United States Grow Lights Market to Expand at 13.7% CAGR Through 2031 | LED Grow Lights Lead with 45% Share Driven by Rising Indoor & Vertical Farming Adoption

Leander, Texas and TOKYO, Japan - Dec.10.2025
Market Size
As per DataM Intelligence research report, "The Global Grow Lights Market is expected to grow at a CAGR of 13.7% during the forecast period 2024-2031." Rising adoption of indoor and vertical farming practices and increasing demand for energy-efficient lighting solutions are driving market growth.

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United States: Recent Industry Developments
✅ In November 2025, U.S.-based horticultural lighting manufacturers launched next-generation full-spectrum LED grow lights with adaptive photon output to support precision agriculture and vertical farming. The innovation enhances crop yield and energy efficiency, strengthening U.S. leadership in controlled-environment lighting.

✅ In October 2025, several large greenhouse operators in the U.S. adopted AI-integrated smart grow lighting systems that automatically adjust PPFD (photosynthetic photon flux density) based on plant growth stages. This advancement improves crop quality while reducing operational costs.

✅ In September 2025, American agri-tech companies expanded production of energy-efficient LED grow lights tailored for cannabis cultivation, driven by regulatory expansion and rising demand for optimized indoor production. This boosts the U.S. horticulture lighting ecosystem.

Japan: Recent Industry Developments
✅ In November 2025, Japanese lighting manufacturers introduced ultra-compact LED grow lights with precision wavelength control to support small-scale indoor farms and research facilities. This aligns with Japan's need for space-efficient agricultural technologies.

✅ In October 2025, major Japanese vertical farming companies implemented automated light adjustment systems integrated with plant-growth sensors and data analytics. This enhances real-time monitoring and reduces electricity consumption in urban farms.

✅ In September 2025, Japanese electronics firms released high-CRI horticultural LEDs designed for leafy greens and fruiting crops, ensuring improved plant morphology and market-ready color quality. This strengthens Japan's advanced manufacturing in agricultural lighting.

Global: Recent Industry Developments
✅ In 2025, global adoption of LED grow lights accelerated as countries invested heavily in vertical farming, hydroponics, and controlled-environment agriculture, increasing demand for efficient horticultural lighting.

✅ In 2025, major international lighting companies developed low-heat, high photon-efficiency LEDs targeting high-density indoor farms across Europe, the Middle East, and Asia-Pacific. This improves global scalability of indoor food production.

✅ AI-powered horticultural lighting became a major trend worldwide, with advanced systems capable of analyzing plant stress, growth rate, and nutrient demands to adjust spectral distribution automatically.

✅ Large-scale greenhouse operators globally adopted smart lighting management platforms integrated with IoT to optimize power consumption, crop output, and predictive maintenance.

Grow Lights Market Key Drivers :
- The grow lights market is expanding as indoor farming operators, greenhouse growers, and vertical farming facilities increasingly adopt advanced lighting technologies to enhance crop productivity and year-round cultivation. Grow lights-ranging from LED and HID to fluorescent systems-provide optimized light spectra that support photosynthesis, plant growth, and improved crop quality. Rising demand for local food production, controlled environment agriculture (CEA), and sustainable farming practices is driving market growth. Advancements in energy-efficient LEDs, spectrum tuning, and smart lighting controls are further improving performance, reducing operational costs, and maximizing yield.

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Major Key Players
Signify Holding, Gavita International B.V., General Electric Company, Osram Gmbh, Heliospectra Ab., Iwasaki Electric Co., Ltd, Illumitex, Hortilux Schréder, And California Light works.

Segment Covered in the Grow Lights Market:
-By Lighting Type
LED grow lights lead with 45% share, driven by energy efficiency, long lifespan, and adaptability to indoor and vertical farming.
High-Intensity Discharge (HID) holds 25%, preferred for high-output commercial greenhouses and controlled environment agriculture.
Fluorescent lighting accounts for 15%, widely used in small-scale indoor and home gardening setups.
Other lighting types capture 15%, including induction, plasma, and specialty horticultural lights for research and niche applications.

-By Offering
Hardware dominates with 60% share, comprising lamps, fixtures, and controllers essential for plant growth.
Software holds 25%, supported by smart lighting control systems, scheduling, and growth optimization platforms.
Services account for 15%, including installation, maintenance, and consulting for commercial and industrial setups.

-By Application
Commercial greenhouses lead with 35% share, driven by high-yield crop production and controlled environment advantages.
Vertical farming holds 25%, fueled by urban agriculture adoption and space optimization.
Indoor farming accounts for 20%, supported by small-scale growers and research facilities.
Other applications capture 20%, including turf & landscaping, research labs, and specialty crop cultivation.

Regional Analysis - Grow Lights Market
- North America - 32% Share
North America leads with 32%, driven by high adoption of indoor farming, vertical farming technologies, and advanced horticultural practices.

- Europe - 28% Share
Europe holds 28%, supported by growing controlled-environment agriculture, sustainable farming initiatives, and rising use of LED-based grow lights in Germany, Netherlands, and the UK.

- Asia-Pacific - 30% Share
Asia-Pacific dominates with 30%, fueled by rapid urbanization, expanding greenhouse farming, and increasing investment in horticulture and hydroponics in China, India, and Japan.

- South America - 6% Share
South America accounts for 6%, driven by adoption of modern farming techniques and increasing greenhouse cultivation in Brazil and Argentina.

- Middle East & Africa - 4% Share
Middle East & Africa hold 4%, supported by growth in indoor farming, smart agriculture initiatives, and adoption of energy-efficient lighting solutions in arid regions.

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FAQS
Q1: What is the current size of the Global Functional Food Ingredients Market and its future potential?
A: The Global Functional Food Ingredients Market reached US$ 84.4 Billion in 2022 and is projected to reach US$ 147.8 Billion by 2031.

Q2: How fast is the Global Functional Food Ingredients Market expected to grow?
A: The market is expected to grow at a CAGR of 7.1% during the forecast period 2024-2031.

Q3: Which region holds the largest share of the Functional Food Ingredients Market?
A: Asia-Pacific leads the market with a 33% share, driven by rising health-conscious consumers and strong functional beverage demand.

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