USD 4.9 Billion
Report ID:
SQMIG55A2048 |
Region:
Global |
Published Date: November, 2024
Pages:
182
|Tables:
221
|Figures:
81
Grow Light Market size was valued at USD 4.9 Billion in 2022 and is poised to grow from USD 5.68 Billion in 2023 to USD 18.49 Billion by 2031, at a CAGR of 15.9% during the forecast period (2024-2031).
The grow light market is experiencing enormous growth as there is a rising need for indoor farming solutions, this is because sunlight availability is limited in urban areas. Technological advancements in plant factories and the increasing shift towards vertical farming are the primary drivers of this market. On the other hand, fresh produce, beautiful flowers, and fresh smelling herbs are demanded all year around and due to e-commerce, these products can easily be obtained. Also, there are many types of grow lights like compact fluorescent lights, T5, T8, T12 tubes, LED full spectrum, LED standard, Metal Halide, High-Pressure Sodium and Ceramic Metal Halide. Each type has its pluses, ranging from energy conservation and durability to emitting the appropriate spectrum for different growth stages. Fluorescent lights are very suitable for growing seedlings and growing lettuce, while LED lights are the most suitable for their ability to change spectra, allowing for the development from seedling to flowering. Nevertheless, key impediments to market expansion include the big capital investments required to set up indoor farms and the relatively small number of crops that can be grown in the environment. Nevertheless, these challenges are expected to be overcome by improvements in the technology used in growing lights and increased adoption of organic farming systems soon.
Global Market Size
USD 4.9 Billion
Largest Segment
By System
Fastest Growth
By System
Growth Rate
15.9%
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Global Grow Light Market is segmented By Offering, By Wattage, By Spectrum, By Cultivated Plant, By Installation Type, By Sales Channel, By Application and by Region. Based on Offering, the market is segmented into (Hardware, Software & Services). Based on Wattage, the market is segmented into (<300 Watts, >=300 Watts) Based on Spectrum, the market is segmented into Full Spectrum, Limited Spectrum. Based on Cultivated Plant, the market is segmented into Fruits & Vegetables, Flowers, Cannabis. Based on Installation Type, the market is segmented into New Installations, Retrofit Installations. Based on Sales Channel, the market is segmented into Distribution Channels, E-Commerce Channels, Direct Sales Channels. Based on Application, the market is segmented into Greenhouses, Vertical Farming, Indoor Farming, Other Applications. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by System
In 2023, the hardware segment commanded approximately 78% of the grow light market, a dominance expected to persist throughout the forecast period. This segment incorporates different grow lights such as LED lights, plasma lights, high-intensity discharge lights, and ballasts. The superiority of the hardware sector stems from the fact that it provides a significant component of the entire and efficient grow light system. Cultivators pay a lot of attention when it comes to selecting high-quality and efficient hardware parts to provide appropriate lighting for the plants. The increase in demand for long-lasting and energy-efficient luminaries along with increasingly complex control systems, therefore, underlines the hardware segment’s structural and significant role within the grow light market. This trend also emphasizes the role of resilient and progressive hardware to cater for the growing demands of contemporary farming.
The software and services segment is rapidly emerging as the fastest-growing sector. This increase is attributed to the growing use of intelligent and integrated grow light systems. Currently, there is a trend where contemporary cultivators use software solutions and services to monitor, to analyze and to control with high precision the lighting conditions. Internet of Things technology and software-driven operational options improve productivity and tailor the farming process, thus benefiting the growers. While the need for innovative smart grow light solutions increases, both software and services are steadily growing segments that help to progress the sophistication of controlled environment agriculture. This trend has underscored the significance of digital technologies in transforming horticultural practices in the modern world.
Analysis by Product
In 2023, the grow light market's <300 Watt segment has ascended to dominance due to a confluence of pivotal factors. Mainly, it is important to notice that lower wattage systems are considered energy-saving, which means the operational expenses would be minimal for an amateur grower and for any commercial plant growing business. However, some potential users may be put off by their relatively small size and low heat production making them suitable for small scaled indoor farming and gardening for instance in urban areas. In addition to the above features, the tolerance of <300 Watt lights to different plant species and stages of development without subjecting the plants to extremely high light intensity levels increases the option’s desirability. Secondly, consumers have been motivated to seek out and embrace products employing less wattage due to the growing global awareness and push towards sustainability and ‘green’ or environmentally friendly solutions.
The grow light market's >=300 Watt segment emerges as the fastest-growing sector, due to several influential factors. Many commercial growers and companies dealing with agricultural production prefer >300 Watt lights because many a times, large areas may require lighting and these lamps are advantageous in covering large spaces in the shortest time and time is saved and productivity increased. Also, advanced technologies of the lighting industry have enhanced the creation of high energy efficient products in this sector that provides improved proficiency and durability. The growing interest in high-output lighting is strongly associated with the contemporary trend in vertical farming and industrial greenhouse farming. Moreover, flexibility of >300 Watt lighting equipment for various crops and their needs, enabling one equipment to serve various purposes, is also a factor of the fast growing market, making this segment also set a promising future.
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In the global grow light market, North America emerges as the dominant region in 2023, driven by its cutting-edge technological infrastructure and substantial investments in research and development. Based on SkyQuest's in-depth analysis, the statistics show that 70-80% of customers remain loyal to products that are made in USA and are willing to pay up to 20% more price for the products. This trend corresponds to the trend in the growing market of indoor farming due to local production, fresh, healthy foods, which do not get adversely affected by weather conditions or replaced by supply chain delays. The attitudes developed in the region towards agricultural evolution and liberalization of numerous innovations, including cannabis cultivation for medicinal as well as recreational use, has boosted market growth. Having several key players in this area also strengthens it as they enable faster incorporation of modern grow light systems within multiple agriculture industries.
Following closely, Europe secures its position as the fastest leading region, underpinned by robust government policies advocating sustainable agricultural practices and the burgeoning trend of indoor farming. Based on our analysis, the LED grow lights market in Europe being estimated to continue to grow and is projected to reach USD 1. 2 billion by 2026. Its determination to substitute the defunct over-used environmental practices for smarter environment conservation regimes and the constant yearning for locally produced, organic and fresh produce has boosted the development of innovative grow light technologies. Leading the charge is the European region, with nations such as the Netherlands, Germany, the United Kingdom, amongst others, contributing and enhancing its dominance within the market and its consequent growth into a continuous direction.
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Drivers
Increasing Demand for Indoor Agriculture
Technological Advancements in Grow Light Solutions
Restraints
Ensuring Optimal Light Conditions
High Cost of Installation Expenses
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Market leaders in the grow light market are making use of strategic moves like alliances and innovative products to increase their market share. Also, companies have been acquiring competitors’ firms in a bid to consolidate their market position. For example, Crop One Holdings cooperated with Emirates Flight Catering to create Emirates Crop One (ECO 1), the world’s largest vertical farm located in Dubai that covers approximately 330,000 square feet, which is around the size of Lincoln Memorial Reflecting Pool. The technological advancements driven by Signify and Everlight has led to the development of smart and connected systems that encourage innovation within the grow lights sector. Industry players are focusing on large scale deployment; hence they are actively looking for mergers, partnerships or acquisitions to improve technical capabilities as well as meet growing demand for LED and greenhouse lights from indoor farming and vertical farming sectors.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the Grow Light Market is optimistic, driven by several key factors. The market is experiencing robust growth propelled by the increasing adoption of indoor and vertical farming practices worldwide. Factors such as rising urbanization, the demand for sustainable agriculture, and advancements in smart lighting technologies are fueling this growth trajectory. Additionally, the emergence of innovative solutions, such as LED grow lights and greenhouse lighting, is catering to the evolving needs of growers seeking efficiency and productivity. With significant investments in research and development and strategic collaborations among industry players, the market is poised for further expansion. Considering these dynamics, there are several exploring opportunities in the grow light sector, seeking to capitalize on the burgeoning demand for sustainable and efficient farming solutions.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 4.9 Billion |
Market size value in 2031 | USD 18.49 Billion |
Growth Rate | 15.9% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Grow Light Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Grow Light Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Grow Light Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Grow Light Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG55A2048
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