North America Horticulture Lighting Market Trends, Size, Segment and Growth by Forecast to 2030

Market Overview and Dynamics

The horticulture lighting market in North America is expected to grow from US$ 830.5 million in 2019 to US$ 3597.2 million by 2027; it is estimated to grow at a CAGR of 20.7 % from 2020 to 2027.Rising importance of vertical farming is expected to upswing the horticulture lighting market in North America. Increase in population creates a huge demand for food, which cannot be fulfilled only through conventional or outdoor farming. In order to meet the increasing food demand, various countries in North America are designing and implementing vertical farms, which includes cultivating plants on vertically inclined surfaces. Vertical farming produces crops by incorporating several technologies, such as robotics, big data analytics, and Artificial Intelligence (AI); thus, it produces healthy crops without any agronomic constraint. The environmental degradation caused by traditional farming methods allows various countries in North America to opt for vertical farming. It ensures pollution degradation and leads to growing food production and mitigates resources. Several advantages of vertical farming over other methods is expected to boost up the growth of the North America horticulture lighting market.

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Market Overview

Horticulture lighting provides artificial light to support photosynthesis, particularly in areas with insufficient sunlight, while promoting plant growth. LED technology is gaining popularity in this market due to its energy efficiency and cost-effectiveness. Applications include urban farming, multi-layer cultivation, supplemental lighting, and daylight-free growing.

Growing awareness of sustainable agriculture has led governments, researchers, and organizations to promote advanced horticultural lighting solutions. The increasing demand for innovative lighting technologies is driving the North American market. Some companies are offering financial and technical support to farmers adopting vertical farming, further boosting market growth. Government initiatives are expected to significantly increase demand for horticulture lighting in the coming years.

Impact of COVID-19

North America, particularly the U.S., was heavily affected by the pandemic. While traditional farming faced challenges such as labor shortages and supply chain disruptions, indoor and vertical farming gained traction. LED-powered vertical farms enable year-round cultivation with fewer resources. However, lockdowns and business closures in the U.S., Canada, and Mexico temporarily hindered the sales of horticulture lighting products like LEDs and fluorescent lamps. The pandemic also disrupted logistics, transportation, and trade across the region.

North America Horticulture Lighting: Strategic Insights (2024-2030)

1. Market Landscape & Key Trends

• Expansion of Legal Cannabis Cultivation: With cannabis legalization spreading across U.S. states and Canada, demand for energy-efficient horticulture lighting (LEDs) is surging.
• Controlled Environment Agriculture (CEA) Growth: Vertical farming, greenhouses, and indoor farms are adopting smart lighting systems (IoT-enabled, spectrum-tuning LEDs) to optimize crop yields.
• Energy Efficiency & Sustainability: Rising electricity costs and carbon footprint concerns are pushing growers toward LEDs (replacing HPS/MH lights), supported by utility rebates (e.g., DLC certification).
• Federal & State Incentives: Programs like the USDA’s Rural Energy for America Program (REAP) and state-level grants encourage LED adoption in horticulture.

2. Competitive Dynamics

• Key Players:
  • Signify (Philips Horticulture) – Dominates with full-spectrum LED solutions.
  • GE Current – Focuses on energy-efficient CEA lighting.
  • Gavita (ACME Cultivation Tech) – Strong in cannabis lighting.
  • Heliospectra, Fluence (OSRAM) – Innovators in dynamic spectrum control.
  • Emerging Startups: Companies like BIOS Lighting (far-red spectrum tech) are gaining traction.
• Differentiation Strategies:
  • Customizable light recipes (tailored for cannabis, leafy greens, berries).
  • Integration with HVAC & automation (e.g., Lighting-as-a-Service (LaaS) models).

3. Regional Nuances

• U.S. Dominance (80%+ Market Share):
  • West Coast (CA, CO, WA): High cannabis & vertical farming activity.
  • Northeast (NY, NJ): Urban farming growth due to high land costs.
  • Canada: Strong greenhouse sector (tomatoes, cannabis) with government-backed R&D.
• Mexico: Emerging as a cost-effective greenhouse hub, but LED adoption lags due to lower energy costs.

4. Future Market Shifts

• AI & Predictive Lighting: Machine learning algorithms optimizing light schedules for max yield.
• Beyond Cannabis: Expansion into berries, tomatoes, and microgreens with specialized spectra.
• Circular Economy: Recyclable LEDs & sustainable materials gaining importance.

5. Strategic Recommendations

✅ For Manufacturers:

• Invest in spectrum-tuning R&D for diverse crops.
• Partner with automation providers (e.g., Priva, Argus Controls) for integrated solutions.
  ✅ For Investors:
• Target vertical farming startups leveraging AI-driven lighting.
• Monitor federal policy shifts (e.g., SAFE Banking Act, Farm Bill updates).
  ✅ For Growers:
• Transition to DLC-qualified LEDs to capitalize on rebates.
• Pilot dynamic lighting to reduce energy costs.

6. Risks & Challenges

• High Initial Costs: LED capex remains a barrier for small growers.
• Supply Chain Delays: Semiconductor shortages could impact lighting production.
• Overcapacity in Cannabis: Price drops may slow lighting investments in some regions.

North America Horticulture Lighting Report Scope

North America Horticulture Lighting Regional Insights

The geographic scope of the North America Horticulture Lighting refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Key Market Segments
In 2019, the LED lights segment held the largest share of the North American horticulture lighting market in terms of technology. Among applications, greenhouses dominated the market, accounting for the highest share. Based on cultivation type, the fruits and vegetables segment represented the largest portion of the market.

Primary Sources and Key Companies
This report draws on a range of primary and secondary sources, including company websites, annual and financial reports, national government documents, and statistical databases. Prominent companies highlighted in the report include Agrolux, Bridgelux, Inc., General Electric Company, Heliospectra AB, Hubbell, Inc., Lumileds Holding B.V., OSRAM Licht AG, PARsource, and Signify N.V.

Reasons to Purchase This Report

• Gain a comprehensive understanding of the North American horticulture lighting market and identify high-potential market segments.
• Stay competitive by tracking evolving market dynamics and competitive strategies.
• Strategically plan mergers, acquisitions, and partnerships by targeting segments with the strongest growth prospects.
• Make informed business decisions through in-depth analysis of segment-wise market performance.
• Access market revenue forecasts across various segments for the period 2020–2027 in the North America region.

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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights

Author: Akshay patil