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Global Agriculture Lighting Market to Reach USD 5.4 Bn by 2031, Driven by Rise in Indoor Farming and Energy-Efficient LED Solutions | AKVA Group, ams OSRAM AG, California LightWorks
Agriculture Lighting Market
Market Overview: Agriculture lighting, a cornerstone of modern controlled-environment agriculture (CEA), plays a critical role in optimizing plant growth through artificial light. These lighting systems enable precise control over light spectrum, intensity, and duration essential for boosting crop yield and quality in indoor, greenhouse, vertical, and hydroponic farming setups. Key advantages include year-round crop production, photoperiod management, and energy efficiency, making agriculture lighting an indispensable tool for high-tech farming.
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Market Drivers & Trends
The growth trajectory of the agriculture lighting market is fueled by several key factors:
• Boom in Indoor Farming and Greenhouse Cultivation: Rising demand for locally grown food and declining arable land have increased the adoption of indoor farming methods. Controlled lighting systems allow farmers to regulate plant growth conditions year-round.
• Energy Efficiency of LED Lighting: LEDs consume less power and produce less heat compared to traditional sources like HPS and incandescent lamps. They also offer tailored light spectra for various plant stages.
• Sustainability Trends: Growing emphasis on sustainable farming practices is leading to the widespread use of smart and eco-friendly lighting solutions.
• Poultry Industry Expansion: Advanced lighting helps improve reproductive health and uniformity among poultry flocks, enhancing overall productivity.
Latest Market Trends
• Shift Toward Hybrid Lighting Solutions: Companies are merging LED with high-pressure sodium lighting to enhance efficiency in large-scale greenhouse operations.
• Smart Controls & Automation: Integration of IoT and AI in lighting systems for real-time monitoring and automated control is gaining traction.
• Customized Spectrum Solutions: Manufacturers are developing crop-specific lighting systems that optimize photosynthesis and plant development across growth phases.
Key Players and Industry Leaders
The agriculture lighting market is moderately fragmented, with global and regional players contributing to technological innovation and market penetration. 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 companies focus on R&D, mergers & acquisitions, global distribution partnerships, and smart technology integration to stay competitive.
Recent Developments
• Signify Acquires Fluence (2022): Signify expanded its footprint by acquiring Fluence from ams OSRAM, adding specialized horticulture lighting to its portfolio.
• Purdue University (2023): Researchers unveiled innovative LED strategies aimed at lowering energy usage while boosting yields in vertical farming systems.
• AppHarvest Collaboration (2019): Signify's collaboration with AppHarvest implemented hybrid LED lighting in a massive U.S. greenhouse to enhance sustainability and yield.
Market Opportunities
With agriculture lighting's integral role in CEA systems, multiple high-growth opportunities are emerging:
• Vertical Farming: Increasing urbanization is fueling vertical farming setups in urban centers, creating demand for compact and efficient lighting.
• Hydroponics and Aeroponics: These soil-less farming methods rely heavily on artificial lighting, offering an untapped niche.
• Emerging Markets: Asia Pacific, Latin America, and parts of Africa present fertile ground for adoption, thanks to rising food demand and government initiatives.
Future Outlook
The agriculture lighting market is set to evolve rapidly, supported by technological advancements, sustainability mandates, and food security concerns. From 2023 to 2031, players in this space are expected to innovate in areas such as:
• Smart lighting automation
• AI-enabled crop monitoring
• Flexible power solutions
• R&D into crop-specific LED spectrum customization
These innovations are anticipated to push the agriculture lighting industry into mainstream agri-tech investments, making it central to global food system resilience.
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Market Segmentation
By Component:
• Lamps
• Luminaries
• Lighting Controls
• Sensing Devices
• Others (Timers, Accessories)
By Light Source:
• LEDs
• Incandescent Lamps
• Fluorescent Lamps
• High Intensity Discharge Lamps
• Others (Halogen, Metal-halide)
By Wattage:
• Up to 100W
• 100W - 300W
• 300W - 500W
• Above 500W
By Application:
• Horticulture
• Livestock
• Aquaculture
• Vertical Farming
• Hydroponics
• Aeroponics
• Aquaponics
Regional Insights
• Asia Pacific led the global market in 2022 with a 31.7% share, driven by rapid advancements in agricultural infrastructure and strong presence of lighting manufacturers.
• Europe, accounting for 28.4%, follows closely with robust R&D investment and adoption of smart greenhouse practices.
• North America is witnessing growing adoption of vertical farming technologies, particularly in urban settings, which is boosting demand for energy-efficient lighting systems.
Why Buy This Report?
• Detailed market size & forecast analysis from 2017 to 2031
• Insights into top market drivers, restraints, and trends
• Company profiles of 15+ key players
• Comprehensive segmentation by component, light source, wattage, and application
• Regional and country-level analysis for major markets
• Competitive landscape and recent strategic developments
• Smart lighting trends and future market opportunities
• Delivered in PDF + Excel format for customization and presentation
Frequently Asked Questions
1. What is the current size of the global agriculture lighting market?
As of 2022, the market is valued at US$ 1.3 Bn.
2. What is the projected value of the market by 2031?
It is estimated to reach US$ 5.4 Bn by the end of 2031.
3. What is the expected CAGR for the forecast period?
The market is projected to grow at a CAGR of 16.8% from 2023 to 2031.
4. Which region dominates the agriculture lighting market?
Asia Pacific held the largest share in 2022, followed by Europe.
5. What are the key growth drivers for the market?
Rising adoption of indoor farming, LED technology, and sustainable agriculture practices.
6. Who are the top players in the market?
Notable players include Signify Holding, Heliospectra, Samsung, California LightWorks, and Gavita International.
7. What are the key applications of agriculture lighting?
Primary applications include horticulture, vertical farming, hydroponics, livestock, and aquaponics.
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About Transparency Market Research
Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.
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