Microalgae are a source of highly valuable bioactive metabolites and a high-potential feedstock for environmentally friendly and sustainable biofuel production. Recent research has shown that microalgae benefit the environment using less water than conventional crops while increasing oxygen production and lowering CO₂ emissions. Microalgae are an excellent source of value-added compounds, such as proteins, pigments, lipids, and polysaccharides, as well as a high-potential feedstock for environmentally friendly and sustainable biofuel production. Various factors, such as nutrient concentration, temperature, light, pH, and cultivation method, effect the biomass cultivation and accumulation of high-value-added compounds in microalgae. Among the aforementioned factors, light is a key and essential factor for microalgae growth. Since photoautotrophic microalgae rely on light to absorb energy and transform it into chemical energy, light has a significant impact on algal growth. During micro-algal culture, spectral quality may be tailored to improve biomass composition for use in downstream bio-refineries and boost production. The light regime, which includes changes in intensity and photoperiod, has an impact on the growth and metabolic composition of microalgae. In this review, we investigate the effects of red, blue, and UV light wavelengths, different photoperiod, and different lighting systems on micro-algal growth and their valuable compounds. It also focuses on different micro-algal growth, photosynthesis systems, cultivation methods, and current market shares.