The global grow light market size was valued at USD 2.64 billion in 2016, owing to the growing urban cultivation & vertical farming and growing adoption of environment-friendly production of fruits and vegetables. The unprecedented growth of the global population has increased the demand for urban agriculture.
Grow light technology helps in extending the hours of the natural daylight which further increases the health, growth rate and yield of the plants. Artificial lighting, such as high-pressure sodium lighting, LED lighting and plasma lighting can extend the availability of crops (throughout a season).Growing awareness regarding the importance of alternative farming, owing to the less availability of fertile agricultural land and increasing population, are the key factors anticipated to spur the industry demand.
U.S. grow light market, by technology, 2014 - 2025 (USD Million)
Unlike traditional farming, indoor farming can produce crops throughout the year, which results in increased productivity. Furthermore, indoor farming can protect crops from extreme weather conditions through the usage of techniques such as the controlled environment agriculture technology, where the facilities use artificial environmental control, control of light, and fertigation.
Based on product, the industry has been classified into < 300 Watt and > 300 Watt. The < 300 Watt segment dominated the industry in terms of revenue in 2016.and is expected to remain dominant over the forecast period. This growth is attributed to technological advancements in energy conservation and efficiency.
The grow lights with low power (< 300 Watt) are more efficient as compared to high power lighting solutions. Low power lights generate lesser amount of heat and can be used for extended period of time without harming plants.
Based on system, the industry has been classified into hardware and software. The hardware segment dominated the industry in terms of revenue in 2016.and is expected to remain dominant over the forecast period. Whereas, software segment is expected to show highest growth rate over the forecast period. This growth is attributed to increasing penetration of Controlled-Environment Agriculture (CEA) to control various environmental factors using software.
Hardware segment includes various types such as LEDs, plasma lights, high intensity discharge (HID) and ballasts. Whereas, Software segment of the market includes Controlled-Environment Agriculture (CEA) to control various environmental factors such as humidity, temperature, water and light.
Based on technology, the industry has been classified into High Intensity Discharge (HID), LED, fluorescent and plasma. The HID segment dominated the industry in terms of revenue in 2016. Whereas, LED segment is expected to dominate over the forecast period. Increasing urban cultivation and government initiatives to adopt energy efficient LEDs are expected to drive LED segment.
LED lamps are most efficient at higher price point. LEDs produces exact wavelength of desired light. It can produce dual band spectrum (red & blue) simultaneously. LEDs are good for all growth phases. LEDs are more expensive at initial stage but gets cheaper over the period of time.
Plasma lights offer full-spectrum light similar to that of sunlight. These lights have longer service period and produces less amount of heat. Plasma lights have high initial costs but gets cheaper over the longer run. Plasma lights are useful in vegetative growth as well as flowering.
Based on the spectrum, the industry has been classified into a partial spectrum and full spectrum. The partial spectrum segment marginally dominated the industry in terms of revenue in 2016. Whereas, full spectrum segment is expected to dominate over the forecast period.
The partial spectrum grow lights emits light of specific spectrum such as yellow, blue or green. These light spectrums are useful at various growth stages of plants. Whereas, full spectrum lamps emit light similar to sunlight. These lamps are useful at every growth stage of a plant.
Based on applications, the industry has been classified into indoor farming, vertical farming, commercial greenhouse and others. The commercial greenhouse segment dominated the industry in terms of revenue in 2016. Vertical farming segment is expected to grow highest over the forecast period. This growth is attributed to technological advancements and increasing use of grow lights.
Global grow light market, by application, 2016 (%)
Factors such as growing technological advancements in grow lights and increasing penetration of vertical and indoor farming are anticipated to drive the application segment over the forecast period. The vertical farming segment is widely accepted in countries like Japan, China, other The Netherlands.
In vertical farming food, herbs and medicine can be produced in vertically stacked layers which are integrated in a used warehouse, skyscraper or shipping container. It uses Controlled-Environment Agriculture (CEA) to control various environmental factors such as humidity, temperature, water and light. Some vertical farms use greenhouse methods, where sunlight can be improved with metal reflectors and grow lights.
In terms of revenue, the Europe region dominated the industry in 2016 and is expected to remain dominant over the forecast period. Growing awareness regarding the importance of alternative farming, owing to the less availability of fertile agricultural land and increasing population, are the key factors anticipated to spur the industry demand.
Asia Pacific regional grow light market is anticipated have significant growth over the projected period owing to the growing expansion of genetically-modified crop technology. Furthermore, various countries in this region are shifting towards energy-efficient LED lights to reduce energy consumption. Replacing traditional incandescent light bulbs with LEDs would help to decrease greenhouse gas emissions.
Growing urban population and commercialization of indoor farming is anticipated to drive the African regional demand. However, lack of financial resources to build modern vertical farms and limited access to water and land is expected to restrain the Africa regional growth. To overcome such challenges various models followed in the region include vertically stacked wooden crates and sack gardens.
A few of the major industry players include AeroFarms (U.S.), Illumitex, Inc. (U.S.), and GAVITA Holland bv (Netherlands.). These players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2017 - 2025
Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, UK, Germany, Japan, China, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global grow light market based on application, product, system, technology, installation, spectrum, and region:
Application Outlook (Revenue, USD Million; 2014 - 2025)
Product Outlook (Revenue, USD Million; 2014 - 2025)
< 300 Watt
> 300 Watt
System Outlook (Revenue, USD Million; 2014 - 2025)
Technology Outlook (Revenue, USD Million; 2014 - 2025)
High Intensity Discharge (HID)
Installation Outlook (Revenue, USD Million; 2014 - 2025)
Spectrum Outlook (Revenue, USD Million; 2014 - 2025)
Regional Outlook (Revenue, USD Million; 2014 - 2025)
Middle East and Africa (MEA)
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