LED Grow Lights Market to Reach $12.32 Bn, Globally

High efficiency and controllability offered by LED grow lights and rise in adoption in vertical farming drive the growth of the global LED grow lights market. However, lack of standardization and high initial investment hinder the market growth. On the other hand, legalization of cannabis presents new opportunities in the coming years.

Production activities of LED grow lights halted due to lockdown implemented across many countries. Moreover, supply chain disruptions and shortage of raw materials presented challenges in production at full capacity.

The demand from application industries such as indoor farming, commercial greenhouse, vertical farming, turf and landscaping, and others lowered down considerably during the lockdown. However, the demand is estimated to grow steadily during post-lockdown as daily activities get back on track.

The ban on import-export activities led to disruptions in the supply chain and the supply-demand gap. As the restrictions are lifted off, the supply chain is expected to be restored.

Based on wattage, the low power segment contributed to the highest share in 2020, holding more than half of the global LED grow lights market, and is estimated to maintain its lead position during the forecast period. This is due to ease in installation and operation as it functions on the basis of plug-and-play. However, the medium power segment is estimated to register the highest CAGR of 32.0% from 2021 to 2030, owing to rise in demand for indoor farming and the need for suitable intensity of light to generate optimum yield.