Grow Light Industry Overview

The global grow light market was valued at USD 4.23 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. This growth is largely driven by several factors, including the rise of urban cultivation, the expansion of vertical farming, and the increasing adoption of environmentally friendly methods for producing fruits and vegetables. As the global population continues to grow at an unprecedented rate, the demand for urban agriculture has surged, further boosting the market for grow lights. Vertical farming, which involves growing food in vertically stacked layers, often inside repurposed spaces such as warehouses, skyscrapers, or shipping containers, is a particularly influential factor in the market's expansion. This method offers an innovative solution to food production in urban areas where land availability is limited.

Grow lights are essential in indoor farming as they extend the natural daylight hours, enhancing the health, growth rate, and yield of plants. Different types of artificial lighting—such as high-pressure sodium lighting, LED lighting, and plasma lighting—are used in various combinations to provide crops with sufficient light throughout their growing cycle, allowing them to thrive regardless of external conditions. These grow lights help maintain crop availability across the entire year, thus ensuring a constant supply of produce.

One of the key drivers for the market is the growing awareness of alternative farming techniques. With the limited availability of fertile agricultural land and the increasing pressures of population growth, alternative methods like indoor and vertical farming are becoming crucial. These farming practices, which rely heavily on controlled environments, allow crops to be grown year-round. The use of technologies such as controlled environment agriculture (CEA), which integrates artificial lighting, environmental control, and fertigation, ensures optimal growing conditions. By protecting crops from extreme weather and improving efficiency, these advanced techniques are making indoor farming an increasingly popular and viable solution to meet global food demand. Consequently, these factors are expected to significantly drive the growth of the grow light market in the coming years.

Gather more insights about the market drivers, restrains and growth of the Grow Light Market

Regional Insights:

Europe Region Market Overview (2021):

• Europe dominated the industry in 2021, commanding a significant market share of over 32%.
• The region is expected to maintain its dominance throughout the forecast period.
• Key drivers of market growth include:
  • Increased Awareness of Alternative Farming: The growing recognition of alternative farming methods, driven by the scarcity of fertile agricultural land and rising population, is propelling demand for innovative farming techniques like hydroponics and vertical farming.
  • Land and Population Pressures: With limited available agricultural land and a growing global population, Europe is focusing on efficient, space-saving farming practices to meet food demands and ensure sustainability.

Asia Pacific Region Market Growth Outlook:

• The Asia Pacific market is anticipated to experience significant growth during the forecast period.
• Growth drivers include:
  • Expansion of Genetically Modified Crop Technology: As genetically modified crops continue to be developed and adopted, they contribute to higher yields and greater sustainability, benefiting the region’s farming industry.
  • Energy-Efficient LED Lighting: Several countries in the region are transitioning to energy-efficient LED lighting in agricultural practices, particularly in indoor farming. This shift helps reduce energy consumption and greenhouse gas emissions, aligning with sustainability goals.
  • Sustainability Efforts: The transition to LED lights and other energy-saving technologies supports sustainable farming practices and is expected to drive further growth in the

Africa Region Market Challenges and Opportunities:

• The African market is expected to see growth, largely driven by:
  • Urbanization and Indoor Farming: The increasing urban population and the commercialization of indoor farming are key factors anticipated to boost demand for farming solutions in the region.
  • Growing Demand for Efficient Agriculture: As urban areas expand, there is a rising need for efficient and space-saving agricultural practices.
• However, there are significant challenges to overcome:
  • Limited Financial Resources: The lack of financial resources to build modern vertical farms can restrict the growth of the market.
  • Water and Land Scarcity: Limited access to water and arable land further hinders the development of large-scale farming operations.
• To address these issues, alternative farming models are being explored, such as:
  • Vertically Stacked Wooden Crates: These are being used as a low-cost alternative for indoor farming, maximizing space usage without significant infrastructure investment.
  • Sack Gardens: This method utilizes sacks filled with soil to grow crops, providing a cost-effective and resource-efficient solution for urban agriculture.

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• The global hydroponics market size was valued at USD 5.00 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2030.
• The global LED lighting market size was worth USD 81.48 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11.0% from 2023 to 2030.

Key Grow Light Company Insights

The key market players engage in strategies such as partnerships and new product developments to expand their market share. Companies are also acquiring competitors’ businesses to strengthen their position in the market. For instance, in December 2021, Signify Holding B.V. announced an agreement with Osram to acquire Fluence, an agriculture lighting division of Osram to strengthen its agriculture lighting business. The acquisition has also strengthened the company’s position in North America horticulture lighting market. Some prominent players in the global grow light market include:

• AeroFarms
• EVERLIGHT ELECTRONICS CO., LTD.,
• GAVITA Holland bv
• Heliospectra AB
• Hortilux Schréder
• Illumitex
• LumiGrow Inc
• Osram Licht AG

Order a free sample PDF of the Grow Light Market Intelligence Study, published by Grand View Research.