A new market analysis by Research and Markets has determined that the global grow lights market is “expected to reach USD 6.4 billion by 2029 from USD 2 billion in 2024, at a CAGR of 26.5% during the 2024-2029 period.” Research and Markets points to the spread of cannabis reform across the globe as a main driving force for the sector’s projected growth.
“With marijuana legalization, there’s a noticeable trend among cannabis companies diversifying their product offerings. The increased legalization of cannabis cultivation has driven a higher demand for vertical farms and greenhouses, consequently boosting the need for LED-based grow lights. Cannabis grown without sunlight requires careful consideration of various factors. ” Research and Markets stated in a press release.
“LED grow lights have surpassed conventional lighting technologies in energy efficiency, lifespan, versatility, and color quality. With their increasing cost competitiveness, they’re widely adopted in applications like vertical farms, indoor farms, and greenhouses, catering to various plant needs with different types, shapes, sizes, prices, and colors. LED grow lights outshine traditional high-intensity discharge (HID) lamps in energy efficiency and lifespan, offering a longer operating life of nearly 50,000 hours and consuming 50% to 85% less electricity.” the researchers stated about LED cultivation lights.
Transparency Market Research released a separate report earlier this year about the grow light industry. Their report found:
- The grow light industry generated US$ 890.0 million in 2022. From 2023 to 2031, the market is predicted to increase by 7.5% CAGR. It is expected to reach US$ 1.2 billion by 2031.
- In 2022, Europe held the largest share of the grow light market. The grow light market in Europe is expected to grow significantly in the coming years.
- Based on technology, the LED segment will likely drive demand for grow lights in the market.
An increasing number of jurisdictions are permitting cannabis consumers and patients to cultivated cannabis in their private residences. The most recent one is Germany, where the nation’s new adult-use cannabis legalization measure went into effect on April 1, 2024.
Adults in Germany, aged 18 and older, can now cultivate up to three plants in their private residences. Home cultivation was previously legalized in Malta in 2021 and in Luxembourg in 2023. Home cultivation is also legal in Uruguay, Canada, and in many parts of the United States.
Home cultivation reform will be a major driving force for future growth of the indoor grow light sector, in addition to the commercial cultivation.