Grow Light Market Research Report- Global Forecast 2030

Grow Light Market, By Technology (LED, High Intensity Discharge, Fluorescent Lighting), By Installation (New Installation, Retrofit), By Application (Indoor Framing, Commercial Greenhouse, Vertical Framing) - Forecast 2030

ID: MRFR/SEM/1818-HCR | January 2023 | Region: Global | 100 Pages         

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Grow Light Market

Grow Light Market is expected to reach USD 16.2 Billion by the end of 2030 with 32.80% CAGR during forecast period 2022-2030

Segmentation
By Technology LED High Intensity Discharge Fluorescent Lighting
By Installation New Installation Retrofit
By Application Indoor Framing Commercial Greenhouse Vertical Framing
Key Players
Companies Profiled   Resource (US)    OSRAM (Germany)    California Lightworks (US)    Gavita (Netherlands)    Helliospectra AB (Sweden)    Valoya (Finland)    Signify Holding (Netherlands)    Iwasaki Electric Co. Ltd. (Japan)    Hortilux Schreder B.V. (Netherlands)    General Electric Company (US.)    LumiGrow Inc. (US.)    Sunlight Supply Inc. (US.)
Drivers
Market Driving Forces   The grow lights exceed the conventional lights with their energy efficiency features    Grow-lights are required in the field of horticulture
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Grow Light Market Overview


Grow Light Market is expected to reach USD 16.2 Billion by the end of 2030 with 32.80% CAGR during forecast period 2022-2030. Grow light is an electronic lamp designed to quicken plant growth by emitting an electromagnetic spectrum ideal for photosynthesis. LED grow lights use LED technology for illumination. The LED grow light market is analyzed by the range of the light spectrum, different product types, and new or retrofit installation. The application segments considered for market estimation of LED grow light include commercial greenhouses, indoor farming, vertical farming, turf & landscaping, and research purposes. The LED grow light has a different power that varies according to application. The LED grow light is expensive compared to other successful light technology; hence, their use was restricted to the functions where urban farming is done at a high rate. But with technological advancement and awareness about its energy efficiency compared to other lighting technology, the adoption rate has increased rapidly. The benefits of the LED grow light are the low heat generation and destruction of lighting according to the plant's need.

The higher efficiency presented by LEDs is the main reason for the growth of the LED growth lights industry during the forecast period. The LED lights provide higher controllability, which increases the development of the LED growth lights market. The increase in the adoption rate of vertical farming is resourceful for market growth. Because of these factors, the market is predicted to experience moderate growth. The legalization of cannabis is expected to provide profitable growth opportunities for the market during the estimated period. High starting investments can act as a significant drawback for the LED grow lights market growth. Moreover, the lack of standardization increases the risk of purchasing incompatible parts, hindering the market growth.

Covid Analysis:

Covid has disturbed the progress of global markets. The global shutdowns of industries and markets have restricted production activities. Further, covid 19 Grow Light Market report suggest, the manufactures of grow light suffered from several losses. Also, it has affected the supply-demand chain of the key players in the market. The drop in demand and a decrease in grow light shipments are slowing down the progress of the grow-light global market.However, the productions became usual due to new demands. Most of the scanning and disinfecting equipment work with LED lights. The market demand for these products is high during covid 19. In some of these areas, the application of grow lights was required. The new-demand from end-users solved all these issues. The rising demand trend of grow lights continues till the forecast year 2030.

The Crucial Market Drivers:

The grow lights exceed the conventional lights with their energy efficiency features. The exceptional features of grow lights such as versatility, energy efficiency, colour quality and cost-effectiveness increases its market demand. The indoor farming industries have high grown-light demands. The light is essential for growing plants indoors. The various uses and benefits of grow lights are necessary for several fields that ultimately drive the market demand.Also, grow-lights are required in the field of horticulture. The metal-halide and high sodium contents in the grow lights create a massive demand in the global market. Today, indoor farming facilities are rising in every region. The rise of the indoor farming industry acts as a demand driver of grow lights. Also, the movements are encouraging many industries to adopt these grow lights. Its environmental benefits are the main reasons that increase its growth of grow light industry. Therefore, the rapidly growing indoor farming and governments initiatives are the crucial drivers of the grow-light market. 

The Market Growth Opportunities

The requirements for indoor and vertical farms are higher these days. It accelerates the grow light outlook in upcoming years. The plants grown in indoor and vertical facilities require low heat emitting lights. The indoor farming industries are experiencing high productivity when using grow lights. Further, various indoor farms around North America and Europe are employing grow lights. Some of the benefits they derive from using grow lights are less energy consumption, low heating, high conditioning and low cost per production. Due to this, the demand for indoor farm goods is rising every year. It ultimately provides exceptional growth opportunities for the grow light market. 

The Market Restraints

The rising awareness about the benefits of grow lights is escalating its demand. Earlier, several artificial lights were used for indoor farming and vertical farming applications. However, the drawbacks of artificial lights sources are more. It has caused an increasing trend in the grow lights market. The grow-light overcomes the limitation of artificial light such as fluorescent and electric ballasts. However, the biggest market challenge is the high initial cost of grow lights. The capital cost of grow lights is higher than artificial lights. Also, depending on the grow light specification and power-output the cost varies. The considerable price difference of grow light is a major restraint in the market. 

The Market Challenges

The significant challenge in the grow light market is the inadequacy of standard testing equipment. The grow light technology can be integrated with LED, induction and plasma. However, the lack of testing practices causes setbacks in the overall growth of the market. The quality assurance facilities of grow light technology are meager. The grow light manufactures have different product testing procedures that cause discrepancies in product capabilities in the global market. 

Cumulative Growth Analysis

There is a serious-need for R&D to enhance the efficiency of grow light. The grow-light market is highly diversified. The specifications and the values of this product are different in every region. The lack of a testing system is the reason for several inconsistencies in the market. Standard testing facilities are essential in every region to eradicate product inconsistencies. The quality test and assurance test are required for product developments in the future. 

The Value Chain Analysis

Europe holds the largest share in the global grows light market. The massive capital investments and thriving industries are the reasons for huge-growth. For the past decades, Europe has used grow-light technology for various indoor and vertical farming procedures. The requirement of grow light is gradually increasing every year in Europe.In the upcoming years, the grow light is becoming the primary light source for indoor activities. The goods from Europe indoor farms and horticulture products are exported all around the world. It expands the grow light market in Europe in the forecast year. During the forecast period 2022, the production and demand for grow-light are intensifying at a rapid pace. Also, the European government is restricting the use of artificial light that subsequently increases grow-light demand. 

Segment Overview:


By Technology



  • Fluorescent Lighting

  • LED

  • High-Intensity



By Installation:



  • Retrofit

  • New Installation



By Application:



  • Commercial Greenhouse

  • Landscaping

  • Indoor Farming

  • Vertical Farming



By Region:



  • Europe

  • Asia-Pacific

  • North-America

  • Rest of the world 



Regional Analysis:

The grow light market is fragmented into various regions such as Europe, North America and Asia pacific. Europe holds the maximum share in the global grow-light market. The Netherlands is a key contributor to the grow light market growth. The horticulture and greenhouse light demands increase the demand for grow lights. Asia pacific uses grow lights for several industrial purposes. The market demand in Asia pacific will intensify in the forecast year 2030. The end-users of the regional players are indoor farming, vertical farming, manufacturers, research firms and software developers. 

Competitive Landscape:

The competitive players of the grow light market are powerful. The key players of the market are making new developments in the forecast period. Innovations, standard testing and efficiency increasing measures are under consideration to stimulate the market growth. 

The key players of the grow light market are 



  • resource (US)

  • OSRAM (Germany)

  • California Lightworks (US)

  • Gavita (Netherlands)

  • Helliospectra AB (Sweden)

  • Valoya (Finland)

  • Signify Holding (Netherlands)

  • Iwasaki Electric Co., Ltd. (Japan)

  • Hortilux Schreder B.V. (Netherlands)

  • General Electric Company (US.)

  • LumiGrow, Inc. (US.)

  • Sunlight Supply, Inc. (US.)



Recent Developments:

2022

The Valoya company has made a new range of growing LED lights for greenhouse applications. The light can intensify, and the new model comes with several replacements that offer versatility.

Report overview:

  • Market overview highlights

  • Analysis based upon COVID 19

  • Explanation upon the Market Dynamics

  • Value chain analysis

  • Market segmentation overview

  • The regional analysis

  • Competitive landscape analysis

  • Recent Developments




Report Scope:

Report Attribute/Metric Details
  Market Size   USD 16.2 Billion
  CAGR   32.80%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Technology, Installation, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Resource (US), OSRAM (Germany), California Lightworks (US), Gavita (Netherlands), Helliospectra AB (Sweden), Valoya (Finland), Signify Holding (Netherlands), Iwasaki Electric Co. Ltd. (Japan), Hortilux Schreder B.V. (Netherlands), General Electric Company (US.), LumiGrow Inc. (US.), Sunlight Supply Inc. (US.)
  Key Market Opportunities   The demand for indoor farm goods is rising every year
  Key Market Drivers

  • The grow lights exceed the conventional lights with their energy efficiency features,
  • Grow-lights are required in the field of horticulture


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    Frequently Asked Questions (FAQ) :

    The surge in global indoor farming initiatives is expected to guide the way for overall market growth.

    The understanding of the global market is well delivered due to the segments created on the basis of technology, installation, application and region.

    The growth rate of the glow light market is estimated at 32.80%. The market value is expected to be USD 16.2 Billion in the forecast year 2030.

    The contenders in the market are Iwasaki Electric Co., Ltd. (Japan), LumiGrow, Inc. (U.S.), General Electric Company (U.S.), Hortilux Schreder B.V. (Netherlands), Gavita Holland B.V. (Netherlands) and Sunlight Supply, Inc. (U.S.).

    The escalated practice of horticultural techniques is expected to motivate the European regional market in the forthcoming years.

    The surging indoor farming industry fuels the need for grow lights.

    The key competitors of the market are PARsource (US), OSRAM (Germany), California Lightworks (US), Gavita (Netherlands), Helliospectra AB (Sweden), Valoya (Finland), Signify Holding (Netherlands), Iwasaki Electric Co., Ltd. (Japan), Hortilux Schreder, B.V. (Netherlands), General Electric Company (US.), LumiGrow, Inc. (US.) and Sunlight Supply, Inc. (US.).