LED Grow Light Market Analysis by Application (Commercial Greenhouse, Vertical Farming, Indoor Farming); Installation Type (New Installation, Retrofit); Technology (LED, Fluorescent, Plasma, High Intensity Discharge); Wattage (<300, >300 Watt); Spectrum (Partial, Full Spectrum) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4842 | Published Date: Apr 23, 2023

Global LED Grow Light Market Size, Forecast, and Trend Highlights Over 2023 - 2035

LED Grow Light Market size is estimated to reach ~USD 94.44 Billion by the end of 2035 by growing at a CAGR of ~29.93% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of LED grow light was ~USD 4.08 Billion. The growth of the market can be attributed to the growing concept of indoor plants in order to make the appearance of a home more beautiful. LED lights are more effective than fluorescent lights for growing plants at home, and this is expected to boost the growth of the market. More than 32 Million people in the United have houseplants as per the estimates.

LED grow lights are electric lights that are used for the growth of the plants. They are used for indoor gardening, horticulture, food production, plant propagation, and others. These lights come in different colors, that can mimic sunlight more than the other artificial lights. Moreover, LED lights are the most effective, efficient, and customer friendly way to grow plants at home rather than growing them with fluorescent lights. In addition, the LEDs are much cooler than HPS bulbs, and also lower the environmental impact. They have a wider spectrum of red and blue lights that promote flowering, and vegetative growth. Hence, all these factors are anticipated to provide opportunities to the growth of the global LED grow light market in the upcoming years.

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Global LED Grow Light Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

~ USD 4.08 Billion

Forecast Year Market Size (2035)

~ USD 94.44 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global LED Grow Light Market: Growth Drivers and Challenges


Growth Drivers

  • Growing Adoption of Vertical Farming – According to agricultural research, red and blue lights are the most vital for plant growth. This is why vertical farms frequently use these colors to bathe their plants. White light is also necessary, however powerful white light, such as sunshine, will often impede plant growth. Plants that flourish in direct sunshine, such as cucumbers, tomatoes, and sweet potatoes, are exceptions. Moreover, vertical farming is really sustainable, and it is expected to boost the growth of the market in the upcoming years. As per the data, vertical farming uses 90 percent less water as compared to other farming methods.
  • Declining Stocks of Arable Land Per Person– The global per capita agricultural land was 0.6 hectares per capita in the year 2019, accounted for a 30 percent decrement since 1990. The arable land in the major agriculture countries is declining owing to rising industrialization, and urbanization. In addition, the population in the world is increasing, which is leading to a declining stocks of arable land per person. Therefore, it is anticipated to surge the growth of the global LED grow light market.
  • Increasing Government Initiatives to Innovate Advanced Lighting Technology – Light science technology has been awarded nearly USD 625,387 by Innovate UK in funding to develop its intelligent LED grow lighting cloche solution that supports the indoor farming proposition. There has been rising supports for the different companies and organizations developing advanced technologies for indoor and vertical farming. Thus, it is predicted to rise the market’s growth over the forecast period.
  • Growing Urbanization Along with Increasing Population- It is expected that more than 65 percent of the total population will live in urban areas by the end of 2050 across the globe.  Moreover, according to the United Nations, the world population is expected to reach 9.7 Billion in the year 2050. There has been an increasing urban population owing to the fact that the urban cultivation is rising, and it is projected to drive the growth of the market in the future.
  • Rising Demand for Import and Export of Fresh Foods – As per the India Brand Equity Foundation, India exported fresh vegetables and fruits accounting to USD 1,527.60 Million during the forecast period 2021-2022.


  • High Installation Cost of LED Grow Lights – The initial setup cost for the LED grow lights is more expensive than the traditional lighting technologies such as HID lamps. Moreover, a single LED grow light consists of arrays of LEDs that are designed for a particular application. Moreover, these LEDs are available at different prices in the market, that is anticipated to hamper the growth of the market over the forecast period.
  • Lack of Financial Resources for Farming
  • Concerns Related to the Standardization of the LED Grow Light Parts

Global LED Grow Light Market Segmentation

The LED grow light market is segmented and analyzed for demand and supply by technology into LED, fluorescent, plasma, and high intensity discharge. Out of the four types of LED grow light, the LED segment is estimated to gain the largest market share of about ~38% in the year 2035. The growth of the segment can be attributed to the increasing government initiatives to adopt energy efficient LEDs. Moreover, it is good as compared to other types of lights in all the growth phases. In addition, the surging urban population is opting for LEDs technology, followed by an increase in the sale of LED lights. Therefore, all these factors are expected to boost the growth of the segment in the market. More than 50 percent of the lighting sector uses LED technology as per the International Energy Agency.

The LED grow light market is also segmented and analyzed for demand and supply by application into commercial greenhouse, vertical farming, indoor farming, and others. Out of these, the vertical farming segment is predicted to hold the significant share over the forecast period. This can be attributed to the widely acceptance of vertical farming in countries such as China, Japan, and others. Moreover, vertical farming produces food, herbs, and medication in vertically stacked layers that are integrated into a utilized warehouse, skyscraper, or shipping container. It employs Controlled-Environment Agriculture (CEA) to regulate environmental variables including as humidity, temperature, water, and light. Some vertical farms use greenhouse techniques, in which sunlight is enhanced with metal reflectors and grow lights. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global LED grow light market includes the following segments:

    By Application

  • Commercial Greenhouse
  • Vertical Farming
  • Indoor Farming
  • Others

    By Installation Type

  • New Installation
  • Retrofit

    By Spectrum

  • Full Spectrum
  • Partial Spectrum

    By Technology

  • LED
  • Fluorescent
  • Plasma
  • High Intensity Discharge

    By Wattage

  • <300
  • >300 Watt

Global LED Grow Light Market Regional Synopsis


The market share of LED grow light in European, amongst the market in all the other regions, is projected to be the largest with a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the increasing awareness of alternative farming owing to the non-availability of enough fertile agricultural land. Furthermore, there has been a surge in the usage of grow light systems for a long time in multiple controlled agriculture needs, which is further projected to boost the growth of the LED grow light market in the region.  In addition, the market is witnessing a plethora of infrastructural plans by merchants. Bayer, for instance, just established a new, automated greenhouse facility in Marana, Arizona. The USD 100 million facility will primarily function as a global product design center for maize, and it will be the only crop farmed in that facility. Furthermore, there are an increasing number of jobs in food production, and agriculture sector in the European region. All these factors are projected to boost demand for grow lights during the forecast period. According to the reported data, the agriculture industry in the EU supported more than 9,000,000 jobs in the year 2019.

North American LED grow light market is estimated to be the second largest, registering a share of about ~23% by the end of 2035. The growth of the market can be attributed majorly to the increasing owing to different factors such as scarcity of space for cultivating particularly in urban communities, and the surging need to develop yield per unit range. Moreover, the rising adoption of technologies for the vertical and other types of farming is further estimated to increase the growth of the LED grow light marker in the upcoming years. Moreover, the increasing indoor farming trend in the region is projected to expand the market’s growth in the North America region by the end of 2035. In addition, the increasing innovation in countries such as the United States for farming, is further anticipated to expand the market’s growth.

Further, the LED grow light market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The Asia Pacific regional market is expected to increase significantly over the forecast period as genetically modified agricultural technology expands. Furthermore, several countries in this region are transitioning to energy-efficient LED lighting in order to cut energy use. LEDs would reduce greenhouse gas emissions by replacing typical incandescent light bulbs.

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Top Featured Companies Dominating the Global LED Grow Light Market

    • Gavita International B.V.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Smart Global Holdings, Inc.
    • Savant Systems, Inc
    • Bridgelux, Inc.
    • OSRAM GmbH
    • Heliospectra AB
    • Black Dog LED
    • Samsung Electronics


In The News

  • Heliospectra AB announced the expansion of intelligent LED lighting solutions in order to include ELIXIA 600W high-voltage fully adjustable spectrum light for indoor or greenhouse horticulture applications.
  • OSRAM GmbH announced the launch of its Phytofy RL, a grow light system for horticulture research. It was developed to meet the various demand of researchers at private institutes, universities, and plant production in vertical farms.


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Abhishek Verma, Hetal Singh

Key Questions Answered in the Report

1) What are the major factors driving the growth of the LED grow light market?

Ans: Declining stocks of arable land per person, and growing adoption of vertical farming are the major factors driving the market growth.

2) What would be the CAGR of LED grow light market over the forecast period?

Ans: The market size of LED grow light is anticipated to attain a CAGR of ~29.93% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the LED grow light market growth?

Ans: Lack of financial resources for farming, and concerns related to the standardization of the led grow light parts are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of LED grow light market in future?

Ans: The market in the European region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the LED grow light market?

Ans: The major players in the market are Smart Global Holdings, Inc., EVERLIGHT ELECTRONICS CO., LTD, Savant Systems, Inc, Bridgelux, Inc., OSRAM GmbH, Heliospectra AB, Black Dog LED, WOLFSPEED, INC., Samsung Electronics, and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the LED grow light market?

Ans: The market is segmented by application, installation type, spectrum, technology, wattage, and by region.

8) Which segment captures the largest market size in the technology segment in the LED grow light market?

Ans: The LED segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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