Grow Lights Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Grow Lights Market Trends and Growth Drivers

Adoption of Vertical Farming Is Key Market Trend

• The introduction of vertical farming in urban environments is a new trend in the grow lights industry.
• As per industry reports, the global spending on the associated technologies and supplies could cross USD 30 billion by 2030.
• The limited availability of farming areas in urban spaces has been surging the need of development of new methods for optimum space utilization.
• Vertical farms are indoor crop growing systems where artificial light is the only source of light available for plants, and the plants are stacked atop each other for optimizing the space.
• Vertical farms use control systems to optimize cultivation conditions and are designed specifically to maximize crop capacity on limited surface areas.
• In indoor vertical farms, plantings can be located in areas where no consideration needs be given to environmental factors such as climate, pests or diseases, or extreme weather.
• The indoor vertical farming also reduces the need for toxic substances for pest control.
• Energy consumption, lifespan of lights and equipment, and cost-effectiveness are important factors determining the installation of appropriate vertical farms. Optimum lighting level to stimulate photosynthesis is another important consideration in the same regard.

Legalization of Cannabis Will Provide Lucrative Opportunities

• The legalization of cannabis production in different nations is a key opportunity in the industry.
• Currently, around 10 countries have legalized marijuana for recreational purposes, while over 30 have done it for medical purposes.
• Since Germany legalized the commodity in 2022, a total of 20 countries in the EU have done so.
• 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.

Requirement for Varied Spectra Hampers Market Growth

• Another fact restraining the growth of grow lights market is the requirement of different conditions for different varieties of vegetables and fruits.
• A limited variety of vegetables and fruits can be grown out of the same lights spectra and other conditions.
• The reason is that not all varieties of vegetables and fruits can adapt well in indoors or vertical controlled environment of farm.
• Plants not only focus on specific light spectrums for photosynthesis but diverse light spectrums are required to be used for varying growth stages in plants.
• A green plant leaf has millions of photosynthetic receptors in its body, each of which includes specific pigments to absorb particular frequencies during photosynthesis.
• By calculating the amount of oxygen produced under numerous light spectrums, the amount of photosynthetic activity can be measured under each light spectrum.
• UV light in many cases, is a vital provider for color, aroma and taste of the plants.
• The blue light range is essential for vegetative progress and is vital for growing plants during vegetative phase of their development cycle.
• The features of green light are less known than other ranges, and there are only limited species of plants that require green light for escalating growth.
• Red light boosts stem growth, blossoming and fruit development, and chlorophyll creation.
• Before setting up an indoor farm, a right combination of these lights needs to be examined, in order to grow a particular type of grow light.
• This complex study of the right combination of grow lights slows down their penetration in the farming industry, thus restraining the market growth.

Grow Lights Market Analysis

Technology Insights

The LED category dominates the market with 55% share in 2024, and it will also witness the highest CAGR over the forecast 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.

The following technologies have been analyzed:

• LED (Largest and Fastest-Growing Category)
• Fluorescent
  • T6 
  • CFL
• HID
  • High-intensity sodium lamps
  • Metal–halide lamps
  • Ceramic–metal–halide lamps
  • Combination MH and HPS lamps
  • Others
• Others

Installation Type Insights

The retrofit category accounted for the larger revenue share in 2024, and it is further expected to witness the higher CAGR during the forecast period, of 28%. 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.

The segment is bifurcated as below:

• New
• Retrofit (Larger and Faster-Growing Category)

Application Insights

The commercial greenhouses category held the largest revenue share in 2024, of 45%, 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.

Vertical farming will witness the fastest growth during the projection period. 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 report offers insights into these applications:

• Commercial Greenhouse (Largest Category)
• Vertical Farming (Fastest-Growing Category)
• Indoor Farming
• Research
• Others

Spectrum Insights

The full bifurcation held the larger share in 2024, and it is also the faster-growing category, with a CAGR of 28.5%, over the forecast period. Full-spectrum grow lights are versatile for all stages of plant growth as they offer a wide spectrum, similar to the sun. Hence, due to their higher efficiency than those with a partial spectrum, they are widely popular among cannabis growers.

These spectra are covered in the report:

• Full (Larger and Faster-Growing Category)
• Partial

Power Rating Insights

The <300 Watts bifurcation dominated the market in 2024 with 65% revenue share. This is attributed to the low price of these lights, their high energy efficiency, and their high popularity for home gardening.

The >300 Watts bifurcation will witness the faster-growth during the forecast period. This is attributed to the increasing adoption of grow lights among commercial farmers for greenhouses and vertical farms. Moreover, with the advancing LED technology, high-power grow lights offer long-term cost advantages despite their initially expensive nature.

We studied these power ratings:

• <300 Watts (Larger Category)
• >300 Watts (Faster-Growing Category)

Grow Lights Market Geographical Outlook

Europe accounted for the largest revenue share, of around 35%, in 2024, 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 the forecast period, of 30%. 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.

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. Moreover, China and India are the two largest agriculture-based economies in the world.

Additionally, Japan held a significant revenue share in 2024. 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.

These regions and countries are part of the scope:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Largest Regional Market)
  • Germany (Largest Country Market)
  • France
  • U.K. (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Grow Lights Market Share

• The market is fragmented as a large number of well-known and local companies offer these products.
• While the major companies generally offer LEDs, the smaller ones offer primitive technologies, such as HID and halogen, as they are cheaper.
• Further, even though many small, local companies offer inferior-quality lights, minor farmers and those with low awareness of the technology widely purchase from them.

Grow Lights Market News

• In December 2024, Koninklijke Philips N.V. supplied infrared and LED lamps for the Philips Stadium, owned and operated by the PSV Eindhoven football club. Integrated with an array of sensors, these lights are used to maintain the stadium grass in optimum playing condition.
• In December 2024, Heliospectra AB introduced Dynamic MITRA X LEDs in three- and four-channel configurations for indoor farming. The lights also feature the Spectrum Design Tool, HelioCORE software, and Dynamic Zoning.
• In September 2024, FOSHE launched PRO Series LED lights for cannabis cultivation. The lights offer seven spectra: UVA, far red, green, blue, warm white, cool white, and red.
• In May 2024, ams-OSRAM AG launched the OSCONIQ P 3737 high-power horticulture LED lights. Their advanced semiconductor chips enable over 83% energy conversion to Hyper Red spectrum for plant growth.