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
Key Takeaways
The global LED grow lights market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
More than 1,500 product literatures, industry releases, annual reports, and other such documents of major LED grow lights market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Key Market Dynamics
There's a rising trend towards indoor farming due to urbanization, limited arable land, and changing weather patterns. LED grow lights are essential for providing artificial light that supports plant growth in controlled environments. Continuous advancements in LED technology, including improvements in efficiency, spectrum adjustability, and durability, drive adoption in the market. These advancements lead to better energy efficiency and reduced operational costs for growers. Supportive government policies and incentives promoting sustainable agriculture and energy-efficient technologies contribute significantly to LED grow lights market growth. Subsidies and rebates for adopting energy-efficient lighting solutions like LED grow lights encourage market expansion.
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 LED grow lights 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 LED grow lightsmarket 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
Regional/Country Market Outlook
North America: North America remains a dominant player due to early adoption and technological advancements in farming techniques. The U.S. in particular continues to lead in terms of revenue, driven by the cannabis industry.
Asia-Pacific: China is rapidly investing in indoor farming technologies and large-scale urban agriculture projects to enhance food security, which boosts LED grow light adoption. Australia and India are also showing increasing interest in LED grow lights for controlled environment farming to address climate-related agricultural challenges.
Europe: Europe is expected to experience steady growth due to its established position in precision agriculture, with the Netherlands at the forefront of advanced greenhouse technologies.
Latin America & Middle East: Brazil and Argentina are increasing investments in modern agriculture, including hydroponics and greenhouse farming, which supports the demand for LED grow lights. The Middle East, especially countries like the UAE and Saudi Arabia, is investing heavily in indoor farming technologies such as vertical farming and controlled-environment agriculture due to water scarcity and harsh climate conditions.
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 LED grow lights 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 LED grow lights 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
Report Coverage & Deliverables
This report delivers in-depth insights into the LED grow lights market by wattage, spectrum, installation type, application, and region, and key strategies employed by major players. It offers detailed LED grow lights market forecasts and emerging trends.
Wattage Insights
Low-power LED grow lights are suitable for small-scale operations and home growers who have limited space. These lights are typically used for indoor gardening, hobbyist growers, and small plants or seedlings. Due to their energy efficiency and lower heat generation, low-power lights are popular in residential setups where heat management is a concern. High-power LED grow lights are designed for large-scale commercial operations such as commercial greenhouses and vertical farming setups. These lights provide intense light suitable for high-light-requiring crops like cannabis, fruits, and certain vegetables. Although high-power lights are more expensive to operate, they offer superior coverage and intensity for large crops, leading to higher yields and faster growth cycles.
Spectrum Insights
Narrow-spectrum LED grow lights focus on specific wavelengths tailored to particular plant growth stages. These lights are most effective when targeting either the vegetative phase or the flowering phase, optimizing photosynthesis and enhancing crop quality. Narrow-spectrum lighting is often used in research applications where specific wavelengths are required to study plant responses or to maximize productivity in a given phase of growth. Broad-spectrum LED grow lights mimic natural sunlight by providing a wider range of wavelengths that cover all growth phases of plants. These lights are suitable for both commercial and residential farming as they cater to the complete growth cycle from seedling to flowering. Broad-spectrum lights are widely used in commercial greenhouses, vertical farming, and indoor farming because of their versatility and ability to enhance overall crop quality.
Installation Type Insights
New installation LED grow lights are used when setting up completely new farms or upgrading from traditional lighting systems. These lights are often installed in large-scale commercial operations such as indoor farming, greenhouses, or vertical farms. Growers prefer new installations when establishing advanced agricultural operations with state-of-the-art technologies to maximize energy efficiency and crop yields.
Application Insights
Indoor farming is one of the primary applications of LED grow lights, driven by urbanization and the need for controlled-environment agriculture. With the increasing focus on food security and efficient use of space, LED grow lights are key to ensuring high crop yields and consistent growth in environments where natural sunlight is absent. Commercial greenhouses extensively use LED grow lights to supplement natural sunlight, particularly in regions with less natural light or during the off-season. LED lighting enhances crop quality and allows for year-round production, especially for high-value crops like fruits, flowers, and vegetables. The ability to control the light spectrum and intensity optimizes plant growth, improving productivity.
Regional Insights
The largest market for LED grow lights, driven primarily by the legalization of cannabis cultivation in several U.S. states and Canada. North America is also seeing a rise in urban and vertical farming, contributing to the high demand for energy-efficient lighting solutions. Government initiatives and rebates on energy-efficient farming equipment further fuel growth in this region. APAC is the fastest-growing region for LED grow lights, driven by countries like China, Japan, and South Korea, where there is an increasing demand for food security solutions. Rapid urbanization, population growth, and government initiatives promoting modern agricultural techniques are pushing the adoption of LED grow lights in indoor farming and vertical farming applications.
Key Strategies and Developments
In 2024 - Acuity Brands launched its intention to acquire the Arize horticultural lighting product line from Current Lighting Solutions. This follows their 2022 introduction of the Verjure horticultural LED platform, indicating a continued push into the horticulture lighting segment.
In 2023 - Inventronics acquired the European and Asian Digital Systems business from ams OSRAM, further consolidating its presence in the LED market, including grow lights, by enhancing its portfolio of power supplies, light modules, and connected components.
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 Report Highlights
| Aspects | Details |
 By Wattage |
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 By Spectrum |
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 By Installation Type |
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 By Application |
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 By Region |
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 Key Market Players | Heliospectra AB, Savant Systems Inc., CreeLED Inc., Lumigrow Inc., Signify Holding, EVERLIGHT Electronics Co. Ltd., Samsung Electronics Co. Ltd., Bridgelux Inc., OSRAM GmbH, Black Dog Grow Technologies 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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