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The grow light market size is forecast to increase by USD 12.38 billion at a CAGR of 20.57% between 2023 and 2028.
The grow light industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Commercial greenhouses utilize various artificial lighting sources, including LED and high-pressure sodium (HPS) lights, for growing crops destined for commercial consumption. LED grow lights, known for their energy efficiency and minimal heat production, have gained popularity among indoor farmers, particularly those practicing vertical farming. LED lights, manufactured as single encapsulated units, offer ease of management and compact size, making them suitable for confined spaces. In contrast, HPS lights generate a significant amount of raw light, which contributes to high yields, making them suitable for larger plants. The evolution of horticultural lighting from incandescent to fluorescent, HID halogen, and HPS has slightly impacted the demand for LED grow lights.
This paragraph maintains a formal tone and adheres to the 100-word limit. Keywords: commercial greenhouse, grow lights, LED lights, HPS lights, energy efficiency, vertical farming, indoor farming, horticultural lighting.
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The Commercial green house segment was valued at USD 1.42 billion in 2018 and showed a gradual increase during the forecast period.
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European horticulture sector is witnessing significant growth due to the increasing focus on food safety and the adoption of advanced technology. Vertical farming techniques, such as hydroponics and aeroponics, are gaining popularity in Europe, with large-scale commercial projects utilizing grow lights to enhance plant growth in controlled environments. LED grow lights, known for their energy efficiency, are driving market growth. Notable commercial horticulture projects in Europe include those in Dronten, Netherlands, North Lincolnshire, UK, and Scotland, UK. These projects employ advanced horticulture lighting systems to optimize photosynthesis, improve agricultural yields, and minimize climate-controlled HVAC loads. The European Union's incentive programs and government support for renewable energy and sustainable development further bolster market expansion.
Key players in this sector include manufacturers of LED, Fluorescent, and HID lights, focusing on higher efficiency, full spectrum use, and lower temperature emissions. The integration of automation, data-driven decisions, and smart technologies, such as IoT and solid-state lighting, is also contributing to market growth.
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.
Growing popularity of urban agriculture is the key driver of the market.
Application of grow lights in plant disease detection and monitoring is the upcoming market trend.
What challenges does the Grow Light Industry face during its growth?
High ownership costs for grow lights is a key challenge affecting the industry growth.
Exclusive Customer Landscape
The grow light market forecasting 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 grow light market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, grow light market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.
Aerogrow International Inc. - The company specializes in providing grow light solutions, including the AeroGarden Stem Grow Light, Tabletop Grow Light, and Trio Grow Light. These offerings cater to various indoor gardening needs, delivering optimal light conditions for plant growth. With a focus on innovation and efficiency, the company's grow lights ensure consistent and vibrant plant development, making them an excellent choice for enthusiasts and professionals alike.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 industry 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 encompasses the provision of artificial lighting solutions designed to facilitate plant growth in indoor environments. These lighting systems aim to mimic the natural sunlight spectrum, providing essential wavelength emissions for photosynthesis and plant development. The market's expansion is driven by various factors, including the growing demand for local food production, urban agriculture, and controlled environment agriculture. Artificial lighting plays a crucial role in enabling plant growth in settings where natural sunlight is limited or unavailable. This is particularly relevant in commercial settings, where the production of leafy greens and other crops is a significant industry. The use of grow lights in hydroponic and vertical farming techniques has gained traction due to their ability to optimize growing conditions, leading to higher agricultural yields and improved food security.
Energy efficiency is a critical consideration In the market, with solid-state lighting technologies, such as LED grow lights, gaining popularity due to their higher efficiency and longer operational lifespan. The electromagnetic spectrum emitted by these lights is carefully calibrated to promote photosynthesis and plant growth, making them an attractive alternative to traditional fluorescent and HID lights. Government support and incentive programs have played a role In the growth of the market, particularly In the areas of renewable energy and sustainable development. The adoption of smart grow lights, which utilize the Internet of Things to optimize light output and energy consumption, is another trend driving market growth.
The agricultural sector is increasingly turning to controlled environment agriculture to address climate conditions that hinder traditional farming methods. This shift towards indoor farming and plant factories is expected to fuel the demand for advanced horticulture lighting systems. The investment in automation and data-driven decisions In the agricultural industry is also contributing to the growth of the market. These technologies enable farmers to optimize growing conditions and maximize yields, making the use of artificial light sources a cost-effective and efficient solution. The market for grow lights is diverse, encompassing various applications, from commercial greenhouses to urban agriculture and cannabis cultivation.
The potential for reducing electricity consumption and greenhouse gas emissions through the adoption of energy-efficient grow lights is a significant market driver. The future of the market is promising, with continued innovation and advancements in lighting technology expected to drive growth. The potential for integration with renewable energy sources and the increasing legalization of cannabis cultivation are also factors that could contribute to market expansion. In conclusion, the market is a dynamic and evolving industry, driven by the demand for local food production, energy efficiency, and the adoption of advanced technologies in agriculture. The use of artificial lighting to optimize growing conditions and maximize yields is a critical component of this market, with LED grow lights and smart grow lights leading the way in terms of efficiency and performance.
The potential for integration with renewable energy sources and the increasing legalization of cannabis cultivation are additional market drivers, making this an exciting and innovative industry to watch.
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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 12379.4 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.8 |
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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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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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