Global Grow Lights Market Overview
Grow Lights Market Size was valued at USD 2.4 Billion in 2023. The Grow Lights industry is projected to grow from USD 3.14 Billion in 2024 to USD 20.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.54% during the forecast period (2024 - 2032). Increased adoption of grow lights and increasing investment in research and development (R&D) are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Grow Light Market Trends
Increased adoption of grow lights is driving the market growth
The increased adoption of Grow Lights in vertical farming is a key driver propelling the Grow Light market. Vertical farming, characterized by stacked layers of cultivation in controlled indoor environments, relies heavily on artificial lighting to support plant growth. Grow Lights play a pivotal role in providing the necessary light spectrum for photosynthesis, enabling year-round and space-efficient cultivation. The ability of Grow Lights to mimic natural sunlight and facilitate optimal conditions for plant development has positioned them as essential components in vertical farming setups. As the trend toward sustainable and efficient agricultural practices gains momentum, the demand for advanced and energy-efficient Grow Lights continues to grow, driving innovation and market expansion in the vertical farming sector.
The Grow Light market is experiencing significant growth propelled by increasing investment in research and development (R&D). Companies are actively innovating to enhance the efficiency, spectrum control, and longevity of Grow Lights. Ongoing R&D efforts result in the introduction of advanced technologies, such as customizable light spectra and smart lighting solutions. Improved energy efficiency and sustainability are key focus areas, aligning with the growing demand for eco-friendly agricultural practices. As the industry explores new materials and technologies, the continuous influx of innovative products is driving market expansion. Growers benefit from cutting-edge solutions that optimize plant growth, increase yields, and contribute to the overall advancement of controlled environment agriculture.
Horticultural lighting tailored for cannabis cultivation is a driving force behind the growth of the Grow Lights market. With the legalization and expansion of cannabis cultivation, there is a heightened demand for specialized lighting solutions optimized for the unique needs of cannabis plants. Grow Lights with customizable spectra, including specific wavelengths for different growth stages, enhance cannabis yield, potency, and overall quality. As the cannabis industry expands ly, growers increasingly recognize the importance of precision lighting for maximizing crop outcomes. This specific application of horticultural lighting has led to the development of advanced and specialized grow light systems, contributing significantly to the overall market growth within the cannabis cultivation sector.
For instance, U.S. federal law prohibits the cultivation, sale, and use of cannabis. However, over the past decade, there has been a significant legislative shift, with 18 states, including California and the national capital Washington DC, legalizing cannabis for recreational use. In October 2022, President Joe Biden granted pardons to thousands of individuals convicted of cannabis possession. These instances of legalization and government support continue to influence the market under consideration. Thus, driving the Grow Lights market revenue.
Grow Light Market Segment Insights
Grow Light Offering Insights
The Grow Lights market segmentation, based on offering includes Hardware and Software & Services. The hardware segment dominated the market, accounting for 35% of market revenue (0.82 Billion). Hardware offerings, including light fixtures, controllers, and supporting infrastructure, have captured the largest market share in the Grow Lights market. This dominance is attributed to the essential role hardware plays in providing a complete and functional grow light system. Growers prioritize investing in high-quality and efficient hardware components to ensure optimal light conditions for plant growth. The demand for durable, energy-efficient fixtures, along with advanced control systems, positions hardware offerings as a fundamental and substantial segment within the Grow Lights market.
Software and services offerings are experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market due to the increasing adoption of smart and connected grow light systems. Growers are leveraging software solutions and services for remote monitoring, data analytics, and precise control of light conditions. The integration of Internet of Things (IoT) technologies and software-driven functionalities enhances efficiency and customization. As the demand for smart grow light solutions rises, the software and services segment is witnessing notable growth, contributing to the overall advancement and sophistication of controlled environment agriculture practices.
Grow Light Wattage Insights
The Grow Lights market segmentation, based on wattage, includes <300 Watt and >300 Watt. The <300 Watt category generated the most income (60%). Grow Lights with a wattage below 300 Watts have captured the largest market share in the Grow Lights market due to their versatility and energy efficiency. These lower-wattage solutions are suitable for small-scale and home-based cultivation, offering cost-effective and manageable options for indoor plant growth. They are particularly popular among hobbyist growers, new cultivators, and those with limited space. Additionally, advancements in LED technology have allowed for the development of highly efficient and powerful yet compact Grow Lights with wattages below 300 Watts, contributing to their market dominance.
The demand for Grow Lights with wattage exceeding 300 watts is experiencing the highest Compound Annual Growth Rate (CAGR) in the market due to increased adoption in large-scale commercial cultivation. Higher-wattage lights provide greater intensity and coverage, meeting the requirements of expansive indoor farming operations. This trend is driven by a growing emphasis on efficient and high-yield agricultural practices, prompting cultivators to invest in more powerful lighting solutions for optimal crop growth and productivity.
Grow Light Spectrum Insights
The Grow Lights market segmentation, based on spectrum, includes Introduction, Full Spectrum and Limited Spectrum. The Limited-spectrum Grow Lights generated the most income (30%). Limited-spectrum Grow Lights have captured the largest market share due to their efficiency in targeting specific wavelengths essential for plant growth. These lights concentrate on the wavelengths associated with photosynthesis, optimizing energy consumption and promoting better crop development. The focused spectrum caters to the specific needs of plants, enhancing their photosynthetic processes and overall productivity. This targeted approach makes limited-spectrum Grow Lights a preferred choice among cultivators seeking cost-effective and resource-efficient solutions for indoor farming, thereby dominating the market.
Full-spectrum Grow Lights are experiencing the highest Compound Annual Growth Rate (CAGR) in the market due to their ability to replicate natural sunlight, providing a comprehensive range of wavelengths beneficial for plant growth. This broad spectrum enhances all stages of plant development, from germination to flowering. As demand rises for more versatile and efficient lighting solutions, full-spectrum Grow Lights gain popularity among growers aiming for optimal yields across diverse crops. Their versatility and effectiveness contribute to the robust growth observed in the market.
Grow Light Cultivated Insights
The Grow Lights market segmentation, based on Cultivated includes Fruits & Vegetables, Flowers and Cannabis. The Fruits & Vegetables category generated the most income (40%). Fruits and vegetables cultivation has secured the largest market share in the Grow Lights industry as indoor farming gains prominence. Grow Lights offer a controlled environment that enables year-round production, overcoming seasonal limitations. The demand for fresh, locally grown produce drives this trend, with growers focusing on high-value crops like fruits and vegetables. The technology's ability to enhance crop yield, quality, and consistency propels its adoption, making it a key choice for cultivators seeking sustainable and efficient solutions for year-round production.
Cannabis cultivation is experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market due to the increasing legalization of cannabis in various regions. The controlled environment provided by Grow Lights allows for optimized cultivation conditions, leading to higher yields and quality of cannabis crops. As the cannabis industry expands, growers prioritize advanced technologies, including specialized lighting solutions, to maximize production efficiency. This surge in demand contributes to the rapid growth observed in the market for Grow Lights.
Figure 1: Grow Light Market, by Cultivated, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Grow Light Lighting Type Insights
The Grow Light market segmentation, based on lighting type, includes Introduction, Toplighting and Interlighting. The Toplighting category generated the most income (31%). Toplighting has secured the largest market share in Grow Lights due to its effectiveness in providing uniform and consistent illumination for crops. This lighting type, positioned above the plants, ensures optimal light distribution, reaching all parts of the canopy. Its versatility makes it suitable for various cultivation setups, including greenhouses and indoor facilities. As growers seek efficient and space-saving solutions, the practicality and effectiveness of toplighting contribute to its dominance, driving its widespread adoption in the Grow Lights market.
Interlighting is experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market due to its unique ability to target specific areas within the plant canopy. Placed within the crop canopy, interlighting promotes better light penetration, reaching lower and inner foliage. This targeted approach enhances overall plant photosynthesis and yields. As growers increasingly recognize the benefits of interlighting for maximizing crop production in limited space, its adoption rises, contributing to the remarkable growth observed in the Grow Lights market.
Grow Light Light Source Insights
The Grow Lights market segmentation, based on light source, includes Light Emitting Diode, Fluorescent and High-Intensity Discharge Light. The Light Emitting Diode (LED) category generated the most income (35%) due to their energy efficiency, long lifespan, and customizable spectrum. LEDs offer precise control over the light spectrum, allowing growers to tailor it to specific plant needs. The energy efficiency and durability of LED technology contribute to cost savings over time, making them a preferred choice. As sustainability and performance become priorities, LED Grow Lights maintain their lead in the market.
High-Intensity Discharge (HID) lights are experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market due to their ability to provide intense light output suitable for various growth stages. HID lights, including metal halide and high-pressure sodium lamps, are known for their power and efficiency. Cultivators value their effectiveness in promoting robust plant growth. As the demand for versatile and high-performance lighting solutions increases, HID lights gain traction, contributing to their rapid growth in the Grow Lights market.
Grow Light Application Insights
The Grow Lights market segmentation, based on application, New Installations and Retrofit Installations. The New Installations generated the most income as growers increasingly adopt advanced lighting systems for new and expanding cultivation facilities. The demand for state-of-the-art technology to enhance productivity and efficiency in modern agricultural practices drives this trend. As the industry witnesses a surge in new installations, the market share for Grow Lights in this application category expands, reflecting the growing preference for cutting-edge solutions among cultivators establishing or upgrading their indoor farming setups.
Retrofit installations are experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market as existing cultivators upgrade their facilities to incorporate advanced lighting technology. Retrofitting allows growers to enhance efficiency without significant infrastructure changes. As awareness of the benefits of modern Grow Lights rises, cultivators increasingly opt for retrofit installations to improve energy efficiency, optimize yields, and meet sustainability goals. This trend contributes to the notable growth observed in the retrofit installations application category within the Grow Lights market.
Grow Lights Sales Channel Insights
The Grow Lights market segmentation, based on sales channel, includes Distribution Channels, E-Commerce channels and Direct Sales Channels. The Distribution Channels category generated the most income (20%). Distribution channels, such as retail and e-commerce, have captured the largest market share in the Grow Lights industry as they facilitate widespread access to these products. These channels offer a convenient and efficient way for growers to procure Grow Lights for various applications. The increasing availability of Grow Lights through diverse distribution channels, coupled with the rising demand for these products, contributes to the dominance of distribution channels in terms of market share within the Grow Lights industry.
E-commerce channels are experiencing the highest Compound Annual Growth Rate (CAGR) in the Grow Lights market due to their convenience and accessibility. Online platforms provide a streamlined purchasing process, enabling growers to easily compare products and access a wide range of options. The shift towards online shopping, coupled with the increasing trend of e-commerce in agriculture, propels the rapid growth of this sales channel. As growers prioritize efficiency and diverse product choices, e-commerce emerges as a key driver in the expanding Grow Lights market.
Grow Lights Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America has secured the largest market share in the Grow Lights industry due to widespread adoption and advancements in controlled environment agriculture. The region's mature cannabis market, along with a strong emphasis on sustainable farming practices, has driven the demand for high-quality Grow Lights. Additionally, a supportive regulatory environment and increased awareness of indoor farming benefits contribute to North America's dominance. As the market expands, the region remains at the forefront, reflecting the prevalent use of Grow Lights in various agricultural applications.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GROW LIGHTS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Grow Lights market accounts for the second-largest market share driven by a surge in controlled environment agriculture, emphasis on sustainable farming practices, and the legalization of cannabis in some countries. The region's commitment to resource-efficient and high-yield agricultural methods contributes to the widespread adoption of Grow Lights. Additionally, government incentives for sustainable farming practices and technological advancements in horticulture further boost the market. As European growers embrace indoor farming, the region maintains a significant presence in the Grow Lights market. Further, the German Grow Lights market held the largest market share, and the UK Grow Lights market was the fastest growing market in the European region
The Asia-Pacific Grow Lights Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to increasing adoption of advanced agricultural technologies, rising awareness of controlled environment agriculture benefits, and a growing population demanding year-round produce. The region's expanding commercial greenhouse sector, coupled with government initiatives promoting sustainable farming practices, contributes to the rapid growth. As the demand for high-quality crops rises, Asia Pacific emerges as a key player, driving substantial growth in the market for Grow Lights. Moreover, China’s Grow Lights market held the largest market share, and the Indian Grow Lights market was the fastest growing market in the Asia-Pacific region.
Grow Lights Market Key Players & Competitive Insights
Leading players in the Grow Lights market are focusing on technological innovations to enhance product efficiency and sustainability. Companies are investing in research and market developments related to energy-efficient and customizable lighting solutions. Additionally, strategic partnerships, mergers, and acquisitions are prominent, enabling market players to expand their product portfolios and presence. The emphasis on providing comprehensive solutions for various crops and cultivation environments underscores the competitive landscape, as companies strive to meet the evolving demands of the growing indoor farming sector.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Grow Lights industry to benefit clients and increase the market sector. In recent years, the Grow Lights industry has offered some of the most significant advantages to medicine. Major players in the Grow Lights market, including Signify (formerly Philips Lighting), Osram, General Electric (GE), Heliospectra AB, Cree, Inc., Illumitex, Lumileds, Gavita, California LightWorks and Valoya and others, are attempting to increase market demand by investing in research and development operations.
Heliospectra AB is a Swedish-based company specializing in intelligent lighting solutions for controlled environment agriculture. With a focus on precision and efficiency, Heliospectra provides advanced LED Grow Lights designed to optimize plant growth, improve crop quality, and maximize yields. The company's lighting systems feature customizable spectra and advanced control systems, catering to the specific needs of various crops. Heliospectra emphasizes sustainability and resource efficiency in indoor farming. The integration of cutting-edge technologies and a commitment to research and development contribute to its position as a key player in the Grow Lights market, addressing the evolving demands of modern agriculture for enhanced productivity and environmentally conscious solutions. For the latest information, please refer to Heliospectra AB's recent updates.
Illumitex, based in the United States, is a horticultural lighting solutions company with a focus on advanced LED technology. Specializing in precision lighting for controlled environment agriculture, Illumitex offers innovative and customizable LED Grow Lights. The company's products aim to optimize plant growth, increase yields, and improve crop quality. Illumitex emphasizes energy efficiency and sustainability in its solutions, aligning with the evolving needs of modern farming practices. With a commitment to research and development, Illumitex remains at the forefront of technological advancements in the Grow Lights market. The company's solutions cater to the diverse requirements of indoor and greenhouse cultivation, contributing to its prominent position in the industry. For the latest information, refer to Illumitex's recent updates.
Key Companies in the Grow Lights market include
Grow Lights Industry Developments
October 2023: Mammoth Lighting's new spectrum, which mirrors the ideal blend of high-pressure sodium (HPS) and metal halide (MH) lighting, is seen as a significant milestone in the field of plant growth technology.
In an effort to convey his enthusiasm for this endeavor, Ryan Daly made the following statement: "The Samsung EVO chip and Green diodes that are incorporated into Mammoth Lighting's LED grow lights represent a quantum leap in plant-centric lighting technology." Whether you are a newbie gardener or an experienced farmer, this invention provides benefits that cannot be matched. This is a genuine game-changer for growers who are looking to improve neither the quality nor the production of their crops.
Green is not simply photosynthetic; it is the most photosynthetic hue, particularly at PPFD values more than 500, attributable to its better leaf penetration. This finding challenges the common belief that plants reflect green light. Recent academic study has shown that green is not merely photosynthetic. When it comes to facilities that have densely planted crops, this characteristic is really necessary.
In addition to expanding the spectrum by adding additional blue and green for the purpose of improving plant quality and quantity, we have also enhanced the location of the diodes on the bars by using smart diode spacing. This planned arrangement decreases the number of hot spots in the middle of the canopy and ensures that light is distributed evenly across the whole canopy.
With the EVO chip, the most recent LED grow lights from Mammoth illumination transcend the capabilities of conventional horticulture illumination. These grow lights combine Samsung's revolutionary plant-centric spectrum. With a spectral peak of 437 nm, which is shorter than the normal wavelength of white LEDs, it has the ability to stimulate the formation of secondary metabolites, which in turn promotes plant development and improves plant nutrition.
February 2023 has seen Fluence, the leading global supplier of energy-efficient LED Lighting solutions for the commercial cannabis and food production sectors, back a major expansion of pharmaceutical-grade medical cannabis growing in Portugal.
November 2022: Signify announced that it was expanding its Smart Wi-Fi lighting field in India with the launch of two distinct portable smart lamps: Philips Smart LED Squire and Philips Smart LED Hero. The Philips Smart LED Squire and Philips Smart LED Hero can be used anywhere in a house as they have round shapes and plug-and-play features, which make them easy to use while on the move.
K&S announced in September 2022 that its subsidiaries Kulicke & Soffa Luxembourg S.R.L had entered into acquisition agreement with Taiwan Province automation equipment company Gaokejing Jetta as K&S intended to acquire designated dispensing assets and dispensing business of Yifu, a subsidiary of Gaokejing Jetta, a dispensing equipment and solution manufacturer.
Thrive Agritech, Inc. launched its new offering, 840 W Pinnacle HP LED grow light, in September 2022. This new lamp delivers higher intensities compared to its predecessor yet uses fewer lights. This new LED product employs advanced LED chip technology, which can generate ideal combinations of power and efficiency.
AB Lighting launched new LED grow lights, including AB330 and AB660, in July 2022. The range offers full spectrum light on continuous run time optimized for vegetable crops so growers can achieve high yields by using less electricity.
July 2022: AB Lighting introduced their latest versions of LED Grow Lights; AB330 & AB660. These are designed specifically for commercial vegetable growers where power consumption optimization is paramount to newly built greenhouse environments. These lights were designed to help vegetable growers reach higher yields by offering a lower wattage, a full spectrum designed explicitly for vegetables, and continuous run times that vegetables need.
The BioLED intelligent air purifier from Taiwan-based Ledtech uses OSLON UV3636 UV-C LEDs for sanitization purposes, according to ams OSRAM in June 2022. The BioLED's OSLON UV 3636 LEDs can inactivate up to 99.99% of viruses, including SARS-CoV-2, at a dosing rate of 3.6mJ/cm2.
June 2022: OSRAM reported that Ledtech, a Taiwan-based company, has opted for OSLON UV 3636 UV-C LEDs for the sanitization feature in its latest BioLED intelligent air purifier. The OSLON UV 3636 LEDs integrated into BioLED have the capability to deactivate as much as 99.99% of viruses, including SARS-CoV-2, with an effective dosing rate of 3.6mJ/cm2. This advancement underscores the efficacy of ams OSRAM's UV-C LED technology in enhancing air purification processes and ensuring a high level of virus inactivation, providing a valuable solution for maintaining clean and safe indoor environments.
Grow Light Market Segmentation
Grow Light Offering Outlook
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Hardware
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Software & Services
Grow Lights Wattage Outlook
Grow Lights Spectrum Outlook
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Full Spectrum
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Limited Spectrum
Grow Lights Cultivated Outlook
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Fruits & Vegetables
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Flowers
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Cannabis
Grow Lights Lighting Type Outlook
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Toplighting
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Interlighting
Grow Lights Light Source Outlook
Grow Lights Application Outlook
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New Installations
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Retrofit Installations
Grow Lights Sales Channel Outlook
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Distribution Channels
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E-Commerce channels
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Direct Sales Channels
Grow Lights Regional Outlook
- North America
- Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
- Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
- Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 2.4 Billion |
| Market Size 2024 |
USD 3.14 Billion |
| Market Size 2032 |
USD 20.7 Billion |
| Compound Annual Growth Rate (CAGR) |
26.54% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Offering, Wattage, Spectrum, Cultivated, Lighting Type, Light Source, Application, Sales Channel and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Signify, Osram, General Electric (GE), Heliospectra AB, Cree, Inc., Illumitex, Lumileds, Gavita, California LightWorks and Valoya |
| Key Market Opportunities |
Growing horticultural lighting tailored for cannabis cultivation is an opportunity |
| Key Market Dynamics |
Increased adoption of Grow Lights in vertical farming |
Grow Light Market Highlights:
Frequently Asked Questions (FAQ) :
The market is projected to grow at a CAGR of 26.54% during the forecast period, 2024-2032.
The key players in the market are Signify (formerly Philips Lighting), Osram, General Electric (GE), Heliospectra AB, Cree, Inc., Illumitex, Lumileds, Gavita, California LightWorks and Valoya Company.
The Light Emitting Diode (LED) category dominated the market in 2023.
The distribution channel had the largest share in the market.
