LED Grow Lights Market to Grow by USD 11.32 Billion (2024-2028), Indoor Farming Drives Revenue Growth, AI Redefining Market Landscape - Technavio

NEW YORK, Sept. 30, 2024 /PRNewswire/ -- Report with market evolution powered by AI- The global light-emitting diode (LED) grow lights market  size is estimated to grow by USD 11.32 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 39.04%  during the forecast period.  Growth in indoor farming is driving market growth, with a trend towards innovation and investments in greenhouse horticulture startups. However, high installation and setup costs  poses a challenge. Key market players include 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.

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Key Market Trends Fueling Growth

The urban population's shifting dietary preferences towards fresh produce and the rise of urban agriculture have fueled the demand for advanced farming techniques. Rooftop greenhouses, which utilize hydroponics and aeroponics methods and do not require farmlands or open spaces, have emerged as a promising solution. These innovative farming methods have led to the development of zero-acreage farming, which is gaining popularity in urban areas due to limited land availability. To increase efficiency and productivity, greenhouse automation through the use of robots in harvesting and packing processes is on the rise. Startups, such as BrightFarms in the US, are leading the way in this technological advancement, having raised over USD200 million in funding and partnering with major retailers like Ahold Delhaize, Kroger, and Walmart. These collaborations are expected to significantly contribute to the growth of the global LED grow lights market, as these advanced farming techniques rely heavily on energy-efficient LED lighting for optimal plant growth. 

The global LED grow light market is experiencing significant growth due to the increasing trend towards indoor farms, greenhouses, and vertical farms for sustainable agriculture. These agricultural techniques require controlled environments with optimal light conditions for plant growth. Traditional lighting sources like fluorescent lights, incandescent lamps, and High Intensity Discharge (HID) are being replaced by energy-efficient LED grow lights. LED technology offers customizable spectrum and light intensity, which is essential for photosynthesis and crop yield. With food insecurity and urbanization leading to a decrease in arable land, LED grow lights are becoming increasingly important for commercial greenhouses and hydroponic systems. LEDs consume less electricity compared to traditional lighting, making them an economical choice for indoor gardening and research purposes. The market for LED grow lights includes new installations and retrofits, with smart LED and WiFi lighting gaining popularity for their environmental factors and ease of use. Additionally, LED grow lights are used in turf and landscaping and have applications in environmental research. 

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Market Challenges

• LED grow lights, an efficient alternative to High-Pressure Sodium (HPS) lights, offer superior performance due to a large number of diodes. However, the high cost of these diodes increases the price of LED grow lights, limiting their use to large-scale urban farming operations. Vendors, such as Kind LED Grow Lights and Grow Technologies, invest in research and development to create more luminous and durable LED grow lights, increasing their retail price. For instance, Kind LED Grow Lights' K5 XL 100 grow light offers an adjustable spectrum output for each growth stage. While premium LED grow lights can cost around USD2,000, such as those from Kind LED Grow Lights, Phytomax-2 1000 from Grow Technologies retails for approximately USD1,700. The high price point may hinder the adoption of LED grow lights by small-scale indoor farmers, potentially impacting the global LED grow lights market growth during the forecast period.
• The global LED grow light market is witnessing significant growth due to the increasing demand for fresh produce in urban areas and the need to address food insecurity and crop yield challenges. Urbanization and the limited availability of arable land have led to the adoption of vertical farming and hydroponic systems. LED grow lights offer customizable spectrum and intensity, making them ideal for indoor farming and greenhouse applications. However, challenges such as electricity consumption, installation types, and environmental factors require continuous research and innovation. LED technology, including smart WiFi lighting and high power LED, offers energy efficiency and long-lasting solutions, making it a preferred choice over traditional lighting like halogens and fluorescent lighting. Eco-friendly technologies and energy-efficient lights are essential for sustainable agriculture and reducing power consumption. New installation and retrofit opportunities exist in indoor farming, turf and landscaping, and research purposes.

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Segment Overview 

This light-emitting diode (led) grow lights market report extensively covers market segmentation by

1. Application 
• 1.1 Commercial greenhouses
• 1.2 Vertical farming
• 1.3 Indoor farming
• 1.4 Others
2. Power Rating
• 2.1 Low power (lesser than 100 W)
• 2.2 Medium power (100-300 W)
• 2.3 High power (greater than 300 W)
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Commercial greenhouses-  Commercial greenhouses, featuring transparent roofs made of materials like glass, enable year-round production of fruits, flowers, and vegetables. Operators are expanding their use of LED grow lights, initially accounting for approximately 25% of total greenhouse space. For instance, Sterling Suffolk's extension of lit area with LEDs promises high-yield, continuous tomato production. Lufa Farms, a Montreal-based food supplier, transformed a former Sears headquarters into an urban food ecosystem, integrating a rooftop greenhouse, distribution center, and indoor farm. Lufa Farms cultivates over 75 vegetables year-round using hydroponics and LED grow lights. The global increase in greenhouse adoption is expected to fuel the demand for LED grow lights in the forecast period.

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Research Analysis

The global LED grow light market is experiencing significant growth due to the increasing adoption of indoor farming, greenhouses, vertical farms, and controlled environment agriculture. These farming methods require optimal light conditions for plant growth, making LED grow lights an ideal solution. LED grow lights offer advantages such as energy efficiency, customizable light spectrum, and adjustable light intensity. They are increasingly being used in horticulture, hydroponics, commercial greenhouses, and urban farming. The market includes various types of LED grow lights, including smart LED, retrofit installations, and new installations. Traditional lighting technologies like fluorescent lights, halogens, and high-power LEDs are being replaced by low-watt LEDs for their energy efficiency and ability to optimize plant growth. The market is also driven by the growing trend towards sustainable agriculture and smart greenhouses, as well as research purposes. Smart WiFi lighting is also gaining popularity for its ease of use and ability to be controlled remotely. Power consumption is a key consideration in the market, with energy efficiency being a major selling point for LED grow lights. Overall, the LED grow light market is expected to continue growing due to its ability to provide optimal growing conditions for plants in various farming environments.

Market Research Overview

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 and controlled environment agriculture. These farming methods are essential in addressing food insecurity caused by urbanization and the loss of arable land. LED grow lights, with their energy efficiency and customizable spectrum, offer an eco-friendly alternative to traditional lighting methods such as fluorescent lights, incandescent lamps, High Intensity Discharge (HID), and even halogens. LED technology enables optimal plant growth by providing the right light spectrum and intensity for photosynthesis, resulting in higher crop yield. The market caters to various installation types, including new installations and retrofits, and is used in horticulture, hydroponics, smart greenhouses, and even turf and landscaping. With their long-lasting nature and energy efficiency, LED grow lights are becoming an essential tool for agricultural techniques in various environmental factors, from indoor gardening to research purposes.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Commercial Greenhouses
• Vertical Farming
• Indoor Farming
• Others
• Power Rating
• Low Power (lesser Than 100 W)
• Medium Power (100-300 W)
• High Power (greater Than 300 W)
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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