United States (USA) Horticulture Lightening Market Overview, 2029

The U.S. horticulture lighting market is a burgeoning sector, driven by the increasing adoption of controlled-environment agriculture (CEA) practices, such as vertical farming and greenhouse cultivation. The market has seen substantial growth due to advancements in lighting technologies, particularly LEDs, which offer energy efficiency, spectrum customization, and longer lifespans. This market is widely accepted among commercial growers, urban farmers, and hobbyists, who recognize the benefits of optimized light conditions for plant growth. Demand primarily arises from large-scale greenhouse operations, vertical farms in urban areas, and indoor gardening setups. The concept of horticulture lighting in the U.S. gained traction in the early 2000s with the advent of more efficient and affordable LED technology. However, the practice of using artificial light for plant growth dates back to the mid-20th century with the use of fluorescent and high-intensity discharge (HID) lamps. Key applications of horticulture lighting include enhancing crop yields in commercial greenhouses, enabling year-round production in vertical farms, and supporting research in agricultural sciences. These applications address the growing need for sustainable food production and local sourcing, particularly in urban settings. The U.S. market has embraced horticulture lighting as a solution to meet the increasing demand for fresh produce, driven by population growth and the rising popularity of locally grown food. Moreover, government support for sustainable agriculture practices and technological innovations has further fueled the market's expansion. Overall, the U.S. horticulture lighting market is poised for continued growth as it aligns with broader trends in sustainable agriculture and urban farming. According to the research report "USA Horticulture Market Overview, 2029," published by Bonafide Research, USA Horticulture Market is expected to grow at more than 19.5% CAGR from 2024 to 2029. The key drivers of growth in the USA horticulture lighting market include the increasing adoption of controlled-environment agriculture (CEA) practices, technological advancements in lighting solutions, and the growing demand for locally grown, fresh produce. Major demanders of this market include commercial greenhouse operators, vertical farming facilities, indoor cultivation setups, and research institutions. The demand for horticulture lighting is driven by the need for year-round production of crops, improved crop yields, and the ability to control growing conditions for specific plant varieties. Additionally, the legalization of cannabis cultivation in many states has spurred significant demand for horticulture lighting solutions. The supply scenario of the market in the country is robust, with numerous manufacturers and suppliers offering a wide range of lighting products tailored to the needs of different growers. Major players in the market include Philips Lighting (Signify), Osram Licht AG, and Cree, Inc. However, there is also a growing presence of smaller, innovative companies offering specialized lighting solutions. As for future consumers, the horticulture lighting market is expected to continue expanding as more farmers adopt CEA practices, urban farming becomes more prevalent, and consumer demand for locally sourced, sustainably grown produce continues to rise. Additionally, as awareness of the benefits of horticulture lighting spreads, there may be increased adoption among home gardeners and hobbyists, further driving market growth.

The horticulture lighting market is intricately segmented based on technology, lighting type, application, and end-use industry, with each segment playing a pivotal role in shaping the industry landscape. Technology-wise, the market encompasses a range of lighting technologies, among which Light-emitting Diode (LED) lighting stands out for its energy efficiency, extended lifespan, and the ability to tailor the light spectrum to promote plant growth. High-intensity Discharge (HID) lighting finds its niche in large-scale greenhouses owing to its robust light output, despite being less efficient compared to LEDs. Meanwhile, Fluorescent lighting, while less efficient than LEDs and HIDs, serves purposes such as seed starting and smaller grow operations, thanks to its lower upfront costs. Additionally, niche applications may utilize other technologies like plasma and induction lighting, catering to specific light quality requirements. Lighting type categorizes installations relative to plants, with toplighting commonly used in greenhouses for overhead illumination and interlighting enhancing light penetration within plant canopies, fostering growth in lower leaves and fruits. In terms of application, horticulture lighting is tailored for various purposes such as Fruits & Vegetables cultivation, Floriculture for flowers and ornamental plants, and Cannabis cultivation for medical, recreational, or industrial use, each requiring specific lighting conditions for optimal growth, yield, and quality. Lastly, end-use industries encompass Greenhouses, Vertical Farming facilities, and Indoor Farms, each utilizing horticulture lighting to create controlled environments conducive to optimal plant growth and yield, thereby meeting the demands of diverse agricultural practices and environments. The horticulture lighting market in the USA presents significant opportunities for growth and innovation. One key opportunity lies in the continued development and adoption of advanced lighting technologies, particularly LED-based systems, which offer greater energy efficiency, customizable light spectra, and longer lifespans compared to traditional lighting solutions. Technological advancements such as smart lighting systems, which integrate sensors and controls to optimize light intensity and spectrum based on plant needs, are revolutionizing the industry by providing growers with unprecedented levels of control and automation. Additionally, the emergence of Internet of Things (IoT) technology and artificial intelligence (AI) applications in horticulture lighting has opened up new possibilities for data-driven decision-making and predictive analytics, further enhancing crop productivity and resource efficiency. In terms of new inventions and innovations, there has been a surge in the development of spectral tuning technologies that allow growers to fine-tune light spectra to specific plant requirements, resulting in improved growth rates, nutritional content, and overall crop quality. Furthermore, advancements in vertical farming systems and greenhouse design are enabling more efficient use of space and resources, thereby expanding the potential for indoor and urban agriculture. Other notable innovations include the integration of renewable energy sources such as solar power and the development of bio-inspired lighting solutions that mimic natural sunlight more closely. Overall, the horticulture lighting market in the USA is ripe with opportunities for further technological advancements and innovation, paving the way for sustainable and high-yielding agricultural practices in the years to come. The horticulture lighting market in the USA faces several challenges that impact its growth and development. One significant challenge is the high initial cost of advanced lighting systems, particularly LED technology. Although LEDs offer long-term energy savings and efficiency, the upfront investment required can be prohibitive for smaller operations and new entrants in the market. This financial barrier can slow the adoption rate of newer, more efficient technologies, as growers may opt for cheaper, less efficient alternatives. Another challenge is the complexity of integrating advanced lighting systems with existing agricultural practices. The shift from traditional farming methods to controlled environment agriculture (CEA) and vertical farming requires substantial changes in infrastructure and management practices. Growers must become proficient in using sophisticated lighting controls and data analytics to optimize plant growth, which can involve a steep learning curve and require significant training and support. Additionally, the horticulture lighting market faces regulatory and policy uncertainties. As the industry grows, it is subject to evolving regulations regarding energy use, environmental impact, and agricultural practices. Navigating these regulatory landscapes can be challenging for growers, particularly those operating in multiple states with differing regulations. Ensuring compliance while maintaining cost-effectiveness adds an extra layer of complexity for industry participants. Supply chain issues also pose a challenge, especially in light of recent global disruptions. The production and delivery of high-tech lighting components rely on a stable and efficient supply chain. Any disruption can lead to delays, increased costs, and shortages of essential components, affecting the overall market growth. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Manmayi Raval

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Aspects covered in this report • Horticulture Lighting market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Technology • Light-emitting Diode (LED) • High-intensity Discharge (HID) • Fluorescent • Others By Lighting Type • Toplighting • Interlighting

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By Application • Fruits & Vegetables • Floriculture • Cannabis By End-use Industry • Greenhouses • Vertical Farming • Indoor Farms The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Horticulture Lighting industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.