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The grow light market size is estimated to grow at a CAGR of 15.76% between 2022 and 2027. The market size is forecast to increase by USD 7,472.08 million. The growth of the market depends on several factors, including the growing popularity of urban agriculture, advances in LED lighting technology for horticultural applications and the need to improve the yield of crops and reduce crop wastage.
This grows light market report extensively covers market segmentation by application (commercial greenhouse, vertical farming, indoor farming, and research), product (hid, led lights, fluorescent lights, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing popularity of urban agriculture is notably driving the market growth, although factors such as high ownership costs for grow lights impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the global grow light market growth is the rising popularity of urban agriculture. There is an increasing trend of adoption of urban agriculture, such as vertical farming in countries such as the US, Canada, and the Netherlands which is a major factor driving the market growth.
Furthermore, in order to reduce the dependency on natural light sources, grow light solutions are being increasingly adopted in urban agriculture projects. Also, due to the rapid advancement in LED grow lights, farmers can replicate natural light wavelengths and colour components to ensure fertile plant development. Thus such factors are expected to drive the global glow light market growth during the forecast period.
A key factor shaping the global glow light market growth is the application of grow lights in plant disease detection and monitoring. There is an increase in investment in R&D and technology by vendors to expand the applications and functionalities of grow lighting solutions to various aspects of plant growth.
For instance, in July 2019, LumiGrow announced the launch of a product line of early disease detection sensors and services. Some of the key features of LumiGrow include the optimization of disease management processes, reduction of losses in terms of yield, and monitoring of treatment effectiveness related to plants. Also, grow lights are widely used in disease suppression. Thus, such trends are expected to drive the global glow light market growth during the forecast period.
High ownership costs for grow lights is one of the key challenges hindering the global glow light market growth. In comparison to traditional incandescent bulbs, the upfront cost associated with the setup and installation of grow light solutions for horticultural applications is considerably high. The challenges vary depending on the type of glow lights.
For instance, even though fluorescent grow lights such as fluorescent tubes and CFLs are cheaper when compared to other grow lights, the installation of fluorescent grow lights requires accessories such as ballasts and special stands, as these lights cannot be installed in conventional sockets. Similarly, End-users' installation of HPS grow lights may incur additional costs to the end-user due to the requirement of additional grow fans and blowers to manage the heat. Thus such challenges is expected to hinder the global glow light market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Grow Light Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agnetix: The company offers grow light solutions namely PHENOM Liquid-cooled, multi-sensor and imaging smart horticulture lighting systems for vertical farming.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the commercial greenhouse segment will be significant during the forecast period. A commercial greenhouse is a type of greenhouse which is used to grow crops that are sold for commercial consumption. Some of the main commercial greenhouses which are used for commercial consumption include LED lights and sodium lights.
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The commercial green house segment was valued at USD 1,225.42 million in 2017 and continued to grow until 2021. LED lights are very ideal for indoor growers, mainly those using vertical farming as emitting very little heat. These lights are easier to manage and are smaller in size, as they are manufactured as a single encapsulated light. On the other hand, HPS grow lights produce a huge amount of raw light. Due to the high intensity of HPS grows lights, it is very ideal for handling very big plants. There is a significant decline in demand for LED grow lights due to the switch from incandescent to fluorescent, HID halogen, and high-pressure sodium (HPS) in horticultural lighting. Hence, the rise in demand for agriculture for commercial production of greenhouse crops is expected to drive this segment which in turn will drive the global grow light market growth during the forecast period.
Growing concerns regarding food safety and pesticide use have spurred the adoption of innovative vertical farming practices. Vertical farms offer a means to reduce pesticide usage compared to traditional farming methods. This has created opportunities for farming organizations to expand their operations globally. For example, Spread Co., Ltd. announced in May 2021 that they have developed a technology for mass-producing pesticide-free, high-quality strawberries in vertical farms using artificial lighting in Japan. This technology incorporates environmental control, stable indoor pollination, and clean, pesticide-free cultivation. Such advancements in vertical farming technologies are expected to drive the growth of the global grow light market in the vertical farming segment during the forecast period. Vertical farms offer a means to reduce pesticide usage compared to traditional farming methods. This has created opportunities for farming organizations to expand their operations globally. For example, Spread Co., Ltd. announced in May 2021 that they have developed a technology for mass-producing pesticide-free, high-quality strawberries in vertical farms using artificial lighting in Japan. This technology incorporates environmental control, stable indoor pollination, and clean, pesticide-free cultivation. Such advancements in vertical farming technologies are expected to drive the growth of the global grow light market in the vertical farming segment during the forecast period.
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Europe is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.Due to the growing importance on food safety in Europe, there is a significant rise in the popularity of vertical farming techniques such as hydroponics and aeroponics in the region. Additionally, with the advancement in technology, there is an improvement in energy efficiency of LED grow lights and significant investments in large-scale commercial horticulture projects which are expected to aid the growth of the grow light market in Europe during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of global grow light market market witnessed a significant slowdown due to the disruptions in supply chain coupled with economic recession in North America. However, in 2021, the initiation of large-scale vaccination drives?has lifted the lockdown and travel restrictions, which led to the increasing interest in gardening at home, resulting in slow recovery of glow light market growth.Such factors are expected to drive the market during the forecast period.
The grow light market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global grow light market as a part of the global electronic components market within the global electronic market. The global electronics market includes manufacturers of communications equipment, technology hardware storage and peripherals, electronic equipment and instruments, electronic components, consumer electronics, industrial electronics products, and electronic manufacturing services..Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Grow Light Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.76% |
Market growth 2023-2027 |
USD 7,472.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.48 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 29% |
Key countries |
US, China, Japan, The Netherlands, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aerogrow International Inc., Agnetix, ams OSRAM AG, Black Dog Grow Technologies Inc., California LightWorks, Crecer Lighting, EconoLux Industries Ltd., Everlight Electronics Co. Ltd., General Electric Co., Heliospectra AB, Hubbell Inc., Hydrofarm LLC, Koninklijke Philips NV, Lemnis Oreon BV, Samsung Electronics Co. Ltd., Sanan Optoelectronics Co. Ltd., Signify NV, Thrive Agritech, ViparSpectra, and ALTO INDIA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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