Grow Lights Market by Offering (Hardware, Software, Services), Type (Fluorescent, LED, HID), Application (Conventional Farming, Horticulture, Poultry), Wattage, Farming Types (Horizontal, Vertical), Sales Channel, and Geography - Global Forecast to 2030

The Grow Lights Market is projected to reach $8.5 billion by 2030, at a CAGR of 20.6% from 2024 to 2030. Grow lights are artificial light sources designed to stimulate plant growth by providing an electromagnetic spectrum suitable for photosynthesis. It can be used to extend the growing season, provide supplemental lighting, or even serve as the sole source of light for indoor gardening. They allow growers to control light intensity, spectrum, and photoperiod to optimize plant growth and yield. They are commonly used in indoor gardening, hydroponics, and commercial plant cultivation where natural sunlight may be insufficient or unavailable.

The growth of this market is driven by the increasing R&D initiatives aimed at developing hybrid plants and crops, the rising adoption of vertical farming, the growing need to enhance agricultural production efficiency, food safety, and the quality of fruits and vegetables, and the increasing adoption of urban farming is contributing to market growth. However, the high setup costs associated with grow lights may restrain the market's growth.

Furthermore, technological advancements in LED grow lights and the integration of smart technologies in farming are expected to offer significant market growth opportunities. However, the diverse requirements of lighting spectrums for different plants and crops, along with the absence of standard testing practices to assess the product quality of horticulture lights and fixtures, are some of the challenges impacting the market's growth.

Integration of Smart Technologies in Farming to Offer Market Growth Opportunities

The agricultural sector is steadily advancing towards indoor crop production and vertical farming, driven by the integration of smart technologies. These advancements in farming practices offer various benefits, such as improved efficiency, faster production cycles, higher yields, enhanced food safety standards, and reduced labor costs. As smart technologies become more prevalent in farming, the use of grow lights is increasingly essential for achieving sustainability goals in agriculture. Smart farming technologies facilitate the seamless integration of grow lights into indoor farming setups. For instance, smart lighting systems utilize IoT-enabled sensors, bulbs, and adapters to remotely manage and adjust lighting schedules. This capability optimizes LED light colors to meet the specific spectral requirements of different crops,

Moreover, sensors play a crucial role in monitoring light intensities within vertical farming environments. They also track factors such as cloud cover and ambient light levels to determine the precise lighting requirements for optimal plant growth. As a result, grow lights can be dynamically controlled based on these data inputs. These technological advancements drive the adoption of vertical farming in urban areas, creating growth opportunities for the grow lights market.

The different types of grow lights are as follows:

• Fluorescent Grow Lights: These lights are commonly used for smaller plants and seedlings. They are energy-efficient and emit less heat compared to some other types of grow lights.
• Incandescent Grow Lights: These lights are less commonly used for plant growth due to their low efficiency and high heat output.
• LED Grow Lights: LED grow lights are becoming increasingly popular due to their energy efficiency, longevity, and customizable spectrum. These lights often come with features such as dimming and spectral tuning, allowing for precise control over light conditions.
• HID Grow Lights (High-Intensity Discharge): HID lights, including Metal Halide (MH) and High-Pressure Sodium (HPS) lights, have been widely used in indoor gardening as they emit intense light that is suitable for plants in both vegetative and flowering stages.
• Hybrid Grow Lights: These lights combine different lighting technologies to optimize their performance. For instance, a hybrid light might combine LED technology with HID or fluorescent components to provide a broader spectrum of light.
• Full LED Grow Lights: These lights exclusively use LED technology to provide a full spectrum of light optimized for plant growth. These grow lights are often preferred by indoor growers seeking maximum control over their lighting setup.

Some of the developments in this market are as follows:

• In January 2024, Global Garden (U.S.) partnered with AB Lighting (U.S.) to distribute a full line of grow lights for cannabis cultivation.
• In December 2022, AeroGarden (U.S.) launched its Indoor Grow Lights for houseplants. This new product line expands AeroGarden's existing grow light offerings with three new unique models- Stem Grow Light, Tabletop Grow Light, and Trio Grow Light.
• In December 2022, Bridgelux, Inc. (U.S.) signed a distribution agreement with Empa Elektronik San. Ve Tic A.S. (Turkey) for its LED SMD, COB, CSP, and module products as well as LED drivers and Mosfet in Turkey, UAE, Saudi Arabia, Qatar, Jordan, and Egypt.

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Key Findings in the Grow Lights Market Study:

In 2024, the Hardware Segment is Expected to Dominate the Grow Lights Market

Based on offering type, the grow lights market is segmented into hardware, software, and services. In 2024, the hardware segment is expected to account for the largest share of the grow lights market. This segment's large market share is attributed to the growing adoption of indoor farming and controlled environment agriculture, increasing focus on developing sustainable agricultural management through controlled farming, and government initiatives aimed at promoting the adoption of precision farming in emerging economies.

In 2024, the LED Grow Lights Segment is Expected to Dominate the Grow lights Market

Based on type, the grow lights market is segmented into fluorescent grow lights, incandescent grow lights, LED grow lights, HID grow lights, hybrid grow lights, and full LED grow lights. In 2024, the LED grow lights segment is expected to account for the largest share of the grow lights market. LED lights offer superior support for plant growth compared to other lighting options, promoting healthy photosynthesis and reducing bacteria buildup on leaves. LED grow lights also have a significantly longer lifespan than other types of grow lights. The large market share of this segment is driven by several factors, including the growing trend of indoor farming, which boosts the adoption of LED grow lights, the increasing demand for energy-efficient and long-lasting lighting technology, especially with the emergence of vertical farms in urban areas, and the rising need for precise control over the light spectrum emitted by grow lights, allowing growers to meet the specific needs of their plants at different growth stages.

In 2024, the Horticulture Segment is Expected to Dominate the Grow lights Market

Based on application, the grow lights market is segmented into conventional farming, horticulture, poultry, tissue culture, and growth chambers. In 2024, the horticulture segment is expected to account for the largest share of the grow lights market. This segment's large market share can be attributed to several factors: the rising need to extend growing seasons and cultivate crops year-round, the increasing adoption of vertical farming and indoor horticulture utilizing grow lights to optimize space utilization, and the growing need to support the cultivation of a diverse range of horticultural crops.

In 2024, the 500W to 750W Segment is Expected to Dominate the Grow lights Market

Based on wattage, the grow lights market is segmented into 18W to 250W, 250W to 500W, 500W to 750W, and 750W to 1000W. In 2024, the 500W to 750W segment is expected to account for the largest share of the grow lights market. High-power lights generate significant heat and can be used for extended periods without harming plants, making them ideal for large-scale production. Additionally, they are cost-efficient for farming purposes. Commercial horticulture relies on high-wattage grow lights to accelerate plant growth and boost production. These factors collectively contribute to the large market share of this segment.

In 2024, the Vertical farming Segment is Expected to Dominate the Grow Lights Market

Based on farming type, the grow lights market is segmented into horizontal farming and vertical farming. In 2024, the vertical farming segment is expected to account for the larger share of the grow lights market. Vertical farming maximizes space utilization by stacking growing layers vertically, enabling year-round crop cultivation with grow lights regardless of seasonal changes or external conditions. This method ensures consistent food production and reduces reliance on traditional outdoor farming. The large market share of this segment is attributed to the increased crop production within compact infrastructures and the growing demand for grow lights to provide precise control over light spectrum, intensity, and photoperiod, optimizing plant growth and maximizing crop yields in vertical farming systems.

In 2024, the E-commerce Segment is Expected to Dominate the Grow lights Market

Based on sales channel, the grow lights market is segmented into retail and e-commerce. In 2024, the e-commerce segment is expected to account for the larger share of the grow lights market. The large market share of this segment is driven by the increasing purchases of grow lights from e-commerce platforms, which offer customers a convenient and comfortable shopping experience. Through e-commerce platforms, customers can easily compare different brands and prices of grow lights and make purchases anytime and from anywhere. This convenience allows growers to browse, compare, and buy grow lights from the comfort of their homes or farms. Additionally, e-commerce platforms often offer competitive pricing for grow lights due to lower overhead costs compared to traditional brick-and-mortar stores.

In 2024, North America is Expected to Dominate the Grow Lights Market

Based on geography, the grow lights market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the grow lights market. North America's significant market share can be attributed to several factors, including advancements in farming technologies, strong government support to promote the agriculture industry, legalization of cannabis for medicinal and recreational use in various North American countries and states, a growing demand for high-value crops, increasing need for consistent and reliable crop production regardless of external environmental conditions, and the rising adoption of indoor farming and controlled environment agriculture (CEA) practices across the region.

Key Players:

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the grow lights market over the past 3–4 years. The key players profiled in the Grow lights market report are Gavita International B.V (Netherlands), Heliospectra AB (Sweden), ams-OSRAM AG (Austria), California Lightworks (U.S.), Signify (Netherlands), Hortilux Schréder B.V. (Netherlands), Valoya Oy (Finland), ILUMINAR LIGHTING (U.S.), Bridgelux, Inc. (U.S.), Oreon Holding BV (Netherlands), Iwasaki Electric Co., Ltd. (Japan), Savant Systems, Inc. (U.S.), Ennostar Inc. (Taiwan), AB Lighting (U.K.), and EVERLIGHT Electronics Co., Ltd. (Taiwan).

Report Summary:

Key questions answered in the report: