Horticulture Lighting Market Research Report - Forecast till 2027

Horticulture Lighting Market Research Report: By Technology (High Intensity Discharge Light, LED light, Florescent Lighting, Others), Lighting Type (Top-Lighting, Inter-Lighting), Cultivation (Fruits & Vegetables, Floriculture), Application (Greenhouse, Vertical Farming, Indoor Farming, Others), By Region (North America, Europe, Asia-Pacific, Middle East and Africa and Central & South America) - Forecast till 2027

ID: MRFR/SEM/6369-CR | March 2021 | Region: Global | 159 pages

Horticulture Lighting Market Overview


The Horticulture Lighting Market size is projected to expand at a compound annual growth rate (CAGR) of 16.41 percent, indicating significant growth during the forecast period. By 2026, the Horticulture Lighting Market is projected to grow to a value of USD 7,878.4 million, from a current value of USD 2,928.6 million in 2019.  Agriculture's area of plant science that deals with gardening crops such as fruit, veggies, and decorative plants is known as horticulture. Horticulture lighting is an artificial light source that is used to aid in the process of photosynthesis in plants. This procedure is particularly beneficial in regions where there is a shortage of enough sunshine. Without sunshine or any other light source necessary for photosynthesis, the plants become stunted and unable to reproduce. According to industry analysts, the advantages of producing crops all year round via the technique of horticulture lighting will have major implications for the horticulture lighting business. Indoor horticulture, plant multiplication, and food security are all possible with the use of grow lights.


Rapid population expansion and urbanization, decreasing water resources, and ongoing climate change as a result of increased greenhouse gas emissions have all contributed to decreased arable land reserves per person. As agricultural land becomes scarcer, policymakers are confronted with issues of sustainability and feeding the world's fast increasing population, which is expected to reach roughly 9.6 billion by 2050. Urban agriculture, greenhouses farming, and vertical farming are all examples of solutions for increasing future food production since they rely on increased technology and automation to make the most use of available land and water. Food production technology aspires to substantially improve production while minimizing environmental impact within the confines of urban, weather high-rise structures. Such facilities, it is said, provide many potential benefits, including a clean and green supply of food, biosecurity, resistance to pests and droughts, and decreased reliance on transportation and fossil fuels.


Horticulture Lighting Market report contains all the information on the Horticulture Lighting Market strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the Horticulture Lighting Market forecast for 2024 is also included in the report.


Covid 19 Analysis


Due to various overstock in the sector in recent years, the coronavirus pandemic has had very little effect on the industry. During the China shutdowns, only the packaging industry suffered from a shortage of labor to a limited extent. As a result, it is unlikely that the LED industry's ecology and supply chain structure will alter much in the near future.


Market Dynamics



  • Drivers


It is anticipated that the horticulture lighting market would expand significantly in the next years, owing to an increase in demand for sophisticated lighting technologies and products. The production of fruits and vegetables, as well as floriculture, are other applications for these lights that are anticipated to spur market expansion. Furthermore, the need for horticultural lighting systems in vertical farming applications is increasing, which further encourages the producers of vertical farming to build up effective management, thus supporting the market's development.



  • Opportunities


The fast population expansion and accessibility of restricted farmland, as well as a rise with year good dividend, as well as infrastructure investments and efforts, are the primary drivers of Horticulture Lighting Market growth. Furthermore, the fast advancement of technology has provided a great opportunity for the industry to expand in size.



  • Restraints


There are a number of obstacles that must be overcome in order for the Horticulture Lighting industry to continue to expand. While the elevated one-time material surface cost of energy-efficient LED light innovations and the restrictions on cultivating a limited number of agronomic traits are expected to be major restraints on Horticulture Lighting Market growth over the forecast period, they are not expected to be significant restraints in the near future.



  • Challenges


Among the most significant difficulties facing market participants is the high cost of electricity LED grow light technology, as well as the practicality of growing just a small selection of crop species under horticulture light conditions, which are the major challenges of the horticulture lightening market.


Cumulative Growth Analysis


The high-intensity discharge light category had the highest market share in 2019, accounting for 39.11 percent of the total market value of USD 1,145.5 million; it is projected to grow at a compound annual growth rate (CAGR) of 16.20 percent during the forecast period. The LED light category was the second-largest industry in 2019, with a market value of USD 866.1 million; it is expected to grow at the fastest rate, with a compound annual growth rate of 18.99 percent. The market has been divided into two categories based on the kind of lighting used: upper and inter-lighting. The top-lighting category accounted for the largest horticulture lighting market share in 2019, accounting for 52.96 percent of the total market value of USD 1,551.1 million; it is projected to grow at a compound annual growth rate (CAGR) of 15.55 percent during the forecast period. The inter-lighting sector was valued at USD 1,377.5 million in 2014, and it is expected to grow at a faster rate of 17.33 percent over the next five years.  The greenhouse lighting market had the highest market share in 2019, accounting for 37.93 percent of the total market value of USD 1,110.7 million; it is projected to grow at a compound annual growth rate (CAGR) of 15.65 percent during the forecast period.


Value Chain Analysis


According to the reports, In terms of segmentation, the global horticulture lighting market is divided into Technology, Lighting Type, Cultivation, Application, and Regional segments. The market has been divided based on technology into the following categories: high-intensity discharge light, LED light, fluorescent lighting, and others. By cultivation, the cannabis sector of the horticulture lighting market is expected to record the greatest compound annual growth rate (CAGR) over the forecast period. The legalization of cannabis manufacturing is gaining pace in many areas of the globe, as legislators across the world seek to expedite the process of legalization. This will almost likely help all types of cannabis producers, but it is anticipated that the makers of LED grow lights will reap the most benefits from this. In addition, cannabis is seen as a high-value crop by farmers, and as a result, the production of cannabis is expanding at an increasingly rapid rate.


Segmentation Overview


The Horticulture Lighting Market is segmented on the basis of Technology, Lighting Type, Cultivation, Application, and Regional. The global horticulture lighting market is expected to witness decent growth during the forecast period.


By Application


Based on the application, the market is segmented into greenhouse, indoor farming, vertical, farming, and others.


By end-users


Based on the propulsion types, the market is segmented into high-intensity discharge light, LED light, fluorescent lighting, and others.


Regional Analysis


According to the reports, on the basis of region, the global horticulture lighting market is divided into North America, Europe, Asia Pacific, and the rest of the world. Europe is the top destination in the horticulture lighting market, owing to the increase in urban farming as well as technological advancements in farming machinery in the region. The United Kingdom, Germany, and France are the three most important nations in Europe. Wherein lighting contributes to almost 20% of total energy use in the UK's business sector, according to the Energy Saving Trust. Companies in Europe have been motivated by the usage of electronic lighting in novel apps such as greenhouses to develop new electronic lighting technologies. In April 2018, a British LED manufacturer, Plessey, donated its LED growing lights to Sterling Suffolk's massive tomato greenhouse, which covers 54,400 square meters and was completed in April 2018.


Competitive landscape


The horticulture lighting companies are highly fragmented due to the presence of key players in the market. 


Major Key Players



  • Bridgelux, Inc. (US)

  • LumiGrow, Inc. (US)

  • EYE Hortilux (US)

  • Maxigrow Ltd (UK)

  • Signify Holding (Philips Lighting) (The Netherlands)

  • GE Lighting (US)

  • Hortilux Schreder (The Netherlands)

  • Osram Licht AG (Germany)

  • Gavita International BV (The Netherlands)

  • Lumileds (US)

  • Hubbell Lighting (US)

  • Agrolux (The Netherlands)

  • PARsource (US)

  • Illumitex (US)

  • Heliospectra AB (Sweden) among others


Report Overview


The following report comprises of –



  • Market overview 

  • Covid 19 Analysis

  • Market Dynamic

  • Drivers

  • Opportunities

  • Restraints

  • Challenges

  • Cumulative Growth Analysis

  • Value Chain Analysis

  • Segmentation Overview 

  • By Application

  • By End-Users

  • Regional Analysis

  • Competitive landscape


Recent Developments



  • Growers have begun to get help from Toshiba and Panasonic, which has provided training and technical support for the establishment of vertical farms. Such advancements in vertical farming are assisting in the development of the horticulture lighting industry.


Key Market Segments


By Offering



  • Hardware

  • Software 

  • Services


By Technology



  • Fluorescent

  • High-Intensity Discharge

  • LED

  • Others


By Lighting Type



  • Toplighting

  • Interlighting


By Cultivation



  • Fruits & Vegetables

  • Floriculture


By Application



  • Greenhouse

  • Vertical Farming

  • Indoor Farming

  • Others


By Region



  • North America


    • U.S.

    • Canada

    • Mexico


  • Europe


    • UK

    • Germany 

    • France

    • Italy

    • Rest of Europe


  • Asia-Pacific


    • China

    • India

    • Japan

    • Korea

    • Rest of Asia-Pacific


  • LAMEA


    • Latin America

    • Middle East

    • Africa




Report Scope:
Report Attribute/Metric Details
  Market Size   USD 7,878.4 Million
  CAGR   16.41%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Technology, Lighting Type, Cultivation, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Bridgelux, Inc. (US), LumiGrow, Inc. (US), EYE Hortilux (US), Maxigrow Ltd (UK), Signify Holding (Philips Lighting) (The Netherlands), GE Lighting (US), Hortilux Schreder (The Netherlands), Osram Licht AG (Germany), Gavita International BV (The Netherlands), Lumileds (US), Hubbell Lighting (US), Agrolux (The Netherlands), PARsource (US), Illumitex (US), and Heliospectra AB (Sweden)
  Key Market Opportunities   Rapid technology developments.
  Key Market Drivers

  • Rapid population growth.
  • Availability of limited agricultural land.
  • Government investments and initiatives.


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    Frequently Asked Questions (FAQ) :


    Horticulture is the agricultural science that deals with the production and maintenance of garden crops, fruits, ornamental plants, and vegetables. The artificial light used in horticulture is called horticulture lighting.

    MRFR findings suggest, the global horticulture lighting market is likely to thrive at 19.17% CAGR during the assessment period (2018 to 2014). The hike in the sale of horticulture lights can cause the global horticulture lighting market to escalate to USD 7040.0 Million by 2024 from USD 2476.5 Million in 2018.

    The increase in need for artificial light due to limited availability of fertile land is observed as a major factor for the global horticulture lighting market to surge. In addition, government initiatives supporting the use of horticulture lighting can spur its market growth.

    Signify (Netherlands), GE Lighting (US), Gavita (Netherlands), Agrolux (Netherlands), Osram (Germany), Hortilux Schreder (Netherlands), Heliospectra (Sweden), PARsource (US), Illumitex (US), and Lumileds (Netherlands) are some potential contenders of the global horticulture lighting suppliers market.

    Fluorescent lighting, LED, and high-intensity discharge are widely used technologies in horticulture lighting. LEDs are noted to be used extensively.