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
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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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~29.93% |
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Base Year Market Size (2022) |
~ USD 4.08 Billion |
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Forecast Year Market Size (2035) |
~ USD 94.44 Billion |
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Regional Scope |
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Growth Drivers
Challenges
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:
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By Application |
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By Installation Type |
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By Spectrum |
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By Technology |
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By Wattage |
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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.
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
Ans: Declining stocks of arable land per person, and growing adoption of vertical farming are the major factors driving the market growth.
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.
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.
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.
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.
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.
Ans: The market is segmented by application, installation type, spectrum, technology, wattage, and by region.
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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