Agricultural Plant Growth LED Lights Market Size, Share, Growth, and Industry Analysis, By Type (Low Power (＜300W) and High Power (≥300W)), By Application (Vegetables Irradiation and Landscaped Plant Irradiation), Regional Insights, and Forecast To 2032

Agricultural Plant Growth LED Lights Market Report Overview

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The global agricultural plant growth LED lights market size was USD 1064.3 million in 2022 and the market is projected to touch USD 2173.2 million by 2032 at a CAGR of 7.4% during the forecast period.

LED grow lights consist of light-emitting diodes enclosed within a casing equipped with heat sinks and integrated fans. These lights typically do not necessitate a separate ballast and can be directly plugged into standard electrical sockets. In the absence of natural sunlight, LED grow lights effectively mimic daylight, enabling plants to thrive and develop optimally. They play a crucial role in strengthening root systems, stimulating growth, regulating flowering, enhancing coloration, accelerating fruit ripening, and improving taste and overall quality. These lights have become a crucial component in modern agriculture, enabling year-round crop production and increased control over plant health and productivity.

COVID-19 Impact: Disruption of Semiconductor Sector Impacted the LED Lights Market 

The global COVID-19 pandemic has been unprecedented and staggering, with the agricultural plant growth LED lights market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The market for agricultural plant growth LED lights experienced substantial disruption due to the COVID-19 pandemic. Production in the electronics and semiconductor sectors was temporarily stopped due to workforce scarcity and global slowdown. Also, this health crisis resulted in a prolonged decline in manufacturing capacity utilization and the imposition of travel restrictions. Furthermore, facility closures prevented workers from accessing their workplaces, resulting in a slowdown in the industry's growth throughout 2020. However, the market has begun to gain substantial growth post-pandemic which is expected to continue to rise in the coming years as well.

Latest Trends

"Integration with Environmental Sensors Strengthen the Market Outlook"

Smart control and automated LED lights have been gaining popularity over the past few years which continues to escalate the demand for such plant growth LED lights due to their advanced features such as automatic control and remote programs through smartphone apps or computer interfaces. These lights allow growers to adjust light intensity, spectrum, and photoperiod settings with precision, and fine-tuned control of plant growth. As well as integrated lights with environmental sensors are also in trend. These smart lighting systems often integrate with other environmental sensors, for instance, temperature, humidity, and CO2 sensors. This integration enables real-time adjustments to create optimal growing conditions. Consequently, these trends and developments are likely to boost the growth of the market.

Agricultural Plant Growth LED Lights Market Segmentation

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• By Type

According to type, the market can be bifurcated into Low Power (＜300W) and High Power (≥300W).

• By Application

Based on application, the market can be divided into Vegetables Irradiation and Landscaped Plant Irradiation.

Driving Factors

"Rising Inclination towards Vertical Farming to Spur Market Development"

Vertical farming is a modern agricultural practice that is gaining traction lately and fuels the demand for plant growth LED lights. As in this farming practice, these LED lights play a crucial role in providing photosynthesis artificially. This technique is gaining popularity owing to its efficiency in addressing challenges such as land scarcity, climate change, and food security. Also, it offers a way to produce fresh and locally grown crops in urban and densely populated areas, reducing the reliance on long-distance transportation and mitigating some of the environmental concerns associated with traditional agriculture which is likely to boost the demand for these LED lights.

"Mounting Demand for Energy Efficient Lights to Lift the Market Growth "

The increasing demand for energy efficient lights is an important factor to drive market growth. Since LED grow lights are known for their energy efficiency, and consume significantly less electricity compared to traditional lighting technologies similar to high-pressure sodium (HPS) and metal halide (MH) lamps. This energy-saving aspect reduces operational costs and attracts growers looking to lower their energy expenses. Thus, this factor accelerates the adoption of such LED lights and is also expected to contribute to enhancing the agricultural plant growth LED lights market growth over this forecast period.

Restraining Factor

"Initial Investment Costs to Obstruct the Market Expansion"

Although the market is progressive due to several driving factors, however, the high cost of investment may impede the expansion of this market. Illustratively, LED grow lights, especially high-quality and customizable systems, can be relatively expensive to purchase and install. Therefore, the upfront capital expenditure could be a barrier for smaller or less financially secure growers, which may limit the adoption of these lights. 

Agricultural Plant Growth LED Lights Market Regional Insights

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"North America is Expected to Lead the Market with Prevalence of Vertical Farming Technique"

North America is predicted to be the leading region in the market owing to the substantial adoption of indoor and controlled environment agriculture practices, including vertical farming and greenhouse cultivation, which rely heavily on LED grow lights. Furthermore, countries such as the U.S. and Canada play a vital role in leading the market with the presence of a well-established horticultural industry, research institutions, and technology companies in these nations.

Key Industry Players

"Key Companies Collaborate with Industry Stakeholders to Promote their LED Lights"

With regard to key players, notable companies have significant influence on the market’s growth and stimulate revenue through their research and development, product customization, market education, global presence, and sustainability initiatives. In addition, they drive innovation, set industry standards, and collaborate with stakeholders to advance LED grow light technologies. With the help of these strategies, key companies play a vital role in expanding the market, making LED grow lights accessible to growers. Furthermore, the top five key players are acknowledged for the highest agricultural plant growth LED lights market shares in the global marketplace.

LIST OF TOP AGRICULTURAL PLANT GROWTH LED LIGHTS COMPANIES

• Philips (Signify) (Netherlands)
• General Electric (U.S.)
• Osram (Germany)
• Everlight Electronics (Taiwan)
• Gavita (Netherlands
• Hubbell Lighting (U.S.)
• Kessil(U.S.)
• Cree (U.S.)
• Illumitex (US)

Report Coverage

This report defines the agricultural plant growth LED lights market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.