How Urban Farming is Driving Global Grow Light Demand

 

The global grow light market is gaining momentum as urban farming, vertical agriculture, and indoor gardening reshape food production systems. Valued at US$ 890.0 Mn in 2022, the industry is projected to expand at a CAGR of 7.5% from 2023 to 2031, reaching approximately US$ 1.2 Bn by 2031. Growing emphasis on sustainable food systems, demand for organic produce, and technological innovations in lighting solutions are key factors driving this growth.

 

The popularity of urban farming has surged in recent years, supported by eco-conscious consumer behavior and the need for locally sourced organic food. Grow lights have emerged as a cornerstone of indoor agriculture, enabling year-round cultivation regardless of climatic or geographic limitations. From vertical farms and greenhouses to home gardening and office décor, grow lights are increasingly being adopted to support food security, sustainability, and lifestyle-driven plant ownership trends.

Manufacturers are responding to rising demand by investing in LED innovations, energy-efficient grow light bulbs, and modular grow light systems, while also forming partnerships to enhance technological capabilities and expand market reach.

 

Market Dynamics

Growing Urban Farming and Indoor Cultivation

With urbanization accelerating, traditional farmland is shrinking, pushing cities to embrace indoor farming and greenhouse cultivation. According to Accenture, indoor farms can produce three times more food than traditional agriculture while using 95% less water. Grow lights are at the heart of this transformation, ensuring optimal plant growth in all conditions.

Additionally, the trend of gifting plants has become a cultural phenomenon. A survey by Garden Pals revealed that 66% of U.S. households own at least one houseplant, further fueling grow light adoption for both aesthetic and functional indoor plant care.

Demand for Fresh Food and Scarcity of Arable Land

Rapid population growth and rising urban density are putting pressure on food supply chains. The United Nations projects global population will reach 9.6 billion by 2050, nearly doubling food demand. With half of the world’s land already used for agriculture (Our World in Data), grow lights are becoming essential tools to maximize yields in limited spaces.

By enabling controlled-environment farming, grow lights reduce dependency on weather patterns and soil fertility, ensuring food security amid climate change challenges.

 

Regional Outlook

In 2022, Europe accounted for the largest market share, supported by strong agricultural investments, floriculture demand, and well-established greenhouse farming practices. The EU hosts over 405,000 hectares of glass and plastic-covered greenhouses, with the Netherlands, Spain, and France leading cultivation efforts.

North America is forecast to grow rapidly through 2031, led by the U.S. The region’s strong vertical farming ecosystem—driven by legalization of medicinal plants and increasing demand for organic fruits and vegetables—positions it as a significant growth hub. The U.S. alone accounts for 35% of vertical and indoor farms in North America, with over 2,300 hydroponic farming facilities.

 

Competitive Landscape

The market is characterized by innovation and strategic collaborations. Leading companies include:

• Philips Lighting
• Signify Holding
• General Electric Company
• Heliospectra AB
• AMS-OSRAM
• Scotts Miracle-Gro Company
• LumiGrow Inc.
• Gavita International B.V.

Notable developments include Proplant Propagation’s 2023 installation of Sollum Dynamic LED grow lights, aimed at enhancing organic crop quality, and AB Lighting’s 2022 launch of energy-efficient grow lights tailored for commercial vegetable growers.

 

Future Outlook

The grow light industry is expected to thrive as global agriculture transitions to climate-resilient, sustainable practices. Rising demand for fresh food, urban agriculture innovations, and LED technology advancements will continue to propel market expansion. By 2031, grow lights will remain central to addressing food scarcity, reducing resource use, and supporting both large-scale farms and individual consumers seeking healthier lifestyles.