Global Grow Lights Market Report 2022: A $7.975 Billion in 2027 - Increased Adoption of Vertical and Indoor Farming Practises are Boosting Market Growth
The global grow lights market is expected to grow at a compound annual growth rate of 13.41% over the forecast period to reach a market size of US$7.975 billion in 2027 up from US$3.306 billion in 2020.
Grow light are widely used in vertical farming, indoor farming, commercial greenhouses, landscaping, and other applications.
One of the primary factors driving the market's growth is a significant increase in the agricultural sector. In addition, the increased adoption of vertical and indoor farming practises are boosting the market's growth. Multiple grow lights are used in hydroponic farming systems to ensure that the plants receive enough sunshine while also shielding them from insects and vermin.
Furthermore, increased food consumption as a result of the rising population, along with the restricted quantity of cultivable land, is positively boosting product demand. The growth of lighting helps to ensure the optimum output and quality of the plants and, therefore, to meet the ever-increasing global food demand.
In addition, significant advances in technology, including the creation of intelligent growing lights coupled with the Internet of Things (IoT), are another growth driving force. Other factors, including several agricultural science discoveries and the implementation of favourable government regulations, are expected to propel the market in the next few years.
Growth Factor
Benefits over traditional methods
Due to their decreasing cost competitiveness, LED-based grow lights have outperformed all other lighting technologies in terms of energy efficiency, lifetime, adaptability, and colour quality, and they are now widely utilised in vertical farms, indoor farms, and greenhouses. Indoors, grow lights are used to grow a variety of plants.
The spectrum of grow lights can be adjusted to meet the needs of the plants. Plant growth and development can be aided by the use of various types of grow lights. Horticultural growers prefer high-intensity discharge (HID) lamps for both outdoor and indoor applications. These lamps are inexpensive, readily available, and capable of supplying the necessary light intensity for plant growth.
To obtain the overall light spectrum for plants, growers have blended HID lights such as high-pressure sodium (HPS) lamps with metal-halide (MH) lamps. As a result, farmers must install cooling systems to keep the temperature in the growing units consistent, which increases their energy costs. All of these issues have increased the demand for more energy-efficient and long-lasting horticultural lighting solutions.
Restraints
High costs
LED grow lights are becoming more popular as people become more aware of the advantages they provide. Plants have been grown indoors using a variety of artificial lighting sources. Previously, HPS and electric ballasts were widely used as effective light sources in indoor farming. LEDs are popular nowadays because they eliminate the drawbacks of HPS, fluorescent (FL), metal-halide lights, and electric ballasts.
However, the initial investment necessary for high-quality LED grow lights is greater than that required for traditional lighting technologies like FL and HID lamps. This is due to the fact that each LED grow light unit contains arrays of LEDs that have been specifically designed for this purpose. For commercial indoor cultivation, a high-quality, full-spectrum LED grow light can be installed as the primary light source.
Depending on the power output and other specifications, it can cost around USD 2,000 or more. These grow lights are more expensive than 1,000-watt high-pressure sodium (HPS) lights, which cost slightly more and deliver enough light for photosynthesis. Growers are deterred from adopting energy-efficient grow light technologies such as LED, induction lighting, and plasma lighting because of the large price difference.
The Impact of COVID-19 on the Grow Lights Market:
COVID-19 had an impact on not only the operations of grow light makers but also the businesses of their suppliers and distributors.
During the first half of 2020, the major players in this industry have seen the impact of the pandemic on their order intakes for grow lights. Furthermore, the nationwide lockdown implemented to contain the spread of the virus also notably impacted the market for global grow lights.
Key Topics Covered:
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics 4.1. Market Drivers 4.2. Market Restraints 4.3. Porters Five Forces Analysis 4.3.1. Bargaining Power of Suppliers 4.3.2. Bargaining Power of Buyers 4.3.3. The threat of New Entrants 4.3.4. Threat of Substitutes 4.3.5. Competitive Rivalry in the Function 4.4. Function Value Chain Analysis
5. Global Grow Lights Market Forecast by Type 5.1. Introduction 5.2. High Intensity Discharge (HID) 5.3. Light Emitting Diodes (LEDs 5.4. Fluorescents 5.5. Induction Lighting
7. Global Grow Lights Market Forecast, By Geography 7.1. Introduction 7.2. North America 7.2.1. United States 7.2.2. Canada 7.2.3. Mexico 7.3. South America 7.3.1. Brazil 7.3.2. Argentina 7.3.3. Others 7.4. Europe 7.4.1. UK 7.4.2. Russia 7.4.3. France 7.4.4. Italy 7.4.5. Spain 7.4.6. Others 7.5. Middle East and Africa 7.5.1. UAE 7.5.2. Israel 7.5.3. Saudi Arabia 7.5.4. Others 7.6. Asia Pacific 7.6.1. China 7.6.2. Japan 7.6.3. India 7.6.4. Australia 7.6.5. Taiwan 7.6.6. Thailand 7.6.7. Indonesia 7.6.8. Others
8. Competitive Environment and Analysis 8.1. Major Players and Strategy Analysis 8.2. Emerging Players and Market Lucrativeness 8.3. Mergers, Acquisitions, Agreements, and Collaborations 8.4. Vendor Competitiveness Matrix
