United States LED Farming Market 2031 | Growth Drivers, Trends & Market Forecast, Competitive Landscape & Investment Opportunities

Market Size and Growth

The global LED farming market growing at a CAGR of 11.12% during the forecast period (2023-2030).

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Key Development:

United States: Recent Industry Developments

✅ In December 2025, Cree LED and SANlight announced a strategic partnership to develop high-efficiency horticultural LED lighting systems optimized for vertical farms and greenhouses. The collaboration focuses on boosting photon output and improving energy efficiency for controlled-environment agriculture.

✅ In November 2025, U.S. horticultural lighting manufacturers launched next-generation full-spectrum LED grow lights with adaptive photon control. The systems aim to enhance crop yield consistency and reduce energy consumption across commercial indoor farms.

✅ In October 2025, leading greenhouse operators across the U.S. deployed AI-integrated LED grow lighting systems with automated light-stage adjustments. The upgrades support precision farming and improve plant quality while reducing overall electricity usage.

✅ In September 2025, several U.S. agri-tech companies expanded production of advanced LED grow lights designed for leafy greens, berries, and microgreens. The increased manufacturing capacity improves supply reliability for the rapidly growing indoor farming sector.

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Japan: Recent Industry Developments

✅ In November 2025, Japanese lighting manufacturers introduced ultra-compact LED grow lights with precision wavelength tuning for small-scale indoor farms and research institutes. These systems support high-density agricultural setups with improved light uniformity.

✅ In November 2025, researchers in Japan demonstrated a hydroponic LED-driven edamame production model for year-round farming in urban environments. The project highlights advanced LED applications in plant factories aiming to boost domestic food self-sufficiency.

✅ In October 2025, major vertical farming operators in Japan integrated automated LED lighting systems connected to plant-growth sensors. These AI-enabled platforms allow real-time optimization of light intensity and photoperiod for enhanced crop performance.

✅ In September 2025, Japanese electronics companies released high-CRI horticultural LEDs engineered for leafy greens and fruit crops. The new designs improve photosynthetic efficiency and strengthen the country's agricultural lighting technology ecosystem.

Key Players:

=> Koninklijke Philips N.V., Gavita International B.V., General Electric Company, OSRAM Opto Semiconductors GmbH, Heliospectra AB, Hortilux Schreder B.V., and Illumitex, among others.

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Key Segments:

By Wavelength

Red Wavelength - 45% share, widely used for promoting photosynthesis, flowering, and fruiting in controlled environment agriculture.
Blue Wavelength - 30% share, essential for vegetative growth, chlorophyll formation, and plant morphology regulation.
Far Red Wavelength - 25% share, used for stem elongation, photoperiod control, and improving crop flowering cycles in advanced horticulture.

By Crop

Fruits & Vegetables - 40% share, driven by high lighting demand in tomatoes, cucumbers, peppers, and leafy vegetables grown in indoor systems.
Herbs & Microgreens - 25% share, benefiting from shorter growth cycles and strong adoption in vertical farming setups.
Flowers & Ornamentals - 20% share, used to enhance color, bloom timing, and overall plant aesthetics under controlled lighting.
Others - 15%, includes specialty crops, medicinal plants, and research-driven botanical cultivation.

By Application

Vertical Farming - 35% share, rapidly expanding due to high-density crop production, automation, and year-round controlled light environments.
Indoor Farming - 30% share, supported by the growth of LED horticulture lighting in urban agriculture and small-scale operations.
Commercial Greenhouse - 25% share, driven by hybrid lighting systems that combine sunlight and wavelength-optimized LED solutions.
Turf & Landscaping - 10% share, used for lawn restoration, stadium turf maintenance, and horticulture enhancement.

By Region

North America - 35% Share
Dominated by strong adoption of LED horticulture lighting technologies, commercial greenhouse expansion, and vertical farming startups.

Europe - 25% Share
Driven by energy-efficient lighting mandates, advanced greenhouse farming, and large-scale indoor horticulture hubs.

Asia Pacific - 28% Share
Fastest growing region due to rapid urbanization, rising food security initiatives, and significant investment in vertical farming infrastructure.

Latin America - 5% Share
Growing adoption in greenhouse cultivation for high-value crops and export horticulture.

Middle East & Africa - 7% Share
Expansion supported by climate-controlled agriculture, water-efficient indoor farming, and government investments in food security.

FAQ

Q: What is the growth rate of the LED farming Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 11.12% during the forecast period from 2024 to 2031.

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