Global Horticulture Lighting Market Outlook, 2029

In the realm of modern agriculture, where technology continually evolves to meet growing demands, horticulture lighting stands out as a pivotal innovation. This specialized form of lighting has revolutionized the way plants are grown indoors, enabling year-round cultivation in controlled environments and maximizing crop yields. From enhancing photosynthesis to manipulating growth patterns, horticulture lighting has become indispensable to the agricultural industry. Horticulture lighting refers to the use of artificial light sources to facilitate plant growth beyond natural sunlight.

While sunlight remains the primary energy source for photosynthesis in outdoor settings, indoor environments or greenhouses necessitate supplementary lighting to maintain optimal growth conditions. The key challenge lies in replicating the specific wavelengths and intensities of sunlight that plants require for photosynthesis and other physiological processes. As technology advances and research in plant physiology deepens, the future of horticulture lighting looks promising. Innovations such as smart lighting systems that adjust based on real-time plant responses, combined with sustainable energy sources like solar power, hold the potential to further revolutionize indoor farming practices.

The global COVID-19 pandemic has been unprecedented and staggering, with lighting products and horticulture solutions experiencing a slight decline in demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market declined by 1.0% in 2020 compared to 2019. For instance, Samsung Electronics Ltd offered indoor and horticulture lighting solutions such as LM301H EVO, LM301H and others for leafy greens, and other white LEDs. In addition, LEDiL lighting solutions provider offers DAHLIA-TL110 models of the Horticultural lightings. These lightings with a specific wavelength effectively suppress the growth of microbes on crops.

This helps to cultivate fresher crops with an extended shelf-life that benefits consumers directly. Everlight Electronics Co. Ltd. launched the 3030-ELB, 3535-ELC, 2835-ELB, 5630X-ELB, and LED lights ELB series. These products offer optimized illumination for farmers to enhance crop yields. In March 2021, Acuity Brands, Inc. launched Verjure LED horticulture lighting solution that offers higher efficiency for indoor horticulture applications. The developed horticulture lighting Verjure Pro Series LED luminaires were designed to support all stages of plant growth, from vegetables to flowers. This Verjure series is made available in three different outputs and sizes for supporting versatility for various applications such as a greenhouse, indoor warehouse, and vertical racks.

According to the report, the market is anticipated to cross USD 18 Billion by 2029, increasing from USD 6.21 Billion in 2023. The market is expected to grow with 20% CAGR by 2024-29. Traditional agriculture is highly dependent on seasonal changes and natural sunlight, limiting the ability to grow crops year-round in many regions. Horticulture lighting addresses this challenge by providing artificial light sources that can mimic sunlight, enabling consistent production regardless of external conditions. This capability is crucial for meeting the increasing demand for fresh produce throughout the year, especially in urban areas where access to locally grown food is limited.

The advent of Light-Emitting Diodes (LEDs) has revolutionized the horticulture lighting industry. LEDs are highly efficient, consuming less energy while emitting specific wavelengths of light that are optimal for plant growth and development. Unlike traditional High-Intensity Discharge (HID) lamps, LEDs can be customized to deliver precise light spectra tailored to different plant species and growth stages. This versatility not only enhances crop yields but also reduces operational costs over time, making horticulture lighting more economically viable for growers.

Controlled environment agriculture, which includes indoor farming and greenhouse cultivation, is gaining popularity due to its ability to optimize growing conditions such as temperature, humidity, and light. Horticulture lighting plays a pivotal role in CEA by providing growers with the tools to create ideal growing environments, thereby maximizing productivity and crop quality. As consumer preferences shift towards sustainable and locally sourced food, CEA powered by horticulture lighting offers a viable solution to meet these demands. Concerns about food security, coupled with the environmental impact of traditional agriculture practices, have propelled interest in sustainable farming methods.

Horticulture lighting supports sustainable agriculture by minimizing water usage, reducing pesticide reliance, and maximizing land efficiency. By enabling efficient use of resources and reducing the carbon footprint associated with food production and transportation, horticulture lighting contributes to a more sustainable food supply chain. While the initial investment in horticulture lighting systems can be significant, the potential for increased yields, faster crop cycles, and higher quality produce often results in a favorable return on investment (ROI) for growers. As the industry matures and economies of scale improve, the cost-effectiveness of horticulture lighting continues to improve, making it accessible to a broader range of agricultural enterprises.

Market Drivers

• Increasing Demand for Fresh and High-Quality Produce: As consumers become more aware of the health benefits of fresh fruits and vegetables, the demand for these products is increasing. In addition, consumers are increasingly interested in where their food comes from and are seeking out locally-grown produce. Horticulture lighting can help growers meet this demand by allowing them to grow crops year-round, regardless of the weather, and by enabling them to grow crops in urban or indoor environments.
• Advancements in LED Technology: The development of energy-efficient and long-lasting LED lights has been a major driver of the horticulture lighting market. LEDs can be tuned to specific wavelengths to optimize plant growth, and they produce less heat than traditional lighting, which can damage plants. In addition, the cost of LEDs has been decreasing, making them more accessible to growers.
• Government Initiatives: Some governments are promoting the use of horticulture lighting as a way to increase food production and reduce the environmental impact of agriculture. For example, the Dutch government has invested in the development of LED lighting for greenhouses, and the Japanese government has subsidized the cost of LED lighting for farmers.

Market Challenges

• High Initial Costs: The upfront cost of installing a horticulture lighting system can be high, which can be a barrier for some growers, especially small-scale ones. In addition, the cost of electricity to power the lights can be significant, although this can be offset by the increased crop yields and the ability to grow crops year-round.
• Lack of Standardization and Knowledge: There is a lack of standardization in the horticulture lighting market, and the science of how light affects plant growth is still evolving. This can make it difficult for growers to know which lighting system will work best for their crops and to compare the performance of different systems. In addition, there is a need for more training and education for growers on how to use horticulture lighting effectively.
• Environmental Concerns: There are concerns about the environmental impact of horticulture lighting, especially if it is used to grow crops in energy-intensive indoor or vertical farming environments. In addition, the disposal of used lighting equipment, especially those containing hazardous materials, can be a challenge.

Market Trends

• Vertical Farming and Urban Agriculture: As space for traditional farming becomes scarcer and the world's population continues to grow, vertical farming and urban agriculture are becoming more popular. These methods often rely on horticulture lighting to grow crops, and the development of energy-efficient and high-performing lighting systems is essential to the success of these approaches.
• Smart Lighting Systems: The integration of IoT (Internet of Things) technology into horticulture lighting is a growing trend. Smart lighting systems can automatically adjust the light intensity and spectrum based on the growth stage of the plants, which can improve efficiency and crop yields. In addition, these systems can collect and analyze data on plant growth and environmental conditions, which can be used to optimize the growing process.
• Spectral Tuning: There is growing interest in the use of spectral tuning, or adjusting the wavelengths of light, to optimize plant growth. Different wavelengths of light can affect different aspects of plant growth, such as photosynthesis, stem elongation, and flowering, and spectral tuning can be used to promote or inhibit these processes. The development of LEDs that can be tuned to specific wavelengths has made spectral tuning more feasible and accessible.

LEDs are leading in the horticulture lighting market due to their energy efficiency, customizable spectral output, longevity, and ability to optimize plant growth through targeted light spectra.

Light Emitting Diodes (LEDs) have emerged as the predominant technology in the horticulture lighting market primarily because they offer a combination of benefits unmatched by traditional lighting sources. Firstly, LEDs are highly energy-efficient, converting a significant portion of electrical energy into usable light for plants. This efficiency translates into reduced operational costs and lower energy consumption compared to older technologies like High-Pressure Sodium (HPS) or Metal Halide (MH) lamps. Secondly, LEDs allow for precise control over the spectral output of light. Different wavelengths of light affect plant growth and development in distinct ways, influencing factors such as flowering, fruiting, and overall biomass production.

LEDs can be engineered to emit specific wavelengths tailored to the needs of different crops and growth stages, promoting optimal growth conditions and maximizing yield. Moreover, LEDs are renowned for their longevity. They have a much longer lifespan than traditional lighting options, often lasting tens of thousands of hours before needing replacement. This durability reduces maintenance costs and downtime associated with changing bulbs, particularly in large-scale commercial operations. Another significant advantage of LEDs in horticulture is their compact size and design flexibility.

LEDs can be arranged in various configurations, including panels, bars, and arrays, allowing growers to customize light distribution and intensity across their growing environments. This flexibility is crucial for optimizing light exposure and ensuring uniform growth throughout the crop canopy. Furthermore, LEDs operate at lower temperatures compared to conventional lighting sources, reducing the risk of heat damage to plants and minimizing the need for additional cooling systems in indoor farming setups. This thermal management capability contributes to a more stable and controlled growing environment, enhancing overall crop quality and consistency.

Toplighting is leading in the horticulture lighting market due to its ability to provide uniform light distribution, maximize light penetration, and optimize plant growth in controlled environments.

Toplighting has emerged as a dominant technology in the horticulture lighting market primarily because of its effectiveness in delivering consistent and uniform light to plants grown indoors or in controlled environments. Unlike traditional methods where light sources are placed at the sides or bottom of plants, top lighting fixtures are positioned above the canopy, ensuring even distribution of light across the entire growing area. This uniformity minimizes shading effects and ensures that all parts of the plant receive adequate light for photosynthesis, resulting in more balanced growth and higher yields. Moreover, top lighting fixtures are designed to maximize light penetration into the canopy of plants.

By strategically placing light sources above the plants, growers can ensure that light reaches deeper into the foliage, stimulating growth in lower branches and improving overall plant health and productivity. This is particularly advantageous for crops with dense canopies or those grown in multi-layered systems, such as vertical farms or greenhouse environments. Another key advantage of top lighting is its ability to provide customizable light spectra tailored to the specific needs of different crops and growth stages. Modern top lighting systems often use Light Emitting Diodes (LEDs), which allow growers to adjust the intensity and spectral composition of light emitted.

This flexibility enables growers to mimic natural sunlight or optimize light wavelengths for specific developmental processes like flowering or fruiting, thereby enhancing crop quality and accelerating growth cycles. Furthermore, top lighting fixtures are typically designed to be energy-efficient, utilizing advanced technologies such as LEDs to minimize electricity consumption while maximizing light output. This efficiency not only reduces operational costs but also aligns with sustainability goals by lowering overall energy demand and carbon footprint associated with indoor farming practices.

Fruits and vegetables are leading in the horticulture lighting market due to the significant impact of light quality and intensity on crop yield, quality, and nutritional value.

The prominence of fruits and vegetables in the horticulture lighting market is driven by the crucial role that light plays in the growth, development, and quality of these crops. Light serves as an essential factor influencing photosynthesis, plant morphology, and the accumulation of nutrients and phytochemicals that contribute to overall crop yield and nutritional value. In controlled environment agriculture, such as indoor farms and greenhouses, where natural sunlight may be limited or inconsistent, artificial lighting becomes indispensable for maintaining optimal growth conditions year-round. Fruits and vegetables have specific requirements for light quality (wavelengths) and intensity to maximize their growth and yield potential.

Different stages of plant growth, from seedling to flowering and fruiting, demand varying light spectra. For instance, blue and red light wavelengths are crucial during vegetative growth, promoting leaf expansion and biomass accumulation, while a balanced spectrum that includes far-red light can stimulate flowering and fruit development. Modern horticulture lighting systems, often based on LED technology, allow growers to tailor light spectra precisely to meet these specific needs, thereby optimizing plant growth cycles and enhancing crop productivity. Moreover, the quality attributes of fruits and vegetables, such as taste, color, texture, and nutritional content, are closely linked to light conditions during cultivation.

Adequate light intensity and quality contribute to the synthesis of pigments (e.g., chlorophyll, carotenoids) and secondary metabolites (e.g., antioxidants, vitamins) that enhance these attributes. By controlling light exposure using advanced lighting systems, growers can manipulate these characteristics to meet consumer preferences for flavor, appearance, and nutritional value. Additionally, the economic significance of fruits and vegetables in the horticulture lighting market cannot be overstated.

These crops represent a substantial portion of global agricultural production and consumption, driving demand for efficient and effective lighting solutions that can sustainably increase yields and improve crop quality. As technology continues to advance, with ongoing innovations in LED efficiency, spectral tuning capabilities, and automation, the application of horticulture lighting to fruits and vegetables is expected to expand further, supporting the demand for high-quality produce year-round and contributing to food security and sustainability initiatives globally.

Greenhouses are leading in the horticulture lighting market due to their ability to extend growing seasons, enhance crop quality and yield, and provide controlled environments that maximize the effectiveness of supplemental lighting.

Greenhouses have emerged as a dominant end-user segment in the horticulture lighting market primarily because they offer a controlled environment where supplemental lighting can be effectively utilized to extend growing seasons and optimize crop production. Unlike open-field agriculture, greenhouses provide protection from adverse weather conditions, pests, and diseases while allowing growers to manipulate environmental variables such as temperature, humidity, and light exposure. This controlled environment is crucial for maximizing the benefits of horticulture lighting, especially in regions with limited sunlight or harsh climates where natural light may be insufficient or inconsistent.

Horticulture lighting in greenhouses serves multiple purposes essential for crop cultivation. It enables growers to extend daylight hours or provide light during periods of low natural sunlight, thereby extending the growing season and allowing for year-round production of high-value crops. This capability is particularly advantageous in regions with short daylight hours during winter or locations far from the equator where sunlight intensity varies significantly throughout the year. Greenhouses equipped with horticulture lighting can enhance crop quality and yield by optimizing light spectra and intensity tailored to the specific needs of different plants and growth stages.

Light Emitting Diodes (LEDs) are commonly used in modern greenhouse lighting systems due to their energy efficiency, long lifespan, and ability to emit specific wavelengths that promote photosynthesis, flowering, and fruiting. By adjusting light parameters, growers can stimulate desired physiological responses in plants, such as improved coloration, increased biomass, and accelerated growth rates. Furthermore, greenhouses provide a controlled environment where supplemental lighting can be integrated seamlessly with other cultivation practices, such as irrigation, nutrient management, and pest control.

This integration enhances overall crop management efficiency and allows for precise control over growing conditions, leading to consistent crop quality and higher yields. The ability to produce uniform, high-quality crops throughout the year not only meets consumer demand but also supports commercial viability and profitability for greenhouse operators. Moreover, the adoption of horticulture lighting in greenhouses aligns with sustainable agriculture practices by reducing the environmental footprint associated with traditional field farming.

Efficient use of energy and resources, coupled with advancements in lighting technology and automation, further enhances the economic and environmental sustainability of greenhouse operations. As the global demand for fresh produce continues to rise, driven by population growth and urbanization trends, greenhouses equipped with horticulture lighting are poised to play a crucial role in ensuring food security, promoting local food production, and meeting market demands for high-quality, year-round produce.

Europe is leading in the horticulture lighting market due to strong government support, innovative research initiatives, and a growing focus on sustainable agriculture and food security.

Europe has emerged as a frontrunner in the horticulture lighting market for several compelling reasons that underscore its leadership in advancing agricultural technologies and practices. One significant factor contributing to Europe's prominence is the strong support from government policies and initiatives aimed at promoting sustainable agriculture and enhancing food security. European countries have implemented robust frameworks and incentives to encourage the adoption of innovative technologies, including horticulture lighting systems, in farming practices. These policies often include grants, subsidies, and tax incentives that reduce financial barriers and facilitate investment in advanced agricultural technologies.

Moreover, Europe boasts a rich landscape of research institutions, universities, and private sector companies actively engaged in pioneering research and development in horticulture lighting. The region has been at the forefront of technological innovation, particularly in LED technology, which is widely adopted in modern horticulture lighting systems for its energy efficiency, spectral tuning capabilities, and long lifespan. Collaborative efforts between academia, research organizations, and industry players have led to significant advancements in understanding plant responses to light spectra, optimizing lighting strategies for different crops, and developing integrated systems that enhance overall crop production and quality.

Furthermore, Europe's leadership in horticulture lighting is bolstered by its commitment to sustainable agricultural practices and environmental stewardship. With increasing awareness of climate change and resource constraints, there is a growing emphasis on reducing the environmental footprint of agriculture while ensuring efficient use of resources such as energy and water. Horticulture lighting plays a crucial role in this context by enabling precision farming techniques that optimize resource utilization, minimize waste, and support eco-friendly production methods.

Additionally, Europe's geographical diversity and climate variability have spurred the adoption of protected cultivation methods, including greenhouses and vertical farms, where horticulture lighting is essential for maintaining consistent crop yields and quality year-round. These controlled environment systems mitigate the risks associated with unpredictable weather conditions and enable growers to meet consumer demand for fresh, locally grown produce regardless of seasonal limitations.

• In June 2023, Signify Holding (Phillips Lighting) and INFINITEACRES are collaborating to transform vertical farm expansion. INFINITEACRES has developed a resource-efficient indoor farming technique, utilized renewable energy, and minimized food miles. Their collaboration with Signify Holding (Phillips Lighting) aims to address technological and business challenges in scaling up. As industry pioneers, 80 Acres Farms and Infinite Acres have rapidly expanded and plan to establish a high-cAsia Pacificity farm in Atlanta. Partnering with Signify has been instrumental in navigating the learning curve and attaining success in this groundbreaking field.
• In June 2023, The next generation of OSLON square hyper red LED achieves market-leading wall plug efficiency of 78.8% and is known for its compact size, robustness, and superior performance.
• In June 2023, New OSLON optimal red enables broader spectral coverage for better growth of common plant types that are grown under artificial lighting.
• In December 2022, Signify Holding (Phillips Lighting) introduces 1,040-watt Philips HPS light fixture for a low-maintenance, hybrid light installation in combination with Philips GreenPower LED toplighting.
• In Octoboer 2022, Current Lighting Solutions, LLC. and North Carolina State University (NCSU) have extended their research partnership for launching a new study into the potential of supplemental LED lighting to support commercial cannabis production.

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.