Grow Light Market Size, Share, Growth Analysis, By System(Hardware, and Software & Services), By Light Source(High Intensity Discharge (HID), LED, Fluorescent, Plasma), By Product(< 300 Watt, >=300 Watt), By Spectrum(Limited Spectrum and Full Spectrum), By Cultivated Plant(Fruits & Vegetables, Flowers, Cannabis), By Installation(New Installation and Retrofit Installation), By Application(Indoor Farming, Vertical Farming, Commercial Greenhouse, Others), By Sales Channel(Distribution Channels, E-Commerce Channels, Direct Sales Channels), By Region - Industry Forecast 2024-2031

Grow Light Market size was valued at USD 4.9 Billion in 2022 and is poised to grow from USD 5.68 Billion in 2023 to USD 18.49 Billion by 2031, at a CAGR of 15.9% during the forecast period (2024-2031).

Market leaders in the grow light market are making use of strategic moves like alliances and innovative products to increase their market share. Also, companies have been acquiring competitors’ firms in a bid to consolidate their market position. For example, Crop One Holdings cooperated with Emirates Flight Catering to create Emirates Crop One (ECO 1), the world’s largest vertical farm located in Dubai that covers approximately 330,000 square feet, which is around the size of Lincoln Memorial Reflecting Pool. The technological advancements driven by Signify and Everlight has led to the development of smart and connected systems that encourage innovation within the grow lights sector. Industry players are focusing on large scale deployment; hence they are actively looking for mergers, partnerships or acquisitions to improve technical capabilities as well as meet growing demand for LED and greenhouse lights from indoor farming and vertical farming sectors. 'Signify Holding (Netherlands)', 'Gavita International B.V. (Netherlands)', 'Heliospectra (Sweden)', 'ams-OSRAM AG (Austria)', 'California LightWorks (US)', 'Hortilux Schréder (Netherlands)', 'Valoya (Finland)', 'ILUMINAR Lighting LLC. (US)', 'SAVANT TECHNOLOGIES LLC. (US)', 'Ushio Inc. (Japan)', 'EconoLux Industries Ltd. (China)', 'LEDVANCE GmbH (Germany)', 'Lemnis Oreon B.V. (Netherlands)', 'Hyperion Grow Lights (England)', 'Sananbio (China)', 'Dongguan LEDESTAR Opto-electronics Tech. Co., Ltd. (China)', 'ViparSpectra (US)', 'Kind LED Grow Lights (US)', 'Black Dog Horticulture Technologies & Consulting (US)', 'Agrolux B.V. (Netherlands)'

The increasing rate in urbanization together with the increasing quest for efficient production of crops and vegetables through controlled environmental conditions is influencing the adoption of indoor agriculture systems. For instance, in this domain, CFL fluorescent growing lamps are commonly used for cultivating leafy vegetables and herbs. These fluorescent lamps work by driving electric current through the gas contained within the tubes producing light. Another appeal is their outstanding efficiency which ranges from 20 to 30 percent less power utilization than the normal incandescent bulbs besides having a long-life span.

Increasing Preference for Eco-Friendly Grow Light Solutions: Innovations in smart lighting technologies are revolutionizing indoor farming practices. With features like remote monitoring, data analytics, and precise light control, growers can optimize crop growth and maximize yields. This trend reflects a growing demand for efficiency and customization in the agricultural sector, driving the adoption of intelligent lighting solutions. By harnessing the power of smart lighting, farmers can enhance productivity, reduce operational costs, and contribute to sustainable food production practices.

In the global grow light market, North America emerges as the dominant region in 2023, driven by its cutting-edge technological infrastructure and substantial investments in research and development. Based on SkyQuest's in-depth analysis, the statistics show that 70-80% of customers remain loyal to products that are made in USA and are willing to pay up to 20% more price for the products. This trend corresponds to the trend in the growing market of indoor farming due to local production, fresh, healthy foods, which do not get adversely affected by weather conditions or replaced by supply chain delays. The attitudes developed in the region towards agricultural evolution and liberalization of numerous innovations, including cannabis cultivation for medicinal as well as recreational use, has boosted market growth. Having several key players in this area also strengthens it as they enable faster incorporation of modern grow light systems within multiple agriculture industries.