Grow Light Market

Global Grow Light Market Size (2024 to 2032)

The global grow light market was valued at USD 1.68 billion in 2023 and is anticipated to reach USD 2.22 billion in 2024 from USD 20.86 billion by 2032, growing at a CAGR of 32.3% from 2024 to 2032.

A grow light, also known as plant light, is an artificial light source, usually an electric light that is used to promote plant development by generating photosynthesis-friendly light. Fluorescent lights, incandescent bulbs, high-intensity discharge lamps (HID), and light-emitting diodes are all utilized as grow lights (LED). LED grow lights have a heat sink and built-in fans and are composed of light-emitting diodes. The color of LED growth lights varies based on the intended purpose, as determined by a photo morphogenesis study. Green, red, far-red, and blue light spectra influence root formation, plant growth, and flowering, according to the survey. Government regulations favoring the development of leading technology, the growing trend of indoor farming, and the ever-increasing news of having an energy-efficient and long-lasting technology are just a few of the key driving factors for the growth of the global led grow light market in the forecast period.

Market Drivers and Restraints

The use of grow lights is an essential part of urban agriculture. It is typically used to supply all of the light a plant requires to develop or, in certain situations, to supplement natural sunshine, particularly in colder climates with limited daylight hours, particularly during the winter season. The market for grow lights is currently being driven by an increase in plant industries, the demand for sustainable development, and the expansion in urban agriculture. Fresh and nutritious veggies, stunning floral arrangements, fragrant herbs, and other items are in high demand all year, and e-commerce has made it easy to purchase them at the touch of a mouse. With the advent of economical yet trendy grow lights, indoor farming has the highest market share.

Global investments in agriculture technology providers are being driven by the expansion of farming firms around the world. High-tech agricultural solutions, such as vertical farming, are drawing investment; in July 2019, a vertical farming start-up was launched. Atomico led a $100 million series B investment round for InFarm. Farming companies around the world are expected to use LED-based lighting solutions to improve their farming. Intelligent Growth Solutions (IGS), a Scottish vertical farming technology firm, is seeing an increase in financing; the company produces vertical farming solutions to augment LED lighting.

Another major factor driving the global grow lights market's growth is a significant increase in the agricultural sector. In addition, the increased adoption of vertical and indoor farming practices is boosting market growth. Multiple grow lights are used in hydroponic farming systems to ensure that the plants receive enough sunshine while also shielding them from insects and vermin. Furthermore, increased food consumption as a result of the rising population, along with the restricted quantity of cultivable land, is positively boosting product demand. Grow lights help preserve optimal production and plant quality, allowing farmers to fulfill the world's ever-increasing food needs. Aside from that, technical breakthroughs such as the development of smart grow lights that are integrated with the Internet of Things (IoT) are working as a growth-inducing factor.

To fulfill demand, the agriculture business is embracing technical advancements such as indoor farming, vertical farming, commercial greenhouses, urban farming, and so on. In view of this trend, governments around the world are assisting farmers in developing new farming practices and subsidizing equipment to encourage adoption. Growing environmental concerns and uncertainty about current rainfall patterns have prompted people to deliberately engage in a residential garden setup. The expansion of the grow light industry has been fueled by advancements in new farming procedures, such as the vertical farming approach.

The high setup and maintenance costs, on the other hand, hamper the global growth light market growth during the forecast period.

Impact Of COVID-19 On The Global Grow Light Market

With the occurrence of the coronavirus all over the world, several regions were placed on lockdown, which had a massive impact on the world economy. As a result, the Grow Light Market was hit in terms of revenue, and production was temporarily halted.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Grow Light Market By Source

In terms of revenue, the HID segment dominated the global grow lights market. The LED category, on the other hand, is likely to dominate over the forecast period. The LED market is likely to be driven by rising urban gardening and government initiatives to embrace energy-efficient LEDs. At a higher price point, LED bulbs are the most efficient. LEDs produce the exact wavelength of light that is required. It could produce a dual-band spectrum (red and blue) at the same time. LEDs are suitable for all stages of development. LEDs are more expensive at first, but they become less expensive over time.

Full-spectrum light, like that of sunlight, is provided by plasma lamps. These lights have a longer service life and generate less heat. Plasma lights have a high initial cost, but they become less expensive over time. Plasma lights are beneficial for both vegetative and blooming growth.

Global Grow Light Market By Application

Based on application, indoor farming is anticipated to dominate the global grow lights market share during 2022-2027. Large-scale indoor agricultural operations necessitate growing lights that can totally replace direct sunlight by simulating it. They can even outperform sunlight in some situations. Fluorescent lights, HPS or HID development lights, and LED development lights are the three most common sorts of indoor cultivating lights. With nearly one-third of the millennia producing herbs indoors, technical improvements in the field of grow lights and economical gardening equipment are some of the factors fueling the market's growth. Indoor grow lights give plants the right amount of red and blue wavelengths to help them grow big, healthy, and powerful.

Global Grow Light Market By System

Based on the system, the hardware segment is anticipated to dominate the global grow lights market during the forecast period. LEDs, high-intensity discharge (HID), plasma lights, and ballasts are examples of the hardware segment. On the other hand, the software segment is anticipated to have a significant market share. This rise can be due to the increasing use of software to control numerous environmental conditions in Controlled-Environment Agriculture (CEA).

Global Grow Light Market By Spectrum

Based on spectrum, partial spectrum attributes the largest market share during the forecast period. Grow lights with a partial spectrum emit light with a certain spectrum, such as yellow, blue, or green. These light spectrums are beneficial to plants at various stages of development. Full spectrum lamps, on the other hand, produce light that is akin to sunlight. These lamps are beneficial to plants at all stages of development.

REGIONAL ANALYSIS

The Europe region dominated the market in terms of revenue. Growing public awareness of the need for alternative farming, as a result of the scarcity of fertile agricultural land and rising population, is expected to drive industry demand.

Asia-Pacific is one of the fastest-growing regions for grow lights due to the rising urban agriculture, including vertical farming, greenhouses, and growth chambers. The region's key sources of demand for grow lights are Japan, Taiwan, and China, and this is likely to continue over the projection period.

KEY MARKET PLAYERS

Signify, Savant Systems Inc, Heliospectra AB, OSRAM Licht AG, Illumitex Inc, LumiGrow Inc, Everlight Electronics Co. Ltd, Iwasaki Electric Co. Ltd, Hydro Grow, Epistar Corporation. Some of the market players dominating the global grow light market.

RECENT DEVELOPMENTS IN THE GLOBAL MARKET

• On January 23rd., 2020, Signify expanded its famous Philips Green Power LED top lighting compact range to provide growers with more options matched to diverse crops and production setups, whether it's to reduce operating expenses for lettuce or chrysanthemum crops or to boost light output for light-loving crops like roses and medicinal cannabis.
• On April 12th, 2021, New Philips solar fish grow lights were launched by Signify, the world leader in lighting, to help maximize pond farming while harnessing the power of the sun. It emits spectrum light that is tailored to a variety of fish species, including tilapia. Fish producers can boost their output and efficiency by using grow lights.
• On 27th of May 2020, Savant Systems, Inc., a leader in the professional smart home area, said that it has agreed to buy GE Lighting, a division of GE.

DETAILED SEGMENTATION OF THE GLOBAL GROW LIGHT MARKET INCLUDED IN THIS REPORT

This research report on the global grow light market has been segmented and sub-segmented based on source, application, spectrum and region.

By Source

• Light Emitting Diodes (Led)
• High-Intensity Discharge (Hid)
• Fluorescent Lights

By Application

• Vertical Farming
• Indoor Farming
• Commercial Greenhouse

By System

• Hardware
• Software

By Spectrum

• Full spectrum
• Partial spectrum

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa