Grow Light Market Report 2025

The grow light market size has grown rapidly in recent years. It will grow from $4.22 billion in 2024 to $4.96 billion in 2025 at a compound annual growth rate (CAGR) of 17.4%. The growth in the historic period can be attributed to cultivation of high-value crops, research in plant grow, advancements in fluorescent and hid light, industry regulations and legalization, increased demand for year-round produce.

The grow light market size is expected to see rapid growth in the next few years. It will grow to $9.22 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to expansion of vertical farming, research and development initiatives, increasing demand for indoor agriculture, rise in cannabis cultivation, focus on sustainable solutions. Major trends in the forecast period include urban agriculture and vertical farming, regulatory shifts towards cannabis cultivation, horticultural research and development, smart and connected lighting, customized light spectrum.

The increasing adoption of indoor farming practices is significantly driving the growth of the grow light market. Indoor farming involves cultivating crops or plants, often on a large scale, entirely within enclosed spaces. Grow lights are utilized in indoor farming to compensate for insufficient natural light, as they can replicate or even exceed sunlight in terms of supporting plant growth. For instance, in September 2024, the United States Environmental Protection Agency, a government agency, reported that in 2023, agriculture contributed more than $1.53 trillion to the U.S. gross domestic product, accounting for 10.4 percent of total employment in the nation. Therefore, the rising prevalence of indoor farming practices is fueling the growth of the grow light market.

The surge in urbanization is expected to drive the growth of the grow light market. Urbanization, characterized by the expansion of cities and population migration from rural to urban areas, creates a demand for efficient indoor gardening and vertical farming. Grow lights play a crucial role in enabling residents in densely populated urban areas to cultivate fresh produce and plants despite limited outdoor space. According to the World Economic Forum in April 2022, over 55% of the world's population, or 4.3 billion people, lived in urban settings, and this number is projected to reach 80% by 2050. Therefore, the increasing trend of urbanization is a key driver for the grow light market.

Leading companies in the grow light market are prioritizing the development of innovative solutions, such as next-generation LED grow lights, to enhance energy efficiency, promote plant growth, and lower operational costs. Next-generation LED grow lights are advanced lighting systems specifically engineered to optimize plant growth by delivering a more efficient and targeted light spectrum. For example, in January 2023, Polymatech Electronics, an electronics manufacturer based in India, introduced its next-generation horticulture LED grow light, RavayeTM, which is designed to improve agricultural practices in vertical farming and hydroponics. This innovative product line includes full-spectrum packages and monochromatic LEDs, fostering healthier plant growth by accelerating photosynthesis and enhancing nutritional value. With an emphasis on cost efficiency, RavayeTM aims to decrease lighting system expenses for farmers, ultimately boosting profitability.

Companies in the grow light market are increasingly concentrating on introducing indoor garden lights to gain a competitive advantage. These lighting fixtures are specifically designed for cultivating plants and supporting indoor gardening activities. In October 2023, AeroGarden, a US-based home gardening company, launched a new series of indoor grow lights for houseplants. This product line includes tabletop grow lights, stem grow lights, and LED grow light panels utilizing full-spectrum LED technology to meet the light requirements for indoor plants to thrive. These lights are particularly suitable for areas with limited natural light, making them an excellent solution for indoor gardening enthusiasts.

In May 2022, Signify, a Netherlands-based lighting corporation, acquired Fluence, a US-based manufacturer of LED grow lights. This acquisition bolstered Signify's position in the North American horticulture lighting market, emphasizing the strategic importance of such moves in the grow light industry.

Major companies operating in the grow light market include Everlight Electronics Co. Ltd., Gavita International b.v., Heliospectra AB, Hortilux Schréder b.v., Illumitex Inc., Lumigrow Inc., Signify N.V., Sunlight Supply Inc., Platinum LED Lights LLC, Hydrofarm Inc., Alta LED Corporation, Valoya Ltd., Black Dog LED, Advanced LED Lights, ams-OSRAM AG, GrowGeneration, California LightWorks, Electric Sky, EYE Hortilux, Kind LED Grow Lights, BIOS Lighting, Timber Grow Lights, Kroptek, SANlight GmbH, Viparspectra, Mars Hydro, Spider Farmer.

Europe was the largest region in the grow light market in 2024. Asia-Pacific is expected to be the fastest-growing region in the grow light market report during the forecast period. The regions covered in the grow light market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the grow light market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A grow light is an artificial lighting system crafted to serve as a substitute for natural sunlight, promoting indoor plant photosynthesis and delivering the optimal color spectrum necessary for plant growth and prosperity.

The primary categories of grow lights encompass light-emitting diode (LED), high-intensity discharge (HID), plasma, and fluorescent options. LED grow light fixtures leverage LED chips in a contemporary and efficient manner to generate light tailored for the cultivation of plants. These lights, available in both full-spectrum and partial spectrum variants, are employed to enhance the size and pace of plant development, resulting in superior crops. Their applications span diverse settings such as indoor farming, commercial greenhouses, vertical farming, and other agricultural scenarios.

The grow light market research report is one of a series of new reports that provides grow light market statistics, including grow light industry global market size, regional shares, competitors with a grow light market share, detailed grow light market segments, market trends and opportunities and any further data you may need to thrive in the grow light industry. This grow light market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The grow light market consists of sales of far-red grow light and blue LED grow light. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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