Horticulture Lighting Market Size, Share, and Growth Analysis, By Installation Type, By Lighting Type, By Offering, By Cultivation Type, By Technology, By Application, By Region - Industry Forecast 2025-2032

Horticulture Lighting Market size was valued at USD 6.5 billion in 2023 and is poised to grow from USD 8.79 billion in 2024 to USD 98.11 billion by 2032, growing at a CAGR of 35.2% during the forecast period (2025-2032).

The horticulture sector is increasingly adopting LED lights due to their easy installation, affordability, and superior longevity, as they can last over 50,000 hours compared to traditional bulbs. This reliability fosters their rising popularity amidst expanding consumer demand for food and heightened awareness of sustainable practices, particularly with the growth of vertical farming. Research in the Netherlands explores the economic potential of urban vertical farming, while companies like ams-OSRAM are significantly investing in LED technology, as evidenced by their EUR 800 million investment in Malaysia for advanced LED and microLED production. As global population pressures mount and fertile land diminishes, the necessity for innovative farming solutions is expected to propel industry demand, with sustainability efforts becoming a key focus.

Top-down and bottom-up approaches were used to estimate and validate the size of the Horticulture Lighting market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Horticulture Lighting Market Segments Analysis

Global Horticulture Lighting Market is segmented by Installation Type, Lighting Type, Offering, By Cultivation Type, Technology, Application and region. Based on Installation Type, the market is segmented into New Installations and Retrofit Installations. Based on Lighting Type, the market is segmented into Toplighting and Interlighting. Based on Offering, the market is segmented into Hardware and Software & Services. Based on By Cultivation Type, the market is segmented into Fruits & Vegetables, Floriculture and Cannabis. Based on Technology, the market is segmented into Fluorescent, High-intensity Discharge (HID), Light-emitting Diode (LED) and Others. Based on Application, the market is segmented into Greenhouses, Vertical Farms, Indoor Farms and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Horticulture Lighting Market

The horticulture lighting market is significantly propelled by the transition from conventional lighting systems to LED technology. LEDs are favored for their energy efficiency, extended lifespan, and versatility in customizing light spectra, which enables growers to tailor the lighting environment to meet the unique needs of different crops. This shift not only enhances plant growth and productivity but also fosters a more sustainable approach to agriculture. By utilizing LED lighting, farmers can create the ideal conditions for their plants, leading to improved yields and a reduction in energy consumption, making this transformation a key factor driving market growth.

Restraints in the Horticulture Lighting Market

The horticulture lighting market faces a significant restraint due to the need for specialized knowledge and expertise in managing customizable light spectra provided by LED lighting. Properly adjusting the light spectrum for various crops and their growth stages is crucial; otherwise, inadequate management may result in insufficient plant development, ultimately affecting yield outcomes. This requirement for expert guidance can limit broader adoption among growers who may lack the necessary experience, potentially hindering the overall growth of the market. As a result, addressing this knowledge gap is essential for maximizing the benefits of advanced lighting technologies in horticulture.

Market Trends of the Horticulture Lighting Market

The horticulture lighting market is experiencing a significant shift towards LED technology, driven by the emergence of vertical farming and controlled environment agriculture (CEA). As growers increasingly transition from traditional HPS lamps to energy-efficient LEDs, the trend is reshaping the industry landscape. LEDs offer customizable light spectrums that optimize plant growth at various developmental stages, resulting in enhanced crop yields and quality. Additionally, their lower heat output diminishes cooling requirements, further reducing energy consumption. This growing adoption of LED lighting not only improves sustainability but also aligns with rising consumer demand for locally sourced, high-quality produce, forecasting a robust growth trajectory for the horticulture lighting market in the coming years.