Global Market Size, Forecast and Trend Highlights from 2024 to 2036

The plant growth light market size exceeded USD 2.39 billion in 2023 and is expected to exceed USD 287.1 billion by the end of 2036, growing at a CAGR of more than 121.6% during the forecast period (i.e., 2024-2036). The LED plant light industry size is expected to be USD 2.84 billion in 2024. The growth of the market can be attributed to the growing concept of indoor plants to make the appearance of the home more beautiful. LED lights are more effective than fluorescent lights for growing plants at home1, which is expected to drive the growth of the market.

LED lights are the most effective, efficient, and customer-friendly way to grow plants. Moreover, LEDs are much cooler than HPS bulbs and have less impact on the environment. They have a wider range of red and blue light that promotes flowering and vegetative growth. Therefore, all these factors are expected to provide opportunities for the growth of the global LED plant light market in the coming years.

LED Plant Grow Light Industry: Growth Drivers and Challenges

Growth Drivers

1. Decline in per capita arable land stock - In 2019, the global per capita agricultural land was 0.6 hectares, a 30% decrease since 1990. The arable land area in major agricultural countries is decreasing due to the accelerated industrialization and urbanization process. In addition, the increasing world population has led to a decrease in per capita arable land area. Therefore, the global LED plant grow light market is expected to grow significantly.

2. The government continues to increase its efforts to innovate advanced lighting technologies - Intelligent Lighting Control Science and Technology has received nearly $625,387 in funding from the UK Innovation Agency to develop smart LED planting lighting bell solutions that support indoor farming propositions. There is increasing support for different companies and organizations developing advanced technologies for indoor and vertical farming.

3. As the population increases, urbanization continues to advance - It is expected that by the end of 2050, more than 65% of the world's total population will live in urban areas. The growing urban population due to the increasing urban planting area is expected to drive the growth of the future market. Growing demand for fresh food imports and exports - According to a recent report, India's exports of fresh vegetables and fruits reached $1,527.6 million during the forecast period 2021-2022.

Challenges

1. High installation cost of LED grow lights - The initial installation cost of LED grow lights is more expensive than traditional lighting technologies such as HID lamps. Moreover, a single LED grow light consists of an array of LEDs designed for a specific application. Moreover, these LEDs are priced differently in the market, which is expected to hamper the growth of the market during the forecast period.

2. Lack of financial resources in the agricultural sector

3. Concerns related to standardization of LED grow light components