Agricultural Lighting Market to Reach USD 33.17 Billion by 2032, at 12.42% CAGR | SNS Insider Report

The Agricultural Lighting Market is growing with demand for energy-efficient LED solutions that enhance plant growth in indoor farming and greenhouses, driven by precision agriculture and sustainability trends.

Austin, April 25, 2025 (GLOBE NEWSWIRE) — Agricultural Lighting Market Size & Growth Insights:

According to the SNS Insider,“The Agricultural Lighting Market was valued at USD 11.60 billion in 2023 and is expected to reach USD 33.17 billion by 2032, growing at a CAGR of 12.42% over the forecast period 2024-2032.”

Advancements and Growth in Agricultural Lighting Market Driving Sustainability and Efficiency

The Agricultural Lighting Market is experiencing rapid growth, driven by the adoption of controlled-environment farming, a high demand for energy-efficient solutions, and advancements in LED technology. The rising global population has fueled the need for increased agricultural output, leading to a greater reliance on greenhouses, vertical farming, and indoor agriculture. LED lighting, known for its energy-saving properties, high durability, and ability to optimize light spectrum for plant growth, is a major market driver.

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Leading Market Players with their Product Listed in this Report are:

  • HATO Agricultural Lighting (RUDAX)
  • Sennlite Agricultural Lighting Technology Co., LTD (Nova 645 series)
  • Orion Energy Systems (Certified Agricultural LED Light Solutions)
  • Hontech-Wins (IP67 Dimmable Flicker-Free T16 LED Cow Farm Light)
  • Legion Lighting Co., Inc. (AGRO-LUME™ VIII – SERIES 778G2)
  • G&G Industrial Lighting (Barn Lighting Solutions)
  • J.W. Speaker Corporation (LED Lighting for Agriculture & Construction)
  • Growlight Agricultural Lighting Solutions (LED Horticultural Lighting)
  • Everlight Electronics (Horticultural LEDs)
  • Signify (formerly Philips Lighting) (GreenPower LED toplighting)
  • OSRAM (Phytofy RL)
  • Valoya (L-Series LED Grow Lights)
  • Heliospectra (MITRA LED Lighting)
  • Illumitex (NeoPAR)
  • Current, powered by GE (Arize Element L1000).

Agricultural Lighting Market Report Scope:

Report Attributes Details
Market Size in 2023 USD 11.60 Billion
Market Size by 2032 USD 33.17 Billion
CAGR CAGR of 12.42% From 2024 to 2032
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation • By Light Source Fluorescent, HID, LED, Others)
• By Installation (New, Retrofit)
• By Application (Aquaculture, Livestock, Horticulture)
Key Drivers • Revolutionizing Agriculture with Smart and Energy-Efficient Lighting for Sustainable Farming and Higher Yields.

• Expanding Opportunities in Smart Farming with IoT AI and Advanced Lighting Technologies for Future Growth.

Furthermore, government support for sustainable farming practices and subsidies for energy-efficient lighting systems are accelerating market growth. In the livestock sector, smart lighting systems are increasingly being adopted to enhance animal health, reproduction rates, and productivity. The U.S. Agricultural Lighting Market, valued at USD 2.08 billion in 2023, is projected to grow at a CAGR of 12.19% due to these trends, with notable developments such as vertical farms and LED lighting investments.

LED Dominates Agricultural Lighting Market with Rapid Growth in Horticulture and Livestock Sectors

By Light Source

In 2023, LED lighting dominated the agricultural lighting market with a 63.4% share, driven by its energy efficiency, long lifespan, and adjustable light spectra that cater to various crops and livestock needs. The rise of vertical farming, greenhouses, and indoor farming, offering higher yields and lower energy consumption, has accelerated the shift to LED technology.

Fluorescent lighting is expected to see the highest CAGR from 2024-2032 due to its low cost and widespread availability in developing countries. Technological advancements improving fluorescent efficiency and longevity are likely to boost its adoption in cost-sensitive agricultural sectors.

By Installation

In 2023, new installations led the agricultural lighting market, capturing 56.2% of the global share, driven by the rapid growth of greenhouses, vertical farming, and smart farming infrastructure. This trend was fueled by increasing global interest in controlled environment agriculture (CEA) and the adoption of LED lighting in newly constructed facilities. Government and private sector support for modern farming initiatives further boosted demand for energy-efficient lighting systems to improve crop and livestock yields.

Retrofit installations are expected to grow at the highest CAGR from 2024 to 2032, as existing farms upgrade outdated systems to energy-efficient, spectrum-optimized LED solutions.

By Application

In 2023, the horticulture sector led the agricultural lighting market with a 62% share, driven by the growing use of greenhouses, vertical farming, and hydroponics. The need for high-yield, year-round crop cultivation and enhanced plant growth is pushing the sector towards LED and smart lighting technologies, which improve photosynthesis and plant health. This shift is supported by both private investment and government backing for sustainable farming.

 The livestock segment, however, is expected to grow the fastest from 2024 to 2032, as specialized lighting systems designed to improve animal health, reproduction, and productivity gain traction, particularly with IoT-based smart controls.

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Europe Leads Agricultural Lighting Market, Asia-Pacific Poised for Rapid Growth

In 2023, Europe led the agricultural lighting market with a 35.8% share, driven by a strong focus on sustainable agriculture, greenhouse farming, and controlled environment agriculture (CEA). Countries like the Netherlands, Germany, and France are global leaders in high-tech greenhouse farming, employing LED-based smart lighting to maximize crop yields. The Netherlands, known for its advanced horticulture industry, utilizes large-scale, spectrum-optimized LED lighting in automated greenhouses to enhance plant growth while minimizing energy consumption. Additionally, EU policies promoting energy efficiency and reducing carbon footprints have accelerated the adoption of new agricultural lighting technologies, solidifying Europe’s position as the market leader.

Asia-Pacific is expected to grow the fastest from 2024 to 2032, driven by increasing investments in urban farming, vertical farming, and livestock automation. Countries like China, Japan, and India are seeing a surge in demand for smart agricultural lighting systems, with China leading the way in indoor farming projects using LED lighting for optimal crop growth.

Recent Development:

  • December 19, 2024 – Heliospectra launches the Dynamic MITRA X multi-channel LED solutions, featuring advanced 3-channel and 4-channel configurations, offering precise spectrum control for optimized crop growth, quality, and efficiency. The new systems integrate with HelioCORE™ software, providing growers with customizable and energy-efficient lighting for every stage of plant development.

Table of Contents – Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Adoption of Smart & AI-Integrated Agricultural Lighting

5.2 Agricultural Lighting Energy Consumption & Efficiency Gains

5.3 Supply Chain Metrics in Agricultural Lighting

5.4 Greenhouse & Vertical Farming Lighting Utilization

6.  Competitive Landscape

7. Agricultural Lighting Market Segmentation, by Light Source

8. Agricultural Lighting Market Segmentation, by Installation

9. Agricultural Lighting Market Segmentation, by Application

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company’s aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

Related Reports:

Horticulture Lighting Industry Analysis Report

Grow Lights Industry Analysis Report

Smart Greenhouse Industry Analysis Report

Precision Farming Market Industry Analysis Report

Agriculture 4.0 Market Industry Analysis Report 

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