Grow Light Market Research Report- Global Forecast 2030

Grow Light Market Research Report Information By Technology (LED, High Intensity Discharge, and Fluorescent Lighting), By Installation (New Installation, and Retrofit), By Application (Indoor Framing, Commercial Greenhouse, and Vertical Framing), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) โ€“ Market Forecast Till 2030.

ID: MRFR/SEM/1818-HCR | 100 Pages | Author: Ankit Gupta | February 2024         

Grow Light Market Speak to Analyst Request a Free Sample

Global Grow Light Market Overview:

The Grow Light Market Size was valued at USD 2.25 billion in 2022. The grow light market industry is projected to grow from USD 2.988 Billion in 2023 to USD 16.3896 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 32.80% during the forecast period (2023 - 2030). The market is expanding due to increasing urban farming, vertical farming, and consumer acceptance of environmentally friendly fruit and vegetable production. The need for urban agriculture has also risen due to the enormous rise in world population, which are the key market drivers enhancing the market growth. 

Global Grow Light Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Grow Light Market Trends

Significant Expansion in the Agriculture Industries to boost the market growth

One of the main drivers propelling the market's growth is the agriculture sector's notable rise. Additionally, market development is being boosted by the increased use of indoor and vertical farming techniques. Several grow lights are used in hydroponic farming systems to maintain an acceptable quantity of sunshine and shield the plants from bug and pest damage. This boost the market CAGR.

For Instance, many consumers have shifted from CFL to light-emitting diode bulbs during the past ten years. Switching to LEDs can save money and lower monthly energy bills because lighting can account for 20% or 25% of total energy expenses. Moreover, light-emitting diode illumination has several uses, including internal lighting for light-emitting diode displays and the backlighting of switches on electrical gadgets.

However, several technical developments promote growth, such as creating smart grow lights connected to the Internet of Things (IoT). The implementation of advantageous government policies and a number of other variables are anticipated to have a significant impact on the industry in the years to come, another factor driving the growth of the grow light market revenue.

Grow Light Market Segment Insights:

Grow Light Technology Insights

The grow light market segmentation based on technology includes LED, high-intensity discharge, and fluorescent lighting. In 2022, the high-intensity discharge (HID) category held the largest market share, accounting for more than 36% of the grow light market revenue. The HID is mostly employed in commercial greenhouses and vertical farms for growth. In contrast, the LED market is anticipated to rule over the projected period.

The government's measures to embrace energy-efficient LEDs and rising urban horticulture are predicted to drive the LED market. LEDs provide the required light at the precise wavelength. It may concurrently create a dual-band spectrum (red and blue). All stages of growth can benefit from LEDs. LEDs are more expensive initially but become less expensive with the time.

October 2021: A new LED downlight dubbed the Philips HexaStyle was introduced by Signify Holdings, a division of Philips Lighting and a producer of LED solutions. With the introduction of this device, Signify will provide hexagonal LED options for various ceiling designs. 

Grow Light Installation Insights

Based on the installation, the grow light market segmentation includes new installation and retrofit. The new installation segment is expected to dominate and be the largest grow light market segment during the forecast period. The increasing adoption of indoor farming practices and the need for energy-efficient lighting solutions in new facilities are key factors driving the growth of the new installation segment.

However, the retrofit segment is also expected to witness significant growth during the forecast period, driven by the need to upgrade and replace outdated lighting systems in existing facilities with more efficient and sustainable grow lights. The industry is predicted to expand in the next years to several additional factors, including major developments in agricultural sciences and the implementation of sensible government restrictions. It will likely drive the demand for growing the light market growth.

Grow Light Application Insights

The grow light market data has been bifurcated by application into indoor framing, commercial greenhouse, and vertical framing. The vertical Framing segment dominate the market in 2022 because several well-established corporations have begun offering funding to encourage entrepreneurs to establish vertical farms. Furthermore, farmers are now receiving financial and technical support from Toshiba Corporation and Panasonic Company of Japan to establish vertical farms worldwide.

Indoor Farming accounts for the largest market share in 2022 as indoor farming helps increase the overall crop output per unit space, driving the market. Large- and small-scale indoor plants and agricultural cultivation are known as indoor farming. As a result, indoor farming uses techniques like hydroponics, aquaponics, and artificial lights to provide sufficient light levels and nutrients. 

Figure 1: Grow Light Market, by Application, 2022 & 2030 (USD Billion)Grow Light Market, by Application, 2022 & 2030Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Grow Light Regional Insights

By Region, the study provides the Grow Light market insights into North America, Europe, Asia-Pacific and Rest of the World. With a revenue share of over 45.80% in 2021, Europe dominated the market because, in the past ten years, grow light systems have been used in various controlled environment agriculture (CEA) applications, including greenhouses and vertical and indoor farming. Also growing, particularly in urban areas, is the use of LED grow lights for horticulture. For instance, a well-known high-tech business, Osram GmbH, debuted its new line of LED lighting for the horticulture industry during the epidemic.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CRYOTHERAPY AND CRYOSURGERGY MARKET SHARE BY REGION 2022 (%)CRYOTHERAPY AND CRYOSURGERGY MARKET SHARE BY REGION 2022Source: Secondary Research, Primary Research, MRFR Database and Analyst ReviewThe Asia-Pacific Grow Light Market is expected to grow at the fastest CAGR from 2022 to 2030 due to the increased use of genetically modified crop technologies. Also, several countries in this area are switching to LED lighting to cut energy usage. By switching to LED light bulbs instead of conventional incandescent ones, greenhouse gas emissions might be reduced. Moreover, China grow light market held the largest market share, and India's grow light market was the fastest-growing market in the Asia-Pacific region

North America's grow light market accounts for the second-largest market share due to the demand in the region's expanding urban population and the commercialization of indoor farming. Nevertheless, the shortage of funding to construct cutting-edge vertical farms and restricted access to water and land are anticipated to impede regional Expansion in North America.

For instance, Bayer unveiled a brand-new automated greenhouse operation in Marana, Arizona. The US$100 million facility will primarily be a hub for corn product design, with corn being the only crop farmed there. There have been many technological developments in modern greenhouse facilities, but lighting is still a key area of research for indoor growth systems.

Grow Light Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the grow light market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the grow light industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopts in the grow light industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the grow light industry has provided medicine with some of the most significant benefits. In the grow light market major players such as Resource (US), OSRAM (Germany), California Lightworks (US), Gavita (Netherlands), Helliospectra AB (Sweden), and others are working on expanding the market demand by investing in research and development activities.

California Lightworks specializes in developing energy-efficient LED grow lights that provide a full spectrum of light optimized for plant growth. Their lights are designed to replace traditional high-pressure sodium (HPS) and metal halide (MH) lamps, which can consume a lot of electricity and produce a lot of heat. LED grow lights are generally more efficient and have cooler running, making them a popular indoor horticulture choice. For Instance, In February 2023, The SpectraMax range of variable spectrum lighting was just introduced, according to California Lightworks, a prominent producer of high-performance LED grow lights. The SpectraMax Vertical 1000 is the most powerful, feature-rich vertical grow lamp the brand has ever provided. It features the most Photosynthetically Active Radiation (PAR) light output.

Also, OSRAM is a technology company specializing in lighting solutions and products for various applications, including automotive, industrial, and consumer electronics. OSRAM's product portfolio includes many lighting solutions, including LED and traditional lighting products such as lamps and luminaires. The company is known for its innovative lighting solutions that provide energy efficiency, durability, and high performance. For instance, OSRAM-owned horticulture lighting company Fluence Bioengineering (US) provided LED systems for MedMen Cannabis Vertical Farm (US), the production time, cost per pound of the finished product, energy consumption, and heating, ventilation, and air conditioning (HVAC) load were all reduced.

Key Companies in the grow light market includes

  • Resource (US)

  • OSRAM (Germany)

  • California Lightworks (US)

  • Gavita (Netherlands)

  • Helliospectra AB (Sweden)

  • Valoya (Finland)

  • Signify Holding (Netherlands)

  • Iwasaki Electric Co. Ltd. (Japan)

  • Hortilux Schreder B.V. (Netherlands)

  • General Electric Company (US.)

  • LumiGrow Inc. (US.)

  • Sunlight Supply Inc. (US.)

Grow Light Industry Developments

July 2022: AB Lighting, the AB330 and AB660, are two of the business's new LED grow lights. The grow lights optimise electricity use for new greenhouse installations for commercial vegetable producers. These lights were developed to help vegetable growers achieve higher yields by offering a lower wattage, a broad spectrum designed for vegetables, and the continuous run times that crops demand.

December 2021: To grow its farm lighting business, Signify Holding B.V. and Osram announced a deal for Fluence, a branch of Osram that produces agricultural lighting.

Grow Light Market Segmentation:

Grow Light Technology Outlook

  • LED

  • High-Intensity Discharge

  • Fluorescent Lighting

Grow Light Installation Outlook

  • New Installation

  • Retrofit

Grow Light Application Outlook

  • Indoor Framing

  • Commercial Greenhouse

  • Vertical Framing

Grow Light Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 2.25 billion
Market Size 2023 USD 2.988 billion
Market Size 2030 USD 16.3896 billion
Compound Annual Growth Rate (CAGR) 32.80 % (2023-2030)
Base Year 2022
Market Forecast Period 2023-2030
Historical Data 2018 - 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Technology, Installation, Application, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Resource (US), OSRAM (Germany), California Lightworks (US), Gavita (Netherlands), Helliospectra AB (Sweden), Valoya (Finland), Signify Holding (Netherlands), Iwasaki Electric Co. Ltd. (Japan), Hortilux Schreder B.V. (Netherlands), General Electric Company (US.), LumiGrow Inc. (US.), Sunlight Supply Inc. (US.).
Key Market Opportunities Rapid Growth In Semiconductor & Electronics Industry
Key Market Dynamics Increasing growth in indoor farming practices Rising awareness regarding the need for low-power consumption

Frequently Asked Questions (FAQ) :

The grow light market size was valued at USD 2.25 Billion in 2022.

The market is projected to grow at a CAGR of 32.80% during the forecast period, 2022-2030.

The key players in the market are Resource (US), OSRAM (Germany), California Lightworks (US), Gavita (Netherlands), and Helliospectra AB (Sweden).

The High-Intensity Discharge (HID) category dominated the market in 2022.

The Vertical Framing application segment had the largest share of the market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major playersโ€™ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
Request Free Sample

Why Choose Market Research Future?

  • Vigorous research methodologies for specific market.
  • Knowledge partners across the globe
  • Large network of partner consultants.
  • Ever-increasing/ Escalating data base with quarterly monitoring of various markets
  • Trusted by fortune 500 companies/startups/universities/organizations
  • Large database of 5000+ markets reports.
  • Effective and prompt pre- and post-sales support.
Speak to Analyst
Leading companies partner with us for data-driven Insights.
Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo

Kindly complete the form below to receive a free sample of this Report

Please fill in Business Email for Quick Response