Grow Lights Market by Offering (Hardware, Software, Services), Watt, Spectrum, Cultivated Plant, Lighting Type, Light Source, Installation Type, Sales Channel, Application (Greenhouse, Indoor Farm, Vertical Farm) and Region - Global Forecast to 2028
Grow Light Market Overview:
[256 Pages Report] The grow lights market was valued at USD 1.5 billion in 2022 and is projected to reach USD 7.2 billion by 2028; registering a CAGR of 30.7% during the forecast period. Heightened demand for fresh food and loss of arable land, strong government support for adoption of solid-state lighting technology and controlled-environment agriculture (CEA) practices, and increased investments in establishing vertical farms and greenhouses and associated advanced technologies are among the factors driving the growth of the grow lights market.
Grow Lights Market Forecast to 2030
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Market Dynamics:
Driver: Heightened demand for fresh food and loss of arable land
As the global population is increasing at a significant rate, the food production worldwide requires to be doubled from 2014 to 2050 (Source: The Food and Agriculture Organization (FAO)). According to the United Nations, the world population is expected to reach 9.6 billion by 2050. Therefore, farmers are likely to witness immense pressure for increasing their crop production either by making the land arable to grow crops or adopting emerging techniques such as smart greenhouses and vertical farming.
Rapid population growth and urbanization, shrinking of water supplies, and continued climate change due to the increase in the emissions of greenhouse gases have contributed to declining stocks of arable land per person. As land resources for agriculture are decreasing, policy makers are facing challenges of sustainability and feeding the rapidly growing world population, which is projected to reach approximately 9.6 billion in 2050.
Restraint: High setup and installation costs of LED grow lights
Grow lights are essential when growing plants indoors. Growing plants indoors has been around for a long time, as it allows people to grow fresh food, fresh herbs for cooking, and simply enjoy the clean air that plants can have at home. The use of LED grow lights is increasing with the rising awareness about the benefits offered by these solutions. Different sources of artificial lights have been used to grow plants indoor. Earlier, HPS and electric ballasts were widely used in indoor farming as effective sources of light. Nowadays, LEDs are in trend; these grow lights overcome the drawbacks of HPS, fluorescent (FL), metal-halide lights, and electric ballasts. However, the initial capital required for the purchase of good-quality LED grow lights is higher than that of conventional lighting technologies, such as FL and HID lamps. This is mainly because each LED grow light unit contains arrays of LEDs, specially designed for horticultural applications. Often, these units contain different types of LEDs with variation in watts and wavelengths to provide a broad range of light spectrum and intensity for different types of plants. High-powered LED grow lights are available in the market for prices starting from USD 500. A high-quality, full-spectrum LED grow light can be installed as the primary light source for commercial indoor growing. It can cost around USD 2,000 or more, depending on the power output and other specifications.
Opportunity: Growing acceptance of farm-to-table trend
The farm-to-table concept involves bringing local food to restaurants, cafeterias, food joints, and other locations within the same community. There is a growing demand for locally grown food, and the number of diners who are interested in eating such meals is increasing day by day. The farm-to-table movement is promoting a more sustainable approach to agriculture and dining.
As the concept has endured, more people have joined in, and there is no doubt that the overall awareness of eating locally grown food has increased nowadays. Thus, the farm-to-table concept is no longer limited to the health-conscious or trend-aware eaters. The desire for more local ingredients could soon be spread into several different markets within the hospitality industry. Horticulture lighting promises timely availability of yield in the case of farm-to-table restaurants. With the help of CEA, food can be made available in the desired quality and quantity although the demand keeps on increasing.
Challenge: Grow lights placement and positioning
The quality of light a plant receives is highly dependent on both multilayering and horizontal placement. The distance between fixtures affects the ability to achieve an even distribution of light. If grow lights are placed too close together, they will create hot spots due to overlap and some plants will wilt in low light if hung too far. Generally, grow lights are suspended above the plant, integrated into a tray shelving unit, or in a free-standing lamp. The height distance between the plant and LED is a factor of concern. These settings will vary depending on requirements and circumstances, but if the lamp is too close to the plant, the leaves may be burned or discolored, and if the lamp is too far away, it will not emit enough light energy, resulting in smaller or fewer flowers or flowers, fruit, or long legs. Plants with lobed stems, small sparse leaves, and generally slow growing. These factors can hinder the growth and create challenging circumstances for grow lights industry.
Grow Lights Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of grow lights solutions. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Signify Holding (Netherlands), Gavita International B.V. (Netherlands), GE Lighting (US), Current (US), ams-OSRAM AG (Styria), Heliopsetra AB (Sweden), California LightWorks (US), Valoya Oy (Finland), EYE Hortilux (US), Hortilux Schréder (Netherlands). The demand Product R&D and Production Distributors/Suppliers ? End Users (OEM) ? Prominent Companies ? Small- and Medium-sized Enterprise Suppliers & Retailers Prominent Companies Small and Private Enterprises Partnership (Prominent Companies and Startups) Researchers/Organizations Regulatory Bodies Grow Lights Solution Manufacturers ? Private Contractors End Users (Aftermarket) Regulatory Bodies.
By wattage, <300 Watt segment is expected to grow with the second highest CAGR during forecast
<300 Watt segment is expected to experience the second highest CAGR of 28.2% during the forecast period. Low power lights generate a lesser amount of heat and can be used for an extended period of time without harming plants.
By offering, hardware segment is expected to grow with the second highest CAGR during the forecast period
The hardware segment is expected to witness the second highest CAGR of 29.9% during the forecast period. This growth is attributed to wide presence of grow lights manufacturing companies that provide grow lights as a hardware component. Grow lights act as supplementary lights for fruits, vegetables, and flowers that are cultivated indoors. Depending on the distance between the lamp and the plant, types of bulbs and electrical power of bulbs are adjusted. The grow light system comprises hardware components, namely, bulbs and fixtures, metal reflectors, reflective films, and ballasts. Additionally, as the productivity of controlled-environment agriculture (CEA) facilities increasingly depends on the efficiency of hardware systems installed, they play a vital role in the grow lights market.
By lighting type, top-lighting segment is expected to grow with the second highest CAGR during the forecast period
The top-lighting segment is expected to witness the second highest CAGR of 30.4% during the forecast period. The growth of this segment is mainly attributed to the growing adoption and demand for grow lights solutions in greenhouse agriculture across the globe. Most companies offering horticulture lighting have top lighting systems in their product portfolio. Signify Holding, ams-OSRAM AG, Heliospectra AB, and Gavita International B.V. are a few key players offering top lighting grow light systems. For instance, in April 2021, Canadian Valley Growers (CVG), a greenhouse supplying annual plants, vegetables and herbs to retailers who service Western Canada. CVG installed more than 1,500 Philips LED toplighting grow lights over its leafy green propagation and finished production areas. The lighting included a tailored made light recipe, designed Signify’s team of plant specialists and horticulture application engineers. This helped CVG achieve the best results for specific crop and greenhouse conditions.
By cultivated plants, flowers segment is expected to grow with the second highest CAGR during the forecast period
The flowers segment is expected to witness the second highest CAGR of 32.8% during the forecast period. In floriculture, flowers are grown using methods such as bedding, potted, and cut flowers. The requirement for artificial lighting in flowers varies according to species and production style. Grow lights are designed to provide sufficient light of the desired wavelength in moderate intensity to ensure the effective growth of flowers. The commonly grown plants using grow lights are roses, cannabis, African violets, poinsettia, begonia, phalaenopsis orchid, lily, hortensia, tulip, chrysanthemum, and alstroemeria. Flower cultivators worldwide are increasingly adopting greenhouses, vertical farms, and indoor farms for growing flowers owing to the benefits offered by them than conventional farms. Flowers are grown using bedding, potted, and cut flower techniques in controlled-environment farms. Poor lighting conditions affect their quality, resulting in small flowers with thin stems. Blue light promotes vegetative and root growth of flowers, while red light promotes germination and controls flowering in them. The correct light ratio can decrease flowering time and increase the flower count.
In 2028, Asia Pacific is projected to hold the largest share of the overall grow lighst market
Grow Lights Market by Region
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Asia Pacific is expected to witness the highest CAGR of 34.8% during the forecast period. Growing population, fast-track urbanization, and increasing emphasis of regional governments on the adoption of LED lights in farming practices ar.e the key factors driving the market growth in Asia Pacific. Additionally, to reduce transportation costs and minimize the distance between the market and the production of fresh fruits and vegetables, farmers are focusing on urban farming, which is likely to generate demand for grow lights in the coming years.
Key Market Players
The Grow Lights Companies such as Signify Holding (Netherlands), Gavita International B.V. (Netherlands), GE Lighting (US), Current (US), ams-OSRAM AG (Styria), Heliopsetra AB (Sweden), California LightWorks (US), Valoya Oy (Finland), EYE Hortilux (US), Hortilux Schréder (Netherlands) are some of the key players in the grow lights market.
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Report Metric |
Details |
Market Size Availability for Years |
2019–2028 |
Base Year |
2022 |
Forecast Period |
2023–2028 |
Forecast Units |
Value (USD) |
Segments Covered |
By offering, by wattage, spectrum, cultivated plant, lighting type, light source, application, installation type, sales channel, and region |
Geographies Covered |
North America, Europe, Asia Pacific, and RoW |
Companies Covered |
Signify Holding (Netherlands), Gavita International B.V. (Netherlands), GE Lighting (US), Current (US), ams-OSRAM AG (Styria), Heliopsetra AB (Sweden), California LightWorks (US), Valoya Oy (Finland), EYE Hortilux (US), Hortilux Schréder (Netherlands) are some of the key players in the grow lights market. |
Grow Lights Market Highlights
This research report categorizes the grow lights market based on by offering, by wattage, spectrum, cultivated plant, lighting type, light source, application, installation type, sales channel, and region.
Segment |
Subsegment |
Grow Lights Market by Offering |
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Grow Lights Market by Wattage |
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Grow Lights Market by Spectrum |
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Grow Lights Market by Cultivated Plant |
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Grow Lights Market by Lighting Type |
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Grow Lights Market by Light Source |
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Grow Lights Market by Application |
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Grow Lights Lighting Market by Installation Type |
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Grow Lights Market by Sales Channel |
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Grow Lights Market by Region |
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Recent Developments
- In January 2023, California LightWorks partnered with Virex Technologies to expand European distribution. With this partnership California LightWorks will bring its patented MegaDrive technology to the European market.
- In December 2022. Bridgelux, Inc. entered into an agreement with Empa Elektronik San. ve Tic. A.S., a Turkish electronics components supplier. With the agreement Empa Elektronik will be Bridgelux’s a new distribution partner 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.
- In August 2022, Hortilux Schréder partnered with Daeyoung GS. Co., Ltd. Both the companies have entered a distribution agreement. Under the distribution agreement, Daeyoung GS is authorized to sell Hortilux products to its customers in South Korea. With this, Hortilux Schréder strengthens its presence in South Korea.
- In June 2022, ams-OSRAM AG launched the OSLON Optimal family of LEDs, based on the firm’s latest 1mm2 chip for horticulture lighting, which offer a combination of high efficiency, reliable performance and value..
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- In May 2022, February 2022, Signify Holding acquired Fluence, a leader in horticultural lighting in North America, from ams OSRAM. With this acquisition Signify strengthen thier Agriculture lighting growth platform in North America. This also enables to capture the full potential of the US market for bio-based and non-bio-based crops, building a strong footprint in the European region.
Frequently Asked Questions (FAQ):
Which are the major companies in the grow lights market? What are their major strategies to strengthen their market presence?
The major companies in the grow lights market are – Signify Holding (Netherlands), Gavita International B.V. (Netherlands), GE Lighting (US), Current (US), ams-OSRAM AG (Styria), Heliopsetra AB (Sweden), California LightWorks (US), Valoya Oy (Finland), EYE Hortilux (US), Hortilux Schréder (Netherlands). The major strategies adopted by these players are product launches.
Which is the potential market for grow lights in terms of the region?
Europe region is expected to dominate the grow lights market owing to major presence of grow lights solution manufacturing companies.
Who are the winners in the global grow lights market?
Companies such as Signify Holding (Netherlands), Gavita International B.V. (Netherlands), GE Lighting (US), Current (US), ams-OSRAM AG (Styria) fall under the winner’s category. These companies cater to the requirements of their customers by providing grow lights solutions. Moreover, these companies are highly adopting inorganic growth strategies to strengthen their market position and customer base worldwide.
What are the drivers and opportunities for the grow lights market?
Factors such as Heightened demand for fresh food and loss of arable land and legalization of cannabis in different countries are the driver and opportunity in the grow lights market
What are the restraints and challenges for the grow lights market?
Factors such as High setup and installation costs of LED grow lights and high setup and installation costs of LED grow lights are restraints and challenges in in the grow lights market.
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The study involved four major activities in estimating the size of the grow lights market. Exhaustive secondary research has been carried out to collect information on the market, the peer markets, and the parent market. Both top-down and bottom-up approaches have been employed to estimate the total market size. Market breakdown and data triangulation methods have also been used to estimate the market for segments and subsegments.
Secondary Research
Revenues of companies offering grow lights solutions have been obtained from the secondary data available through paid and unpaid sources. The revenues have also been derived by analyzing the product portfolio of key companies, and these companies have been rated according to the performance and quality of their products.
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the grow lights market. Secondary sources considered for this research study include government sources; corporate filings; and trade, business, and professional associations. Secondary data has been collected and analyzed to arrive at the overall market size, which has been further validated through primary research.
Secondary research has been mainly used to obtain key information about the supply chain of grow lights solutions to identify key players based on their products and prevailing industry trends in the grow lights market by offering, by wattage, spectrum, cultivated plant, lighting type, light source, application, installation type, sales channel, and region. Secondary research also helped obtain market information- and technology-oriented key developments undertaken by market players to expand their presence and increase their market share.
Primary Research
Extensive primary research has been conducted after understanding and analyzing the current scenario of the grow lights market through secondary research. Several primary interviews have been conducted with the key opinion leaders from demand and supply sides across four main regions—the North America, Europe, Asia Pacific, and Rest of Europe. Approximately 25% of the primary interviews have been conducted with the demand-side respondents, while approximately 75% have been conducted with the supply-side respondents. The primary data has been collected through questionnaires, emails, and telephonic interviews.
After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report. The breakdown of primary respondents is as follows:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The bottom-up procedure has been employed to arrive at the overall size of the grow lights market.
- Identifying approximate revenues of companies involved in the grow lights ecosystem
- Identifying different offerings of grow light solutions
- Analyzing the global penetration of each offering through secondary and primary research
- Conducting multiple discussion sessions with key opinion leaders to understand the grow light solutions and their applications; analyzing the breakup of the work carried out by each key company
- Verifying and cross-checking estimates at every level with key opinion leaders, including chief executive officers (CEO), directors, and operations managers, and then finally, with the domain experts of MarketsandMarkets
- Studying various paid and unpaid sources of information such as press releases, white papers, and databases of the company- and region-specific developments undertaken in the grow lights market
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, and databases
The top-down approach has been used to estimate and validate the total size of the grow lights market.
- Focusing initially on the top-line investments and expenditures made in the grow lights ecosystem; further splitting into offerings and listing key developments in key market areas
- Identifying all major players offering a variety of grow light solutions, which were verified through secondary research and a brief discussion with industry experts
- Analyzing revenues, product mixes, and geographic presence for which grow lights are offered by all identified players to estimate and arrive at the percentage splits for all key segments
- Discussing these splits with industry experts to validate the information and identify key growth domains across all major segments
- Breaking down the total market based on verified splits and key growth domains across all segments
Data Triangulation
After arriving at the overall market size-using the market size estimation processes as explained above-the market has been split into several segments and subsegments. To complete the entire market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides in the grow lights market.
Market Definition
Grow lights are artificial lights used to help indoor plants grow throughout the year. A grow light or plant light is an artificial LED light source, usually an electric light, that stimulates plant growth by emitting light suitable for photosynthesis. In other words, grow lights (also known as horticultural lights) are a supplemental source of light that provides a spectrum similar to that of the sun for photosynthesis of plants cultivated indoors. They are essential gardening tools that allow houseplants or indoor plants to get enough light even in rooms without access to natural sunlight.
These lights are a critical component of urban agriculture practices. They are used to provide a spectrum that is customized according to the requirements of the plants being cultivated or, in some cases, to supplement the natural light, especially in cold countries that have fewer daylight hours. Grow lights help extend the hours of natural daylight, which further increases the health, growth rate, and yield of plants.
Key Stakeholders
- Raw Material Suppliers
- Original Equipment Manufacturers (OEMs)
- Original Design Manufacturers (ODMs)
- Research Institutes
- Grow Lights Providers
- Forums, Alliances, and Associations
- Governments and Financial Institutions
- Analysts and Strategic Business Planners
Report Objectives
- To describe and forecast the size of the grow lights market, in terms of value, wattage, spectrum, cultivated plant, lighting type, application, installation type, and sales channel
- To describe and forecast the market size of various segments across four key regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW), in terms of value
- To describe and forecast the market size of grow lights market in terms of value and volume for by offering
- To describe the light source in grow lights
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the grow lights market
- To provide an overview of the value chain pertaining to the grow lights ecosystem, along with the average selling prices of grow light solutions
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, Porter’s five forces, import and export scenarios, trade landscape, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 with regard to individual growth trends, prospects, and contributions to the overall market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments
- To provide details of the competitive landscape for market leaders
- To analyze competitive developments such product launches & developments, partnerships, agreements, and acquisitions in the grow lights market
- To profile key players in the grow lights market and comprehensively analyze their market ranking on the basis of their revenues, market shares, and core competencies2
- To provide updated market developments of profiled players. The current report includes the market developments from January 2020 to January 2023
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players based on various blocks of the supply chain
Growth opportunities and latent adjacency in Grow Lights Market
What would be the price for all the tables related to Europe? Europe if the only region I am interested in.
Could you please let us know if the report includes the information at these detailed levels by country?
The price is outside my budget, I would buy this immediately if I have a discount.
I am interested in the residential/household consumer segment of the market - is that clearly broken out in this report?
We are a grow lighting manufacture, including, ballasts, HID and LED fixtures. We are planing a new product line but it is hard to decide to which will be better, HID or LED?
Is there any discount on the single license price? I am interested in forecast from 2019-2025, by geographic region, by application, by top industry players?
We are the LED grow light manufacturers,supplying quality products with best price. we serve our growers from all over the world. We want to keep pace with technological advancements and opportunities in the LED grow light market and find the valuable clients from overseas. Thanks!