Horticulture Lighting Market (2025 - 2033) Size, Share & Trends Analysis Report By Offering (Hardware, Software), By Technology (Light Emitting Diode, High-Intensity Discharge), By Lighting Type, By Installation Type, By End Use, By Region, And Segment Forecasts

Horticulture Lighting Market Summary

The global horticulture lighting market size was estimated at USD 6.26 billion in 2024 and is projected to reach USD 29.12 billion by 2033, growing at a CAGR of 18.9% from 2025 to 2033. The market is driven by the increasing adoption of controlled environment agriculture (CEA), including greenhouses, indoor farms, and vertical farms.

A key trend shaping the industry is the rapid adoption of LED-based smart lighting systems integrated with IoT, spectral optimization, and precision farming platforms. These advanced systems enable growers to precisely control light intensity, wavelength, and photoperiod in real time, tailored to specific crop types, growth stages, and environmental conditions. By dynamically adjusting light spectra, especially in the red and blue ranges critical for photosynthesis, these technologies enhance plant growth, improve crop yield and quality, and reduce energy consumption. IoT connectivity allows remote monitoring and automation, synchronizing lighting with other farming inputs for optimized resource use and labor savings. This convergence of LED efficiency, smart control, and data-driven farming is driving strong market growth globally, fostering more sustainable and productive horticulture practices.

The market is driven by the integration of horticulture lighting with digital farm management systems, enabling growers to synchronize lighting with key environmental factors like climate control, irrigation, and CO₂ levels to create fully optimized crop environments. Advanced systems incorporate remote monitoring, AI-based automation, and machine learning algorithms that analyze real-time and historical data to adjust lighting intensity, spectrum, and duration based on crop growth patterns, stress signals, and external conditions. This intelligent coordination allows growers to reduce energy consumption, improve crop yield and consistency, and streamline labor through centralized, data-driven control platforms, transforming lighting from a static utility into a dynamic, precision agriculture tool.

For instance, in December 2024, Heliospectra launched its new dynamic multi-channel LED solution, designed specifically for precision crop growth and efficacy, allowing growers to finely tune spectral output across multiple light channels in real time based on crop needs and growth stages. This intelligent coordination enables producers to reduce energy use, increase yield consistency, and streamline operations through centralized, data-driven lighting control, thereby driving horticulture lighting as a core component of next-generation precision agriculture.

Offering Insights

The hardware segment accounted for the largest revenue share of over 67.0% in 2024, driven by the fundamental need for physical infrastructure such as LED fixtures, grow lamps, ballasts, and reflectors in both new installations and retrofitting projects. These components are critical for delivering precise light intensity and spectrum tailored to different crops and growth stages, making them indispensable across greenhouses, indoor farms, and vertical farming facilities. Additionally, the rising demand for high-performance, energy-efficient LED grow lights capable of reducing power consumption by up to 40% compared to traditional HID systems is further fueling hardware sales. Moreover, LED fixtures-based toplighting and interlighting units are increasingly designed with features like modular construction, passive cooling, and precision optics to cater to a variety of crops and greenhouse structures. For instance, in March 2022, GE Current expanded its horticulture portfolio with the launch of the Arize Element L1000 and L2000 toplighting fixtures, offering photon outputs up to 3,600 µmol/s and tailored beam angles to maximize canopy penetration and uniformity. These next-generation fixtures were designed for 1:1 HPS replacement in high-intensity greenhouse environments, enabling growers to reduce fixture count, lower energy consumption, and improve yield quality through optimized spectral delivery.

The service segment is expected to grow at the highest CAGR of 20.6% during the forecast period, driven by the increasing complexity of modern cultivation systems and the growing demand for customized, end-to-end support throughout the lighting lifecycle. As commercial growers adopt advanced LED systems integrated with digital controls, IoT, and AI-based farm management platforms, there is a rising need for specialized services including consultation, design, installation, spectrum optimization, predictive maintenance, and remote system calibration. These services help growers maximize ROI by ensuring optimal light distribution, energy efficiency, and crop-specific performance. Additionally, the shift toward retrofitting older HID setups with LED solutions is fueling demand for professional assessment and implementation services. Consequently, as more growers transition to data-driven cultivation, the demand for ongoing expertise and post-installation support is becoming essential, making services the fastest-growing segment in the market.

Technology Insights

The LED (Light Emitting Diode) segment accounted for the largest revenue share of 57.5% in 2024, as farmers prioritize energy efficiency, spectral precision, and long-term cost savings across commercial greenhouses, indoor farms, and vertical agriculture setups. LEDs offer significant advantages over traditional lighting technologies such as HID and fluorescent, including lower power consumption, minimal heat output, longer operational life, and the ability to tailor light wavelengths to specific crop stages. These benefits not only reduce operating costs but also improve plant health and yield consistency, making LEDs an ideal option for both new builds and retrofitting legacy systems. For instance, in January 2025, Cree LED launched the XLamp XP‑L Photo Red S Line, which can achieve 83.5% wall-plug efficiency, allowing growers to reduce red LED count by up to 35% without compromising photon output. Such advancements in output efficiency, spectral targeting, and durability in challenging greenhouse conditions have reinforced LED technology’s dominance in the global market.

The fluorescent segment is expected to grow at a significant CAGR over the forecast period, due to its adoption in specialized, small scale horticultural applications where broad-spectrum light coverage remains essential. Additionally, fluorescents are gaining traction among urban growers, academic institutions, nursery operators, and propagation facilities that require consistent, low-heat lighting for early-stage plant growth or research purposes. Moreover, fluorescent systems, particularly T5 and T8 configurations, offer balanced light distribution, low glare, and compatibility with standard fixtures, ideal for controlled environments with limited infrastructure. Furthermore, improvements in phosphor coating technologies and the development of eco-efficient, full-spectrum fluorescent tubes are extending their lifecycle and enhancing light quality for horticultural use. Subsequently, the above-mentioned factors are contributing notably to bolstering the growth of the fluorescent segment during the upcoming years.

Lighting Type Insights

The toplighting segment accounted for the largest revenue share of over 57.5% in 2024, owing to the growing adoption in simulating natural sunlight in greenhouses and indoor farms, offering uniform canopy coverage, ease of installation, and compatibility with high-density plant layouts. Toplighting systems are preferred in large-scale operations where consistent light distribution directly impacts yield and crop quality. Additionally, their overhead positioning minimizes ground-level obstruction and allows seamless integration with climate control systems, ideal for multi-zone greenhouse environments. For instance, in June 2025, Signify launched the 4-channel Philips GreenPower LED Toplighting Force. These new fixtures offer growers precise control over red, blue, white, and far-red spectra through integration with the GrowWise control platform, enabling real-time adjustment of light recipes in response to crop stage, external sunlight, and energy pricing. With beam outputs up to 5,150 µmol/s and efficacies reaching 4.3 µmol/J, the fixtures deliver exceptional uniformity via Quadro Beam optics and are designed for easy maintenance and wireless zoning.

The interlighting segment is predicted to witness a CAGR of 20.0% driven by its key role in enhancing light penetration within dense crop canopies, especially in high-wire greenhouses and vertical farming systems. As farmers adopt multi-layer cultivation and precision farming techniques, interlighting enables better light distribution to the lower parts of plants, improving photosynthesis efficiency, reducing shading stress, and boosting yields by up to 25%. Additionally, the market is further supported by the development of slim, modular, and waterproof LED interlighting solutions that are easy to install between plant rows, consume less energy, and offer spectral customization for specific growth stages. For instance, in October 2021, SpecGrade LED launched Extra-48 Inter-Canopy Lighting system, which delivers targeted supplemental lighting to shaded foliage and supports customizable output, helping cultivators enhance uniformity and productivity across lower canopy levels. These combined benefits of higher yield potential, lower operational costs, and compatibility with modern farming structures are accelerating the adoption of interlighting systems, fueling the segment’s rapid market growth.

Installation Type Insights

The new installations segment accounted for the largest share of 64.87% in 2024, as farmers are investing heavily in advanced, greenfield controlled environment agriculture (CEA) facilities that are fully equipped with cutting-edge LED lighting, IoT sensors, and climate management systems. These new builds enable optimal integration of dynamic spectral tuning, daily light integral (DLI)-based automation, and energy-efficient infrastructure, benefits that are costly to retrofit into existing facilities. Additionally, government sustainability incentives and the rising demand for local, year-round production are fueling investments in new projects. The modularity and scalability of modern lighting systems also ensure these operations remain future proof as technologies evolve. For instance, in 2025, a controlled-environment facility in Taiwan implemented advanced LED horticulture lighting systems to cultivate strawberries year-round, to provide significant returns on investment by enhancing crop quality, boosting energy efficiency, and maintaining consistent environmental conditions, thereby highlighting the growth prospects of the new installations segment in the horticulture lighting market.

The retrofit installations segment is expected to grow at the highest CAGR of 19.9% over the forecast period, driven by increasing energy prices, sustainability mandates, and the economic appeal of upgrading existing HID or fluorescent systems to modern LED setups. Farmers realize substantial cost savings, typically between 30 and 50 percent in electricity use, when retrofitting and benefit from government grants and green incentives aimed at lowering carbon emissions. Additionally, retrofits allow for minimal operational disruption, enabling growers to enhance lighting performance and environmental control while maintaining crop cycles and facility continuity. For instance, Huisman Chrysanten replaced half its HPS system with dimmable Philips GreenPower LEDs in 2022 and completed the upgrade by 2023. The system, integrated with Philips GrowWise controls and Hoogendoorn’s IIVO climate computer, enabled a 20% reduction in energy consumption alongside a 40% increase in light levels.

End Use Insights

The greenhouses segment accounted for the largest revenue share of 51.67% in 2024, driven by their essential role in global controlled-environment agriculture, where supplemental lighting is critical to extending production seasons, enhancing crop quality, and ensuring consistent yields. Whether newly constructed or retrofitted, greenhouses provide scalable and flexible systems that effectively integrate both toplighting and interlighting solutions, creating optimal growing conditions for high-value crops such as tomatoes, cucumbers, strawberries, and ornamentals. For instance, in 2023, Sunterra Farms in Canada utilized Philips’ advanced horticulture lighting solutions in their greenhouses to successfully grow strawberries and tomatoes throughout the winter season, demonstrating how supplemental LED lighting in greenhouse environments can significantly boost year-round production and crop quality, thereby reinforcing the growth and dominance of the greenhouse segment within the horticulture lighting market.

The vertical farms segment is expected to grow at the highest CAGR of 20.6% during the forecast period, fueled by increasing demand for pesticide-free, locally grown produce year-round. Vertical farms, often built in repurposed urban spaces or purpose-designed facilities, rely entirely on artificial lighting, particularly LED systems, to mimic natural sunlight and optimize crop growth in multi-tiered environments. The need for precise control over light intensity, spectrum, and photo period makes horticulture lighting a critical component in vertical farming operations. Additionally, advancements in dynamic LED technologies, integrated IoT-based control systems, and AI-driven crop management are making vertical farms more productive, energy-efficient, and commercially viable. Government incentives for sustainable agriculture, coupled with private investments in agri-tech startups and food security initiatives, are further accelerating vertical farm adoption globally-especially in regions facing climate challenges or high import dependency. These factors collectively position vertical farms as the fastest-growing end-use segment in the horticulture lighting market.

Regional Insights

North America horticulture lighting market accounted for the largest share of 36.7% in 2024, driven by the expansion of commercial cannabis cultivation, vertical farming startups in urban centers, and large-scale greenhouse operations. U.S.-based farmers are adopting full-spectrum and tunable LED systems to comply with stringent energy regulations, especially in states like California and Massachusetts, where utilities offer rebates for LED retrofits in cannabis facilities. In Canada, harsh winters and limited natural sunlight have accelerated the integration of high-intensity LED toplighting and interlighting systems in vegetable and floriculture greenhouses. Additionally, the rise of controlled-environment agriculture (CEA) hubs has fueled demand for compact, energy-efficient lighting suited to vertical farming formats.

U.S. Horticulture Lighting Industry Trends

The horticulture lighting market in the U.S. is expected to grow significantly, driven by widespread adoption across commercial greenhouses, indoor vertical farms, and controlled-environment agriculture (CEA) hubs. Commercial greenhouse operators are upgrading legacy HID systems to high-efficiency LED solutions, incentivized through state-level energy rebates and federal sustainability programs. Additionally, the legalization and commercialization of cannabis across multiple states have further fueled demand for precision lighting systems that support consistent cannabinoid profiles, enhancing the leadership of U.S.-based growers in agri-tech innovation.

Europe Horticulture Lighting Market Industry Trends

The horticulture lighting market in Europe is anticipated to register considerable growth from 2025 to 2033. The market is evolving through a combination of regulatory pressure, sustainability mandates, and the rapid emergence of CEA technologies. Providers must navigate the EU's strict Ecodesign Directive and harmonized standards like EN IEC 63403, which require high energy performance and often delay market introduction of new fixtures. Germany remains a key innovation hub, driven by R&D funding and renewable energy integration, with urban farms in Berlin and Munich using advanced LED systems to produce local leafy greens. Meanwhile, manufacturers like ams‑OSRAM and OSRAM GmbH are rolling out Hyper Red and full-spectrum LEDs optimized for indoor herb and floriculture setups.

The UK horticulture lighting market is gaining traction, especially within indoor and vertical farming setups in urban centers. Urban agriculture initiatives, spurred by land scarcity and a consumer push for local, have driven demand for compact, energy-efficient LED grow systems with spectrum tuning and smart controls. Additionally, educational institutions and research facilities are deploying these smart lighting setups, integrating automation for precision crop trials and sustainable practices. Government and regional grants aimed at enhancing food security are further supporting commercial greenhouse LED transitions, while hobbyist and DIY home growers boost the market by adopting affordable T5/T8 and entry-level LED fixtures.

The horticulture lighting industry in Germany is driven by a strong emphasis on LED adoption, as farmers are actively replacing older HPS systems with energy-efficient, tunable LED fixtures, supported by stringent environmental mandates and sustainability targets set by both federal and EU regulations. In addition, the country’s well-funded R&D ecosystem, anchored by leading universities and research institutes, continues to fuel innovation in smart lighting solutions tailored for greenhouse and vertical farming applications. Moreover, Germany also benefits from robust government incentives and subsidies for sustainable agriculture technology, accelerating the widespread deployment of advanced lighting systems in both rural greenhouse and urban farming setups.

Asia Pacific Horticulture Lighting Market Industry Trends

The horticulture lighting industry in Asia Pacific is expected to register the fastest CAGR of 19.4% from 2025 to 2033, as countries like China, Japan, and South Korea are leading adoption of smart, IoT‑enabled LED lighting systems in CEA (Controlled Environment Agriculture), with China also leveraging massive manufacturing scale and subsidy support to drive down costs and boost exports. Additionally, the region is experiencing strong growth in vertical farming, with governments promoting space-saving solutions as urban populations rise, making slim, modular LED fixtures with adaptive spectral control a central growth driver. Meanwhile, energy efficiency and environmental sustainability are top priorities, prompting the widespread deployment of full-spectrum LEDs and smart lighting that reduce operational costs while supporting year-round production, especially in climates with limited daylight or harsh winters.

Japan horticulture lighting market is experiencing rapid growth, driven by the growing adoption of LED and smart indoor farming technologies. Additionally, farmers are implementing vertical and greenhouse systems across urban centers to secure year-round, pesticide-free produce, bolstered by supportive government policies and subsidies for energy-efficient agricultural innovation.

The horticulture lighting market in China held a substantial market share in 2024, driven by the government’s drive toward agricultural modernization, food security, and smart farming across both large-scale greenhouses and urban vertical farms. LED adoption is widespread, powering controlled-environment facilities, research institutions, and even the budding cannabis sector. Supported by substantial government investment, subsidies for energy-efficient LEDs, and fast-evolving tech innovation, China stands out as a dynamic leader in horticulture lighting, poised to shape trends across the Asia‑Pacific region.

Key Horticulture Lighting Companies Insights

Key players operating in the market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.

Recent Developments

• In June 2025, Signify launched the Philips GrowWise smart spectrum, an innovative algorithm that automatically optimizes horticultural LED lighting based on real-time sunlight irradiation. This technology enables growers to reduce energy consumption or boost crop growth by up to 6% by dynamically replacing less efficient light spectra with more energy-efficient ones.

• In August 2024, Heliospectra AB launched a strategic three-year partnership with Tomatoworld, to deploy Heliospectra’s advanced MITRA X LED fixtures combined with the wireless helioCORE control system. This collaboration aims to promote sustainable greenhouse cultivation by replacing outdated HPS lighting with energy-efficient, spectrum-optimized LED solutions that enable precise, wireless control and significant energy savings.

• In June 2023, ams OSRAM expanded its OSLON Optimal family of horticultural LEDs with the introduction of a new 640 nm Red LED, designed to enhance plant growth by providing broader spectral coverage in the red portion of the spectrum. This addition complements the existing 660 nm Hyper Red and 730 nm Far Red LEDs, offering indoor farmers a double red peak that, when combined with horti white light, has been shown to increase dried biomass levels in indoor growing environments. The OSLON Optimal Red LED also helps prevent photo bleaching and reduces fungal and bacterial infections in crops like basil.

Horticulture Lighting Market Report Scope

Global Horticulture Lighting Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global horticulture lighting market report based on offering, technology, lighting type, installation type, end use, and region.

• Offering Outlook (Revenue, USD Billion, 2021 - 2033)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Billion, 2021 - 2033)

  • LED (Light Emitting Diode)

  • High-Intensity Discharge (HID)

  • Fluorescent

  • Others

• Lighting Type Outlook (Revenue, USD Billion, 2021 - 2033)

  • Toplighting

  • Interlighting

  • Supplemental Lighting

• Installation Type Outlook (Revenue, USD Billion, 2021 - 2033)

  • New Installations

  • Retrofit Installations

• End Use Outlook (Revenue, USD Billion, 2021 - 2033)

  • Greenhouses

  • Vertical Farms

  • Indoor Farms

  • Research and Tissue Culture

  • Others

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia