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The grow light market size is estimated to grow by USD 12.38 billion at a CAGR of 20.57% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing popularity of urban agriculture and the application of grow lights in plant disease detection and monitoring. This trend is particularly evident in the horticulture industry, where the use of grow lights enables year-round production and improved crop yields. However, the high ownership costs for grow lights, including the initial investment in the lights themselves and the ongoing energy expenses, remain a challenge for market expansion. Despite this, advancements in LED lighting technology and the increasing awareness of the benefits of controlled environment agriculture are expected to drive market growth in the coming years. The market is anticipated to reach new heights, offering opportunities for manufacturers, suppliers, and investors alike.
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Grow lights are artificial lighting solutions designed specifically for plant growth in indoor environments, providing an alternative to natural sunlight. These lights come in various types, including Fluorescent lights, LED lights, and HID lights, each offering unique benefits. LED grow lights, in particular, are gaining popularity due to their higher efficiency, full spectrum use, and lower temperature. The global market for grow lights is thriving, driven by the increasing trend towards indoor agriculture, durable technologies, and sustainable development. The electromagnetic spectrum emitted by these lights plays a crucial role in plant growth, with wavelength emissions impacting chlorophyll production and overall plant health. Government rebates and standardization efforts are further propelling the market forward. Light sources such as hydroponics and aquaponics systems, which rely on grow lights, are also contributing to the market's growth. E-commerce platforms are making it easier for businesses and individuals to purchase these light sources, further expanding their reach. Overall, the market is an essential component of indoor agriculture and is expected to continue its growth trajectory in the coming years. Our researchers analyzed the data with 2023 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 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 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 companies 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 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.
Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies 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 1.42 billion in 2018. 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 market growth during the forecast period.
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APAC is estimated to contribute 28% 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. Another region offering significant growth opportunities to companies is Europe. 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 market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Grow lights are artificial lighting solutions designed to facilitate plant growth in indoor environments, providing an alternative to natural sunlight. These lights come in various types, including Fluorescent lights, LED lights, and HID lights. Energy efficiency is a significant factor in the market, with solid state lighting, such as Light emitting diodes (LED) grow lights, gaining popularity due to their higher efficiency and longer operational lifespan. Wavelength emissions play a crucial role in plant growth, and grow lights are engineered to optimize these emissions for different plant stages, from seedlings to mature leafy greens. In commercial settings, controlled environment agriculture, urban agriculture, horticulture, and vertical farming, grow lights enable year-round production and improved yields.
Furthermore, government support, incentive programs, and investment in renewable energy are driving the growth of the market. Automation, data-driven decisions, and standardized testing are also essential aspects of this industry. Horticulture lighting systems, indoor agriculture, and cannabis cultivation are key applications, with a focus on energy efficiency, lumen output, and reducing electricity consumption and greenhouse gas emissions. The market is influenced by various factors, including climate conditions, vertical farming techniques, and the durability of technologies like LED grow lights. The market is expected to continue expanding, with a significant impact on food security and agricultural yields.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.57% |
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Market growth 2024-2028 |
USD 12.38 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.8 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 28% |
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Key countries |
US, The Netherlands, Germany, China, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aerogrow International Inc., Agnetix, ALTO India, 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 N.V., Lemnis Oreon BV, Samsung Electronics Co. Ltd., Sanan Optoelectronics Co. Ltd., Signify NV, Thrive Agritech, and ViparSpectra |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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