LED Grow Light Market is expected to grow from USD 621.83 Million in 2018 to USD 2.01 Billion by 2027, at a CAGR of 24.70%, during the forecast period. Grow light is a form of electric light that is used as synthetic light for plant growth. The grow lights can emit electromagnetic radiation that can provide artificial photosynthesis for the plant. It is a lighting system that can provide three types of light. Fluorescent, diodes and high-intensity discharge are three types of lights installed for the growth of a plant. The commercial greenhouse, landscaping, turf and indoor farming are spaces that have a high demand for LED grow lights.
It is an expensive light that is different from other grow lights. The features and function of this technology is high end. These unique lights can provide low heating for the plants. The demand for the LED Grow Light Industry is constantly surging. The utilization of this technology is highly essential for commercial purposes. Also, the vertical segment of the market has massive demand in the forecast period. The leading nations are developing many vertical farms. It is increasing the adoption of LED grow lights.
Covid 19 outbreak has damaging effects on many markets. Pandemic is leading to the global economic crisis. It will affect the businesses by low investments, less production and decreased demand. It is affecting the LED Grow Light Market. The disruption in shipments is a challenge for the market. Many manufacturers are not able to export their products. The production rates of these lights have considerably declined.
There are a few strong key players in the LED grow light market. All these key players are facing losses in this period. The growth of the market remains to stagnate on a short term basis. During the first half of 2020, massive losses are recorded. By 2021, the market is recovering rapidly. The production and market operations are resuming. Post covid 19, the scenario of the LED grow light market is expected to be positive. Also, key players will witness new developments in the next few years.
The exceptional energy efficiency of LED grows lights is a crucial driver. The grow lights are high-end technologies than the traditional lights. Some of the features of these lights are efficiency, versatility, high colour quality and a wide range of applications. The farms, vertical farms and greenhouses have high requirements for LED grow light. Also, these lights are modifiable according to the plant type.
The slight variation of plants may differ from low to high. There are different grow lights for each type of light. The horticulture sector requires high-intensity discharge lights. These light help in exceptional plant growth. The overall spectrum of these lights re achieved through plenty of grow light combinations. All these procedures of the grow lights come with energy efficiency and prolonged life.
Due to the features, the LED Grow Light Market Demand is tremendous. The farming market is witnessing a considerable decrease in electricity bills due to these features. The governmental initiative for this market is another crucial driver. Many governments encourage different types of farming methods. The export and import subsidies for the LED grow light market are leading to high revenue rates.
The growing adoption of indoor farming will lead to LED Grow Light Market Opportunities. In recent years, the indoor plantation is bringing many profits to the owners. Organic farming is possible through these plantation methods. This segment is witnessing the highest adoption of LED grow lights. Mostly, this is a large scale plantation process that is done indoors.
The grow lights are effective alternatives for direct sunlight. They can mimic natural light and enable exceptional plant growth. The plantations require three types of grow lights. In the upcoming years, indoor framing will be more prevalent. Additionally, technological advancements will provide more growth scope for the LED grow light market. Affordable farming is possible with the technological advancements in the market.
In the indoor setting, the led grow lights are more effective as they can provide blue and red wavelengths. It will make the plants strong, nutritious and healthy. Red, lights print the chlorophyll from breaking down. Due to this, exceptional produce is possible through this technique. The key players are developing light variations that can further assist with plants growth. To science department and the light department are researching to develop the technology. All these factors will bring high versatility to the LED grow light market.
The high cost of LED grow light is a restraining factor of the market. Today, more than any other light the LED is a trending lighting system for plant growth. Due to its wide range of benefits and features, they are expensive. The high cost of product and installation is a limitation of the LED grow light market.
The cost of this light may increase with watts. High power plasma grow light is one of the expensive products in the market. However, these are effective lights for exceptional plant growth. Comparatively, the cost of grow light is more than any plantation light. This restraint can hamper the adoption rate in the forecast period.
The lack of stand testing techniques for LED grow light is a challenge of the market. There is no proper standard for testing plasma, LED and induction lights. The developed regions can keep standard track of light quality. The need for quality testing is to validate the lumen and operating life of the product.
However, each manufacturer in the market has its techniques. There is no universal standard for testing these grow lights. This can create inconsistencies in the product and quality tests of the LED grow light market. This major challenge can affect the market operations and adoption in some regions.
The LED Grow Light Market Trends of the market is stable in the forecast period. The markets consist of both the software and hardware segment. However, the software of the market has vast demand. Through different software solutions, people lighting for the plant is offered by the market.
Further, the crucial drivers of the LED grow light market such as the growing demand for energy-efficient light are leading to high profit in the market. Also, a governmental initiative in the market will bring new developments in the market. However, high cost is a significant drawback for this market. Still, the growth rate is substantial with technological advancements.
Asia Pacific is witnessing high growth for LED grow lights. It is a region accountable for high LED Grow Light Market Share. Urban agriculture is driving demand for the product. China, Taiwan and Japan are regions that are key contributors to the LED grow light market.
Japan is a key end-user with high technological advancements. Increasing food demand and government initiatives will contribute to high demand. However, the high cost of the product can be a challenge for the LED grow light market. Still, the growth rate is substantial with new investments.
By Light Source
The competition in the LED growth light market is growing. With new advancements and smart connected systems, adoption is high.
Every key player is making innovations in the market. Large scale deployment of the light will happen in the forecast period.
The LED grow lights market is diversified into Asia Pacific, Europe and North America. The Asia Pacific is a leading key player. The Asia Pacific has the highest demand from the indoor plantation sector. The countries in the region are key manufacturers of LED grow lights. There is constant growth in the LED grow light market due to indoor farming.
Europe is the next largest region with high investments. It is an early adopter of the LED grow lights commercial greenhouse. The rapid expansion in population is leading to high scope in this region. North America is another powerful regional player with tremendous investments and production. All these regional players will contribute to high demand and growth for the global LED light market.
The key players in LED grow light market is
Frequently Asked Questions (FAQ) :
At 24.70% CAGR, the LED grow light market can value at USD 2.01 USD Bn by 2027.
Alta LED Corporation (US), Cree, Inc. (US), Bridgelux, Inc. (US), and Everlight Electronics Co. Ltd (Taiwan) are some key players of the LED grow light market.
In 2018, the global market of LED grow light products was valued at USD 621.83 Mn.
<100 W to >300 W, >100 W, <1000W, and <300 W to >1000W are different LED grow light products.
greenhouse, indoor farming, turf and landscaping, and vertical farming are consumers of LED grow light.