Agriculture Lighting Market Size Forecast to Skyrocket from USD 1.3 Bn in 2022 to USD 5.4 Bn by 2031 - TMR

The global agriculture lighting market, valued at USD 1.3 Bn in 2022, is poised for robust expansion over the coming decade. Driven by the rapid adoption of indoor farming, greenhouse cultivation, and the imperative for sustainable agricultural practices, the market is forecast to grow at a compound annual growth rate (CAGR) of 16.8% between 2023 and 2031, reaching an estimated USD 5.4 Bn by the close of the forecast period. Agriculture lighting primarily employing energy-efficient LEDs enables precise control of light spectra, intensity, and photoperiods, facilitating year-round crop production, enhanced yield, and superior quality. As food security concerns intensify and technological innovations proliferate, agriculture lighting has emerged as a cornerstone of controlled environment agriculture (CEA), vertical farming, and greenhouse operations worldwide.

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Market Drivers & Trends

Rise of Indoor Farming and Greenhouse Cultivation: Controlled environment agriculture (CEA) techniques rely on artificial lighting to compensate for limited natural sunlight, particularly in higher latitudes or urban settings. Advanced LED fixtures with tunable spectra enable growers to optimize photosynthesis at each crop growth stage, boosting yields and reducing resource consumption.

Expansion of the Poultry Sector: Lighting manipulation in poultry houses enhances egg production cycles, reproductive behavior, and overall flock uniformity. By fine-tuning photoperiods, farmers can stimulate optimal growth rates and improve bird welfare, driving demand for specialized livestock lighting solutions.

Sustainable Agriculture Practices: A global shift toward sustainability is elevating LED-based agriculture lighting, which consumes up to 50% less energy than traditional high-pressure sodium (HPS) lamps. Reduced electricity costs, lower heat emissions, and minimized carbon footprints align with environmental regulations and corporate ESG targets.

Smart Lighting Controls: Integration of IoT-enabled sensors and automation platforms allows real-time monitoring of light intensity, spectrum, and energy usage. Such data-driven systems deliver actionable insights for crop management and operational efficiency.

Key Players and Industry Leaders

The agriculture lighting market landscape is highly fragmented, featuring a mix of global conglomerates and specialized technology firms. Leading companies include:

AKVA Group
ams OSRAM AG
California LightWorks
CBM Lighting
Current Lighting Solutions, LLC
DeLaval
Gavita International B.V
HATO Agricultural Lighting
Heliospectra AB
Hubbell Incorporated
Lely
Luminus, Inc.
Samsung
Signify Holding
Sunbird
Other Key Players

These players compete through continuous R&D investments, strategic partnerships, product portfolio expansions, and mergers & acquisitions aimed at enhancing spectral offerings, energy efficiency, and intelligent control features.

Recent Developments

February 2023: Purdue University researchers unveiled two novel LED lighting strategies designed to lower energy consumption by up to 30% while increasing crop yield in vertical farming systems.
May 2022: Signify Holding acquired Fluence from ams OSRAM, operating it as a distinct business unit within its Digital Solutions Division to bolster its agriculture lighting portfolio.
2019 Collaboration: Signify partnered with AppHarvest to deploy hybrid LED/HPS toplighting in a 25-hectare greenhouse in Morehead, Kentucky, achieving notable increases in resource-use efficiency and crop yields.

Latest Market Trends

Dominance of LED Lighting: The LEDs segment held a 32.4% share in 2022 and is anticipated to grow at a CAGR of 17.3% through 2031. LEDs' customizable light spectra, long operational lifespans (up to 50,000 hours), and minimal heat output make them the preferred choice for commercial growers.
Horticulture Applications Lead: Accounting for 35.8% of market value in 2022, horticultural lighting is crucial for greenhouse and vertical farms. Supplemental LED lighting ensures consistent crop cycles despite seasonal or geographical limitations in natural sunlight.
Emergence of UV and Far-Red Lighting: To manipulate plant physiology such as flowering time, pigmentation, and disease resistance growers are increasingly experimenting with UV-A/B and far-red LED modules.

Market Opportunities

Emerging Economies: Rapid modernization of agriculture in Asia Pacific, Latin America, and Eastern Europe presents fertile ground for controlled environment agriculture investments.
Integration with Renewable Energy: Pairing solar or wind power with LED systems can further reduce operational costs and enhance the sustainability profile of indoor farms.
Customization and Services: Offering lighting-as-a-service (LaaS) models, subscription-based fixtures, and data analytics platforms opens new revenue streams for manufacturers and service providers.
Biophilic Urban Farming: As cities seek to localize food production, vertical and rooftop farms equipped with smart lighting can deliver fresh produce to urban consumers, shortening supply chains.

Future Outlook

Analysts remain bullish on the agriculture lighting market's trajectory through 2031. Technological advancements such as full-spectrum tunable LEDs, advanced photobiological research, and AI-driven lighting controls are expected to unlock incremental yield gains and energy efficiencies. Furthermore, as global food demand rises to an estimated 70% increase by 2050 amid climate change pressures, controlled environment agriculture leveraging optimized lighting will play a pivotal role in ensuring food security and sustainability.

Market Segmentation

Component: Lamps, Luminaries, Lighting Controls, Sensing Devices, Accessories
Light Source: Incandescent, Fluorescent, High-Intensity Discharge (HID), LEDs, Others
Wattage Type: Up to 100 W, 100-300 W, 300-500 W, Above 500 W
Application: Horticulture, Livestock, Aquaculture, Vertical Farming, Hydroponics, Aeroponics, Aquaponics
Regions Covered: North America, South America, Europe, Asia Pacific, Middle East & Africa
Key Countries: U.S., Canada, Germany, U.K., France, Japan, China, India, ASEAN, GCC, South Africa, Brazil

Regional Insights

Asia Pacific (31.7% share in 2022): The fastest-growing market, driven by expanding greenhouse infrastructure in China, India, Japan, and Southeast Asia, coupled with supportive government initiatives for modern agriculture.
Europe (28.4% share in 2022): Characterized by significant R&D investments from the EU and national bodies focused on smart farming and precision agriculture, with strong uptake of automated LED systems.
North America: Benefiting from technological leadership and adoption of vertical farming in urban centers; U.S. market growth is fueled by investments in sustainable food production startups.
Latin America & MEA: Growing interest in indoor farming to mitigate weather volatility and water scarcity, although market penetration remains at an early stage.

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