Polaris Market Research today announced findings from its latest report, projecting the global agricultural lighting market to grow from USD 11,800.22 million in 2023 to USD 33,158.07 million by 2032, at a CAGR of 12.40% from 2024 to 2032. The report profiles 10 leading companies across six market segments, covering market size, market share, and industry trends.

Analyst Commentary on Agricultural Lighting Market Growth

“Rising demand for indoor farming and rapid advances in LED technology are driving market growth, while smart controls and IoT integration are shaping industry trends,” said a Polaris Market Research analyst. “The opportunity lies with suppliers that pair energy-efficient fixtures with software and retrofit solutions for greenhouses and vertical farms.”

Agricultural Lighting Market Statistics at a Glance

• 2023 Market Size: USD 11,800.22 million
• 2024 Market Size: USD 13,033.35 million
• 2032 Projected Size: USD 33,158.07 million
• CAGR (2024–2032): 40%
• Largest Region (2022): Europe
• Largest Light Source (2022): LED
• Fastest-Growing Offering: Software

Key Growth Drivers, Major Companies and Segments Covered

Growth Drivers: Increasing demand for indoor farming is the primary force behind the market’s expansion. With a growing global population and shrinking agricultural land, growers are turning to vertical farming, greenhouse cultivation, and plant factories, where artificial light supports higher yields and year-round production. The report notes that indoor farms can produce 10 to 15 times more than outdoor farms. Advances in LED technology, which is more energy-efficient, long-lasting, and cost-effective, add further momentum, as do partnerships such as Bustanica and Philips LED developing a custom lighting recipe for leafy greens.

Market Challenges: High initial investment remains the main restraint on adoption. COVID-19 disrupted supply chains for lighting products, yet it also highlighted the value of local food production and accelerated interest in indoor farming and automation. Smart lighting systems, remote monitoring, and IoT integration are expected to keep lowering operating costs and strengthen the return on investment for growers over the forecast period, particularly in greenhouses and plant factories where energy costs are a major expense.

Major Companies Covered: Signify, OSRAM (ams-OSRAM), Gavita, Valoya, California LightWorks, Heliospectra, LumiGrow, Hortilux Schréder, DeLaval, and CBM Lighting.

Segments Covered: By Offering (Hardware, Software, Services), By Light Source (HID, LED, Others), By Wattage (Below 50W, 50-150W, Below 150W), By Installation Type (New, Retrofit), By Sales Channel (Retail/Wholesale, Direct Sales, Online/E-commerce, Others), and By Region.

𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐓𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐞𝐫𝐞 :

https://www.polarismarketresearch.com/industry-analysis/agricultural-lighting-market 

Segment Insights: LED, Software and Retrofit Lead

LED lighting held the largest revenue share by light source in 2022, supported by energy efficiency, long fixture life, and spectral control. The below 50W segment dominated by wattage thanks to affordability and installation flexibility. Software is expected to grow at the fastest CAGR as farmers seek remote monitoring, custom lighting schedules, and data-driven decisions, while retrofit installations are also projected to grow fastest because they let growers upgrade existing greenhouses and indoor farms without major infrastructure changes. Retail and wholesale led the sales channel segment in 2022.

Recent Developments in the Agricultural Lighting Market

• November 2025: Acuity Brands completed the acquisition of the Arize horticulture lighting portfolio from Current Lighting Solutions and signed an exclusive distribution agreement with Hort Americas, strengthening its presence in controlled environment agriculture.
• October 2025: The HORTECA Research and Development Facility at JEM Farms showcased Sollum Technologies’ Smart LED solution among advanced greenhouse systems, developed with ecoation and the University of Windsor.
• January 2023: Energous Corporation and OSRAM announced co-operation on a wirelessly charged light sensor for controlled-environment agriculture and vertical farming.

Regional Snapshot: Europe Leads, Asia Pacific Fastest-Growing

Europe led the market in 2022, supported by strong capital investment capabilities and government funding to boost farming productivity, including more than GBP 168 million in grants announced by the UK Department for Environment, Food & Rural Affairs in February 2023 to encourage innovation and increase food production. Asia Pacific is among the fastest-growing regions, expected to post a significant CAGR as its agriculture industry adopts emerging technologies and expands rapidly.

Why It Matters for Buyers Evaluating Agricultural Lighting Market Forecast

For stakeholders researching the agricultural lighting market forecast, the underlying report benchmarks market share, company positioning, and segment-level forecasts to support sourcing, partnership, and investment decisions through 2032. It also includes Porter’s Five Forces and PESTLE analysis, and can be customized by region, country, or additional segment to match specific business needs.

More Trending Latest Reports By Polaris Market Research:

Weather Radar Market

North America Skin Boosters Market

Peripheral Vascular Device Market

Clindamycin Phosphate Injection Market

North America Skin Boosters Market

Digital Transaction Management Market

Wax Melts Market

A Promising Compound in the World of Medicine, Catharanthine Market Booms!

isothermal nucleic acid amplification technologies (inaat) market