LED Grow Lights Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

LED grow lights are advanced lighting systems that use Light Emitting Diode (LED) technology to deliver a particular plant required light spectrum. Unlike other kinds of conventional lighting solutions including fluorescent or high-intensity discharge (HID) lamps, LED grow lights are specifically designed to emit light within the photosynthetically active radiation (PAR) band of 400-700nm. This range is used in the process of photosynthesis hence plants require this range in order to produce energy of chemical nature for their growth.

LED grow lights are available in different forms and wattage to fit different uses, from small scale home gardening to commercial hydroponics operations. LED grow lights are also popular because of the ability to be customized according to the needed plant varieties and their stages. For instance, blue light (450- 495nm) which is required at the vegetative stage and red light (620-750 nm) that are more useful when the plant is in the flowering and fruiting stage.

The LED grow lights market has witnessed significant growth over the past decade, driven by the rising demand for indoor farming solutions, technological advancements and the increasing demand for energy-efficient lighting solutions in agriculture and horticulture. The adoption of LED technology in plant cultivation has transformed traditional lighting methods, offering enhanced energy efficiency, improved plant growth, and a reduced environmental footprint.

The LED grow lights market is anticipated to reach USD XXX.X million by 2034 from USD XXX.X million in 2023, at a CAGR of XX.X% during the forecast period 2024-2034.

The rise of vertical farming, hydroponics, and controlled environment agriculture (CEA) has significantly increased the demand for LED grow lights. These advanced farming methods often require precise control of environmental factors, including light. LED technology allows growers to provide specific light wavelengths, optimizing plant growth and improving yields in limited spaces. Moreover, the integration of Internet of Things (IoT) technologies has further enhanced the functionality of LED grow lights, which is expected to further boost the LED grow lights market during the forecast period 2024-2034.

Growth Drivers:

The growing preference for indoor and vertical farming is one of the most dominant trends increasing the growth of LED grow lights market. New forms of agriculture are needed when access to the land and organic material for agricultural use is restricted through population pressure and urbanization. Vertical farming without good exposure to natural light and urban greenhouses rely significantly on the artificial lighting systems. LED grow light is more preferred since it consumes less electricity, the light spectrum can be adjusted, and suitable for high-density multi-layer cropping.

There has been much public concern over climate control and the effects of climate change leading to a global search for better ways of sustainable farming practices. Energy-efficient grow lights such as LED grow lights are therefore an important piece of the sustainable practices puzzle in agriculture. This will be in line with emission reduction in greenhouse gases and sustainable use of resource in agricultural production.

Different governments across the world have provided policies and incentives geared towards the sustainable agriculture and efficient energy systems. Financial incentives including subsidies, grants and other forms of assistance ensure the use of LED grow lights mostly in areas where traditional farming is constrained by factors such as small land or high water usage. For instance, the European Commission’s common agricultural policy (CAP) aims to make agriculture sustainable, and thus invests in new technologies such as LED grow lights.

LED technology has matured significantly, including the introduction of full spectrum lighting and advanced control systems further catalyzing the market. Contemporary LED grow lamps can reproduce the full natural spectrum, which is perfect for photosynthesis during all the plant development stages. Also, smart systems of LED can be set manually or can be controlled through a certain sequence which is beneficial for the growth of crop as well as the generation of better yields.

LED Grow Lights Market Segmentation:

By Type:

·         Panel Lights

·         Tube Lights

·         Flood Lights

·         Others

By Spectrum:

·         Full Spectrum

·         Limited Spectrum

By Power Consumption:

·         Below 300 Watt

·         Above 300 Watt

By Installation Type:

·         Retrofit Installations

·         New Installations

By Application:

·         ​​​​​​​Commercial Greenhouse

·         Indoor Farming

·         Vertical Farming

·         Turf & Landscaping

·         Research

·         Others

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

LED Grow Lights Market by Type Review:

Based on the type, the LED grow lights market is segmented into four segments including panel lights, tube lights, flood lights, and others. On the basis of type, the panel lights segment is expected to dominate the market in terms of market share, while the flood lights segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

LED Grow Lights Market by Spectrum Review:

Based on the spectrum, the market is segmented into full spectrum, and limited spectrum. On the basis of spectrum, the full spectrum segment is expected to be the largest in terms of market share, while the segment is also predicted to grow at the highest rate in terms of CAGR during the forecast period.

LED Grow Lights Market by Power Consumption Review:

Based on the power consumption, the market is segmented into below 300 watt, and above 300 watt. On the basis of power consumption, the XXXX segment is expected to be the largest in terms of market share, while the XXXX segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

LED Grow Lights Market by Installation Type Review:

Based on the installation type, the market is segmented into retrofit installations, and new installations. On the basis of installation type, the XXXX segment is expected to be the largest in terms of market share, while the XXXX segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

LED Grow Lights Market by Application Review:

Based on the application, the market is segmented into commercial greenhouse, indoor farming, vertical farming, turf & landscaping, research, and others. On the basis of application, the commercial greenhouse segment is expected to be the largest in terms of market share, while the vertical farming segment is predicted to grow at the highest rate in terms of CAGR during the forecast period.

Regional Outlook:

The LED grow lights market research report offers detailed analysis and forecasts for five major regions i.e., North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

The North America region is forecasted to maintain its dominant position in the global LED grow lights market, accounting for a projected market share of XX.X% in 2023. The regional LED grow lights market is mainly driven by the advancements in indoor farming technologies and a strong focus on sustainable agricultural practices. The region benefits from a well-established infrastructure, supportive government initiatives, and significant investments in agricultural technology. For instance, the US Department of Agriculture (USDA) has funded projects that encourage the adoption of innovative agricultural practices, including the use of LED grow lights. Moreover, companies in North America are integrating smart features such as IoT connectivity and advanced control systems to optimize plant growth and improve energy efficiency, which is predicted to further drive the LED grow lights market in the region during the forecast period 2024-2034.

North America has been dominating the overall LED grow lights market owing to the increasing awareness of sustainability and technological advancement along with growing penchant for controlled environment agriculture. The regional market is mainly dominated by the United States and Canada since both countries have well-developed agriculture and research sectors. The mini-LED technology focusing on energy-efficient lighting to support indoor farming has made North America the most significant market.

This means that due to the increasing urbanization, and the scarceness of the surface area for farming, more vertical farming and indoor farming are being practiced today than before. LED grow lights have become popular among city farmers, especially those developing vertical farming systems in North America to feed the growing population with limited water and space. In addition, flexibility in the smart technology incorporated in LED grow lights like; the possibility of programming smart light cycles, spectral adjustment and automatic control of light intensity have made these systems very effective and profitable to commercial growers thus propelling the market growth in this region during the forecast period of 2024-2034.

The Asia-Pacific region will be the most prominent growth contributor in the LED grow lights market about the upcoming years because of the rising population, scarce land for cultivation, and increasing need for food production. Today’s developed nations like China, Japan, and South Korea are pioneering the use of LED grow light technology in the commercial farming process. Also, urbanization continued to increase with limited land space for conventional farming leading to increased indoor farming and vertical farming boosting the market. Moreover, the region has experienced technological advancements with increased capital investment, developing grow lights such as LED that is energy efficient and holds adjustable spectrum of light which will propel the market growth during the forecast period 2024-2034.

Key Companies in LED Grow Lights Market:

The research report offers a competitive analysis of prominent companies operating in the global LED Grow Lights market. Some of the leading players profiled in the market research report include:

·         Signify Holding

·         Heliospectra AB

·         AMS-OSRAM AG

·         Gavita International B.V.

·         Savant Systems Inc.

·         California LightWorks

·         Valoya OY

·         Iluminar Lighting

·         Bridgelux, Inc.

·         Hortilux Schreder

·         Lemnis Oreon BV

·         Other Player’s