The horticultural lighting market size is projected to expand from USD 9.80 billion in 2025 and USD 11.02 billion in 2026 to USD 19.62 billion by 2031, registering a 12.23% CAGR between 2026 and 2031. This report is Segmented by Lighting Technology (LED, HID, Fluorescent, Plasma, and More), Offering (Hardware, Software and Services), Installation Type (New, and Retrofit), Cultivation (Vegetables and Fruits, Leafy Greens, Berries, Tomatoes and Peppers, Flowers, Cannabis, and More), Application (Greenhouses, and More), and Geography. Market Forecasts are Provided in Terms of Value (USD).
LED innovation is shifting toward 10-channel tunable arrays, typified by Heliospectra’s MITRA X platform released in 2024, which recreates sunrise-to-sunset transitions with 1 percent spectral granularity. Plasma systems priced at USD 800-1 200 per unit are penetrating high-margin cannabis and cut-flower operations despite higher capex. HID lamps, still clinging to 8-10 percent share in older greenhouses, are falling out of favor as bulb supply tightens under EU Ecodesign rules.
Hardware contributed 71.52% of 2025 revenue, yet falling LED package prices are shrinking average selling prices by 6-8 percent yearly. Software and services are expanding at 12.53% CAGR as platforms such as LumiGrow smartPAR Cloud charge USD 2-5 m⁻² yr⁻¹ for photon efficacy optimization. These SaaS fees already represent 12-18 percent of total project value in new vertical farms.
Driver electronics now embed Bluetooth LE and Zigbee radios, eliminating hard-wired DALI infrastructure and reducing installation labor USD 8-12 per linear meter. Energy-savings-as-a-service models pioneered by Deere Infinite Vertical keep fixtures off growers’ balance sheets, although legal complexities around measurement and verification confine adoption to operators above USD 10 million annual revenue.
Asia-Pacific will be the fastest-growing region at 13.42% CAGR. China’s 1.2 million ha of protected horticulture is scaling LEDs to offset land limits, while Singapore pumped SGD 200 million (USD 148 million) into vertical farms since 2024. Japanese urban farms receive JPY 5 billion (USD 33 million) in annual subsidies, and India’s 25 percent tariff raises costs versus ASEAN neighbors with 0-5 percent duties. Australia’s anti-dumping tariffs on Chinese drivers divert orders to Korean suppliers at 12-18 percent mark-ups.
North America accounted for roughly 30 percent share in 2025. United States cannabis lighting reached USD 1.5 billion that year, and Canada’s 2 800 ha of glasshouses are rapidly retrofitting LEDs under volatile natural-gas prices. Mexico’s 1 800 ha of tomato greenhouses fitted interlighting in 2024-2025, gaining 18-25 percent yield bumps. Saudi Arabia, UAE, and Qatar together invested USD 320 million in solar-powered LED farms to cut 85-90 percent import dependence.
Global Horticulture Lighting Market Trends and Insights
Precision-Tuned LED Spectra Raising Cannabinoid Yield In North American Cannabis Grows
Cannabis growers are shifting from broad-spectrum metal-halide lamps to LED fixtures emitting 680-730 nm far-red wavelengths, boosting THC and CBD concentrations by 12-18 percent and cutting waste heat by 40-50 percent. The segment, valued at USD 1.5 billion in 2025, is growing at 15% annually as additional U.S. states legalize medical and adult-use sales. Fixture vendors Fluence and California LightWorks dominate large facilities, while modular systems from Black Dog LED are winning budget-sensitive craft operators. Federal rescheduling could accelerate multi-state expansion beyond 2028.Urban Food-Security Programs Accelerating Vertical-Farm Lighting Demand Across Asian Megacities
Under its "30 by 30" plan, Singapore allocated SGD 200 million (USD 148 million) in 2024 to enhance its food security and reduce reliance on imports. Meanwhile, in 2025, Tokyo set aside JPY 5 billion (USD 33 million) to subsidize urban agriculture initiatives, aiming to promote sustainable farming practices within the city. Seoul's Smart Farm Innovation Center rolled out 12 hectares of fully enclosed farms, utilizing Samsung's LM301H LEDs, which boast an impressive efficacy of 3.1 µmol J⁻¹. These advanced farming systems, equipped with lighting fixtures priced between USD 150-250 m², achieve 10-15 harvests annually. This high productivity ensures a lighting payback period of under four years, making the investment in such technology economically viable and efficient.Acute Aluminium And Rare-Earth Cost Inflation Squeezing High-Power LED Fixture Margins
In 2025, average aluminium prices climbed to USD 2,580 per tonne, marking a significant increase that led to a rise of USD 6-10 in fixture bills of materials per unit. This surge in costs resulted in a notable compression of manufacturers' gross margins, reducing them by as much as 12 percentage points. Furthermore, the implementation of stringent export quotas by China significantly impacted the market for rare earth elements. These restrictions drove prices of europium and terbium oxides up by 30 percent, thereby exerting additional pressure on suppliers of LED phosphors and further complicating their operational dynamics.Other drivers and restraints analyzed in the detailed report include:
- EU Fit-for-55 Energy Directives Incentivising LED Retrofits In Heated Glass Greenhouses
- Surge In Off-Grid Micro-Powered CEA Solutions For Desert Farming In GCC Countries
- Fragmented Regional Import Tariffs Complicating Fixture Price Parity For Asia-Pacific Growers
Segment Analysis
LED systems held 86.13% of horticultural lighting market share in 2025, reflecting sustained 40-50 percent energy savings versus HID lamps. The horticultural lighting market size for plasma and other alternatives is projected to advance at a 12.41% CAGR as research facilities value their continuous 380-780 nm spectra. LED fixture costs have declined to USD 80-150 m⁻², and gallium-nitride-on-silicon roadmaps suggest further price drops by 2028.LED innovation is shifting toward 10-channel tunable arrays, typified by Heliospectra’s MITRA X platform released in 2024, which recreates sunrise-to-sunset transitions with 1 percent spectral granularity. Plasma systems priced at USD 800-1 200 per unit are penetrating high-margin cannabis and cut-flower operations despite higher capex. HID lamps, still clinging to 8-10 percent share in older greenhouses, are falling out of favor as bulb supply tightens under EU Ecodesign rules.
Hardware contributed 71.52% of 2025 revenue, yet falling LED package prices are shrinking average selling prices by 6-8 percent yearly. Software and services are expanding at 12.53% CAGR as platforms such as LumiGrow smartPAR Cloud charge USD 2-5 m⁻² yr⁻¹ for photon efficacy optimization. These SaaS fees already represent 12-18 percent of total project value in new vertical farms.
Driver electronics now embed Bluetooth LE and Zigbee radios, eliminating hard-wired DALI infrastructure and reducing installation labor USD 8-12 per linear meter. Energy-savings-as-a-service models pioneered by Deere Infinite Vertical keep fixtures off growers’ balance sheets, although legal complexities around measurement and verification confine adoption to operators above USD 10 million annual revenue.
Complete Report Scope:
- By Lighting Technology
- LED
- HID
- Fluorescent
- Plasma and Others
- By Offering
- Hardware (Fixtures, Drivers, Controls)
- Software and Services
- By Installation Type
- New Installations
- Retrofit Installations
- By Cultivation
- Vegetables and Fruits
- Leafy Greens and Micro-Greens
- Berries
- Tomatoes and Peppers
- Flowers and Ornamentals
- Cannabis and Specialty Crops
- Other Crops
- By Application
- Greenhouses
- Indoor and Vertical Farms
- Research/Academic Facilities
- Aquaponics and Container Farms
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- United Arab Emirates
- Saudi Arabia
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Kenya
- Rest of Africa
- Middle East
- North America
Geography Analysis
Europe dominated with 32.94 percent share in 2025 as Fit-for-55 subsidies cover 40 percent of LED retrofit capex in countries such as Germany and France. Netherlands’ 10 000 ha of heated glasshouses consumed 4.5 TWh in 2024, making energy savings of 40-50 percent through LEDs financially compelling. Spain’s Almería plastics sector is less aggressive because natural light suffices most of the year, but pilot LED-climate algorithms delivered 18-month paybacks.Asia-Pacific will be the fastest-growing region at 13.42% CAGR. China’s 1.2 million ha of protected horticulture is scaling LEDs to offset land limits, while Singapore pumped SGD 200 million (USD 148 million) into vertical farms since 2024. Japanese urban farms receive JPY 5 billion (USD 33 million) in annual subsidies, and India’s 25 percent tariff raises costs versus ASEAN neighbors with 0-5 percent duties. Australia’s anti-dumping tariffs on Chinese drivers divert orders to Korean suppliers at 12-18 percent mark-ups.
North America accounted for roughly 30 percent share in 2025. United States cannabis lighting reached USD 1.5 billion that year, and Canada’s 2 800 ha of glasshouses are rapidly retrofitting LEDs under volatile natural-gas prices. Mexico’s 1 800 ha of tomato greenhouses fitted interlighting in 2024-2025, gaining 18-25 percent yield bumps. Saudi Arabia, UAE, and Qatar together invested USD 320 million in solar-powered LED farms to cut 85-90 percent import dependence.
List of Companies Covered in this Report:
- Signify Holding
- ams OSRAM AG
- Fluence Bioengineering (Scotts Miracle-Gro)
- Heliospectra AB
- Hortilux Schréder
- Gavita International BV
- Valoya Oy
- LumiGrow Inc.
- Samsung Electronics Co. Ltd.
- LG Innotek
- Cree LED (SMART Global)
- Current Lighting Solutions
- Everlight Electronics
- Hort Americas LLC
- B-Light Group
- California LightWorks
- Agrolux Nederland BV
- Illumitex Inc.
- Deere and Co. (Infinite Vertical)
- Nanolux Technology
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET LANDSCAPE
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
6 COMPETITIVE LANDSCAPE
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Signify Holding
- ams OSRAM AG
- Fluence Bioengineering (Scotts Miracle-Gro)
- Heliospectra AB
- Hortilux Schréder
- Gavita International BV
- Valoya Oy
- LumiGrow Inc.
- Samsung Electronics Co. Ltd.
- LG Innotek
- Cree LED (SMART Global)
- Current Lighting Solutions
- Everlight Electronics
- Hort Americas LLC
- B-Light Group
- California LightWorks
- Agrolux Nederland BV
- Illumitex Inc.
- Deere and Co. (Infinite Vertical)
- Nanolux Technology
