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The light-emitting diode (LED) grow lights market size is forecast to increase by USD 11.32 billion at a CAGR of 39.04% between 2023 and 2028. The global LED grow lights market is experiencing significant growth due to the increasing trend towards indoor farming and the innovation and investments in greenhouse horticulture startups. Indoor farming is gaining popularity as a solution to address food security concerns and the need for year-round production. LED grow lights offer several advantages over traditional lighting sources, including energy efficiency, longer lifespan, and the ability to provide specific wavelengths for optimal plant growth. However, the high installation and setup costs associated with LED grow lights remain a challenge for market growth. Despite this, the market is expected to continue expanding as technological advancements lead to cost reductions and increased efficiency. The growing adoption of LED grow lights in large-scale commercial farming operations and the rising demand for locally grown produce are also driving the market growth.
The global LED grow light market is experiencing significant growth due to the increasing adoption of indoor farming, greenhouses, and vertical farms for sustainable agriculture. Controlled environment agriculture, including horticulture and hydroponic systems, requires optimal light spectrum and intensity for photosynthesis. Traditional lighting sources like SSL and fluorescent lights and high-intensity discharge (HID) lamps, such as halogens and metal halide, are being replaced by energy-efficient LED grow lights. Smart LED grow lights are increasingly being used in commercial greenhouses, smart greenhouses, and urban farming projects due to their ability to optimize light intensity and spectrum based on plant growth stages. Retrofit installations and new installations are driving the demand for LED grow lights in the horticulture industry.
Moreover, power consumption is a crucial factor in the adoption of LED grow lights, with high power LEDs and low watt LEDs catering to different applications. Research purposes and smart WiFi lighting are also emerging applications for LED grow lights. Overall, the market is expected to grow steadily due to the increasing focus on energy efficiency and the need for sustainable lighting technology in agriculture.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The commercial greenhouses segment is estimated to witness significant growth during the forecast period. Indoor farms and greenhouses have emerged as innovative solutions for sustainable agriculture and controlled environment agriculture in the context of urbanization and food insecurity. These structures, including vertical farms, utilize advanced horticulture techniques such as hydroponics and hydroponic systems. LED grow lights have gained significant traction in this sector due to their energy efficiency and customizable spectrum. LED lights, including smart LEDs, offer optimal plant growth conditions by controlling light intensity and spectrum, essential for photosynthesis. Traditional lighting sources like fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) lamps, while effective, consume substantial electricity. In contrast, LED grow lights consume less electricity, making them a more sustainable choice.
Moreover, the smart greenhouses and commercial greenhouses have adopted LED grow lights for their retrofit and new installation projects. These energy-efficient lights enhance crop yield and improve the quality of fresh produce. The electromagnetic spectrum emitted by LED grow lights caters to various plant growth requirements, ensuring optimal environmental factors for indoor gardening. LED grow lights are particularly beneficial for urban farming and vertical farming, where arable land is limited. The customizable spectrum of LED grow lights enables farmers to cater to the specific needs of various crops, ensuring optimal growth conditions. The implementation of LED grow lights in greenhouses and indoor farming projects is a significant step towards enhancing agricultural techniques and ensuring food security.
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The commercial greenhouses segment was valued at USD 541.80 million in 2018 and showed a gradual increase during the forecast period.
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.
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LED technology has revolutionized the lighting industry with its energy efficiency and long-lasting properties. In the horticulture sector, LED grow lights have gained significant traction, replacing traditional lighting systems such as halogens and fluorescent lighting. LED grow lights are available in various installation types, catering to different turf and landscaping requirements. These lighting solutions come in high power and low watt options, making them suitable for urban farming and research purposes. The energy efficiency of LED technology reduces power consumption, making it an eco-friendly choice. With its ability to provide optimal light spectrum for plant growth, LED technology is the future of lighting in horticulture. The energy-efficient and long-lasting nature of LEDs makes them a cost-effective alternative to traditional lighting solutions. As the world shifts towards sustainable and energy-efficient technologies, the adoption of LED grow lights is expected to increase.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in indoor farming is the key driver of the market. Indoor farming, including greenhouses and vertical farms, has gained significant traction due to urbanization and the resulting scarcity of arable land. Controlled environment agriculture, such as hydroponics and horticulture, thrives in these settings, utilizing sustainable techniques like sustainable agriculture and smart greenhouses. Lighting plays a crucial role in plant growth, with energy-efficient alternatives like light emitting diodes (LEDs) replacing traditional methods like fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) lamps. LEDs offer customizable spectrum and light intensity, optimizing photosynthesis and crop yield. Smart LED lighting systems enable remote control and WiFi connectivity, enhancing agricultural techniques.
Moreover, indoor farming mitigates environmental risks, ensuring food security and consistent fresh produce, even in the face of climate change. LED retrofit installations and new installations reduce electricity consumption, making indoor farming a cost-effective and eco-friendly solution. This technological advancement in agricultural practices caters to the growing demand for fresh produce while addressing the challenges of urbanization and environmental factors.
Innovation and investments in greenhouse horticulture startups is the upcoming trend in the market. In response to the evolving dietary preferences and increasing urban population, the demand for sustainable agriculture solutions, including indoor farms and greenhouses, is on the rise. Indoor farming techniques, such as controlled environment agriculture, smart greenhouses, and hydroponics, have gained popularity due to their ability to produce fresh, local produce year-round. These modern farming methods utilize energy-efficient lighting systems, like light emitting diodes (LEDs), to optimize plant growth. LED grow lights offer customizable spectrum and light intensity, which is crucial for photosynthesis and plant development. They are increasingly replacing traditional lighting systems, such as fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) lamps, due to their energy efficiency and lower electricity consumption.
Moreover, he adoption of LED grow lights is not limited to new installations but also retrofits in commercial greenhouses and urban farming setups. Smart LED lighting systems are now being integrated into indoor farming and horticulture applications, enabling real-time monitoring and control of light spectrum and intensity. This technology is essential for optimizing plant growth and maximizing crop yield. With the increasing focus on food security and the need for sustainable agricultural techniques, the LED grow lights market is poised for significant growth. Urbanization and the scarcity of arable land further the importance of vertical farming and indoor gardening, which rely heavily on LED grow lights for their success.
High installation and setup costs is a key challenge affecting the market growth. LED grow lights have gained significant traction in the agricultural sector, particularly in indoor farms, greenhouses, and vertical farms, as they offer sustainable solutions for controlled environment agriculture. These energy-efficient lighting systems, which include light emitting diodes (LEDs), are increasingly being adopted for horticulture applications, such as hydroponics and commercial greenhouses. Compared to traditional grow lights like fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) lamps, LED grow lights are more efficient, consuming less electricity and providing optimal light spectrum and intensity for plant growth. The rising trend of smart greenhouses and urban farming, driven by food insecurity and urbanization, has led to an increase in demand for LED grow lights.
However, their high upfront cost, due to the large number of expensive diodes, limits their use in small-scale operations. To address this challenge, companies are investing in research and development to create more luminous and durable LED grow lights, improving their retail price but ensuring better crop yield and fresh produce. LED grow lights offer customizable spectra and are ideal for various agricultural techniques, including photosynthesis, smart WiFi lighting, and retrofit installations. These advanced lighting systems cater to the unique requirements of different plants and environmental factors, making them a popular choice for indoor gardening and hydroponic systems. Despite their initial investment, the long-term benefits, including energy savings and improved crop quality, make LED grow lights a worthwhile investment for large-scale farming operations.
The market forecasting 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 market growth analysis strategies.
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 market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 global LED grow lights market is witnessing significant growth due to the increasing adoption in indoor farms, greenhouses, and vertical farms. Controlled environment agriculture, including horticulture and hydroponics, is driving the demand for energy-efficient LED grow lights in commercial greenhouses. The shift towards sustainable agriculture and smart greenhouses is further fueling the market growth. Food insecurity and urbanization are major factors contributing to the expansion of arable land through indoor farming and vertical farming techniques. LED grow lights offer customizable spectrum and light intensity, optimizing plant growth and crop yield. The environmental factors such as energy consumption and the electromagnetic spectrum are crucial considerations in the adoption of LED grow lights.
Moreover, the traditional lighting sources like fluorescent lights, incandescent lamps, and high-intensity discharge lamps are being replaced by energy-efficient LED grow lights. The market is witnessing new installations and retrofit installations in indoor gardening and hydroponic systems. Photosynthesis and plant growth are significantly influenced by the light spectrum and light intensity, making LED grow lights an essential component in agricultural techniques. Smart LED grow lights with WiFi lighting control systems are gaining popularity for their ability to optimize energy usage and enhance crop yield. The integration of advanced technology in LED grow lights is expected to revolutionize the agricultural industry and ensure food security.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.04% |
Market growth 2024-2028 |
USD 11.32 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
29.04 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, Canada, The Netherlands, China, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., OSRAM Licht AG, Samsung Electronics Co. Ltd., SANlight GmbH, Senmatic AS, Shenzhen Grow LED Technology Co. Ltd., Signify NV, SMART Global Holdings Inc., and Valoya Oy |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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