LED Grow Lights Market - By Product Type , By Spectrum , By Installation Type , By Form Factor , By Application , By Sales Channel , By Geography - Opportunity Analysis & Industry Forecast, 2025-2031

Report Code: ESR 0927 Report Format: PDF + Excel

LED Grow Lights Market Overview:

The LED Grow Lights Market size is estimated to reach $6.4 Billion by 2031, growing at a CAGR of 25.9% during the forecast period 2025-2031. The demand for the LED grow light market is driven by the expansion of indoor and vertical farming, increased government initiatives and support, and technological advancements in LED lighting. The rising adoption of Controlled Environment Agriculture (CEA) and the growing legalization of cannabis and the emphasis on energy efficiency and cost savings are the factors driving the demand for the LED Grow Light Market.

Spectral optimisation in LED grow lights is revolutionising modern agriculture by tailoring light wavelengths to specific crop requirements. With advancements in LED technology, growers can manipulate light spectra (red, blue, green, far-red, and UV) to maximise photosynthesis, accelerate growth cycles, and enhance crop yield and quality. Studies show that potato plants grown under optimised spectrum lighting have increased shoot growth by 28% and tuber yield by 21% compared to those grown under standard lighting. This suggests that fine-tuning light spectrums can significantly improve agricultural productivity, especially in controlled environments like indoor and vertical farms. Another major trend is integration of renewable energy sources with LED grow lights. As energy costs and environmental concerns rise, combining renewable energy with energy-efficient LED systems offers a sustainable, cost-effective solution for controlled environment agriculture (CEA), vertical farming, and greenhouse operations.

LED Grow Light Market - Report Coverage:

The “LED Grow Light Market Report - Forecast (2025-2031)” by IndustryARC, covers an in-depth analysis of the following segments in the LED Grow Light Market.

Attribute Segment

By Product Type

  • Low Power Products (<300W)
  • High Power Products (≥300W)

By Spectrum

  • Full Spectrum
  • Partial Spectrum

By Installation Type

  • New Installations
  • Retrofit Installations

By Form Factor

  • Vertical Farming LED Grow Lights
  • Inter-lighting LED Grow Lights
  • Top-lighting LED Grow Lights

By Application

  • Indoor Farming
  • Commercial Greenhouses
  • Vertical Farming
  • Turf and Landscaping
  • Research
  • Others

By Sales Channel

  • Offline
  • Online

By Geography

  • North America (U.S., Canada and Mexico)
  • Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe),
  • Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and Rest of Asia-Pacific),
  • South America (Brazil, Argentina, Chile, Colombia and Rest of South America)
  • Rest of the World (Middle East and Africa).

Key Takeaways:

APAC Leads the Market

APAC leads the led grow light market with a market share of 38% in 2024. This growth is due to technological advancements, government support, and a shift toward sustainable agricultural practices. Countries like China, Japan and South Korea are leading in vertical farming and greenhouse cultivation, where LED grow lights play a critical role. The integration with renewable energy sources plays an important role in reducing operational costs and carbon emissions. Vietnam aims to achieve net-zero carbon dioxide emissions by 2050, a commitment that includes reducing methane emissions by 30%, increasing renewable energy use, and decreasing reliance on coal-fired power. The region's ability to integrate renewable energy, coupled with urban farming initiatives, ensures sustained growth in the LED grow light market.

Low Power Products (<300W) are the Largest Segment

Low Power Products (<300W) dominated the LED Grow Light Market in 2024. The leadership of low-power products is primarily in terms of unit sales, driven by the growing trend of urban farming and the need for fresh produce in cities. Consumer preferences play a crucial role in the dominance of low-power LED grow lights. Their lower cost and energy efficiency make them accessible for small-scale setups, such as grow tents or closets, catering to urban dwellers with limited space. This growth is supported by their energy efficiency, which can reduce electricity consumption by up to 70% compared to traditional lighting, as noted by the U.S. Department of Energy. Home users and small-scale growers prioritise affordability, energy efficiency, and ease of use, which low-power products offer. These factors make these lights ideal for home gardeners and hobbyists, who form a significant portion of the market due to the rising popularity of indoor gardening. 

Full Spectrum LED Grow Lights are the Largest Segment

Full spectrum LED grow lights dominated the LED grow light market in 2024. This dominance is driven by their versatility, mimicking natural sunlight across all wavelengths (400–700 nm, including blue, red, green, and sometimes UV and IR), making them suitable for all plant growth stages and appealing to both home gardeners and small-scale commercial growers. Innovations such as spectrum-tunable options, which allow users to adjust the light spectrum to match the specific needs of plants at different growth stages, and smart controls integrate technology such as Wi-Fi, Bluetooth, and IoT (Internet of Things) connectivity into LED grow lights, enabling growers to automate and remotely manage their lighting systems, aligning with the market’s shift toward sustainable, energy-efficient solutions. These trends, such as indoor farming and technological advancement, highlight the leadership of the full-spectrum LED light in the market.

Expansion of Indoor & Vertical Farming Drives the Market

The expansion of indoor and vertical farming is a key driver for the LED grow light market, driven by urbanization, climate change, and the need for sustainable food production. These farming methods rely heavily on artificial lighting systems, particularly LED grow lights, due to their energy efficiency, customizable spectral output, and long lifespan. Vertical farming companies are moving and expanding their operations where they are finding lower electricity prices, which are crucial to their operations, and willing investors. In January 2024, IGS, a vertical farming leader, secured $28.5 million to fund global expansion, including a 900,000 sq ft GigaFarm in the UAE with ReFarm. This farm is expected to produce two billion plants annually, enough to replace 1% of the UAE's produce imports. With rising investments and technological innovation, LED grow lights are poised to become essential in the future of urban agriculture.

LED Grow Lights Market

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Key Market Players: 

The top 10 companies in this industry are listed below:

  1. Signify Holding
  2. Crecer Lighting
  3. Vivosun
  4. Valoya
  5.  Heliospectra
  6. California LightWorks
  7. Ams-OSRAM AG
  8. Gavita International B.V.
  9. Cree LED
  10. Hortilux Schréder

Scope of the Report: 

Report Metric Details

Base Year Considered

2024

Forecast Period

2025–2031

CAGR

25.9%

Market Size in 2031

$6.4 Billion

Segments Covered

 By Product Type, By Spectrum, By Installation Type, By Form Factor, By Application, By Sales Channel and By Geography

Geographies Covered

North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), Rest of the World (Middle East and Africa).

Key Market Players

  1. Signify Holding
  2. Crecer Lighting
  3. Vivosun
  4. Valoya
  5. Heliospectra
  6. California Lightworks
  7. Ams-OSRAM AG
  8. Gavita International B.V.
  9. Cree LED
  10. Hortilux Schréder

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  1.    LED Grow Lights Market - Overview
      1.1.    Definitions and Scope
  2.    LED Grow Lights Market - Executive Summary
      2.1.    Key trends by Product Type
      2.2.    Key trends by Spectrum
      2.3.    Key trends by Installation Type
      2.4.    Key trends by Form Factor
      2.5.    Key trends by Application
      2.6.    Key trends by Sales Channel
      2.7.    Key trends by Geography
  3.    LED Grow Lights Market - Comparative Analysis
      3.1.    Company Benchmarking - Key Companies
      3.2.    Financial Analysis - Key Companies
      3.3.    Market Share Analysis - Key Companies
      3.4.    Patent Analysis
      3.5.    Pricing Analysis
  4.    LED Grow Lights Market - Start-up Companies Scenario
      4.1.    Key Start-up Company Analysis by
            4.1.1.    Investment & Revenue
            4.1.2.    Venture Capital and Funding Scenario
  5.    LED Grow Lights Market – Market Entry Scenario Premium
      5.1.    Regulatory Framework Overview
      5.2.    New Business and Ease of Doing Business Index
      5.3.    Case Studies of Successful Ventures
  6.    LED Grow Lights Market - Forces
      6.1.    Market Drivers
      6.2.    Market Constraints
      6.3.    Market Challenges
      6.4.    Porter's Five Force Model
            6.4.1.    Bargaining Power of Suppliers
            6.4.2.    Bargaining Powers of Customers
            6.4.3.    Threat of New Entrants
            6.4.4.    Rivalry Among Existing Players
            6.4.5.    Threat of Substitutes
  7.    LED Grow Lights Market – Strategic Analysis
      7.1.    Value Chain Analysis
      7.2.    Opportunities Analysis
      7.3.    Product Life Cycle/Market Life Cycle Analysis
      7.4.    Supplier/Distributor Analysis
  8.    LED Grow Lights Market – By Product Type (Market Size – $Million/$Billion)
      8.1.    Low Power Products (<300W)
      8.2.    High Power Products (≥300W)
  9.    LED Grow Lights Market– By Spectrum (Market Size – $Million/$Billion)
      9.1.    Full Spectrum
      9.2.    Partial Spectrum
  10.    LED Grow Lights Market– By Installation Type (Market Size – $Million/$Billion)
      10.1.    New Installations
      10.2.    Retrofit Installations
  11.    LED Grow Lights Market– By Form Factor (Market Size – $Million/$Billion)
      11.1.    Vertical Farming LED Grow Lights
      11.2.    Inter-lighting LED Grow Lights
      11.3.    Top-lighting LED Grow Lights
  12.    LED Grow Lights Market– By Application (Market Size – $Million/$Billion)
      12.1.    Indoor Farming
      12.2.    Commercial Greenhouses
      12.3.    Vertical Farming
      12.4.    Turf and Landscaping
      12.5.    Research
      12.6.    Others
  13.    LED Grow Lights Market– By Sales Channel (Market Size – $Million/$Billion)
      13.1.    Offline
      13.2.    Online
  14.    LED Grow Light Market – by Geography (Market Size – $Million/$Billion) 
      14.1.    North America
            14.1.1.    U.S
            14.1.2.    Canada
            14.1.3.    Mexico
      14.2.    Europe
            14.2.1.    Germany
            14.2.2.    France
            14.2.3.    UK
            14.2.4.    Italy
            14.2.5.    Spain
            14.2.6.    Netherlands
            14.2.7.    Belgium
            14.2.8.    Rest of Europe
      14.3.    Asia-Pacific
            14.3.1.    China
            14.3.2.    Japan
            14.3.3.    South Korea
            14.3.4.    India
            14.3.5.    Australia & New Zealand
            14.3.6.    Malaysia
            14.3.7.    Taiwan
            14.3.8.    Indonesia
            14.3.9.    Rest of Asia-Pacific
      14.4.     South America
            14.4.1.    Brazil
            14.4.2.    Argentina
            14.4.3.    Chile
            14.4.4.    Colombia
            14.4.5.    Rest of South America
      14.5.    Rest of The World
            14.5.1.    Middle East
            14.5.2.    Africa
  15.    LED Grow Light Market – Entropy
      15.1.    New product launches
      15.2.    M&A's, collaborations, JVs and partnerships
  16.    LED Grow Light Market – Industry/Segment Competition Landscape 
      16.1.    Company Benchmarking Matrix – Major Companies
      16.2.     Market Share at Global Level – Major companies
      16.3.     Market Share by Key Region – Major companies
      16.4.     Market Share by Key Country – Major companies
      16.5.     Market Share by Key Application – Major companies
  15    LED Grow Light Market – Key Company List by Country Premium 
  16    LED Grow Light Market – Company Analysis 
      16.1     Signify Holding.
      16.2     Crecer Lighting.
      16.3     Vivosun
      16.4     Valoya
      16.5     Heliospectra
      16.6     California Lightworks
      16.7     Ams-OSRAM AG
      16.8     Gavita International B.V. 
      16.9     Cree LED
      16.10    Hortilux Schréder
 
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The LED Grow Light Market is projected to grow at 25.9% CAGR during the forecast period 2025-2031.

The LED Grow Light Market size is estimated to be $1.0 billion in 2024 and is projected to reach $6.4 billion by 2031

The leading players in the LED Grow Light Market are Signify Holding, Crecer Lighting, Vivosun, Valoya, Heliospectra and others.

Spectral optimisation in LED grow lights and is integration of renewable energy sources with LED grow lights are the major trends that will shape the market in the future.

The LED grow light market thrives due to expanding indoor and vertical farming, bolstered by government support and LED technology advancements. Rising Controlled Environment Agriculture (CEA) adoption, vertical farming popularity, year-round crop production, cannabis legalization, and a focus on energy efficiency and cost savings drive demand, enhancing market growth across regions.