now recognized not only in their role of improving crop yields and quality but as an integral part of sustainable agricultural practices. This becomes very relevant to indoor farming facilities and greenhouse operations as a means of promoting optimum growth of plants while causing less harm to the environment. Increasing environmental consciousness on the part of North American growers opens up huge chances for manufacturers to come up with lighting solutions that best fit the objectives of sustainability and regulatory requirements.

One of the main trends in the horticulture lighting market is an increased demand for customized solutions to cater to various cultures and environments. The manufacturer will focus on energy-efficient LED technologies to reduce power consumption, guaranteeing optimum photosynthetic light spectra. Such developments will prove to become very instrumental in improving crop yields, concurrently without increasing operational expenses and production of greenhouse gases from traditional methods of cultivation. In order to make their products more attractive to today's environmentally friendly grower, manufacturers of LED fixtures are designing recyclable components into their products and using more sustainable manufacturing processes.

Innovations in smart lighting systems, by controlling the light intensity, duration, and spectrum precisely, can improve crop performance and resource efficiency. More often than one finds growers interested in lighting solutions that will appropriately balance the optimization of plant growth with their values in environmental stewardship. This aligns with the trends of sustainable agriculture and green technology adoption amid regulatory pressures and consumer preference.

Market Drivers

• Adoption of Vertical Farming and Indoor Agriculture: The drive for year-round fresh produce has led to significant investments in vertical farming and indoor agriculture across North America. These methods enable controlled environments where horticulture lighting systems play a crucial role in ensuring optimal growth conditions for crops. The ability to control factors such as light, temperature, and humidity allows for maximized yields, reduced water usage, and minimal impact from adverse weather conditions. Companies like AeroFarms and Plenty are leading this trend by implementing advanced LED lighting systems to improve crop quality, increase yield, and enhance overall efficiency in food production.

Market Challenges

• High Initial Investment:One of the significant challenges in North America is the high initial investment required for advanced horticulture lighting systems. This includes costs for lighting fixtures, climate control systems, and IoT integration, which can be prohibitive, particularly for small and medium-sized farms. Despite the clear long-term benefits such as energy savings and increased yields, the upfront financial outlay remains a major obstacle.
• Need for Expertise and Training:Optimizing horticulture lighting systems for various crops requires specific expertise in understanding light spectrum requirements, intensity, and duration. There is a significant shortage of skilled personnel who can effectively manage and utilize these advanced systems. The steep learning curve associated with these technologies can hinder their effective implementation, leading to suboptimal use and reduced benefits.

Market Trends

• Sustainability and Energy Efficiency:In North America, there is an increasing emphasis on sustainability and energy efficiency in agriculture. Farmers and companies are adopting practices that reduce their carbon footprint and enhance resource efficiency. Integrating renewable energy sources such as solar and wind with horticulture lighting systems is gaining popularity, helping to mitigate high energy costs and environmental impact. Innovations in LED technology, such as more efficient diodes and better thermal management, contribute to reducing energy consumption while maintaining high light output levels.

In North America, LEDs have become very popular in horticulture lighting due to its innovation in the agriculture sector, focused on the stress laid on increasing productivity while being more sustainable.

LEDs attract huge energy savings critically vital in the countries where energy is rather pricey. They help to cut down on operational costs since they consume less power compared to traditional lighting systems in agriculture, like HID and fluorescent lights, that makes large-scale agricultural operations more economically viable. The control of light spectral distribution cannot be paralleled since LEDs help the growers to change the composition of the light based on the needs of different plant species and phases of growth. This control is the kind that helps in facilitating photosynthesis for faster rates of growth, higher yields, and production of high quality.

For example, blue light is best for vegetative growth, while that part of the spectrum needing red light is more apt for flowering and fruiting stages. This customization comes in especially handy during indoor farming and greenhouse operations - which are dominant in North America due to variable climate and the year-round demand to produce food. The long lifespan is of often more than 50,000 hours, LED lights reduce replacement rates and, therefore, the costs associated with them, reducing maintenance costs and minimizing potential disruptions in the growing process. In huge operations where maintenance is considerably a big logistical challenge, this is very valuable.

Both the consumer demand and mandatory regulatory requirements set out in the new paths toward sustainable agriculture practices, more energy-efficient technologies such as LEDs are viewed more positively. It agrees with environmental sustainability since, with reduced energy consumption, there will be reduced greenhouse gas emissions. Urban farming and vertical agriculture are quickly gaining momentum across North America, particularly in the major urban centers of New York, Toronto, and Vancouver. Space is a very valued commodity for an urban area, and LED lighting systems fit the needs with space efficiency and compact design for maximum production in small square footage areas. These urban farms are essential suppliers of fresher produce to residents of urban regions, all the while reducing the carbon footprint due to food transportation over long distances

The ability of toplighting systems to provide uniform light distribution and facilitate year-round crop production makes them very dominant in the North American region of the horticulture lighting market.

Toplighting systems have dominated a lot in the horticulture lighting market across North America, mainly since they can offer uniform light distribution and can produce crops round the year. In countries like the United States and Canada, where commercial greenhouses are normally large, uniform light distribution is a critical factor for crop growth and development. Toplighting systems installed above the crop canopy offer growers the option to distribute the light evenly over a large area and provide the same quantity of light to each plant. Toplighting systems can be used to supplement periods of low sunlight, thereby extending the photosynthetic period of the day and becoming an avenue to produce crops all year round.

The case is especially true in countries that experience shorter lengths of the day during the winter season which creates the capacity for growers to continue producing and satisfying market demand during off-peak seasons. Toplighting fits within the North American horticulture industry's initiatives for efficiency and productivity due to the flexibility provided by these lighting systems, which in turn makes it the top choice for greenhouse lighting.

The domination of fruits and vegetables in the North American horticultural lighting market due to higher demand for fresh produce all year round and a good quality output, coupled with the ability of horticultural lighting to enhance crop yield and efficiency.

Fruits and vegetables at present are ruling the North American horticultural lighting market, powered majorly by the rising consumer demand for the green-lighted availabilities of fresh produce throughout the year and the capability of horticultural lighting methods to enhance crop yield along with efficiency. As health-conscious consumers are rapidly demanding more fresh fruits and vegetables in their diets, growers turn toward advanced lighting technologies to optimize crop growth and meet up with this demand. Horticultural lighting makes it easier for growers to provide optimal conditions of light to fruits and vegetables for photosynthesis to take place, promoting healthy plants with increased yields.

Supplemental lighting - one that replaces or supplements natural light - extends the daily photosynthetic period, hence allowing growers to produce crops on demand throughout the year independently of seasonal daylight variations. This is invaluable, specifically in North America, where the extreme climate and day length have been confronting limitations in natural light availability during winter. Such horticultural lighting will enable producers to obtain the maximum consumption of resources while reducing operational costs. By optimizing the light conditions, growers can realize increased harvests per square foot and fully exploit a potentially extremely limited greenhouse space - especially in urban and peri-urban areas where agricultural land is generally scarce. Energy-efficient technologies for lighting, such as LED lights, will help reduce energy use by growers and thus reduce their production costs.

Greenhouses dominate the market in North America due to the trend toward sustainable agriculture and controlled environment farming, plus the increasing demand for year-round production of high-value crops.

Controlled environment agriculture has been adopted in their quest to find better ways of increasing crop yields to optimize resource usage for improved food security, mainly in the United States and Canada. Providing greenhouses with advanced horticulture lighting technologies such as LED systems will allow producers to create perfect growing conditions independent of seasonal patterns and weather vagaries. The key ability in places where the seasonal and extreme changeable weather could easily interfere with normal outdoor farming practices. They provide subconscious control over the light spectrum, duration, and intensity - enabling the best growing conditions for crops like tomatoes, peppers, lettuce, and herbs.

Due to extended seasonal growing and potential high-quality crops being possible, greenhouse operations have secured a seat at the top of the list among both consumers and retailers. A sustainability-oriented approach fuels the trends of adopting greenhouses with LED lighting, mainly because they can offer significantly high energy savings compared to traditional methods of lighting, such as HPS lamps. This efficiency only brings down the operation cost but meets North America's commitment to environmental stewardship and greenhouse gas reduction goals.

The United States is currently leading the way in the horticulture lighting market as a result of its well-represented technological innovation ecosystem and massive investment in vertical farming and controlled environment agriculture.

The U.S. has in place a very developed network of technology companies, research institutions, and agribusinesses leading to continuous innovation in LED lighting technology, developing very high-efficiency spectrum-optimized lighting systems that are needed to maximize crop yields and quality. The integration of IoT and AI technologies into lighting for horticulture offers control and monitoring of growing conditions with great precision, resulting in still higher productivity and resource efficiency. Added to this is the need to become sustainable, which has accelerated the adoption of energy-efficient lighting solutions that reduce their impact on the environment and related operational costs.

In addition, heavy investment in urban and vertical farming projects across large cities such as New York, Chicago, and San Francisco can be furnished to prove a commitment by the U.S. in ensuring an increased demand for locally sourced and fresh produce is met. The urban agriculture initiatives can thus afford to utilize advanced lighting technologies, coupled with controlled environments for areas that pose limiting factors such as space constraint and bad weather. Government support in the form of subsidies or research grants has facilitated the widespread diffusion of cutting-edge horticulture lighting systems. The United States is not only at the forefront of technological improvement, but in terms of creating sustainable horticultural practices to set a benchmark for other countries in the horticulture industry and to make the nation stand ahead in the global market.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Horticulture Lighting market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology:

• Light-emitting Diode (LED)
• High-intensity Discharge (HID)
• Fluorescent
• Others

By Lighting Type:

• Toplighting
• Interlighting

By Application:

• Fruits & Vegetables
• Floriculture
• Cannabis

By End-use Industry:

• Greenhouses
• Vertical Farming
• Indoor Farms

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Horticulture Lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.