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Grow Light Market Share & Growth, 2027 | Industry Forecast Report

Grow Light Market Analysis Report By Application, By Product, By System, By Technology, By Region And Segment Forecasts From 2020 To 2027

Report ID: MN17620124  |  Published: September 2020  |  No of Pages: 144
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The global grow light market size was worth USD 3.81 billion in 2019. It is estimated to witness 16.53% growth over the forecast duration. Rapid growth in the world population has led to an increase in urban agriculture, which in turn, is driving the market growth.

Grow light extends the duration of natural daylight, thereby, increases the growth rate, yield and health of the plants. Various artificial lights such as LED lighting, plasma lighting and high-pressure sodium light help in providing the natural light for plants grow throughout the seasons. Increasing land degradation has resulted in rise in the demand for alternate farming, which in turn, is driving the market growth.

Global grow light marketTraditional farming produces seasonal crops as it relies heavily on monsoon and natural sunlight. However, indoor farming can produce any crops throughout the years. In addition, indoor farming can help in protecting the crops from the adverse climatic condition, thereby, ensuring high yield.

In addition, countries such as Canada and the United States have legalized the production of cannabis in some parts of their countries. Plant growers increasingly prefer to grow light to maximize yield and improve the quality of cannabis production, which in turn, projected to bode well for the growth of the market.

Product Insights

Depending on the product, the grow lightmarket is classified into less than 300 Watt and more than 300 Watt. <300 Watt category held the highest share in the market in 2019. Further, it is anticipated that this segment would continue to dominate from 2020 to 2027. Technical advancements that have increased efficiency and energy conservation are a key factor driving the market growth.

Low power grow lights are highly efficient compared to high power lights. Low power grow lights tend to generate a significantly lesser amount of heat and they can be deployed for a longer period without damaging plants.

System Insights

Based on the system, the market has been segmented into software and hardware. In 2019, the hardware segment accounted for the maximum share in the market. The segment is projected to continue to lead over the forecast duration. Various hardware components used in grow light include plasma lights, LEDs, ballasts and high-density discharge.

On the other hand, the software segment is likely to register the maximum growth over the forecast duration. Increasing the use of software to control various environmental conditions and rising Controlled-Environment Agriculture penetration are attributing to the growth of the software segment. Software is used to control various parameters such as temperature, light, humidity and water.

Technology Insights

Depending on the technology, the grow lightsmarket is classified into LED, plasma, fluorescent and High-Intensity Discharge (HID). Among them, HID segment accounted for the highest share in the market in 2019 followed by LED. However, the LED segment is projected to hold the maximum share by 2027. Government initiatives to promote the adoption of energy-efficient LEDs and rising urban cultivation are attributing to the growth of the LED segment.

LEDs are known to produce precise wavelength and are energy-efficient. Simultaneously, LEDs are capable of producing a dual-band spectrum. In the initial stage, LEDs are more expensive; however, its price reduces over time. 

On the other hand, plasma lights provide full-spectrum, which is similar to sunlight. These lights produce less amount of heat and have extended service period. Like LEDs, plasma lights are expensive in the initial phase and gets cheaper over time. These lights are useful in flowering and vegetative growth.

Spectrum Insights

Depending on the spectrum, the market is segmented into the full-spectrum and partial spectrum. In 2019, the partial spectrum held the largest share in the market. However, full-spectrum is likely to hold the largest share in the market in 2027.

Partial spectrum is known to emit the lights of the particular spectrum like blue, green and yellow. These spectrums of light are useful at different stages of the growth of the plants. On the other hand, the light emitted by full-spectrum is similar to that of sunlight. During the entire growth cycle of plants, full spectrums are useful.

Application Insights

By application, the grow lights market is classified into the vertical farming, commercial greenhouse, indoor farming and others. Of them, the commercial greenhouse division held the maximum share in the market in 2019. While on the other hand, vertical farming is projected to register the highest growth over the forecast duration. Increasing penetration of grow light coupled with technological advancements is driving the growth this segment.

Global grow light market shareVertical farming is gaining popularity in countries such as the Netherlands, China and Japan. In the method of farming, medicine and herbs are produced in vertically stacked layers of skyscrapers, shipping containers and warehouse. Using Controlled-Environment Agriculture, various parameters such as temperature, light, water and humidity are controlled.

Regional Insights

Europe held the highest share by revenue in 2019 and anticipated to hold its dominant position over the forecast duration. Due to rapid population growth and lack of fertile agricultural land, the region is witnessing increased adoption of alternative farming. Thus, rising awareness of indoor farming is driving regional growth.

Asia Pacific is estimated to register considerable growth over the forecast duration due to increasing penetration of genetically modified crop technology. In addition, various countries are witnessing increased adoption of LEDs owing to their energy-efficient features. By replacing traditional incandescent bulbs with LEDs is projected to reduce the greenhouse gas emission.

Impact of COVID-19

COVID-19 pandemic has positively affected the market. The pandemic has forced people to stay indoors and work from home becomes new normal. People are reluctant to visit nearby stores to purchase daily essential to contain the spread of COVID-19, which in turn, has led to rise in indoor farming activity. The pandemic has also caused a shortage of necessary food products owing to disruption in the supply chain. Thus, strengthening food production and ensuring smooth distribution become imperative, which resulted in increased demand for grow light.

Grow Light Market Share Insights

Key players present in the market are Illumitex, Inc., GAVITAbv Holland and AeroFarms among others. These players are involved in various strategic initiatives such as merger & acquisition, new product launches, partnerships and expansions. For example, Signify in February 2020, expanded its range of products for greenhouse horticulture. Various other companies are also focusing on similar strategic initiatives. For example, Osram introduced Oslon Square Hyper Red having 660 nm wavelength in January 2020.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Million & CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, Japan, China, India, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific market information which is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report
 

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global grow light market based on application, product, system, technology, installation, spectrum and region:

• Application Outlook (Revenue, USD Million; 2016 - 2027)
    • Indoor Farming
    • Vertical Farming
    • Commercial Greenhouse
    • Others

• Product Outlook (Revenue, USD Million; 2016 - 2027)
    • < 300 Watt
    • > 300 Watt

• System Outlook (Revenue, USD Million; 2016 - 2027)
    • Hardware
    • Software

• Technology Outlook (Revenue, USD Million; 2016 - 2027)
    • High Intensity Discharge (HID)
    • LED
    • Fluorescent
    • Plasma

• Installation Outlook (Revenue, USD Million; 2016 - 2027)
    • New Installation
    • Retrofit

• Spectrum Outlook (Revenue, USD Million; 2016 - 2027)
    • Partial Spectrum
    • Full Spectrum

• Regional Outlook (Revenue, USD Million; 2016 - 2027)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • UK
    • Asia Pacific
        • China
        • India
        • Japan
    • South America
        • Brazil
    • Middle East and Africa (MEA)

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