Europe Grow Light Market Forecast by 2033

Market Size in 2024: USD 1,577.0 Million
Market Forecast in 2033: USD 3,624.0 Million
Market Growth Rate 2025-2033: 9.7%

The Europe grow light market surpassed USD 1,577.0 million in 2024 and is on track to exceed USD 3,624.0 million by 2033, advancing at a CAGR of 9.7%. This robust expansion is propelled by surging demand for indoor and vertical farming, tightening energy-efficiency mandates, and continuous innovation in LED and IoT-enabled horticultural lighting.

Growth Drivers Behind the European Grow Light Market

EU Green Deal & Horizon Europe Funding for LED Retrofits

In 2024, the European Commission allocated €1 billion under Horizon Europe (2021-2027) for energy-efficient agricultural technologies with LED grow lights as a priority area. By March 2025, 28 national agencies had approved €180 million in grants for greenhouse operators to retrofit HID systems with full-spectrum LEDs. Early results show growers cut energy consumption by 45% and increased tomato yields by 18% proving public co-financing is driving technology adoption and long-term demand for advanced grow-light systems.

Vertical Farming Boom & Urban Agriculture Incentives

Eurostat recorded a 27% year-on-year increase in vertical farming start-ups in Germany, France, and the Netherlands in 2024. The Dutch Ministry of Agriculture launched a €60 million “StadsOogst” (City Harvest) subsidy in January 2025, covering up to 35% of LED fixture costs for new vertical farms in urban warehouses. Within 3 months, 42 projects were approved, adding 1.2 million sqm of climate-controlled growing space. This urban investment is translating into steady orders for high-efficiency LED bars and IoT-integrated control systems.

National Cannabis Legalization & Cultivation Licensing

Germany’s Bundestag passed the Cannabisgesetz in April 2024, legalizing the controlled cultivation of medical cannabis and will have 280 licensed growers by 2026. The Federal Institute for Drugs and Medical Devices (BfArM) requires energy-efficient grow lights for all licensed facilities, driving demand for tunable spectrum LED arrays with validated PPFD outputs. Denmark’s Medicines Agency approved 18 new cannabis cultivation sites in 2024 and specified LED grow lights with integrated UV-B dosing for cannabinoid optimization. These regulatory frameworks are creating a high-value, compliance-driven segment that will command premium pricing through 2033.

Download the free sample report to explore detailed forecasts and segment-wise data: https://www.imarcgroup.com/europe-grow-light-market/requestsample

Europe Grow Light Market Segmentation

Analysis by Technology

• HID
• LED
• Fluorescent
• Others

Analysis by Installation Type

• New Installations
• Retrofit Installations

Analysis by Spectrum

• Full-Spectrum
• Partial Spectrum

Analysis by Application

• Indoor Farming
• Vertical Farming
• Commercial Greenhouse
• Turf and Landscaping
• Others

Analysis by Country

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Europe Grow Light Market News

• April 2024: Germany legalized medical cannabis cultivation, mandating energy-efficient LED grow lights for all 280 licensed growers.
• January 2025: The Netherlands launched a €60 million “StadsOogst” subsidy for urban vertical farms using LED fixtures.
• March 2025: EU Horizon Europe approved €180 million in grants for HID-to-LED greenhouse retrofits across 28 member states.
• June 2024: Signify introduced a full-spectrum LED bar with integrated UV-B dosing, adopted by 42 licensed cannabis facilities in Denmark.

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.