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Grow Light Market

Grow Light Market

Grow Light Market Analysis by Component (Hardware Based, Softphones, Services), by Technology (LED, Fluorescent, High Intensity Discharge), by Application (Indoor Farming, Vertical Farming, Greenhouse), by End-use, by Region - Global Forecast 2022-2032

Grow Light Market
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Global Grow Light Market Outlook

The global Grow light market is estimated to grow at an impressive CAGR of 8.2%. It is poised to reach a valuation of nearly US$ 11.4 Bn by 2032 from US$ 5.2 Bn in 2022.

Data Points

Market Insights

Grow Light Market Size (2022)

US$ 5.2 Bn

Estimated Market Value (2025)

US$ 6.6 Bn

Projected Market Value (2032)

US$ 11.4 Bn

Global Market Growth Rate (2022-2032)

8.2% CAGR

Market Share of Top 5 Countries

79.5%

Key Market Players

  • LumiGrow Inc.
  • Philips Lighting
  • General Electric Company
  • Lumileads Holding B.V
  • Fluence Bioengineering Inc.
  • Heliospectra AB
  • Gravita International B.V.
  • Illumitex
  • OSRAM Licht Group
  • Sunlight Supply Inc.

“Establishment of controlled greenhouse chambers for food production in urban areas is anticipated to be the increase the demand for grow lights for plants in the global market.”

Rising population has lead food constraints around the world. Building artificial environmental for growing crops and horticulture plants requires provision led grow lights to provide light spectrum similar to that of sun. This method of obtaining food crops is the major factor for the growth of global grow light market.

Discovery of electromagnetic spectrums that can mimic the natural light with varying colour and temperature output has resulted in development of more efficient grow lights for indoor plants. Such innovation in the field of precision farming can further boost the growth of global grow light market.

Impact of COVID-19 on Grow Lights Market

The key companies manufacturing grow lights were affected due to the pandemic as it was difficult to obtain light-emitting diodes (LED) and other components from stakeholders. The operation carried out for the production of growing also got halted due to the unavailability of manpower during the initial days of the Covid-19 outbreak.

The impact of the Covid-19 pandemic on the global grow light market trends can be observed in the revised CAGR of 8.2%, dropping down from 8.6% in the pre-pandemic years. However, there were some positive impacts as well.

The supply chain of perishable items such as food was the worst affected sector during the years of the Covid-19 outbreak. It inspired many entrepreneurs to establish indoor farming in the urban cities and outskirts. The establishment of such commercial greenhouse farming is anticipated to revive the global grow light market and make it a highly remunerable business during the forecast years of 2022 to 2032.

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Sales Analysis of Grow Lights from 2017 to 2021 Vs Market Outlook for 2022 to 2032

“International and national emphasis in the direction of developing sustainable agricultural management is poised to create a huge market for controlled farming methods directly benefitting the global grow light for plants market.”

The growing trend of precision farming to conserve soil, water and light have resulted in the establishment of an artificially controlled environment for growing and producing food crops in unsuitable areas. Light being the energy source for the process of photosynthesis, needs to be supplied by a full artificial spectrum led to grow lights inside the chamber.

The electronics and semiconductor market players manufacturing light-emitting diodes(LED) bulbs are targeting this demand for producing plant lights that can be used for such purposes. With the growth in demand for food products, the grow light market sales are estimated to grow exponentially in the future.

National and regional governments across the world are trying to encourage new start-ups to revive the agricultural sector by reviving the uplink and downlink market chains for perishable fruits and vegetable products. Such increasing support is anticipated to drive the grow light market supplying the grow lamps for indoor greenhouse chambers.

What are the Limitations for the Growth of Global Grow Light Market Players?

“Absence of sufficient infrastructure to limit market growth.”

As the majority of farm producers in the world are traditional farmers, so they lack proper knowledge about the use of plant Light for better yields. Moreover, a major portion of farmers also belongs to lower-income categories, which makes it difficult for manufacturing companies to penetrate the market for led grow lights at high prices.

The semiconductor appliances market in various regions, particularly in developing economies, lack sufficient infrastructure for quality assurance. In the long run, it can pose a major challenge for the market players to scale up their full spectrum led grow lights in these markets.

Another major limitation for the growth of the global grow light market is the availability of raw materials. As the semiconductor supply is concentrated in distinct regional markets, such as South East Asia, it translates into higher production costs of light-emitting diodes and other associate components for the market players in other regions.

An Adaptive Approach to Modern-day Research Needs

Comparative View of Adjacent Global Grow Light Market

Research and development activities in the field of agriculture and biotechnology, such as the

Attributes

Global Grow Light  Market

Global Livestock Grow Light  Market

Global LED Lighting Market

CAGR

(2022-2032)

8.2%

8.9%

14%

Market Value

(2027)

US$ 7.73 Bn

US$ 10.2 Bn

US$  160 Bn

Growth Factor

Increasing demand for fresh fruits and vegetables in urban cities grown in vertical farms.

Increasing awareness about the benefits of grow light for animal rearing in the past decades.

Emphasis on reducing energy consumption in households and commercial spaces have increased use of LED bulbs.

Opportunity

Adopting new technologies to launch efficient products offers lucrative opportunities for the market players.

Government spending to strengthen the livestock farming by collaborating with small and marginal farmers is poised to create greater opportunities.

Adoption of Smart lighting and internet of things in homes and industries is expected to create huge opportunities for the key market players.

Key Trends

Encouragement by government organizations to adopt sustainable production methods to boost the demand .

Owing to its highest livestock rearing farms Europe is the leading region with highest growth rate for the Global market.

Replacement of previously installed tungsten lights in public places in all countries has created a huge demand for the global market.

Research and development activities in the field of agriculture and biotechnology, such as the discovery of low light plants, can be exploited for the successful use of grow lights for increasing productivity. The trend of integrating plant science and semiconductor technology is predicted to further boost the development of best led grow lights by the market players.

The development of new farming methods such as hydroponics, aeroponics, and vertical farming for growing food crops in the indoor environment is getting popular among urban food growers. This trend of using modern farming methods requires to grow light bulbs that can further boost the global market value during the forecast period.

The legalization of Cannabis to be used for medical purposes in the State of California and other parts has resulted in the establishment of vertical farming for its higher production. The significant growth of the global grow light market in the past decade is attributed to the highest indoor grow lights used in these cannabis growing spaces in North America and other geographic regions as well.

Segmentation Outlook

What is the Growth Outlook for the Global Grow Light Market According to Different Segments?

“Growing demand for off-season crops grown in highly controlled greenhouse chambers to boost sales.”

By virtue of recent developments in the field of electronics and semiconductors, different technologies are used for making grow lamps. High-intensity discharge (HID) lights are the most preferred lighting solutions for commercial high-value crop making. It is the largest segment of the global grow light market with a CAGR higher than the average at 9.1%.

The other technologies used for manufacturing plant light, like LED and fluorescent bulbs, also contribute immensely to the global grow light market due to their low cost and easier installation.

What are the Different Segments of the Global Grow Light Market based on Component?

To establish a successful commercial greenhouse farming, the led lighting system requires multiple components to function.

Besides the physical grow light bulbs or hardware segment, the service segment deals with the installation and maintenance of the system. As agriculture is a continuous and very long process, the software and service provided for the full spectrum led grow lights is the highest-selling segment for the global grow light market.

What are the Major Applications of Grow Lights and its Different Segments?

Due to the limitations in transporting fresh vegetables from the far-off farms in the Mega tier cities, there is an increasing demand for kitchen vegetables grown in indoor farming systems. As per the market analysis report, this segment is the top application for the grow light market that is estimated to grow by a robust CAGR of 8.3% during the forecast years.

Among the other major applications, greenhouse and vertical farming are the most important segments driving the global grow light market in recent years.

Which are the Major End Users of the Global Grow Light Market?

There is a very wide sector of end users for the grow lamps used for growing high-value crops or horticulture plants. A significant portion of the global grow light market revenue comes from the Government organizations that distribute the grow light bulbs in bulk to small-scale farmers.

The retail sale of led grow lights is the highest contributing segment for the global market. Retrofitting of previously installed grow light bulbs to provide supplemental light that makes the integrated farming systems a major end user for the Global market.

Regional Outlook

What is the Performance of Global Grow Light Market in Different Geographical Regions?

Region

CAGR

United States (US)

8.6%

United Kingdom (UK)

7.8%

China

9.6%

Japan

10.4%

South Korea

10.4%

North America holds the largest revenue share of the global grow light market. The total revenue generated by the USA grow light market alone is estimated to be around US$ 857 Mn in 2022.

Adoption of eco-friendly technologies to increase the productivity of fields while decreasing the carbon emissions has positioned Europe as the most lucrative market for the sale of grow lights for indoor plants. Increased capital investment by flourishing agricultural companies is anticipated to retain the market attractive for the grow light manufacturers in the region.

Some of the Asia pacific nations are the leading markets for the manufacturing and export of light emitting diodes at affordable prices. Also, owing to rapid urbanisation of Asia Pacific geographical region it is expected to witness the highest growth rate in grow light market sales in the coming decade.

Most of the leading players of the global grow light market are present in China, Japan and South Korea that together accounted for nearly 20% share of the total revenue generated. These 3 countries are also projected to witness a growth rate of about 10% during the forecast time period.

Competitive Outlook

How Strong is the Competitive Landscape for the Global Grow Light Market?

Besides developing new efficient devices and methods for the growth major players dealing in indoor plant lights also stretched their position by mergers and Acquisitions. For instance, the leading company of Germany Fluence Bioengineering Inc. partnered with The Lamphouse in September 2020. And in March 2020, Signify acquired the stakes of Cooper lighting Solutions of US.

Large market players in emerging economies are trying to acquire the contracts to supply grow light bulbs and services year round for supplying it to the plant growers supported by the government funding. This strategy is a major path breaker from the retail market to generate higher profits from the sale of grow lights for plants market.

What are the Recent Developments Achieved by the Global Grow Light Market Players?

  • Fluence Bioengineering Inc. By OSRAM launched a new model for its VYPR top light series in June 2020. These new products have now included 4 more spectra in the series resulting in an increased efficiency of 3.8 micro mol per joule and enabling growers to optimize the plant light according to requirement and geographical location.
  • Valoya expanded its RX-series of grow lights for indoor plants by adding two new models in September 2020. These new models by the name of RX500 and RX600 can produce a uniform light of up to 1700 micro mol per second that can replace 1-to-1 HPS.
  • Heliospectra AB launched new LED lighting solutions along with its Mitra Series at GreenTech in May 2019. It also showcased its vertical farming application based led light solutions by the name of SIERA light bar and HelioCORE light control systems.

Key Segments

  • By Component :

    • Hardware Based
      • IP Desktop Phones
      • Audio Conference Phones
      • DECT phones
    • Softphones
    • Services
      • Maintenance
      • Installation
      • Consultant
      • Others
  • By Technology :

    • LED
    • Fluorescent
    • High Intensity Discharge (HID)
    • Others
  • By Application :

    • Indoor Farming
    • Vertical Farming
    • Greenhouse
    • Research
    • Turf
    • Others
  • By End Use :

    • BFSI
    • Healthcare
    • Retail
    • Government Organizations
    • Others
  • By Region :

    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East and Africa (MEA)

- FAQs -

The global grow light market is estimated to record a CAGR of 8.2% during the forecast period.
The global grow light market is predicted to be valued at US$ 11.4 Bn by 2032.
The global grow light market was valued at US$ 3.1 Bn in 2016.
High intensity discharge (HID) light segment is estimated to grow at the highest CAGR of 9.1%.
Asia Pacific region is predicted to witness the highest CAGR of nearly 10% in the grow light market.

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