LED Grow Light Market

The Global LED Grow Light Market size was valued USD 2.0 Billion in 2023. It is expected to reach USD 14.5 Billion by 2032, exhibiting a CAGR of 22.3 % during the forecast period. This report provides a deep insight into the Preserved Flower Market covering all its essential aspects. This ranges from a macro-overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc.

LED Grow Light Market

Size, by Product, - (USD Billion)

High-intensity Discharge (HID) Lights

Light Emitting Diodes

Fluorescent Lights

Other Products

The Market will Grow

At the CAGR of:

22.3 %

The Forecast Market

Size for in USD:

$14.5 Billion

Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Companies

Osram Licht AG, Heliospectra AB, General Electric Company, SMART Global Holdings, Inc., Everlight Electronics Co. Ltd., Bridgelux, Inc., Illumitex, Inc., Royal Dutch Shell plc, Petronas Royal Philips Electronics N.V., Lumigrow, Inc.

LED Grow Light Market Segments

By Light Source: High-intensity Discharge (HID) Lights, Light Emitting Diodes, Fluorescent Lights, and Other Light Sources 

By Installation Type: New Installations, and Retrofit Installations 

By Application: Indoor Farming, Vertical Farming, Commercial Greenhouse, and Others Applications 

LED Grow Light Market

Share, by end user, (USD Billion)

2.0 Billion%

Indoor Farming

Vertical Farming

Commercial Greenhouse

Other End-Users

14.5 Billion

Total Market Size

USD (Billion),

22.3 %

CAGR

-

Here are some geographies covered in detail

1. North America: Large economies like the United States and Canada are covered in this region.

2 Europe: The European market includes countries such as Germany, UK, France, Italy, Russia, and others.

3. Asia-Pacific: This region includes major economies like China, Japan, India, South Korea, Australia, and others.

4. Latin America: Countries like Brazil, Argentina, Mexico and others are part of this region.

5. Middle East and Africa: This region comprises economies from North Africa, GCC countries, South Africa and others.

6. Eastern Europe: This region includes countries such as Poland, Russia, Ukraine and others.

These geographic markets are analysed in terms of the current scenario, growth outlook, and potential opportunities. The research is conducted by considering various aspects such as economic conditions, government policies, industrial development, competitive landscape, and consumer behaviour in these regions.

LED Grow Light Market Dynamics 

• The LED lighting market is driven by several dynamic factors that shape its growth trajectory. One of the main reasons is the global spread of indoor cultivation and controlled environment agriculture (CEA) practices. LED grow lights offer several advantages over traditional lighting solutions, such as energy efficiency, longer life and the ability to adjust the light spectrum to optimize plant growth and yield. This trait is especially important when growing indoors where natural sunlight may be limited or absent.
• Technical advances in LED technology have also played an important role in the dynamics of the market. These advances have led to improvements in the efficiency, reliability and affordability of LED grow lights, making them more accessible to a wider range of growers, from small hobbyists to large commercial operations. Manufacturers are constantly innovating to develop LED lights with advanced features such as adjustable spectra, programmable controls and integrated sensors for precise monitoring and control of lighting conditions.
• Environmental aspects are also increasingly affecting market dynamics. LED grow lights consume less energy and produce less heat compared to conventional lighting options such as high-pressure sodium (HPS) or metal halide (MH) lamps. This not only reduces operational costs, but also supports sustainability initiatives by reducing carbon footprint and minimizing environmental impact.
• Market competition is intensifying as both established companies and new entrants focus on product differentiation and innovation. Light intensity, uniformity, durability and ease of installation and maintenance become critical competitive advantages. Additionally, partnerships and collaborations between LED manufacturers and Agritech companies are fueling market growth by integrating LED lighting with advanced agricultural technologies such as automation, data analytics and precision farming techniques.

• Energy efficiency and light quality regulatory factors and standards also shape the landscape of the LED lighting market. Compliance with regulations and certifications ensures the reliability and safety of products and influences consumer confidence and purchasing decisions.

  LED Grow Light Market

  Size, by Product, - (USD Billion)

  The Market will Grow

  At the CAGR of:

  22.3 %

  The Forecast Market

  Size for in USD:

  $14.5 Billion

  

LED Grow Light Market Latest Trends

• The legalization of hemp cultivation has also led to an increased need for vertical rooms and greenhouses, which further increases the demand for LED-based grow lights.
• There are several factors to consider when growing cannabis in a sunless environment. For example, heat from HPS lights can damage the product. Thus, LEDs operating at much lower temperatures can solve the problem of excessive heat radiation.
• Companies that grow hemp through vertical farming have achieved significant results in productivity. For example, Med Men’s Cannabis Vertical Farm (USA) adopted LED systems offered by Fluence Bioengineering (USA), a garden lighting company owned by OSRAM, which resulted in reduced production time, price per kilo of finished product, lower energy consumption and heating, ventilation. . and air conditioning loads.
• According to Cannabis Business Times, approximately 46% of US cannabis growers register them grows/facilities in the West. 15% reported being based in the Northeast and only 9% reported growing cannabis in Canada.
• In addition, US federal law prohibits the cultivation, sale and use of cannabis. But 18 states, including California and the nation's capital, Washington, have legalized cannabis for recreational use in a major legislative shift over the past decade. In October 2022, President Joe Biden pardoned thousands of Americans convicted of possession of cannabis. This legislation and government support will promote the studied markets.

LED Grow Light Market Recent Core Development

• In September 2022, Thrive Agritech, Inc launched its new offering of 840W Pinnacle HP LED Grow Light. The 840 W LED lamp produces a higher light intensity than its predecessor, but requires less light. This new LED series uses advanced LED chip technology that can create an ideal combination of power and efficiency.
• In July 2022, AB lighting launched new LED grow lights, including the AB 330 and AB 660. The new grow light series optimizes energy consumption and helps growers achieve higher yields by providing the full spectrum and continuous power needed by vegetables.
• In May 2022, Signify completed the purchase of Fluence from arms Osram. With the acquisition, the company plans to expand its presence in the garden lighting market.
• Inc. introduced new technology for faster production of wafers.

• September 2021: Wafer maker Technologies announced a new design for its waffle makers

  LED Grow Light Market TO (USD BN)

  

  CAGR OF

  22.3 %

  LED Grow Light Market

  

  14.5 Billion%

LED Grow Light Market Restraints

• LED grow lights often have higher initial costs compared to traditional lighting solutions, which can deter cost-conscious consumers, especially small growers or hobbyists.
• Providing the right light spectrum for optimal plant growth can be difficult, as different plants require specific wavelengths of light. This complexity may require additional research and investment in specialized LED assemblies.
• Although LED grow lights are more energy efficient than traditional lighting, they still produce heat. Effective thermal management systems are essential to prevent heat damage to plants and to ensure the longevity of LED lights.
• The lack of industry-wide standards for LED grow lights can lead to differences in product quality, performance and reliability between manufacturers, affecting consumer confidence and purchasing decisions.
• Misconceptions or ignorance about the benefits and features of LED grow lights compared to traditional lighting methods can hinder adoption, especially among traditional farmers accustomed to conventional technology. 

Frequently Asked Questions (FAQs)

Which Installation Type Holds Lucrative Opportunities?

Ans: The retrofit installation type holds lucrative opportunities in the LED grow light market due to its ability to upgrade existing lighting systems with energy-efficient and customizable LED solutions.

What is the Growth Forecast for the LED Grow Lights Market?

Ans: The market is forecast to register a CAGR of 22.3 % through 2032.

How is the Historical Performance of the LED Grow Lights Market?

The market registered a CAGR of 28.5 % during 2019 to 2023.

Which is the Top Trend in the LED Grow Lights Market?

Ans: The Usage of smart greenhouses is in the trends