North America Cannabis Grow Lights Market (By Product: Light-Emitting Diode, High-Intensity Discharge Lamps; By Cultivation: Indoor, Greenhouse) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

North America Cannabis Grow Lights Market Size and Trends

The North America cannabis grow lights market size was valued at USD 1.33 billion in 2023 and it is predicted to surpass around USD 2.82 billion by 2033 with a CAGR of 7.82% from 2024 to 2033.

Key Pointers

• The United States dominated the cannabis grow lights market in 2023.
• By Product, the LED segment held the largest revenue share of 44% in 2023.
• By Product, the high-intensity discharge (HID) lamps/lights segment is estimated to expand the fastest CAGR of 8.03% from 2024 to 2033.
• By Cultivation, the indoor cultivation led the market in revenue share and is anticipated to exhibit the highest CAGR throughout the forecast period.

North America Cannabis Grow Lights Market Overview

North America has experienced significant growth, driven by regulatory changes and increasing consumer demand. A crucial component of successful cannabis cultivation is the use of specialized grow lights, which play a pivotal role in optimizing plant growth, quality, and yield indoors.

North America Cannabis Grow Lights Market Growth Factors

The growth of the North America cannabis grow lights market is driven by an increasing legalization of cannabis across various states and provinces has spurred demand for indoor cultivation technologies, including advanced grow lights. Technological advancements in lighting, such as LED and HPS systems, offer energy-efficient solutions tailored to enhance plant growth and maximize yields. Moreover, there is a rising emphasis on producing high-quality cannabis products, prompting cultivators to invest in premium lighting systems to achieve consistent quality and cannabinoid profiles. Additionally, the industry's shift towards sustainable practices has led to the adoption of environmentally friendly lighting solutions that minimize operational costs and carbon footprints.

North America Cannabis Grow Lights Market Trends:

• Shift towards LED Technology: LED grow lights are increasingly preferred due to their energy efficiency, long lifespan, and ability to provide specific light spectrums tailored to different growth stages of cannabis plants.
• Legalization Impact: The ongoing legalization of cannabis across North America continues to drive demand for grow lights as indoor cultivation becomes more widespread and regulated.
• Focus on Energy Efficiency: There is a growing emphasis on energy-efficient lighting solutions to reduce operational costs and environmental impact, with LEDs leading the way in energy savings compared to traditional HPS lights.
• Customization and Control: Growers are leveraging advanced lighting controls and automation systems to optimize growing conditions, including light intensity, spectrum, and photoperiod, to maximize yields and quality.
• Rise in Sustainable Practices: Environmental sustainability is a significant trend, with growers increasingly adopting eco-friendly lighting technologies and practices to minimize carbon footprints and adhere to regulatory standards.
• Integration with Smart Technologies: The integration of grow lights with IoT (Internet of Things) and AI (Artificial Intelligence) technologies allows for real-time monitoring and remote management, enhancing operational efficiency and crop management.

North America Cannabis Grow Lights Market Restraints:

• Market Saturation and Competition: The North America market for cannabis grow lights is becoming increasingly saturated with a wide range of manufacturers and products. Intense competition can lead to pricing pressures and challenges in differentiating products based on performance and features.
• Energy Consumption: While LED grow lights are more energy-efficient compared to traditional lighting systems like HPS (High-Pressure Sodium), indoor cannabis cultivation still requires significant energy consumption. High electricity costs and environmental concerns related to energy use remain critical challenges.
• Durability and Reliability Issues: Some growers may encounter issues related to the durability and reliability of grow light systems over time. Factors such as component lifespan, light degradation, and warranty support can impact long-term operational costs and productivity.
• Adoption Barriers: Despite technological advancements, there may be resistance or delays in adopting new grow light technologies due to inertia, perceived risks, or reliance on traditional methods that have proven effective for certain growers.

Product Insights

The LED segment emerged as the market leader in 2023, capturing the largest revenue share at approximately 44%. The increasing demand for efficient and effective LED grow lights mirrors the rapid expansion of the cannabis industry in North America. This growth is largely fueled by the ongoing legalization of cannabis, which enables more cultivators to legally produce cannabis for both medical and recreational purposes.

The adoption of LED technology has significantly contributed to the surge in demand. Historically, LED grow lights faced challenges in providing adequate light intensity for plant growth. However, advancements in LED technology have overcome these limitations, resulting in brighter and more efficient lighting solutions. Modern LED grow lights now offer full-spectrum illumination necessary for robust plant growth and photosynthesis, thereby promoting healthier and higher-quality cannabis plants.

The high-intensity discharge (HID) lamps/lights segment is projected to grow at a compound annual growth rate (CAGR) exceeding 8.03% during the forecast period. This segment includes high-pressure sodium (HPS) bulbs and metal-halide (MH) lights. HPS lights are favored for their ability to support cannabis growth from seedling to harvest, with many growers initially using MH bulbs to control plant height before transitioning to HPS during the flowering stage. HPS lights are renowned for their capacity to yield large, dense buds, driving segment growth in the coming years.

Cultivation Insights

In 2023, indoor cultivation led the market in revenue share and is anticipated to exhibit the highest CAGR throughout the forecast period. The dominance of indoor cultivation is attributed to the expanding legalization of cannabis for indoor growing and the increasing demand for cannabis-derived products in North America. According to the "State of the Cannabis Lighting Market" report by Cannabis Business Times and Fluence, 88% of surveyed participants in the U.S. cultivated cannabis indoors under artificial lighting in 2022.

The greenhouse cultivation segment is also poised for significant growth. In response to environmental challenges, there is a growing trend towards greenhouse cultivation, which provides controlled environments conducive to cannabis cultivation. Similarly, the same report indicated that 28% of respondents in the U.S. engaged in greenhouse cultivation using supplemental and natural lighting in 2022.

Country Insights

The United States dominated the cannabis grow lights market in 2023, holding the largest revenue share. The widespread use of cannabis across pharmaceutical, cosmetic, and food & beverage industries is a key driver of market growth. The increasing legalization of cannabis for medical purposes and growing acceptance of its therapeutic benefits are further propelling market expansion. Additionally, heightened research into cannabis applications and medicinal properties is bolstering demand, supported by the introduction of technologically advanced products. For instance, Mammoth Lighting launched a new LED grow light in October 2023, featuring the Samsung EVO chip and a green photon boost, resulting in improved yields and plant quality during trials.

North America Cannabis Grow Lights Market Key Companies

• Koninklijke Philips N.V.
• Valoya
• Heliospectra
• Kind LED Grow Lights
• VIVOSUN
• California LightWorks
• Biological Innovation and Optimization Systems, LLC
• ViparSpectra
• Mars Hydro
• Hydrobuilder.com
• Hydrofarm
• Active Grow
• Thrive Agritech

Recent Developments

• In April 2023, FOHSE, a manufacturer of LED grow lights, introduced the Pisces, a high-performance LED grow light for home growers. It is used to grow a wide variety of plants, including cannabis. This series is available in 900W and 700W options, offering potential photosynthetic photon flux (PPF) values of 2494 umol
• In February 2023, California Lightworks, a manufacturer of high-performance LED grow lights, introduced its new SpectraMax Vertical 1000 for maximum yields and quality results

North America Cannabis Grow Lights Market Segmentation:

By Product

• Light-emitting diode (LED) Lights
• High-intensity discharge (HID) Lamps/Lights
  • High Pressure Sodium Bulbs
  • Metal-halide (MH) Lights
• Fluorescent Lights/Lamps
  • T5 Fluorescent Grow Lights/Lamps
  • Compact Fluorescent Light/ Lamp (CFL)
• Ceramic metal-halide (CMH) Lights

By Cultivation

• Indoor Cultivation
• Greenhouse Cultivation

By Country

• North America
  • U.S.
  • Canada
  • Mexico