The global grow light market, valued at USD 4.23 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Key factors driving this growth include the increasing adoption of urban and vertical farming, along with an environmentally friendly approach to fruit and vegetable production. The growing global population has heightened the need for urban agriculture, while vertical farming—cultivating plants in vertically stacked layers in facilities like warehouses or skyscrapers—continues to expand the market.
Grow lights are essential for extending natural daylight, promoting plant health, accelerating growth rates, and enhancing yields. Artificial lighting options, including high-pressure sodium, LED, and plasma lighting, are useful for extending crop availability year-round. Awareness of alternative farming practices is rising due to limited fertile land and population growth, further fueling demand in this sector.
Indoor farming offers year-round crop production, with controlled environments protecting crops from extreme weather through techniques such as Controlled Environment Agriculture (CEA), which relies on artificial lighting, fertigation, and climate control to optimize plant growth.
Gather more insights about the market drivers, restrains and growth of the Global Grow Light Market
Product Insights
The grow light industry is segmented by power, with categories for lights under 300 Watts and over 300 Watts. In 2021, the <300 Watt segment dominated the market with a share exceeding 64%, and it is expected to maintain this lead due to advancements in energy efficiency. Low-power grow lights, emitting less heat, are more suitable for extended use without risking plant damage, making this segment the fastest-growing.
The >300 Watt segment, while less prominent, has applications in horticulture for rapid growth by supplementing high-wattage lights with additional nutrients. These lights, often used in commercial greenhouses, may require cooling systems to counteract the heat, adding to energy costs.
System Insights
The market is divided into hardware and software. Hardware, comprising approximately 75% of 2021 revenue, includes LED, plasma, HID lights, and ballasts. The software segment, although smaller, is expected to grow rapidly, supported by increased CEA adoption. Software solutions improve plant quality by optimizing environmental factors such as humidity, temperature, and lighting. Tailoring lighting duration and intensity to each plant species enhances yield and quality, and software services like grow light maintenance are increasingly in demand.
Technology Insights
The technology segment includes High-Intensity Discharge (HID), LED, fluorescent, and plasma lighting. HID lights, leading in 2021 with over 36% of the market, are preferred for commercial greenhouses and vertical farms. LEDs, however, are anticipated to dominate the market in the coming years due to energy efficiency and government incentives. LEDs, capable of producing precise wavelengths, are efficient across all growth stages, though initially costly.
Plasma lighting is projected to grow at the highest CAGR, offering a full-spectrum light that simulates sunlight and has a longer service life with low heat output and energy consumption. Plasma lights, while initially expensive, become cost-effective over time and are beneficial for both vegetative growth and flowering stages.
Spectrum Insights
The grow light market is segmented into partial and full spectrum. In 2021, the partial spectrum held about 42% of the market, with lights emitting specific wavelengths (e.g., yellow, blue, or green) tailored to particular growth stages. These spectrums accelerate growth and improve yield, with red and blue wavelengths supporting vegetative growth and red/far-red for flowering.
Full spectrum lights, expected to lead the market in the forecast period, emit light across the 400-700 nm Photosynthetic Active Radiation (PAR) range, mimicking sunlight. Full spectrum lights support all growth stages and can double as general space lighting, reducing or eliminating the need for additional light sources.
Application Insights
Application segments include indoor farming, vertical farming, commercial greenhouses, and others. Commercial greenhouses dominated the market in 2021, holding over 44% of the share due to technological advancements and increased grow light usage. Vertical farming, however, is expected to see the highest growth, driven by the need for urban and indoor farming solutions.
Vertical farming allows food, herbs, and medicines to be produced in stacked layers, often within repurposed spaces like warehouses and shipping containers, using CEA to control humidity, temperature, water, and light. Many vertical farms, especially in densely populated countries like Japan and China, supplement sunlight with metal reflectors and grow lights. Major corporations like Panasonic and Toshiba are investing in vertical farming, accelerating growth in the grow light market.
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