Agricultural Lighting Market

Agricultural Lighting Market Outlook 2024 to 2034

The agricultural lighting market is valued at USD 12.1 billion in 2024 and is projected to reach USD 38.5 billion by 2034, exhibiting a healthy CAGR of 12.3% over the forecast period.

Key Market Drivers:

• The rising adoption of controlled environment agriculture (CEA) practices, which involves the use of artificial lighting, among other technologies, to create an optimized environment for plant growth, is widely changing the structure of crop plantations.
• Increasing population and changing climatic conditions lead to growing demand for high-quality and consistent crop production throughout the year.
• Government initiatives and support in promoting sustainable agriculture practices, energy-efficient technologies, and modern farming techniques.
• The demand for agricultural lighting in urban areas for vertical farming systems enables the cultivation of crops in controlled indoor environments, independent of external climatic conditions.
• Growing awareness about the environmental impact of traditional farming methods leads to a shift toward more sustainable and energy-efficient agricultural practices.
• Ongoing research and development activities in the field of agricultural technologies resulted in the introduction of innovative lighting solutions tailored for specific crops.

Attributes	Key Statistics
Expected Base Year Value (2024)	USD 12.1 billion
Anticipated Forecast Value (2034)	USD 38.5 billion
Estimated Growth (2024 to 2034)	12.3% CAGR

The market generated an estimated revenue of USD 6 billion in 2019, and in five years, it grew at a pace of 15.06%.

Consumption Analysis of the Agricultural Lighting Market

• The market is experiencing increasing demand from large-scale commercial growers and farmers who deploy lighting solutions to enhance crop growth, extend growing seasons, and improve overall yield and quality
• The adoption of agriculture lighting is also widespread among horticulture and floriculture farmers. These entities employ agricultural lighting to cultivate specific plants for ornamental or decorative purposes
• Agricultural lighting is increasingly adopted in agricultural research institutions, universities, and laboratories to study plant biology, optimize growth parameters, and develop new varieties with improved traits.
• The use of agricultural lighting is also growing among individuals and businesses involved in aquaponics and hydroponics, which are soilless cultivation methods that utilize agricultural lighting to provide the necessary light spectrum for plant growth.
• The growing adoption of agricultural lighting is also observed in urban and home gardeners who practice agriculture in limited outdoor spaces for growing herbs, vegetables, and other plants for personal consumption.
• The demand for agricultural lighting is also touching the skies in greenhouses. These entities leverage agricultural lighting to supplement natural sunlight and create an optimized environment for plant growth.

Restraining Factors Adversely Affecting the Agricultural Lighting Market

The market for agricultural lighting is anticipated to surpass a valuation of USD 38.5 billion by the year 2034, with a growth rate of 12.3%. While the market is expected to experience remarkable growth, several restraining factors could adversely affect its development:

• The initial costs associated with implementing agricultural lighting technologies, especially those based on LED and other energy-efficient solutions, require a significant initial investment. This deters smaller farmers or businesses with limited capital from adopting agricultural lighting.
• In addition to the initial upfront costs, farmers must also invest substantial capital in maintenance and operations. This creates hesitancy among small farmers, especially in countries with scarce government incentives.
• Lack of awareness and education about the benefits of agricultural lighting, especially among small-scale farmers or those in less developed regions, impedes market growth.
• Implementing agricultural lighting systems can be complex, especially when integrating them with other agricultural technologies and control systems. The complexity of system integration may pose challenges for farmers, leading to slower adoption rates.

Category-wise Insights

New Agricultural Lighting to Dominate the Global Agriculture Sector

Depending on the installation, the agricultural lighting market is bifurcated into new and retrofit agriculture lighting. The former is anticipated to grow at a remarkable rate of 12.1% CAGR through 2034.

• Advanced agricultural lighting is gaining a lot of impetus in the agriculture sector as farmers and agricultural enterprises recognize their significance in optimizing crop growth and overall productivity.
• The need for enhanced efficiency, precision, and sustainability in farming operations also drives a significant demand for new and advanced agriculture lighting.
• The growing significance of new agriculture lighting is also because of its impact on crop quality, yield, and the ability to overcome traditional limitations associated with natural light cycles.

Attributes	Details
Installation	New
CAGR	12.1%

LED Lights Take the Lion’s Share in the Agricultural Lighting Market

The industry is categorized by light source into LED, fluorescent, HID, etc. The LED segment dominates the market and is anticipated to grow at a remarkable rate of 12.00%.

• LED lights have achieved widespread adoption in agricultural lighting due to their versatility and efficacy in meeting the diverse needs of modern farming practices.
• The demand for agricultural lighting is also increasing due to the agricultural sector's recognition of the unique benefits offered by LED lighting solutions.
• LED lights also enjoy widespread preference among farmers and agricultural stakeholders due to the energy efficiency, durability, and customizable features that LED technology offers

Attributes	Details
Light Source	LED
CAGR	12.00%

Country-wise Insights

The section provides an analysis of the agricultural lighting industry by country, including Japan, China, the United States, the United Kingdom, and South Korea. The table presents the CAGR for each country, indicating the expected market growth in that country through 2034.

Countries	CAGR
Japan	13.80%
South Korea	13.60%
The United Kingdom	13.20%
China	12.90%
The United States	13.50%

Growing Demand for Vertical Farming Uplifting the Market of Agricultural Lighting in Japan

Japan is one of the leading countries in this market. The Japan agricultural lighting market is anticipated to retain its dominance by progressing at an annual growth rate of 13.80% till 2034.

• The Japanese agriculture sector has a growing preference for controlled environment agriculture (CEA). This has pushed the demand for agriculture lighting as it provides optimal growing conditions regardless of external factors such as weather and season.
• Japan is among the densely populated countries, necessitating the use of urban agricultural practices facilitated by advanced lighting systems to maximize space utilization.

Indoor Farming and Demand for High-value Crops Advancing the Market in South Korea

South Korea is another country that is focusing on horticulture LED lighting to optimize plant growth in the Asian region. The South Korea agricultural lighting market is anticipated to retain its dominance by progressing at an annual growth rate of 13.60% till 2034.

• The country's demand for high-quality agricultural produce has pushed the implementation of modern farming practices that rely on advanced lighting technologies.
• Besides this, the widespread adoption of agricultural lighting in the country’s vertical farming sector is due to government initiatives to modernize the agriculture sector. Subsidies, grants, and programs supporting the promotion of agricultural lighting encourage farmers to invest in these solutions.

Demand for Energy-Efficient Technology Encouraging the Market in the United Kingdom

The United Kingdom dominates the market in Europe due to its advanced agricultural practices. The United Kingdom agricultural lighting market is anticipated to exhibit an annual growth rate of 13.20% till 2034.

• In the United Kingdom, the agriculture sector strongly prefers sustainable farming practices. Agriculture lighting, especially energy-efficient LED solutions, generates significant demand among farmers seeking to enhance productivity while minimizing environmental impact.
• The growing popularity of indoor farming, due to a desire for local and year-round produce, significantly contributes to the adoption of agricultural lighting in the United Kingdom.

High-tech Cultivation to Improve Fruits Quality Fueling the Agricultural Lighting Market in China

Smart farm business model for year-round crop production is revitalizing the market of agricultural lighting in China, which is anticipated to register a CAGR of 12.90% through 2034.

• Significant government investments in agricultural technology in China have played a pivotal role in driving the adoption of advanced farming practices. Subsidies and funds have inspired farmers to adopt these modern methodologies.
• Apart from this, China's rapid urbanization and limited arable land contribute to the demand for agricultural lighting. As urban areas expand, there is a preference for vertical farming and CEA, where advanced lighting systems become crucial for year-round crop production.

Circular Agriculture and Sustainability Tailoring the Market in the United States

The United States leads the agricultural lighting market in North America. Over the next ten years, demand for agricultural lighting in the United States is projected to rise at a 5.50% CAGR.

• The United States agriculture sector's focus on technological innovation and research has pushed the adoption of advanced lighting systems due to the increasing demand for precision farming and sustainable agricultural practices.
• Besides this, the United States has always been at the forefront of accepting new and modern ways of agricultural practices as farmers seek to optimize crop growth, enhance yields, and meet the market's evolving needs.

Competitive Landscape

The market for agricultural lighting is filled with companies like Signify (formerly Philips Lighting), Osram Licht AG, Heliospectra AB, Fluence by OSRAM, Current, powered by GE, Agrolux, Valoya, etc.

These companies develop horticultural lighting systems specifically engineered for plant cultivation to stay in the competitive landscape of the global market. Companies are also investing in research and development to innovate and improve existing lighting technologies.

Recent Developments:

• In November 2023, Acuity Brands, Inc. (NYSE: AYI) successfully acquired the Arize family of horticulture lighting products from Current Lighting Solutions, LLC. Simultaneously, Acuity Brands entered an exclusive distribution agreement with Hort Americas, LLC, expanding its controlled environment agricultural market presence with greenhouse-focused luminaires.
• In October 2023, the new two-acre HORTECA Research and Development Facility at JEM Farms highlighted Sollum Technologies' Smart LED solution among advanced greenhouse technologies. The facility, in partnership with ecoation and the University of Windsor, showcased innovations from integrated pest management to robotics and AI.
• In November 2023, RED Horticulture secured USD 17 million in Series A funding for its dynamic greenhouse lighting solution. The Netherlands and France-based company's dynamic spectrum LED lights, controlled by the AI-powered platform MyRED, enhance plant growth, delivering higher yields and improved crop quality while conserving energy resources.
• In September 2023, Sollum Technologies, a pioneer in dynamic LED grow lights, initiated a groundbreaking research program, S.E.A.R.C.H (Sollum Empowering Academic Researchers in CEA and Horticulture). The program aimed to collaborate with United States research centers and universities, fostering breakthroughs in horticultural lighting knowledge using Sollum's advanced LED solution.

Key Companies in the Market

• Signify (formerly Philips Lighting)
• Osram Licht AG
• Heliospectra AB
• Fluence by OSRAM
• Agrolux
• Valoya
• LumiGrow
• California LightWorks
• Illumitex
• Everlight Electronics Co., Ltd.
• Bridgelux, Inc.
• Sunlight Supply, Inc.
• Gavita International B.V.
• Hortilux Schréder
• VividGro
• Apogee Instruments, Inc.
• Black Dog LED
• Illumitex
• PARsource Lighting Solutions

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Installation
  • 5.1. New
  • 5.2. Retrofit
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Light Source
  • 6.1. LED
  • 6.2. Fluorescent
  • 6.3. HID
  • 6.4. Others
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Wattage Type
  • 7.1. Below 50W
  • 7.2. 50 - 150W
  • 7.3. Above 150W
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel
  • 8.1. Retail/Wholesale
  • 8.2. Direct Sales
  • 8.3. Online/E-commerce
• 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Offering
  • 9.1. Hardware
  • 9.2. Software
  • 9.3. Services
• 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
  • 10.1. Livestock
  • 10.2. Horticulture
  • 10.3. Aquaculture
• 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 11.1. North America
  • 11.2. Latin America
  • 11.3. Western Europe
  • 11.4. Eastern Europe
  • 11.5. South Asia and Pacific
  • 11.6. East Asia
  • 11.7. Middle East and Africa
• 12. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 17. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 18. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 19. Key Countries Market Analysis
• 20. Market Structure Analysis
• 21. Competition Analysis
  • 21.1. Signify N.V.
  • 21.2. Ams-OSRAM AG
  • 21.3. Tetra Laval International S.A. (DeLaval)
  • 21.4. Heliospectra AB
  • 21.5. Valoya Oy
  • 21.6. California LightWorks (MWW Inc.)
  • 21.7. Gavita International B.V.
  • 21.8. Hortilux Schréder (Dool Industries)
  • 21.9. CBM Lighting, Inc.
• 22. Assumptions & Acronyms Used
• 23. Research Methodology