Grow Light Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2710
Grow Light Market size is expected to register a high CAGR during the forecast period led by rising food needs owing to unprecedented growth in the global population. The UN Food and Agriculture Organization reported that the world population is poised to grow by over a third or 2.3 billion from 2009 to 2050, making food supply a prime issue owing to the limitation of farming space. This technology aids in tackling these issues by extending the daylight hours available for the growth of vegetation by using a full-spectrum of artificial illumination, which comprises the same elements found in the natural sunlight. Additionally, it also acts as a protective unit by protecting the plant from harmful microbes, using a form of UV light. In contrast to the traditional farming practices, indoor farming can produce crops throughout the year thereby increasing productivity. These techniques also aid in protecting crops from adverse weather conditions through the controlled environment agriculture technology. It enables the protection of crops from human or animal interferences.
Rapid urbanization has resulted in heavy population migration to urban areas, driving the demand for grow light market. This results in an increased demand for food in urban regions as the area for natural farming is severely limited. The application of this equipment in such regions enables the crop growth for the general population. In the aftermath of the Canadian government legalizing the cannabis production by means of LED devices, Heliospectra AB announced that it had received an order of USD 650,000 by an undisclosed company for the provision of its LX60 intelligent LED solution. Cannabis requires intensive illumination source for prolonged periods, spiking the demand for the grow light market.
The lack of knowledge about indoor farming and vertical farming techniques is hindering grow light market growth. Farmers are required to have an intricate technical knowledge about the operation of these technologies for optimum returns. Additionally, inadequate illumination conditions result in the development of moisture and fungal infections in the plants, culminating in plant death. The high purchase and installation costs incurred by the lighting systems as compared to natural alternatives are hindering the expansion of grow light market.
The rise of vertical farming techniques has had a positive effect on the rise of the grow light market across the world. This technique is on the rise owing to the space-saving characteristics, high crop yield, and lower interference from external environmental characteristics. The technology has high applications in this farming technique. However, grow light market expansion is obstructed by the inability of farmers to afford indoor or vertical farming techniques as the maintenance costs incurred by famers and horticulturists are higher than the conventional farming techniques. However, the profits obtained by this technique are higher than the maintenance costs. These methods require a higher amount of water, thereby making it unsuitable in regions such as African deserts with scant water resources, impacting the adoption of grow light market in these locations.
Grow light market has a promising scope for expansion by facilitating the use of automated and semi-automated farming techniques. For instance, automated facilities enable the user to have the added flexibility of concentrating on the other aspects of farming. With the commercialization of IoT, grow light market expansion will receive further impetus. There is a high demand for remote and connected technologies for better convenience and higher efficiency. Fluorescent LED devices exhibit varied spectrums of wavelength output and can drive the grow light market in the near future. For instance, the warm and red spectrum is recommended for the growth of flowers and the cool and blue spectrum is preferred for vegetative growth.
LED grow light market segment is expected to show a high growth owing to the increased lifecycle, lower energy consumption, high-intensity output, and consistent performance. High-intensity discharge devices find applications in regions where the level of sunlight available is low and the temperature required for plant growth is not adequately warm. Fluorescent equipment segment of the grow light market is poised to grow at a fast rate during the forecast time period owing to its higher lifecycle and low power consumption. These are suitable for small-scale applications as they are relatively inexpensive devices. However, these devices are fragile in nature and may incur additional labor and maintenance costs. Therefore, they are suitable for plants requiring lower illumination and heat levels for growth.
Research applications are anticipated to witness growth in the coming years. Scientific experiments conducted on plants constitute the research field applications of the devices. The application of grow light market in commercial greenhouses is increasing at a rapid rate. The greenhouses allow greater control over the growth environment of a plant. Key factors such as fertilizer applications, irrigation, and atmospheric humidity can be altered to suit the growth of the plant.
The grow light market in economies including the U.S., Canada, and the UK due to their higher spending capacity dominates in terms of revenue. Grow light market is expanding in countries including Northern Canadian states, Siberia, and parts of Argentina and Chile, where natural sunlight is available for fewer hours as the night time exceeds daytime hours. The devices are used in these regions to support the crop growth in the absence of natural sunlight.
Players in the grow light market include Aerofarms Ltd., Gavita Holland B.V., Lumileds Holding B.V., Philips Lighting Ltd., OSRAM Licht Group, Valoya Ltd., Heliospectra AB, Sunlight Supply, Inc., and Fluence Bioengineering, Inc. Manufacturers are required to focus on product launches, collaborations, strategic partnerships, mergers, and acquisitions to sustain advancements in the grow light market. Continuous R&D activities help in reducing the costs of devices, furthering the expansion of grow light market. Valoya Ltd. launched a new product line titled BL series in January 2018.
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