LED Grow Lights Market Outlook – 2030
The global LED grow lights market size was valued at $1.28 billion in 2020, and is projected to reach $12.32 billion by 2030, registering a CAGR of 28.2% from 2021 to 2030. LED grow lights are specialized LED lights used for growing indoor plants. These lights help plants in the process of photosynthesis and boost healthy development and yield incredible products. LED grow lights offer many benefits that other lighting technologies do not have. It includes longer lifespan, cooler temperature, greater efficiency, usage of full spectrum, compact size, and state rebates. These factors make it ideal for indoor plant growth.
Higher efficiency offered by LEDs is the prime reason that drives growth of the LED grow lights industry during. Further, LED lights offer higher controllability, which accelerates growth of the LED grow lights market. Moreover, rise in adoption of vertical farming is opportunistic for the market growth. Considering these factors, the market is estimated to experience exponential growth in the future.
Legalization of cannabis is expected to offer lucrative growth opportunities for the market during the forecast period. However, high initial investments act as major restrain for the LED grow lights market growth. Moreover, lack of standardization results in high risk of purchasing incompatible parts hampers the market growth.
The global LED grow lights market trends has been significantly impacted by the COVID-19 outbreak. Production facilities of electronics and semiconductors have been halted, owing to slowdown and unavailability of workforces across the globe. COVID-19 outbreak has caused a significant and protracted drop in manufacturing utilization and travel bans. In addition, facility closures kept workers out of their factories, which led to slowdown in growth of the industry in 2020.
By Wattage
Medium Power segment will grow at a highest CAGR of 32.0% during 2021 - 2030
Segment Overview
The LED grow lights market is segmented on the basis of wattage, spectrum, installation type, application, and region. On the basis of wattage, it is fragmented into low power (<100 W), medium power (100–300 W), and high power (>300 W). The low power segment dominated the market, in terms of revenue in 2020, and is expected to follow the same trend during the forecast period. On the basis of spectrum, the market is segregated into narrow and broad. The narrow segment dominated the market, in terms of revenue in 2020, and is anticipated to witness significant market share during the forecast period.
By Spectrum
Narrow segment will maintain the lead during the forecast period
By installation type, the LED grow lights market is divided into new installation, and retrofit. Both new installation and retrofit segments are further bifurcated into remote and touch. The market share for the new installation segment was highest in 2020, and is expected to grow at a high CAGR from 2021 to 2030. By application, the market is divided into indoor farming, commercial greenhouse, vertical farming, turf and landscaping, research, and others. The market share for the commercial greenhouse segment was highest in 2020, and the others segment is expected to grow at a high CAGR from 2021 to 2030.
By Installation Type
New Installation segment will dominate the market throughout the forecast period
Top Impacting Factors
Significant factors that impact growth of the LED grow lights market include rise in adoption of vertical farming, higher efficiency, and higher controllability. However, lack of standardization and high initial investments are the factors that hamper the market growth. On the contrary, legalization of cannabis is expected to offer lucrative opportunities for the market during the forecast period.
By Application
Vertical Farming segment will generate the highest revenue by the end of 2030
Competitive Analysis
Competitive analysis and profiles of the major market players, such as Black Dog Grow Technologies Inc. (U.S.), Bridgelux Inc. (U.S.), CreeLED Inc. (U.S.), EVERLIGHT Electronics Co. Ltd. (Taiwan), Heliospectra AB (Sweden), Lumigrow Inc. (U.S.), OSRAM GmbH (Germany), Samsung Electronics Co. Ltd. (South Korea), Savant Systems Inc. (U.S.), and Signify Holding (Netherlands) are provided in this report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
By Region
Asia-Pacific region would exhibit the highest CAGR of 30.8% during 2021 - 2030
Key Benefits For Stakeholders
- This study comprises analytical depiction of the LED grow lights market along with the current trends and future estimations to depict the imminent investment pockets.
- The overall LED grow lights market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current LED grow lights market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the market.
- The report includes the LED grow lights market share of key vendors and market trends.
LED Grow Lights Market Key Segments
By Wattage
- Low Power (<100 W)
- Medium Power (100–300 W)
- High Power (>300 W)
By Spectrum
- Narrow
- Broad
By Installation Type
- New Installation
- Remote
- Touch
- Retrofit
- Remote
- Touch
By Application
- Indoor Farming
- Commercial Greenhouse
- Vertical Farming
- Turf and Landscaping
- Research
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Black Dog Grow Technologies Inc. (U.S.)
- Bridgelux Inc. (U.S.)
- CreeLED Inc. (U.S.)
- EVERLIGHT Electronics Co. Ltd. (Taiwan)
- Heliospectra AB (Sweden)
- Lumigrow Inc. (U.S.)
- OSRAM GmbH (Germany)
- Samsung Electronics Co. Ltd. (South Korea)
- Savant Systems Inc. (U.S.)
- Signify Holding (Netherlands)
LED Grow Lights Market Report Highlights
| Aspects | Details |
 By Wattage |
|
 By Spectrum |
|
 By Installation Type |
|
 By Application |
|
 By Region |
|
 Key Market Players | CreeLED Inc., Signify Holding, Savant Systems Inc., EVERLIGHT Electronics Co. Ltd., Bridgelux Inc., Heliospectra AB, OSRAM GmbH, Samsung Electronics Co. Ltd., Black Dog Grow Technologies Inc., Lumigrow Inc. |
Analyst Review
For less than a decade, LEDs in the horticulture industry were used mainly as research tools and novelty. Some of the biggest technical challenges in utilizing LEDs efficiently for agriculture include LED shadowing, glaring, and color separation. However, this is quickly changing. Prices of LEDs have considerably reduced and efficiencies have substantially increased to critical point where a lot of applications are included.
Manufacturers of LED grow lights are working meticulously to offer customer-oriented solutions across the globe. Every project is unique in the horticulture lighting industry; and efficiency is a critical factor. Other factors include region, crop, and customer requirements. There is no exact size of LED grow lights that fits for all stages of plants in horticulture, but having the right combination of spectrum, efficiency, and reliability are critical parameters for success as a supplier to these manufacturers.
With every lighting-related market, where LEDs are becoming a superior substitute to incumbent technology (e.g., high pressure sodium and metal halide lamps), increasing performance and improving cost are key drivers for LED adoption. Moreover, manufacturers continue to focus on developing most efficient LEDs in visible spectrum and currently offer best products in the visible spectrum.
The key players profiled in the report include Black Dog Grow Technologies Inc. (U.S.), Bridgelux, Inc. (U.S.), CreeLED, Inc. (U.S.), EVERLIGHT Electronics Co., Ltd. (Taiwan), Heliospectra AB (Sweden), Lumigrow, Inc. (U.S.), OSRAM GmbH (Germany), Samsung Electronics Co. Ltd. (South Korea), Savant Systems, Inc. (U.S.), and Signify Holding (the Netherlands).
The LED Grow Lights Market is estimated to grow at a CAGR of 28.2% from 2021 to 2030.
The LED Grow Lights Market is projected to reach $12.32 billion by 2030.
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High controllability, higher efficiency, and rise in adoption of vertical farming etc. boost the LED Grow Lights market growth.
The key players profiled in the report include Black Dog Grow Technologies Inc. (U.S.), Bridgelux Inc. (U.S.), CreeLED Inc. (U.S.), and many more.
On the basis of top growing big corporations, we select top 10 players.
The LED Grow Lights Market is segmented on the basis of wattage, spectrum, installation type, application, and region.
The key growth strategies of LED Grow Lights market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Asia-Pacific region would grow at a highest CAGR of 30.8% during the forecast period.
Vertical Farming segment will dominate the market by the end of 2030.
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