Horticulture Lighting Market Size to Reach USD 35.75 Bn by 2034

Market Set to Expand at a CAGR of 18.94% From 2025 to 2034, Fueled by Urban Farming, Sustainability Initiatives, and Technological Innovations

Horticulture Lighting Market Size 2025 to 2034

The global horticulture lighting market was valued at USD 6.31 billion in 2024 and is forecasted to grow significantly to USD 35.75 billion by 2034, showing a robust compound annual growth rate (CAGR) of 18.94% between 2025 and 2034.

This surge is underpinned by increasing demand for fresh, high-quality produce through controlled environment agriculture such as greenhouses, vertical farms, and indoor grow rooms. Energy-efficient LED lighting technology, government policies promoting sustainable agriculture, and advances in artificial intelligence (AI) are revolutionizing plant growth optimization, making horticulture lighting a critical component of modern farming ecosystems.

Horticulture Lighting Market Quick Insights

The market value grew from USD 6.31 billion in 2024 to an expected USD 7.51 billion in 2025.
Europe holds the largest market share, with USD 2.61 billion estimated for 2025, and is projected to grow to USD 12.51 billion by 2034.
Asia Pacific is the fastest-growing region, driven by rapid urbanization and increasing investments in agri-tech.
Key players dominating the market include Osram, Lumileds, Cree LED, and Samsung.
Hardware currently dominates the market segment due to the essential role of luminaires and controls in cultivation systems.
The LED technology sector leads due to energy efficiency, longevity, and spectral customization capabilities.
Vertical farming is the fastest-growing application segment, propelled by urban demand for pesticide-free and locally grown produce.

Get this report to explore global market size, share, CAGR, and trends, featuring detailed segmental analysis and an insightful competitive landscape overview @ https://www.precedenceresearch.com/sample/6610

Horticulture Lighting Market Revenue and Size

Year	Market Value (USD Billion)
2024	6.31
2025	7.51
2034	35.75

Region	Market Size 2025 (USD Billion)	CAGR (2025-2034)
Europe	2.61	19.04%
Asia Pacific	Fastest growing	Highest

How Is AI Redefining the Horticulture Lighting Market?

Artificial Intelligence is no longer a mere add-on but a transformational force in horticulture lighting. AI-powered systems integrate data from environmental sensors, cameras, and plant health monitors to dynamically adjust lighting intensity, spectrum, and photoperiod. This ensures plants receive optimal light tailored to each growth stage, maximizing photosynthesis, yield quality, and reducing energy consumption. Additionally, AI’s predictive analytics capabilities help farmers preemptively address plant stress and fine-tune environmental conditions, driving efficiency and sustainability.

By combining AI with Internet of Things (IoT) devices and machine vision, precision farming at scale has become achievable. These technologies enable remote monitoring and control, allow customizable light recipes for different crops, and support automated operations that reduce labor costs and improve crop consistency, making horticulture lighting a vital technology for future-proof farming.

What Are the Key Drivers of Market Growth?

Increasing Urban Population and Shrinking Farmland: Urbanization limits arable land, prompting reliance on controlled-environment agriculture where horticulture lighting is essential.
Demand for Year-Round Fresh Produce: Consumers seek fresh vegetables and herbs regardless of season, fueling vertical farming and greenhouse expansion supported by advanced lighting technology.
Government Initiatives: Incentives for energy-efficient agricultural technologies and sustainable farming practices spur adoption globally, especially in Europe and Asia Pacific.
Technology Advancements: LED lighting’s energy efficiency, customization, and durability have made it indispensable in modern farming. AI and IoT integration further enhance operational precision and cost-effectiveness.

What Are the Emerging Opportunities and Trends?

Could AI-powered, tunable spectrum lighting systems unlock new potentials for specialty crops and medicinal plants?
Will the surge in urban rooftop and vertical farms sustain beyond niche markets to mainstream commercial scale?
Can developing economies capitalize on affordable AI-integrated lighting systems to leapfrog traditional agricultural limitations?
How will partnerships between lighting manufacturers and agri-tech startups drive bundled, turnkey solutions?
Will environmental sustainability pressures accelerate the adoption of fully automated, energy-optimized horticulture lighting systems?

Regional and Segment Analysis: Illuminating the Growth Path

Europe leads due to early adoption of greenhouse technologies, government policies supporting sustainable agriculture, and strong research and development ecosystems. The U.K., in particular, stands out for its urban farming initiatives and smart lighting deployments in vertical farms.

Asia Pacific, led by countries like India, offers the fastest growth trajectory, driven by urbanization, shrinking farmland, government agri-tech support, and rising disposable incomes favoring fresh, chemical-free produce.

Market segmentation reveals hardware as the largest revenue contributor, providing essential physical luminaires and infrastructure. However, software & services, including AI-powered crop monitoring and cloud-based control systems, are the fastest-growing segments, reflecting broad automation trends. Among technologies, LED leads with broad application across greenhouses, vertical farms, and indoor grow rooms. Meanwhile, vertical farming is the most rapidly expanding application, fueled by urban demand and technological advances.

Horticulture Lighting Market Recent Breakthroughs and Leading Companies

Key players pushing innovation include Osram, Lumileds, Cree LED, and Samsung, delivering advanced LED fixtures with spectrum optimization, energy efficiency, and IoT integration. Companies in logistics and cold chain management supporting this market include CEVA Logistics SA, Snowman Logistics, and Coldman Logistics, ensuring smooth supply chains for sensitive horticultural products.

Challenges and Cost Pressures

Despite the promising outlook, high initial investments in LED hardware and AI-integrated lighting systems remain a barrier, especially for small and medium-scale farmers. The lack of technical expertise to operate advanced systems and limitations in energy infrastructure in developing regions further restrict market expansion. Moreover, ROI timelines can be long, making investors cautious. Addressing these challenges requires affordable, scalable, and easy-to-operate solutions that can democratize access to smart horticulture lighting globally.

Case Study: AI Lighting Boosts Vertical Farm Yields in London

In London, a vertical farm specializing in microgreens integrated AI-controlled LED lighting systems that dynamically adjust spectrum and intensity based on real-time plant needs. Within six months, the farm reported a 25% increase in yield, 15% reduction in energy consumption, and superior crop quality, showcasing how technology advances can directly impact profitability and sustainability in urban agriculture.

Read Also: Glass Interposers Market

You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com |+1 804 441 9344