Grow Lights Market Size, Share, By Offering (Hardware, Software, and Services), By Wattage (<300 Watts, and >=300 Watts), By Spectrum (Full Spectrum, and Limited Spectrum), By Installation (New Installations, and Retrofit Installations), By Light Source (High-Intensity Discharge, LEDs, and Fluorescent Lights), By Application (Indoor Farming, Vertical Farming, Greenhouse, House Gardening, and Other), By Distribution Channels (Direct Sale and Indirect Sale), and By Region - Trends, Analysis and Forecast till 2034

• In 2023, grow lights market was estimated to be worth USD 2.5 Billion.
• By 2034, the target market is expected to grow to USD 21.4 Billion.
• Target market is expanding at a CAGR of 26.6%.

Market Overview:

Grow Lights Market is driven by increasing R & D activities for developing hybrid plants as well as crops, and increasing adoption of vertical farming. In addition, increasing need for enhancing agricultural production efficiency, food safety, and quality of fruits and vegetables are another factors propelling growth of the global market. Furthermore, technological advancements which increases the efficiency and cost-effectiveness of production is also anticipated to create opportunities for growth of the global market over the forecast period.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024.
• North America is projected to be the fastest-growing market in the coming years.
• By offering, hardware dominate the target market growth.
• By wattage, <300 Watts dominate the target market growth.
• By spectrum, limited spectrum segment holds the largest share of the market
• By installation, retrofit installation segment holds the largest share of the market.
• By light source, LEDs dominate the target market growth.
• By application, vertical farming is expected to dominate the target market growth.
• By distribution channels, indirect sale segment is expected to dominate the target market growth.

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Key Drivers of Target Market:

Reduced Energy Costs

Switching to grow lighting is an excellent way to reduce energy costs. It use less electricity than other light sources, providing significant savings over time. Additionally, because they produce very little heat, they help to keep the growing environment cool. This also leads to lower energy costs as less cooling is required.

Provides Light Intensity

Grow Light provide better light intensity. This means that plants can receive more light, resulting in faster growth and healthier plants. Additionally, because they are directional lights, they can be focused directly on the plants without wasting energy on the rest of the room.

Restrains:

The Complexity of Spectrum Optimization

While the ability to customize the light spectrum is an advantage, it can also be a disadvantage for growers who are not well-versed in plant biology and lighting technology. Optimizing the spectrum for different growth stages and plant offerings can be challenging and requires research

Opportunities:

New Innovations and Technological Advancements

Artificial light technology, specially the emergence of LED plant lights, for the development of modern agriculture has brought new opportunities as well as vitality. In the future, with the continuous progress of LED technology and the expansion of application areas, LED plant lights will play a more important role in improving the efficiency of agricultural production and promoting sustainable agricultural development.

• For instance, in September 2024, FOHSE, the pioneering force in horticulture science and engineering, announced the debut of its groundbreaking PRO Series LED lighting technology. Designed to redefine the standards of excellence in cannabis cultivation, the flagship PRO Series represents a significant leap forward in cannabis LED lighting innovation and functionality.

The market is segmented based on Offering, Wattage, Spectrum, Installation, Light Source, Application, Distribution Channels, and Region.

By Offering	By Wattage	By Spectrum	By Installation	By Light Source	By Application	By Distribution Channel
Hardware Software Services	<300 Watts >=300 Watts	Full Spectrum Limited Spectrum	New Installation Retrofit Installations	High-Intensity Discharge LEDs Fluorescent Lights	Indoor Farming Vertical farming Greenhouse House Gardening Other	Direct Sales Indirect Sales

 

Offering Insights:

On the basis of offering grow lights market is segmented into Hardware, Software, and Services. Hardware dominate the target market growth due to its high quality, high intensity, etc.

Wattage Insights:

On the basis of wattage grow lights market is segmented into <300 Watts and >=300 Watts. <300 Watts dominate the target market growth due to its versatility and energy efficiency.

Spectrum Insights:

The grow lights market by spectrum is segmented into Full Spectrum, and Limited Spectrum. Limited spectrum segment holds the largest share of the market due to their efficiency.

• For Instance, in December 2023, Seoul Semiconductor Co., Ltd., a global optical semiconductor company, announced that it has verified through an experiment that natural spectrum lighting can promote stable growth and increase the content of effective nutrients in plants as day lighting does for plants grown in nature.

By Installation:

The grow lights market by installation is segmented into New Installations, and Retrofit Installations. Retrofit Installation segment holds the largest share of the market due to its cost effectiveness, increasing demand, energy efficiency, etc.

• For Instance, in September 2024, Retrofit kit is a new solution which has developed to tackles growing problems such as controlling weed and spread of seeds which is significant issue, it require larger, more powerful combines.

Light Source Insights:

On the basis of light source grow lights market is segmented into High-Intensity Discharge, LEDs, and Fluorescent Lights. LEDs dominate the target market growth due to its high quality, high intensity, quality, durability, flexibility, etc.

• For Instance, in April 2024, Signify, installed the Philips Green Power LED top lighting compact at Glass House Farms in Santa Barbara County, California. The installation of the Philips LED top lighting compact has enabled Glass House to more effectively manage its crops and ensure consistent light levels throughout the year.

Application Insights:

The grow lights market by application is segmented into Indoor Farming, Vertical farming, Greenhouse, House Gardening, and Other. Vertical Farming is expected to dominate the target market growth due to increasing adoption, usage, and demand.

Distribution Channel Insights:

The grow lights market by distribution channel is segmented into Direct Sales, and Indirect Sales. Indirect sales is expected to dominate the target market growth as they provide convenient and efficient way to access wide range of product.  

• For Instance, in February 2024, State-owned EESL announced the launch of the Beta version of its e-commerce platform that will offer affordable energy-efficient appliances and solutions to customers. The platform, eeslmart.in, lists energy-efficient appliances such as LED bulbs, inverter LED lamps and fans

Regional Insights

Asia Pacific: This region is expected to dominate the growth of the market during forecast period due to diverse climatic conditions, tropical regions, rising population, technological advancements in farming sector, increasing agricultural yields, etc.   

North America: This region is considered to be the fastest growing region in the target market as countries like U.S., Canada and many more are leading the charge significantly due to advancements in farming sector, strong government support, increasing demand for high-value crops, etc.  

Grow Lights Market Report Scope:

Attribute	Details
Market Size 2024	USD 3.1 Billion
Projected Market Size 2034	USD 21.4 Billion
CAGR Growth Rate	26.6% (2024-2034)
Base year for estimation	2023
Forecast period	2024 – 2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

 

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Offering, Wattage, Spectrum, Installation, Light Source, Application, Distribution Channels, and Region.

Segmentation:

By Offering:

• Hardware
• Software
• Services
• Shower Creams and Oils

By Wattage:

• <300 Watts
• >=300 Watts

By Spectrum:

• Full Spectrum
• Limited Spectrum
• Medicated Products

By Installation:

• New Installation
• Retrofit Installations

By Light Source:

• High-Intensity
• Discharge
• LEDs
• Fluorescent Lights

By Application:

• Indoor Farming
• Vertical Farming
• Greenhouse
• House Gardening
• Others

By Distribution Channels:  

• Direct Sales
• Indirect Sales

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the Grow Light Market include EPISTAR Corporation, Signify Holding, Hydroponics, Hydrogrow, Savant Systems, Inc., IWASAKI ELECTRIC CO., LTD., Heliospectra, EVERLIGHT ELECTRONICS CO., LTD., ams-OSRAM AG, LEDVANCE GmbH, Gavita International B.V., California LightWorks, Hortilux Schreder, Valoya, Inc., ILUMINAR Lighting LLC, Bridgelux, Inc., and Ennostar Inc.

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• In August 2024, MetroLED, a leader in innovative LED lighting solutions, announced the expansion of Pixel LED Displays, a division established in 2010, dedicated to enhancing its successful LED display product line. Pixel LED Displays will focus exclusively on delivering high-quality LED display solutions to meet the increasing demand across various industries.
• In October 2023, Proplant Propagation has chosen to install Sollum’s dynamic smart LED fixtures in their propagation greenhouses. With this new investment in precision supplemental lighting, the company hopes to continually improve their product with the help of tailored light recipes.

Analyst View:

The industry is placed for substantial growth due to increasing R & D activities for developing hybrid plants as well as crops, and increasing adoption of vertical farming, increasing need for enhancing agricultural production efficiency, food safety, and quality of fruits and vegetables. New innovations and development, advance technologies as well as many collaborations and partnerships helps to boost the growth of the market in upcoming years.

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• EPISTAR Corporation
• Signify Holding
• Hydroponics
• Hydrogrow
• Savant Systems, Inc.
• IWASAKI ELECTRIC CO., LTD.
• Heliospectra
• EVERLIGHT ELECTRONICS CO., LTD.
• ams-OSRAM AG
• LEDVANCE GmbH
• Gavita International B.V.
• California LightWorks
• Hortilux Schreder
• Valoya, Inc.
• ILUMINAR Lighting LLC
• Bridgelux, Inc.
• Ennostar Inc.