Global Grow Lights Market to Generate Revenue worth $13,183 Million by 2030

The global grow lights market is projected to generate $13,183 million revenue by 2030, advancing at a CAGR of 28% during 2021–2030. This can be ascribed to the increasing focus on indoor farming and vertical farming and the growing government support for the adoption of LED lights, solid-state lighting, and controlled-environment agriculture (CEA) practices. Moreover, the burgeoning demand for agricultural products and the decriminalization of medical marijuana in numerous countries are responsible for the market advance.

LEDs Contribute Majority of Revenue

Based on technology, the market is categorized into LED, fluorescent, HID, and others. Among these, the LED category held the largest revenue share in the projection period, from 2021 to 2030, and it is further expected to maintain its dominance during the forecast period. This is due to the increase in the demand for energy-efficient and economical grow lights and rise in the number of government initiatives across the globe to boost the adoption of LEDs. Moreover, such lights are widely used in indoor farms, indoor horticulture, greenhouses, and vertical farms as they are cost-effective and also offer light of the appropriate intensity, to promote plant growth, thus resulting in high-quality produce.

Based on installation type, the market is bifurcated into retrofit and new, of which the retrofit category will witness the faster growth in this decade. This can be credited to the growing usage of such products in the existing vertical farms and greenhouses to decrease energy consumption, improve the quality of plants, and reduce labor and maintenance expenses.

The commercial greenhouse category, based on application, accounted for the largest revenue share in 2021, and it is further expected to maintain its position during the projection period. This is due to the rising rate of urbanization, growing demand for a consistent food supply across the globe, and rising pace of technological advancements in the agriculture sector.

Based on spectrum, the market is bifurcated into partial and full. Of these, the partial category contributed significant revenue to the market in 2021. This can be ascribed to the usage of partial-spectrum horticulture lights at various stages of plant growth, as such products emit light of various wavelengths, such as blue, yellow, and green, which reduces the plant growth time and improves yields.

Based on product, the market is bifurcated into <300 Watts and >300 Watts. Of them, the <300 Watts category held the larger share of revenue in 2021, and it is expected to maintain its dominance till 2030. This is credited to the technological developments in the field of energy conservation and the wide usage of these variants in farming because of their lower power consumption and heat. This way, these lights do not harm plants even if switched on for long periods.

Geographically, APAC will witness significant growth during the forecast period. This can be attributed to the rapidly growing urban agriculture establishments, such as greenhouses, growth chambers, and vertical farming; rising pace of technological advancements in farming, surging disposable income, and increasing food demand owing to the booming population.

Additionally, Europe held the largest revenue share in 2021, and it is further expected to maintain its dominance in the coming years. This can be ascribed to the growing awareness of alternative farming methods, owing to the growing population and reduction in the availability of arable land.

Some of the major players in the grow lights 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., and Fluence Bioengineering Inc.