The global LED grow light market value reached USD 1.5 billion in 2021. Over the next ten years, global LED grow light sales will thrive at 22.7% CAGR. total market size is likely to increase from USD 1.9 billion in 2022 to USD 14.8 billion by the end of 2032.
Demand will continue to remain high for LED grow lights with less than 300 watts of power. As per Future Market Insights, less than 300 watts’ segment is set to expand at 22.6% CAGR through 2032.
Key Trends Shaping LED Grow Lights Demand:
Grow lights are electric lights that help plants to grow. These lights provide a suitable spectrum ideal for optimal growth of plants. They allow growers to control various aspects of crop growth to get better results.
Grow lights find application in horticulture (including indoor hydroponics), indoor gardening, vertical farming, commercial greenhouses, etc. These artificial lights perform the function of sun in indoor spaces by emitting light of wavelength conducive to plant development.
A few common types of bulbs used as grow lights include fluorescent lights, incandescent lamps, light-intensity discharge lamps (HID), and light-emitting diodes.
Initially, HIDs and incandescent lamps were mostly used by growers. However, in recent years, the focus has completely shifted towards LED grow lights. This is due to their efficiency and economy.
Energy-efficient lights used by indoor and greenhouse framers as well as cannabis growers are called LED grow lights. These lights promote plant growth using full-spectrum at lower costs than traditional horticulture lighting such as HPS lamps.
LED grow lights consumer
Few advantages of LED grow lights include:
Shift from conventional horticulture lighting such as HID and incandescent lamps to modern ones such as solid-state light sources (LED and OLED) will boost the market.
Growing adoption of indoor farming and vertical farming as a means of tackling food insecurity is likely to propel demand for LED grow lights.
According to the Food and Agriculture Organization (FAO) of the United Nations, severe food insecurity reached 11.7% in 2021. This is prompting farmers to shift towards modern agricultural techniques.
Driven by this, sales of LED grow lights will increase significantly as they have become essential tools in these modern agricultural practices.
Reduction in arable land is another key factor creating opportunities for LED grow light manufacturers. In recent years, there has been a sharp reduction in arable land globally. This is due to population growth, urbanization, industrialization, and certain environmental factors.
To counter this and meet growing food demand, farmers are using commercial greenhouses. As LED grow lights are being used in commercial greenhouses to promote plant growth and increase yields, rising number of commercial greenhouses will trigger LED grow light sales.
New product launches will further boost the global LED grow light industry through 2032. Various grow light manufacturers are expanding their LED grow light portfolios by introducing new products.
For instance, in September 2020, two new-generation greenhouse LEDs (RX500 and RX600) were introduced by Valoya. Recently, a new generation LED grow light was launched by Polymatech for hydroponics, vertical farming, and horticulture applications.
| Attributes | Key Insights |
|---|---|
| Global LED Grow Light Market Size in 2022 | USD 1.9 billion |
| Projected Market Size (2032) | USD 14.8 billion |
| Value-based CAGR (2022 to 2032) | 22.7% |
| USA Market CAGR (2022 to 2032) | 21.9% |
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Historically, from 2017 to 2021, the value of the LED grow lights market increased by around 27.8% CAGR. Over the next ten years, global sales of LED grow lights are set to rise at 22.7% CAGR. This will help the market to generate an absolute $ opportunity of USD 12.9 billion through 2032.
Electric light that helps promote plant growth in indoor environments is known as a grow light. Grow lights either aim to provide a spectrum of light that is similar to that of the sun or one that is more suited to the requirements of the plants being grown.
This enhances the crop yield in areas where the climatic conditions are not typically suited for the plants due to the absence or low availability of sunlight. Grow lights provide suitable lighting conditions for the plants.
LED grow lights are being used widely as they are highly energy-efficient compared to traditional grow lights, such as high-pressure sodium (HPS) and metal halide (MH) lamps. They use less electricity to produce the same amount of light, resulting in lower electricity bills for growers.
Further, these lights can be customized to radiate specific wavelengths of light that plants need for better growth. Growers can tailor their lighting systems to the specific needs of their crops, resulting in higher yields.
LED grow lights generally have a longer lifespan than other conventional grow lights, which means growers don't have to replace them as often. This reduces the overall cost of lighting systems over time.
LED grow lights produce less heat than traditional grow lights which were made up of halogen bulbs and CFL lamps. Hence, they reduce the need for additional cooling systems that consume more energy.
As the world's population continues to expand, there is an increasing demand for food that can be grown in controlled indoor environments. LED grow lights are essential components of indoor farming systems and greenhouses. Hence, rising adoption of these farming techniques will fuel LED grow lamp sales.
The world population is likely to increase to around 8.7 billion by 2033. Along with the rapid rise in the population, the agricultural land under cultivation has been decreasing over the past few years. It is projected that around 3.3 million hectares of farmlands will be lost to rapid urbanization due to population growth.
As LED grow lights are widely used for indoor farming and greenhouse farming, rising demand for food around globally will increase the number of indoor farms. This in turn will elevate LED grow light demand during the assessment period.
As per the latest analysis, Asia Pacific is likely to create lucrative growth prospects for the LED grow light industry through 2032. Currently, Asia Pacific LED grow light market is valued at USD 947 million. By the end of 2032, it will cross a valuation of USD 7.3 billion.
Demand for LED grow lights is increasing in the region due to various factors such as the lack of space for farming. Asia Pacific is home to various densely populated cities, which often means limited space for outdoor farming.
LED grow lights can be used to grow crops vertically, making them a popular choice for urban farmers. They significantly improve crop yields.
Asia Pacific is a leading region in terms of population with around 4.3 billion people. Yet agricultural activities are done in only 30% of the land available in the region. 50% of the population in the Asia Pacific region lived in urban settings in 2020 which is projected to increase to around 55%.
With the rise in population and rapid urbanization in the region, the adoption of indoor farming practices will increase dramatically. This in turn is set to propel demand for LED grow lights.
Similarly, with rising population and a greater emphasis on healthy living, there is a growing demand for fresh produce in the region. LED grow lights can be used to grow crops indoors, year-round, providing a consistent supply of fresh produce regardless of the season.
These lights can also allow growers to have greater control over the growing environment, including temperature, humidity, and light intensity. This means that crops can be grown under optimal conditions, resulting in higher yields and better-quality produce.
| Country | United States |
|---|---|
| Projected CAGR (2022 to 2032) | 21.9% |
| Historical CAGR (2017 to 2021) | 24.2% |
| Market Value (2032) | USD 2.4 billion |
| Country | United Kingdom |
|---|---|
| Projected CAGR (2022 to 2032) | 20.9% |
| Historical CAGR (2017 to 2021) | 22.6% |
| Market Value (2032) | USD 407.1 million |
| Country | China |
|---|---|
| Projected CAGR (2022 to 2032) | 24.4% |
| Historical CAGR (2017 to 2021) | 30.3% |
| Market Value (2032) | USD 3.8 billion |
| Country | Japan |
|---|---|
| Projected CAGR (2022 to 2032) | 23.0% |
| Historical CAGR (2017 to 2021) | 28.1% |
| Market Value (2032) | USD 2.3 billion |
| Country | South Korea |
|---|---|
| Projected CAGR (2022 to 2032) | 23.2% |
| Historical CAGR (2017 to 2021) | 29.5% |
| Market Value (2032) | USD 917.6 million |
Reduction in Arable Land to Create Growth Prospects for the USA LED Grow Lights Industry
As per Future Market Insights, the United States will remain one of the key markets for LED grow lights. LED grow light demand in the country grew at 24.2% CAGR from 2017 to 2021. For the projection period, the United States LED grow light market will expand at 21.9% CAGR.
By the end of 2032, the USA market will exceed a valuation of USD 2.4 billion. It is set to create an absolute dollar growth of USD 2 billion over the next decade. Growing popularity of indoor vertical farming due to reduction in arable land is a key factor driving the USA market.
The United States has a population of 336 million which is projected to increase to around 349 million by 2030. Around 52% of the total land base of the United States is under agricultural use.
With rising population, the rate of urbanization is also likely to increase in the country, therefore decreasing the land available for agriculture. As per the USA Department of Agriculture (USDA), total number of farms in the USA reduced from 2.20 million in 2007 to 2.02 million in 2020.
This has prompted farmers to adopt indoor farming techniques such as vertical farming and greenhouse farming. As LED grow lights are used in greenhouses and vertical farms to provide the plants with adequate light to grow, demand for LED grow lights will increase at an impressive pace over the next ten years.
Growing Popularity of Indoor Vertical Farming to Elevate LED Grow Light Demand in China
China is set to retain its monopoly in the global LED grow light industry during the forecast period. As per the latest analysis, China’s LED grow light market will top a valuation of USD 3.8 billion by 2032. It is forecast to generate an absolute $ opportunity of USD 3.4 billion over the next ten years.
The LED grow light industry in China witnessed a CAGR of 30.3% from 2017 to 2021. Between 2022 and 2032, LED grow light sales in the country will surge at 24.4% CAGR.
China is currently the most populated country in the world. It has a significant population with around 1.4 billion people living in the country in 2023 and is projected to reach around 1.5 billion by 2033.
With this rising population, the demand for food is also projected to increase in the country. Only 10% of land in China is arable and the arable land is decreasing at a rapid rate of around 300 sq. Km/Year.
Therefore, the country is rapidly adopting indoor farming methods such as vertical farming and greenhouse farming to keep up with the demand. This in turn is propelling demand for LED grow lights as they have become essential equipment in indoor farming and greenhouses.
Rising Number of Vertical Farms and Greenhouses to Bolster LED Grow Light Sales in Japan
Japan LED grow light market registered a CAGR of 28.1% between 2017 and 2021. For the next ten years, LED grow light sales will surge at 23.0% CAGR. This will steer the total market valuation past USD 2.3 billion by 2032.
Growth in Japan market is driven by an increase in vertical farms across the country. Japan has around 200 vertical farms and 52000 hectares of greenhouses. These numbers are likely to further increase due to reduction in arable land and rising demand for food products.
Since LED grow lights are used in vertical farms and greenhouses for providing crops with adequate light, the demand for LED grow lights will rise at a prolific pace across Japan.
Demand to Remain High for <300 Watt LED Grow Lights
Based on product, the market is segmented into more than 300 watts and less than 300 watts. Among these, less than 300 watts segment expanded at a CAGR of 27.4% from 2017 to 2021. For the next ten years, demand for less than 300 watt LED grow lights is set to rise at 22.6% CAGR.
LED grow lights with less than 300 watts of power are becoming increasingly popular among indoor growers. This is because they are highly efficient and can produce a lot of light using less power than traditional grow lights.
By using LED grow lights with less than 300 watts of power, growers can reduce their energy consumption and save money on electricity bills.
Moreover, <300 watt LED grow lights produce less heat than traditional grow lights. It means that they can be used in smaller spaces without the need for additional cooling equipment. This is particularly important for indoor growers who may not have access to ventilation or air conditioning.
LED grow lights with less than 300 watts of power also come with customizable spectrum settings, which allow growers to adjust the light output based on the specific needs of their plants. This can result in better growth, yield, and overall plant health.
New Installation Segment to Generate Lucrative Revenues Through 2032
By installation type, the global market is segmented into retrofit and new installation. Among these, new installation segment is likely to generate significant revenues in the market. This is due to rising end user preference for new LED grow lights.
From 2017 to 2021, the new installations segment grew at a CAGR of 27%. Over the projection period (2022 to 2032), it will progress at 22.5% CAGR. Hence, it will continue to remain the top revenue generation segment.
Illumitex, Inc., Bridgelux, Inc., Royal Dutch Shell plc, Lumigrow, Inc., Osram Licht AG, Heliospectra AB, General Electric Company, Everlight Electronics Co. Ltd., SMART Global Holdings, Inc., Royal Philips Electronics N.V., and Petronas are few of the prominent LED grow light manufacturers.
New product launches, mergers, acquisitions, collaborations, and facility expansions are key strategies adopted by these companies.
Recent Developments:
| Attribute | Details |
|---|---|
| Current Market Size (2022) | USD 1.9 billion |
| Projected Market Size (2032) | USD 14.8 billion |
| Anticipated Growth Rate (2022 to 2032) | 22.7% CAGR |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; Asia Pacific; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Segments Covered | Product, Installation Type, Application, and Region |
| Key Companies Profiled | Royal Philips Electronics N.V.; Lumigrow, Inc.; Osram Licht AG; Heliospectra AB; General Electric Company; SMART Global Holdings, Inc.; Everlight Electronics Co. Ltd.; Bridgelux, Inc.; Illumitex, Inc.; Royal Dutch Shell plc; Petronas |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The new installation type holds high revenue potential.
The United States , China and Japan are estimated to dominate the global market.
The market is forecast to register a CAGR of 22.7% through 2032.
During 2018 to 2022, the market registered a CAGR of 27.8%.
The rising usage of smart greenhouses are the current market trends.
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LED Grow Lights Market
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