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The light-emitting diode (LED) grow lights market size is estimated to grow at a CAGR of 26.8% between 2022 and 2027. The market size is forecast to increase by USD 4,869.64 million. The growth of the market depends on several factors, including growth in indoor farming, the need for energy-efficient and long-lasting grow light technology, and the need to improve the yield of crops and reduce crop wastage. LED grow lights are full-spectrum LED lights, like the sun or any natural light, which help plants grow. LED grow lights are an artificial source of light that helps stimulate plant growth by providing enough light for photosynthesis. They dissipate an electromagnetic light spectrum; hence, they are used widely in places where naturally occurring sunlight is low.
This light-emitting diode (LED) grow lights market report extensively covers market segmentation by application (commercial greenhouses, vertical farming, indoor farming, and others), power rating (low power (<100 w), medium power (100-300 w), and high power (>300 w)), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The need for energy-efficient and long-lasting grow light technology is the key factor driving the growth of the market. LED grow lights are more energy efficient than fluorescent grow lights and HPS grow lights. CFLs are almost 50% less efficient than LED grow lights. The heat emitted from the LED grow lights is also low, approximately zero. LED grow lights play an important role in commercial greenhouse management, helping to improve crop quality and optimize production to meet market demand. LED grow lights are efficient and energy savers.
Moreover, LED grow lights help to improve the taste of food. The overall quality and flavor of the food is determined by exposing the plant to the right amount of light. These lights give growers complete control over color, proximity, focus, and wavelength. Optimized light exposure ensures high yields, production quality, and improved food taste. Hence, the global LED grow lights market is anticipated to grow significantly during the forecast period.
The use of artificial intelligence in LED grow lights is the primary trend shaping the growth of the market. Artificial intelligence helps to discover different environmental factors that can affect the growth of plants during indoor farming. Indoor farming requires a controlled environment with the right temperature, humidity, CO2 concentration, water, and light. It is also important to maintain the right combination of inputs, which must change with each stage of plant growth. Artificial intelligence helps to avoid the unnecessary use of LED grow lights.
Furthermore, major market players are investing in artificial intelligence. Various algorithms have been developed to analyze the data collected from the sensors and determine the growth and progress of the crop. This technology creates unique farming processes that help to manage the right amount of light and nutrients needed by plants, predict plant diseases, and optimize growing conditions. Hence, advancements in artificial intelligence and deep learning are expected to drive the global LED grow lights market during the forecast period.
The harmful effects of LED grow lights affect the growth of the market. LED grow lights are very sensitive to the human eye. Workers working on indoor farms should use eye protection as LED lights can be harmful to human eyes. Indoor growers should always avoid looking directly into such strong light sources. The blue light produced by LEDs grow lights ranges from 380nm to 500nm across the light spectrum. It has serious effects on the health of growers. Overexposure to blue light can damage the retina, macula, and photoreceptors. It also affects the human sleep cycle.
Moreover, some LED grow lights emit ultraviolet (UV) light, which is harmful to the human eye. Exposure to the UV spectrum can damage vision or lead to color perception problems, cataracts, and decreased night vision. Therefore, growers need to be careful and use many preventive measures to protect their health. Hence, these adverse effects are likely to affect demand for LED grow lights, which will impede the growth of the market during the forecast period.
The market share growth by the commercial greenhouses segment will be significant during the forecast period. A commercial greenhouse is a structure whose roof is made of a transparent material such as glass. Plants are grown under specified climatic conditions. These structures vary in size, from small hangars to industrial-scale buildings. Fruits, flowers, and vegetables can be grown in a greenhouse at any time of the year. Greenhouses eliminate the problem of short growing seasons and low light levels. Such factors have led to a high demand for LED grow lights.
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The commercial greenhouses segment showed a gradual increase in the market share of USD 456.37 million in 2017 and continued to grow by 2021. Commercial greenhouse operators are increasingly using LED grow lights to increase their production capacity. Initially, about 25% of the total greenhouse area was fitted with LED lights on top of the Hyperion 1750. This provided over 200 micromol/s/m2 of artificial light. Sterling Suffolk plans to expand the LED grow lights area in the following years, which will help to produce high-yielding tomatoes year-round. Therefore, with the increase in greenhouse adoption globally, the demand for LED grow lights is expected to increase during the forecast period.
The low power held the largest market share in the global LED grow lights market. Indoor gardening using LED grow lights is gaining momentum as individuals benefit from growing their own plants under controlled conditions. Using grow lights properly is one of the most important aspects of indoor farming. Among the different types and wattages available, low-power LED grow lights stand out as an energy-efficient and versatile option for a number of indoor farming applications. Low-power LEDs provide the ideal balance between light and energy efficiency for plants that require minimal light. Hence, due to these advantages, low-power LED grow lights are expected to significantly boost the global LED grow lights market during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Due to the growing popularity of vertical farming Europe is the leading market for LED grow lights. The Netherlands is one of the main exporters of horticultural products and has various commercial automated greenhouses. Several greenhouse complexes in the Netherlands span 175 acres. These air-conditioned farms have helped make the country a world leader in tomato exports.
Furthermore, the area faces extreme cold in winter and a lack of sunshine in many places, leading to the need for artificial lighting and indoor farming. Many startups in Europe are taking the initiative to grow crops without an open farm. Thus, such initiatives will increase demand for LED grow lights, driving the LED grow lights market in the region during the forecast period.
The COVID-19 pandemic in 2020, positively impacted the regional LED grow lights market. The governments of many countries have imposed nationwide shutdown orders. To maintain a constant food supply, countries have seen an increase in the launch of vertical farms and new indoor farming, which has driven the demand for LED grow lights. In 2021, the launch of large-scale vaccination campaigns lifted containment restrictions, leading to the resumption of operations at production units. In addition, the demand for LED grow lights spike in 2022 due to the high demand for this type of lamp in vertical farming. Therefore, the LED grow lights market in the region is expected to grow during the forecast period.
The light-emitting diode (LED) grow lights market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Light-emitting Diode (LED) Grow Lights Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The light-emitting diode (LED) grow lights market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Light-emitting Diode (LED) Grow Lights Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.8% |
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Market growth 2023-2027 |
USD 4,869.64 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
26.15 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 35% |
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Key countries |
US, Canada, China, The Netherlands, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced Grow Lights American Co., Biological Innovation and Optimization Systems LLC, Black Dog Grow Technologies Inc., Bridgelux Inc., Controlled Environments Ltd., Dool Industries, General Electric Co., GrowRay Lighting Technologies, Heliospectra AB, Kessil, Kind LED Grow Lights, LED Hydroponic Ltd., Samsung Electronics Co. Ltd., SANlight GmbH, Senmatic AS, Shenzhen Grow LED Technology Co. Ltd., Valoya Oy, Signify NV, OSRAM Licht AG, and SMART Global Holdings Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Power Rating
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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