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    Agricultural Lighting Market

    ID: MRFR/SEM/28307-HCR
    128 Pages
    Shubham Munde
    October 2025

    Agricultural Lighting Market Research Report By Light Source (LED, HPS, HID, Fluorescent), By Wavelength (300-500 nm (UV), 500-700 nm (Visible Light), 700-1000 nm (NIR)), By Application (Greenhouse Lighting, Vertical Farming Lighting, Poultry Lighting, Horticulture Lighting), By Control System (Manual Control, Automated Control, Wireless Control), By Product Type (Lamps, Fixtures, Luminaires) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Industry Size, Share and Forecast to 2035

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    Agricultural Lighting Market Infographic
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    Agricultural Lighting Market Summary

    The Global Agricultural Lighting Market is projected to grow from 12.25 USD Billion in 2024 to 43.03 USD Billion by 2035.

    Key Market Trends & Highlights

    Agricultural Lighting Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 8.09 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 28.8 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 12.25 USD Billion, reflecting the increasing demand for advanced agricultural lighting solutions.
    • Growing adoption of LED technology due to energy efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 12.25 (USD Billion)
    2035 Market Size 43.03 (USD Billion)
    CAGR (2025-2035) 12.10%

    Major Players

    Signify, Gavita, Fluence by Osram, Heliospectra AB, BIOS Lighting

    Agricultural Lighting Market Trends

    The Agricultural Lighting Market is fueled by surging demand for increased crop yield, advancements in LED technology, and government initiatives promoting sustainable farming practices. As urban populations rise, the need for efficient food production intensifies, driving the adoption of controlled environment agriculture (CEA). LED lighting systems optimize plant growth by providing tailored light spectrums, enabling year-round cultivation and enhancing crop quality. Additionally, the integration of IoT and sensors allows for precise lighting control, maximizing crop yields and reducing energy consumption.

    The ongoing advancements in agricultural lighting technologies are poised to enhance crop yields and optimize energy consumption, reflecting a growing commitment to sustainable farming practices.

    U.S. Department of Agriculture

    Agricultural Lighting Market Drivers

    Market Growth Projections

    The Global Agricultural Lighting Market Industry is poised for substantial growth, with projections indicating a market size of 12.2 USD Billion in 2024 and an anticipated increase to 28.8 USD Billion by 2035. This growth reflects a compound annual growth rate of 8.09 percent from 2025 to 2035, driven by various factors including technological advancements, sustainability trends, and increasing food demand. The market's expansion highlights the critical role of agricultural lighting in enhancing productivity and efficiency in farming practices worldwide.

    Government Initiatives and Support

    Government initiatives play a crucial role in shaping the Global Agricultural Lighting Market Industry. Various countries are implementing policies and providing financial incentives to promote the adoption of advanced agricultural technologies, including lighting solutions. For example, subsidies for energy-efficient lighting systems encourage farmers to transition from traditional methods. Such support not only enhances productivity but also aligns with national goals for food security and sustainability. The increasing involvement of governments in agricultural innovation is likely to bolster market growth, as evidenced by the projected increase in market size to 12.2 USD Billion in 2024.

    Rising Global Population and Food Demand

    The Global Agricultural Lighting Market Industry is driven by the rising global population and the corresponding increase in food demand. As the world population is projected to reach approximately 9.7 billion by 2050, the pressure on agricultural systems intensifies. Enhanced lighting solutions enable farmers to maximize crop yields and ensure food security. The ability to grow food in controlled environments, such as greenhouses and indoor farms, becomes increasingly vital. This demand for efficient food production methods is expected to propel the market, with projections indicating a growth to 28.8 USD Billion by 2035.

    Urbanization and Vertical Farming Trends

    Urbanization is reshaping the landscape of agriculture, leading to a notable impact on the Global Agricultural Lighting Market Industry. As urban populations increase, the demand for local food production rises, prompting the growth of vertical farming. These indoor farms utilize advanced lighting technologies to optimize plant growth in limited spaces. The ability to control light conditions allows for year-round cultivation, which is particularly appealing in densely populated areas. This trend is expected to contribute to a compound annual growth rate of 8.09 percent from 2025 to 2035, highlighting the potential of urban agriculture.

    Technological Advancements in Lighting Solutions

    The Global Agricultural Lighting Market Industry experiences a surge in demand due to rapid technological advancements in lighting solutions. Innovations such as LED technology and smart lighting systems enhance energy efficiency and crop yield. For instance, LEDs consume up to 75 percent less energy than traditional lighting, making them a preferred choice among growers. As the market evolves, the integration of automation and IoT in agricultural lighting systems is likely to optimize resource usage and improve productivity. This trend contributes to the projected market growth, with the industry expected to reach 12.2 USD Billion in 2024.

    Increasing Demand for Sustainable Farming Practices

    The Global Agricultural Lighting Market Industry is significantly influenced by the rising demand for sustainable farming practices. As consumers become more environmentally conscious, farmers are adopting methods that reduce carbon footprints and enhance resource efficiency. Sustainable agricultural lighting solutions, such as solar-powered systems, are gaining traction. These systems not only lower energy costs but also align with global sustainability goals. The shift towards organic and sustainable farming is projected to drive the market, contributing to an anticipated growth to 28.8 USD Billion by 2035, reflecting a growing awareness of environmental impacts.

    Market Segment Insights

    Agricultural Lighting Market Light Source Insights

    The Agricultural Lighting Market segmentation by Light Source comprises LED, HPS, HID, and Fluorescent. The LED segment held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. LED grow lights offer several advantages over traditional lighting sources, including higher energy efficiency, longer lifespan, and the ability to customize the light spectrum to meet the specific needs of different plant species. The increasing adoption of LED lighting in commercial greenhouses and indoor farming facilities is driving the growth of this segment.

    In 2023, the HPS segment accounted for a significant portion of the Agricultural Lighting Market revenue. HPS lights are widely used in horticulture due to their high light output and affordability. However, the growing popularity of LED lights is expected to gradually erode the market share of HPS lights in the coming years. HID lights, including metal halide and high-pressure sodium lamps, are another important segment in the Agricultural Lighting Market. HID lights offer high light intensity and relatively low operating costs, making them a viable option for large-scale commercial growers.

    However, HID lights consume more energy compared to LED lights and have a shorter lifespan. 

    Fluorescent lights are commonly used for plant propagation and in indoor gardening applications. They provide a relatively low-cost and energy-efficient lighting solution. However, the low light output of fluorescent lights limits their use in large-scale commercial applications. The Agricultural Lighting Market is expected to witness significant growth over the forecast period, driven by the increasing adoption of controlled environment agriculture, the rising demand for high-quality and year-round produce, and government initiatives to promote sustainable agriculture practices.

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Agricultural Lighting Market Wavelength Insights

    The wavelength segment plays a crucial role in the Agricultural Lighting Market segmentation. Different wavelengths of light have varying effects on plant growth and development. The '300-500 nm (UV)' range of the spectrum is primarily used for disinfection and pest control, as UV light can damage DNA and inhibit microbial growth. The '500-700 nm (Visible Light)' range is essential for photosynthesis, as plants absorb light in this range for energy production. The '700-1000 nm (NIR)' range promotes cell elongation and root growth and can also enhance flowering and fruiting.

    Understanding the specific wavelength requirements of different plant species and growth stages is crucial for optimizing lighting strategies. The Agricultural Lighting Market revenue is expected to reach $11.24 billion by 2024, with the wavelength segment contributing significantly to this growth.

    Agricultural Lighting Market Application Insights

    The Agricultural Lighting Market segmentation by Application is broadly classified into Greenhouse Lighting, Vertical Farming Lighting, Poultry Lighting, and Horticulture Lighting. Greenhouse Lighting dominated the market in 2023, accounting for a revenue share of around 35%, owing to the increasing adoption of controlled environment agriculture practices. Vertical Farming Lighting is projected to witness significant growth during the forecast period, driven by the rising demand for locally produced, high-quality crops. 

    Poultry Lighting, on the other hand, is expected to hold a steady share of the market, as it plays a crucial role in optimizing poultry production and welfare. Horticulture Lighting is anticipated to contribute a substantial revenue share to the Agricultural Lighting Market by 2032, supported by the growing popularity of indoor gardening and urban farming initiatives.

    Agricultural Lighting Market Control System Insights

    The Control System segment of the Agricultural Lighting Market plays a crucial role in optimizing lighting conditions for agricultural operations. Manual Control systems allow farmers to manually adjust lighting parameters such as intensity and duration, providing flexibility and control over the lighting environment. Automated Control systems leverage sensors and algorithms to monitor and adjust lighting conditions autonomously based on factors such as plant growth stage and environmental conditions. This automation enhances efficiency and reduces labor costs.

    Wireless Control systems offer remote access and control of lighting systems, enabling farmers to manage lighting from anywhere, improving convenience and productivity. In 2023, the Automated Control segment held a significant share of the Agricultural Lighting Market revenue, driven by the increasing adoption of smart farming technologies and the need for precise lighting control. The Wireless Control segment is also anticipated to witness substantial growth as it empowers farmers with remote management capabilities and enhances operational efficiency.

    The overall Control System segment is expected to contribute significantly to the market growth, as it enables farmers to optimize lighting conditions for improved crop yield, energy efficiency, and operational efficiency in agricultural environments.

    Agricultural Lighting Market Product Type Insights

    The Agricultural Lighting Market is segmented by product type into lamps, fixtures, and luminaires. Among these, the lamps segment held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of LED lamps in agricultural applications due to their energy efficiency, long lifespan, and ability to provide optimal lighting conditions for plant growth.

    The fixtures segment is also expected to witness significant growth, owing to the rising demand for specialized lighting fixtures designed to meet the specific lighting requirements of different agricultural environments. The luminaires segment is expected to grow at a steady pace, driven by the growing adoption of smart lighting systems that offer remote monitoring and control capabilities, enabling farmers to optimize lighting conditions in real time.

    Get more detailed insights about Agricultural Lighting Market

    Regional Insights

    The Agricultural Lighting Market is expected to flourish over the coming years, with regional markets playing a significant role in driving growth. North America, Europe, APAC, South America, and MEA are key regional segments that offer unique opportunities for market expansion. North America holds a dominant position in the Agricultural Lighting Market, accounting for a substantial revenue share. The region's advanced agricultural practices, coupled with rising investments in controlled environment agriculture, contribute to its market growth. 

    Europe follows closely, showcasing promising growth prospects due to government initiatives and increasing adoption of precision farming techniques. APAC presents a burgeoning market for Agricultural Lighting, driven by rapidly growing economies and a surge in demand for high-quality food production. China and India emerge as significant contributors to the regional market, owing to their vast agricultural sectors and government support for modernization. South America and MEA also exhibit growth potential, with increasing investments in agricultural infrastructure and a growing focus on sustainable farming practices.

    Agricultural Lighting Market Regional Insights

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Agricultural Lighting Market industry are constantly developing new and innovative products to meet the growing demand for agricultural lighting. Leading Agricultural Lighting Market players are investing heavily in research and development to create more efficient and effective lighting solutions. The Agricultural Lighting Market is highly competitive, with a number of major players vying for market share. Some of the key players in the market include Signify, Gavita, Fluence by Osram, Heliospectra AB, and BIOS Lighting. 

    These companies offer a wide range of agricultural lighting products, including LED grow lights, HID grow lights, and plasma grow lights. In addition to major players, there are also a number of smaller companies that offer agricultural lighting products. The Agricultural Lighting Market is expected to continue to grow in the coming years, driven by the increasing demand for food and the need for more efficient and sustainable farming practices. Signify is a leading provider of lighting products and services, including agricultural lighting.

    The company offers a wide range of LED grow lights and HID grow lights, as well as lighting controls and other products. Signify has a strong global presence and is a major supplier to agricultural businesses around the world. 

    The company is committed to innovation and is constantly developing new and improved lighting solutions. Signify's agricultural lighting products are known for their efficiency, reliability, and durability. Gavita is another leading provider of agricultural lighting products. The company is known for its high-quality LED grow lights. Gavita's LED grow lights are designed to provide optimal light levels for plants, and they are also very energy efficient. The company has a strong reputation for customer service and support. Gavita's agricultural lighting products are used by a wide range of agricultural businesses, including greenhouses, vertical farms, and indoor farms.

    Key Companies in the Agricultural Lighting Market market include

    Industry Developments

    The Agricultural Lighting Market is anticipated to expand significantly over the forecast period of 2024-2032. In 2023, the market was valued at approximately USD 8.94 billion, and it is projected to reach USD 21.52 billion by 2032, exhibiting a CAGR of 10.25%. This growth is attributed to the rising adoption of LED lighting in agricultural applications, increasing awareness about the benefits of artificial lighting for plant growth, and government initiatives promoting sustainable farming practices. Recent developments include the integration of advanced technologies such as IoT and data analytics to optimize lighting strategies and enhance crop yields.

    Key industry players are investing in research and development to introduce innovative lighting solutions tailored to specific crop requirements. Strategic partnerships and acquisitions are also shaping the market landscape as companies seek to expand their product portfolios and gain a competitive edge.

    Future Outlook

    Agricultural Lighting Market Future Outlook

    The Global Agricultural Lighting Market is projected to grow at 12.10% CAGR from 2025 to 2035, driven by technological advancements, increased indoor farming, and sustainability initiatives.

    New opportunities lie in:

    • Develop smart lighting solutions integrating IoT for precision agriculture.
    • Expand product lines to include energy-efficient LED systems for diverse crops.
    • Invest in R&D for adaptive lighting technologies tailored to specific growth stages.

    By 2035, the market is expected to achieve substantial growth, reflecting evolving agricultural practices and technological integration.

    Market Segmentation

    Agricultural Lighting Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia-Pacific
    • Middle East and Africa

    Agricultural Lighting Market Wavelength Outlook

    • 300-500 nm (UV)
    • 500-700 nm (Visible Light)
    • 700-1000 nm (NIR)

    Agricultural Lighting Market Application Outlook

    • Greenhouse Lighting
    • Vertical Farming Lighting
    • Poultry Lighting
    • Horticulture Lighting

    Agricultural Lighting Market Light Source Outlook

    • LED
    • HPS
    • HID
    • Fluorescent

    Agricultural Lighting Market Product Type Outlook

    • Lamps
    • Fixtures
    • Luminaires

    Agricultural Lighting Market Control System Outlook

    • Manual Control
    • Automated Control
    • Wireless Control

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 12.25 (USD Billion)
    Market Size 2035 43.03 (USD Billion)
    Compound Annual Growth Rate (CAGR) 12.10% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2022
    Market Forecast Units USD Billion
    Key Companies Profiled Signify NV, OSRAM, Sunlight Supply, California Lightworks, Gavita, Fluence by Osram, Black Dog LED, P.L. Light Systems, Agrolux Lighting, Hortilux Schreder, Heliospectra AB, Philips Lighting, Acuity Brands, GE Current
    Segments Covered Light Source, Wavelength, Application, Control System, Product Type, Regional
    Key Market Opportunities Vertical Farming Indoor Agriculture Expansion Precision Farming Adoption of LED Technology Advancements Government Support
    Key Market Dynamics Increasing demand for energy-efficient lighting. Growing awareness of plant science and technology. Government initiatives for sustainable agriculture. Advancements in LED technology. Rising demand for indoor vertical farming.
    Countries Covered North America, Europe, APAC, South America, MEA
    Market Size 2025 13.73 (USD Billion)

    FAQs

    What was the current valuation of the Agricultural Lighting Market?

    The Agricultural Lighting Market was valued at 11.7 Billion USD in 2024.

    What are the expected valuations and CAGR for the Agricultural Lighting Market?

    The market is projected to reach 30.54 Billion USD by 2035, with a CAGR of 12.10% from 2025 to 2035.

    Which region holds the largest market share for Agricultural Lighting?

    North America currently dominates the market with a significant share, driven by technological advancements and increasing demand for efficient lighting solutions in agriculture.

    What are the primary applications of Agricultural Lighting?

    Agricultural lighting is primarily used in greenhouses, indoor farming facilities, and poultry farming to optimize crop growth, improve animal welfare, and increase productivity.

    Who are the key competitors in the Agricultural Lighting Market?

    Major players include Signify (Philips), GE Current, Osram, Gavita, and Evergrow, among others.

    What are the key growth drivers for the Agricultural Lighting Market?

    Rising demand for sustainable farming practices, advancements in LED technology, government support for precision agriculture, and increasing awareness of the benefits of controlled lighting are driving the market growth.

    What are the challenges faced by the Agricultural Lighting Market?

    High initial investment costs, lack of standardization, and the need for skilled professionals to design and implement lighting systems pose challenges to the market.

    How is the Agricultural Lighting Market expected to evolve in the future?

    The market is anticipated to witness continued growth due to the increasing adoption of smart lighting systems, IoT integration, and data-driven farming practices.

    What are the latest trends in Agricultural Lighting?

    Trends include the integration of sensors and controls for real-time monitoring and optimization, the use of AI for predictive lighting schedules, and the development of customized lighting solutions for specific crops and livestock.

    What are the potential applications of Agricultural Lighting beyond traditional farming?

    Emerging applications include vertical farming, urban agriculture, and controlled-environment agriculture, driven by the need for sustainable and efficient food production.

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