Market Overview
The global grow lights market was valued at USD 3,372.00 million in 2018 and is estimated to reach USD 10,313.49 million by 2026, with a CAGR of 15.17% during the forecast period (2019-2026).
A grow light or plant light is an artificial light source, usually, an electric light aimed to stimulate plant growth by emitting light suitable for photosynthesis. A variety of bulb types are used as grow lights, like fluorescent lights, incandescent, high-intensity discharge lamps (HID), and light-emitting diodes (LED). LED grow lights are made of light-emitting diodes, with a heat sink and built-in fans.
Grow light technology helps in extending the hours of the natural daylight which further increases the health, growth rate and yield of the plants. Artificial lighting, such as high-pressure sodium lighting, LED lighting and plasma lighting can extend the availability of crops (throughout a season).Growing awareness regarding the importance of alternative farming, owing to the less availability of fertile agricultural land and increasing population, are the key factors anticipated to spur the industry demand.
Market Dynamics
Drivers
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Increasing Adoption of Vertical Farming and Indoor Farming in Urban Areas
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Advantages Such As Energy Efficient and Wide Range of Color Spectra Available are driving The Uptake of Grow Light
Restraints
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Limitations on the variety of crops grown
Market Segmentation
The Top-lighting Deployment Mode market was valued at USD 2,791.84 million in 2018 and the market is estimated to grow at a CAGR of 14.92% in the forecast period to reach a market value of USD 8,409.52 million by 2026.
Toplighting is the most widely used DEPLOYMENT MODE in indoor cultivation. Due to high power consumption and heat emission by HPS luminaires, the distance between the light source and plants needs to be monitored. For instance, in June 2019, GE has launched a new Arize Element TopLight luminaire that can deliver in excess of 1800 PPF (photosynthetic photon flux). It is the industry’s first one-for-one LED replacement for 1000W high-pressure sodium (HPS) products.
Toplighting is ideal for strawberries, leafy greens, herbs (such as lettuce and basil), and high-wire vegetable crops (such as tomatoes, cucumbers, and peppers).
Furthermore, it can also be used for light-intensive crops, such as rice and tobacco. It is also suitable for floriculture wherein cut flowers, potted plants, bedding plants, annuals, and perennials are grown.
Geographical Analysis
The South America market for grow lights was valued at USD 149.88 million in 2018 and the market is estimated to grow at a CAGR of 13.41% during the forecast period to reach a market value of USD 410.55 million by 2026.
The increasing feasibility of the application of technological advancement in vertical farming, which will bring down the cost, is seen as a major factor contributing to the market growth.
Agriculture is an important sector for the economy across much of Latin America countries, accounting for an average of 4.7% of GDP in 2015-17.
The South America region has been largely propelled by increasing urban population and growing disposable incomes, which in turn have stimulated the growth in the consumption of fresh, healthy, and nutritious food. For instance, according to the World Bank, Brazil rapidly became a world agricultural power. It is globally important for both food security and environmental sustainability.
Competitive Landscape
Major players include, SIGNIFY HOLDING, GAVITA INTERNATIONAL B.V., GENERAL ELECTRIC COMPANY, OSRAM GMBH, HELIOSPECTRA AB., IWASAKI ELECTRIC CO., LTD, ILLUMITEX, HORTILUX SCHRÉDER., CALIFORNIA LIGHTWORKS.
The companies focus on building greenhouses and expanding indoor farms to meet the end-market requirements. For instance, Richel Group announced the design of a multi-span greenhouse in Mexico. The greenhouse is designed to meet the demands of the growers for the broader structures. The structure is favored owing to its optimal light transmission, circulation inside the structure, ease of air movement, and better climate control.
Various commercial growers are adopting technologies which involve high capital expenditure, such as advanced hydroponic systems and electronic traceability systems. Additionally, growers are heavily investing in LEDs and other innovative lighting products,in order to reduce their exposure to associated risks by carefully monitoring and investing in new technologies.
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DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
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