Press release
Grow Light Market to Reach USD 8.3 Billion by 2035: Demand Surges Across North America, Europe, and Asia-Pacific Driven by Controlled-Environment Agriculture Expansion
Grow Light Market
As global food systems evolve to meet the challenges of climate variability, urbanization, and year-round crop production, grow lights-artificial lighting systems that enable photosynthesis in controlled environments-are emerging as a cornerstone of modern agriculture. The adoption of indoor, vertical, and greenhouse farming is fueling robust market growth across developed and emerging regions alike.
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Sustainable Agriculture and Urban Food Systems Drive Adoption
The sharp rise in demand for grow lights is being propelled by several key factors:
Expansion of controlled-environment agriculture (CEA): Vertical farms, hydroponic setups, and smart greenhouses are scaling globally to enhance food security and resource efficiency.
Focus on sustainability: LED grow lights offer high energy efficiency and longer lifespans, supporting carbon reduction targets and eco-friendly food production.
Urbanization and local food production: Cities are embracing vertical farming to reduce supply chain dependency and meet local demand for fresh produce.
Technological innovation: Advancements in spectrum tuning, IoT integration, and smart lighting systems are optimizing photosynthetic efficiency and crop yields.
According to Fact.MR analysts, LED grow lights continue to dominate due to their superior energy performance, minimal heat emission, and adaptability across plant growth stages.
The transition away from traditional HID and fluorescent systems is accelerating as farms seek to minimize operational costs and environmental impact.
Regional Outlook: North America Leads, Asia-Pacific Gains Ground
North America remains the leading regional market, supported by high adoption rates of indoor cultivation for vegetables, cannabis, and ornamentals. The United States and Canada collectively account for over 35% of global demand in 2025.
Europe follows closely, with strong momentum from the Netherlands, Germany, and the United Kingdom-countries known for advanced greenhouse infrastructure and sustainable farming initiatives. EU decarbonization goals and government incentives for energy-efficient horticultural lighting are further bolstering adoption.
Meanwhile, Asia-Pacific is emerging as a key high-growth hub, expected to record the fastest CAGR of 8.2% through 2035. Rapid urbanization in China, Japan, South Korea, and India is driving investment in vertical farming systems to meet domestic food demand and reduce import dependency.
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On-Trade Expansion and Premium Lighting Technologies
Segment analysis highlights strong uptake across commercial greenhouse operators, vertical farms, and research facilities, which together contribute over 70% of global grow light sales in 2025. The horticulture segment-particularly fruits, vegetables, and floriculture-accounts for the largest application share.
A growing number of technology providers are introducing full-spectrum LEDs that replicate sunlight more accurately, improving plant morphology and nutritional content. Integration with AI-based monitoring systems and cloud-connected lighting controls is enabling real-time optimization of light intensity, color temperature, and photoperiods.
As the industry matures, premium lighting systems offering smart automation, longer durability, and spectral customization are commanding higher margins.
Competitive Landscape: Innovation and Collaboration Define Leadership
The grow light market is highly competitive, with leading companies focusing on energy efficiency, customized spectrum design, and strategic partnerships with greenhouse operators and agricultural tech firms.
Key players in the global grow light market include:
Signify N.V. (Philips Lighting)
Fluence Bioengineering, Inc.
ams OSRAM AG
Gavita Holland B.V.
Valoya Oy
Heliospectra AB
California LightWorks, Inc.
Samsung Electronics Co., Ltd.
GE Current, a Daintree Company
Hortilux Schréder B.V.
Strategic collaborations between lighting manufacturers and indoor farming solution providers are accelerating innovation, particularly in AI-driven spectral control, thermal management, and energy optimization. Several firms are also expanding their portfolios into UV and far-red lighting to support advanced horticultural research and high-value crop cultivation.
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Market Outlook: Toward Smarter, Sustainable Crop Production
From an estimated USD 2.8 billion in 2020 to USD 4.2 billion in 2025, the grow light market's momentum reflects accelerating investment in sustainable agriculture technologies. The next decade will bring another USD 4.1 billion in growth, with strong contributions from smart farming integration and renewable-powered lighting systems.
As growers worldwide aim to maximize yield efficiency while reducing carbon impact, grow lights are evolving from a niche technology into a critical enabler of resilient, year-round food production. Manufacturers and investors positioned around innovation, efficiency, and environmental stewardship are expected to lead the next phase of growth.
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