Grow Lights Market Size and Share Analysis by Technology (LED, Fluorescent, HID), Spectrum (Full Spectrum, Partial Spectrum), Installation Type (New, Retrofit), Product (< 300 Watt, > 300 Watt), Application (Commercial Greenhouse, Vertical Farming, Indoor Farming, Research) - Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The global grow lights market size was $1,481 million in 2021, and this number is expected to increase to $13,183 million by 2030, advancing at a CAGR of 28% during the forecast period. This can be attributed to the increasing need for food owing to the growing population, rising disposable income, growing preference for new and advanced farming practices, rapid urbanization, and technological advancements in the agriculture sector.

Furthermore, the various government measures to support LEDs, greenhouses, and vertical & indoor farming will propel the industry growth in the coming years.

LED Category to Dominate Forecast Period

The LED category to dominate the market in the projection period. This can be ascribed to the rise in the customer demand for affordable and energy-efficient grow lights and the surge in the number of government programs to promote the usage of LED drivers and lights, globally. Moreover, the increasing demand for more-durable and economical horticulture lights in various countries and the rising usage of such lights in new farming practices owing to their cost-effectiveness and appropriate intensity for plant growth are resulting in the high product demand.

Additionally, the HID category will also register stable growth during this decade. This can be attributed to the growing usage of such lights in commercial greenhouse, horticulture, and vertical and indoor farming applications and the wide usage of metal–halide (MH) lamps and high-pressure sodium (HPS) lamps for plants requiring high amounts of direct sunlight, which propels the segment growth across the globe in the coming years.

Retrofit Category Contributes Majority of Revenue

The retrofit category accounted for the larger revenue share in 2021, and it is further expected to maintain its dominance during the forecast period. This is due to the growing number of new advanced farming facilities across the globe and the mounting usage of such lights in existing farming facilities owing to their decreasing prices. In addition, the demand for retrofit installations is usually greater than the new ones on account of the fact that the latter requires lots of time and a huge capital investment.

Need for More-Economical Grow Light Technology Drives Industry

The need for more-economical grow light technologies in cities is a key driving factor for the global grow lights market. The cost of producing food is high, which is why the demand for cheaper food production is increasing exponentially in urban areas. Furthermore, the availability of cultivable land around the cities is already limited. This leads to the increasing demand for new urban farming initiatives that are more economical and energy-efficient. The cost of grow lights plays a major role in the calculation of the overall cost of urban farming projects. Due to the recent price decline and easy availability of grow lights for local indoor farms, city inhabitants have started purchasing them for producing fresh, nutritious vegetables and fruits themselves, without bearing any charges for buying the crops. Furthermore, the smart city project and the trend of LED adoption for a variety of applications, including urban farming, are factors that boost market demand.

Vertical Farming To Witness Highest Growth Rate

Vertical farming will witness the fastest growth during the projection period, with a CAGR of around 29.8%. This growth can be ascribed to the booming need for food, and herbs, which can be cultivated in vertically stacked layers; and the surging number of such farms, especially in developed nations, due to the lack of space needed to set up conventional farms.

The commercial greenhouses category held the largest revenue share in 2021, and it is expected to dominate the market in this decade. This is due to the rising commercialization of greenhouses, growing need for food across the globe owing to the rise in the population, decreasing availability of agricultural land, rising adoption of organic cultivation techniques, and increasing need for higher energy efficiency in agriculture.

Legalization of Cannabis Will Provide Lucrative Opportunities

The legalization of cannabis production in different nations is a key opportunity in the industry. The legalized production of cannabis for medical and recreational purposes, which will result in the increasing requirement for greenhouses and vertical farms, will boost the demand for such lights. To grow cannabis in the absence of sun, the appropriate intensity of light needs to be provided from artificial sources. Hence, various companies and producers use vertical farming or the hydroponics method for the indoor production of cannabis. Since grow lights are widely used to support vertical farming, the increasing production of cannabis in different countries is expected to offer lucrative opportunities to the players in the market.

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Europe Dominates Market

Europe accounted for the largest revenue share, of around 33%, in 2021, and it is further expected to maintain its dominance during the forecast period. This can be attributed to the significant usage of LED lights to grow plants inside commercial greenhouses and a large consumer base.

Additionally, the technological developments in artificial grow lights have led governments in the European region to favor efficient and eco-friendly technologies, such as LEDs. Moreover, administrations have implemented rigorous resolutions to ban the use of incandescent bulbs, which further boosts the market share of LEDs.

• In Europe, greenhouse farming is one of the biggest energy consumers, and the majority of the greenhouses use HPS lights to complement sunlight. Now, European cultivators have started replacing HPS lights in the existing systems with LEDs, due to the rising awareness of the fact that LEDs can save a significant amount of energy.
• Germany, the U.K., Italy, and France are the major consumers in the market. Among these, Germany contributes the majority of the revenue owing to the high adoption rate of advanced technologies, presence of a large number of industry giants, and growing preference of consumers for organic food products.

APAC will register the fastest growth during this decade. This can be ascribed to the rising urbanization rate, ballooning need for food, surging population, growing adoption of new agricultural technologies, and strengthening focus on urban farming. Furthermore,

• Emerging economies, such as China, India, and South Korea, are the major buyers in the APAC market. This can be ascribed to the rapid adoption of advanced agricultural methods, such as indoor horticulture, which creates a high demand for horticulture lights in developing countries. Other key drivers are the increasing need to conserve energy and surging number of initiatives of the governments of numerous countries to boost the installation of LEDs.
• Additionally, Japan held a significant revenue share in 2021. The prime factors responsible for this are the limited availability of agricultural land, rising preference of consumers for safe and organic food products, and high R&D spending in the field of agriculture.

Key Players in Grow Lights Market Are:

• Koninklijke Philips N.V.
• Osram Licht AG
• General Electric Company
• Heliospectra AB
• Dool Industries
• Illumitex Inc.
• Gavita International B.V.
• Lumigrow Inc.
• Iwasaki Electric Co. Ltd.
• Sunlight Supply Inc.
• Hydrofarm Inc.
• Fluence Bioengineering Inc.

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Technology

• LED
• Fluorescent
  • T6 
  • CFL
• HID
  • High intensity sodium lamps
  • Metal-halide lamps
  • Ceramic metal halide lamps
  • Combination MH and HPS lamps
  • Others (conversion bulbs and switchable ballasts)

Based on Spectrum

• Full Spectrum
• Partial Spectrum

Based on Installation Type

• New
• Retrofit

Based on Product

• < 300 Watt
• > 300 Watt

Based on Application

• Commercial Greenhouse
• Vertical Farming
• Indoor Farming
• Research

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa