| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 5.23 Billion |
| Market Size (2030) | USD 9.30 Billion |
| CAGR (2025 - 2030) | 12.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
LED Farming Market Analysis
The LED Farming Market size is estimated at USD 5.23 billion in 2025, and is expected to reach USD 9.30 billion by 2030, at a CAGR of 12.2% during the forecast period (2025-2030).
- The advent of Controlled Environment Agriculture (CEA) in terms of vertical farming has had a significant role to play in the LED farming market. Increased reliability, energy-efficiency, diversified products, and reduced long-term costs are the key features driving the penetration of LED lighting in vertical farms.
- North America held the largest market size in the global LED farming market in 2019, followed by indoor farms and commercial greenhouses. The onset of the urban populationdwelling across cities, such as New York, Chicago, and Milwaukee, Toronto, and Vancouver, has propelled the establishment of indoor farms in shipping containerized form or building-based farms to cater to the emerging need for fresh grown foods.
- The market for LED farming is fairly fragmented with the well-established players and emerging companies equally vying for a stronger foothold in the market. Some of the key players in the market includeKoninklijke Philips N.V., Gavita International B.V., General Electric Company, OSRAM Opto Semiconductors GmbH, Heliospectra AB, Hortilux Schreder B.V., and Illumitex, among others.
LED Farming Market Trends
Vertical Farming to Lead the LED Farming Market
The onset of vertical farming has embarked on a revolutionary trend for the light-emitting diode (LED) technology. A rapid transition has been witnessed in Controlled Environment Agriculture (CEA) from only high-value crops such as cannabis to a wide-ranging variety such as microgreens and vegetables owing to the affordable and efficient LED lights thrusting the agricultural technology market. According to the US Department of Energy, the price of LEDs dropped by 90% whole their efficiency increased double-fold between the period 2010-2014. Empirical observations have revealed that LEDs are 40% to 70% more energy-efficient and suitable for vertical farms than high-pressure sodium (HPS) lights or metal halide (MH) lamps. According to the European Research Council, lighting contributed the largest share of 35.8% valued at USD 268.0 million to the total revenue of vertical farming, globally, in 2016. This signifies that LED lights have played a pivotal role in vertical farming and is further expected to witness a rapid growth in this segment during the forecast period.
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North America - The Largest Market in LED Farming
North America accounted for the largest share in the global LED farming market in 2019. The United States contributed the largest portion of the total revenue generated in the region. The US has been surfaced with farmland scarcity and the subsequent need for higher productivity of crops. According to the United States Department of Agriculture (USDA) estimates, the amount of land used for agricultural purposes fell by 100,000 acres in Alabama and Georgia in 2015 while the percentage of agricultural land in the total land area fell steadily from 44.58% in 2015 to 44.36% in 2017. As of 2016, the total number of commercial-scale vertical farms in the US approached 20 and is further expected to rise with increased investment in the agricultural technology sector, thus, giving a boost to the LED farming market. The Agricultural Research Service has also undertaken a project to increase tomato production in the US and the quality of production in other protected environments using LED lights. Moreover, a "fresh-from-farm-to-table" consumption preference has encouraged several Canadian players such as Modular Farms, Goodleaf Farms, Nova Scotia’s TruLeaf, and Ecobain Gardens, to turn to urban agriculture to answer food shocks in the country from time to time.
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LED Farming Industry Overview
The market is highlycompetitive witha few internationally established players as well as several regional players vying for a higher market share in the emerging market for LED lights in farming. The key players in the market include 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. Mergers and acquisitions, innovation, diversification of product portfolios, and investments are some of the most adopted strategies of these players for penetrating the evolving market with an all-encompassing Research & Development approach. For instance, Heliospectra launched thenew modular LED lighting series, MITRA,in May 2019, which provides high-intensity light output and electrical efficacy of up to 2.7 µmol/J forcommercial greenhouses, indoor, and vertical farms.In 2018, OSRAM acquired Fluence Bioengineering, a Texas-based leading provider of LED lighting for commercial crop production, in a bid to enhance its outreach in Europe, the Middle East, and Africa regions.
LED Farming Market Leaders
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Koninklijke Philips N.V.
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Gavita International B.V.
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General Electric Company
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OSRAM Opto Semiconductors GmbH
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Heliospectra AB
- *Disclaimer: Major Players sorted in no particular order
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LED Farming Industry Segmentation
LED lighting is currently heralded as the primary input for the indoor cultivation of plants. The scope of the Global LED Farming market includes a segmentation analysis based on application areas, viz., vertical farming, indoor farming, commercial greenhouse, turf and landscaping, and other applications, and wavelength type, viz., blue, red, far-red, and other types of wavelengths. The scope also extends to the different types of crops prevalent in the market studied, viz., fruits and vegetables, herbs and microgreens, flowers and ornamentals, and other crop types. In addition, the report constitutes a geographical segmentation covering over 16 countries across the world. The review period considered for the study is 2016-2024 and the forecast period is 2020-2025.
| Application | Vertical farming | |
| Indoor Farming | ||
| Commercial Greenhouse | ||
| Turf and Landscaping | ||
| Wavelength | Blue Wavelength | |
| Red Wavelength | ||
| Far Red Wavelength | ||
| Crop Type | Fruits & Vegetables | |
| Herbs & Microgreens | ||
| Flowers & Ornamentals | ||
| Other Crop Types | ||
| Geography | North America | US |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| UK | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | UAE |
| Saudi Arabia | ||
| South Africa | ||
| Egypt | ||
| Rest of Middle East and Africa |
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LED Farming Market Research FAQs
How big is the LED Farming Market?
The LED Farming Market size is expected to reach USD 5.23 billion in 2025 and grow at a CAGR of 12.20% to reach USD 9.30 billion by 2030.
What is the current LED Farming Market size?
In 2025, the LED Farming Market size is expected to reach USD 5.23 billion.
Who are the key players in LED Farming Market?
Koninklijke Philips N.V., Gavita International B.V., General Electric Company, OSRAM Opto Semiconductors GmbH and Heliospectra AB are the major companies operating in the LED Farming Market.
Which is the fastest growing region in LED Farming Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in LED Farming Market?
In 2025, the North America accounts for the largest market share in LED Farming Market.
What years does this LED Farming Market cover, and what was the market size in 2024?
In 2024, the LED Farming Market size was estimated at USD 4.59 billion. The report covers the LED Farming Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the LED Farming Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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LED Farming Industry Report
Statistics for the 2025 LED Farming market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. LED Farming analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
