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

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.

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.

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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: 

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