The grow lights market is projected to grow from USD 1.2 billion in 2021 to USD 4.9 billion by 2026, at a CAGR of 32.2% during the forecast period. Key factors driving the grow lights market growth include increasing government support for the adoption of solid-state lighting technology and controlled-environment agriculture (CEA) practices, growing investments in projects related to vertical farms and greenhouses, and rising adoption of indoor farming in urban areas. Moreover, increasing awareness regarding benefits provided by LED technology to grow crops through the year amid the COVID-19 pandemic could play a key role in driving the growth of the grow lights market. Rising penetration of LED lights in indoor farming due to their long lifespan, spectrum adjustability, and energy efficiency The full-spectrum segment is projected to grow at the highest CAGR from 2020 to 2025 for grow lights market, by spectrum. The full-spectrum light source is becoming popular due to various advantages associated with it, such as it allows quick changes in lighting conditions and complete control of the color spectrum ratio.
LED grow lights in Fruits and vegetables segment is estimated to hold the largest share of the market during forecast period The fruits and vegetables segment is projected to account for the largest size of the grow lights market from 2020 to 2025, by cultivation.Increasing demand for quick and fresh horticultural produce owing to population growth and loss of arable land is a key factor driving the growth of this segment of the market.
The surging number of vertical farms and greenhouses is also expected to contribute to the growth of this segment of the market.
Software and services is projected to grow at the highest CAGR between 2021 and 2026 The grow lights market for the software and services segment is expected to grow at a higher CAGR than the hardware segment during the forecast period.Different kinds of software solutions are used in grow light systems to improve plant quality and fulfill different light requirements by different plants, as well as create and maintain an optimal lighting environment necessary to maximize production.
Along with software, maintenance and repair services are also offered by the companies operating in the grow lights market.
New installations is estimated to hold the largest share of the market during forecast period The new installations segment is estimated to hold a larger share of the grow lights market from 2021 to 2026.The growth of this segment can be attributed to the extensive deployment of LED grow lights in new vertical farms and greenhouses.
Strong government support for adopting CEA practices and surging awareness regarding the benefits associated with LED grow lights are also expected to contribute to the growth of this segment during the forecast period.
Interlighting segment is projected to grow at the highest CAGR between 2021 and 2026 Interlighting is a relatively new concept, and the market for interlighting grow light systems is expected to grow at a higher CAGR during the forecast period owing to the increasing awareness about the benefits of this lighting technique. For example, interlighting provides greater light efficacy, which results in higher yield compared to toplighting as the design of interlighting grow light system allows a plant to absorb light rays from the entire spectrum.
Distribution channels is estimated to hold the largest share of the market during forecast period Distribution channels are likely to account for the largest size of the grow lights market during the forecast period.This segment includes the sales of products via retailers, dealers, and affiliates.
These channel partners usually have established presence in local markets and can reach their customers at low costs.
APAC is projected to become the fastest geographical market between 2021 and 2026 APAC is projected to grow at the highest CAGR for grow lights market during the forecast period.The growth of the market in this region can be attributed to its continuously increasing population, which leads to rising demand for food from APAC.
This has led to an increase in the adoption of advanced farming technologies such as CEA to enable the supply of fresh fruits and vegetables throughout the year. Moreover, high pressure on cultivators to improve agricultural yields with limited available resources and increased requirements to protect crops from unexpected climatic changes are also contributing to the adoption of grow lights in APAC during the forecast period.
Breakdown of profiles of primary participants: • By Company: Tier 1 = 35%, Tier 2 = 45%, and Tier 3 = 20% • By Designation: C-level Executives = 40%, Directors = 35%, and Others (sales, marketing, and product managers, as well as members of various organizations) = 25% • By Region: North America = 40%, APAC = 30%, Europe=20%, and ROW=10%
Major players profiled in this report: The grow lights market is dominated by a few established players such as Signify Holding (Netherlands), OSRAM (Germany), Gavita (Netherlands), Valoya (Finland), California Lightworks (US), and Helliospectra AB (Sweden).
Research coverage This report offers detailed insights into the grow lights market based on spectrum (full spectrum, and limited spectrum), sales channel (distribution channel, E-commerce channel, and direct sales channels), watt (<300 watt, and >300 watt), application (Greenhouses, Vertical Farms, and Indoor Farms), cultivated plant (fruits and vegetables, flowers, and cannabis), lighting type (toplighting and interlighting), offering (hardware, and software and services), installation type (new installations and retrofit installations), and region (North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW) which includes the Middle East, Africa, and South America. The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the grow lights market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying the Report The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments.This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the grow lights market and provides them information on key market drivers, restraints, challenges, and opportunities.
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86 pages •
By Infiniti Research Limited
• Aug 2017
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