Dublin, April 11, 2023 (GLOBE NEWSWIRE) -- The "Grow Lights Market by Offering (Hardware, Software, Services), Watt, Spectrum, Cultivated Plant, Lighting Type, Light Source, Installation Type, Sales Channel, Application (Greenhouse, Indoor Farm, Vertical Farm) and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global grow lights market was valued at USD 1.5 billion in 2022 and is projected to reach USD 7.2 billion by 2028; registering a CAGR of 30.7% during the forecast period.
High potential capacity of LED grow lights enabling farmers to produce same quality crops all year round irrespective of weather conditions is driving the growth of the grow lights market, whereas High setup and installation costs of LED grow lights are restraining the growth of grow lights market.
Software & services segment is expected to grow at higher CAGR during forecast period
The software & service segment is expected to experience the highest CAGR of 35.1% during the forecast period. Different kinds of software solutions are used in grow light systems to improve plant quality and fulfil different light requirements by different plants, as well as create and maintain an optimal lighting environment necessary to maximize production. Along with software, maintenance and repair services are also offered by the companies operating in the grow lights market..
>300 Watt segment by wattage to register growth at higher CAGR
>300 Watt segment is expected to experience the higher CAGR of 31.9% % during the forecast period. The >300W grow lights are ideally good for different types of grow rooms, particularly the ones that need specific care and more focused light on the plants without causing a risk of overheating inside the tent. >300-watt grow lights offer a full-spectrum light, which is safe for all stages of growing plants. Ecosystem player such as Signify Holding, ams-OSRAM AG, Gavita International B.V., Heliospectra AB, California LightWorks etc offer >300-watt grow lights.
For instance, Signify Holding introduced a new Philips GreenPower LED production module 3.0 (49-635 watt) to help growers optimize multilayer crop cultivation of lettuce and other leafy greens, herbs, soft fruits, and young plants. The new module enables growers to adapt the color spectrum easily to meet the needs of different crops and growth phases.
Full spectrum segment is likely to grow at higher CAGR
The full spectrum segment is anticipated to record the higher CAGR of 40.4% during the forecast period. The full-spectrum light source is becoming popular due to various advantages associated with it, such as it allows quick changes in lighting conditions and complete control of the color spectrum ratio. They closely mimics the natural sunlight by using a combination of all colors at all stages of growth. Full spectrum lighting can also pace up or slow growth rate, enhance root development, improve nutrition, and color etc. These factors are contributing to the growth of the full spectrum grow lights in the grow lights market.
Direct sales channels segment to register significant growth during forecast period
Direct sales channels segment is expected to grow at the fastest CAGR of 44.6% during the forecast period. Direct sales channels allow companies to control all aspects of product distribution and the customer experience. Since the customer always deals directly with the supplier, the direct sales channels help resolve these issues more efficiently. Also, it saves time as consider to the distribution or e-commerce sales channel. These are the factors leading to a potential growth of direct sales channels in the grow lights market.
Inter-lighting segment is likely to grow at higher CAGR
The inter-lighting segment is expected to experience the higher CAGR of 35.4% during the forecast period. The inter-lighting supplies energy to lower portions of the plant which are blocked from the top lights by the canopy of the plant. With inter-lighting it is possible to provide light between the plants, without unwanted heat generation. This has major advantages as all the plants can be lit at the points where they gain most benefit.
Retrofit installations segment is likely to grow at higher CAGR
The retrofit installations segment is expected to experience the second highest CAGR of 38.7% during the forecast period. Generally a lifespan of a grow light I approximately for 5 years. For new installation, down the line after 5 years the requirement for updated version of grow light s will occur, enabling retrofitting to propel in the future. Also, the introduction of new grow light technologies such as LED, plasma, and induction has provided growers with more options to choose from while retrofitting their grow light systems. Additionally, the increasing adoption of hybrid lighting systems in greenhouse applications is expected to contribute to the growth of the market for retrofit installations. With the low-cost retrofit installation of grow lights, growers can enhance profits and yields.
Cannabis cultivated plants segment is likely to grow at higher CAGR
Cannabis segment is expected to experience the highest CAGR of 36.1% during the forecast period. This growth is attributed to the legalisation of cannabis growth for medicinal uses by various regional government.
Vertical farms application is likely to grow at highest CAGR
Vertical farming segment is expected to grow at the highest CAGR 33.9% during the forecast period. The rapidly growing vertical farming industry is the major reason for the growing interest of larger corporations toward investments in vertical farms. Toshiba Corporation (Japan) and Panasonic Corporation (Japan) have started providing financial and technical assistance to growers to set up vertical farms in various parts of the world. General Electric Company (US), a major provider of grow light systems, is partnering with Mirai, Inc. (Japan) in establishing a chain of vertical farms across multiple cities in Japan. Such developments in vertical farming are likely to boost the demand for grow lights in the coming years.
Market Dynamics
Drivers
- High Demand for Fresh Food and Loss of Arable Land
- Strong Government Support for Adoption of Solid-State Lighting Technology and Controlled-Environment Agriculture Practices
- Increased Investments in Establishing Vertical Farms and Greenhouses and Associated Advanced Technologies
- Significant Benefits Such as Energy Efficiency and Longer Life Associated with Led Grow Lights Over Conventional Lighting Technologies
- High Potential of Led Grow Lights in Enabling Farmers to Produce Quality Crops All Year Round Irrespective of Weather Conditions
Restraints
- High Setup and Installation Costs of Led Grow Lights
- Complex Requirements for Varied Light Spectrums for Different Crops
Opportunities
- Growing Acceptance of Farm-To-Table Trend
- Legalization of Cannabis in Different Countries
- Automation in Lighting Fixtures and Technological Advancements in Led Grow Lights
- Potential Opportunities in Asian and Middle Eastern Markets for Vertical Farming
- Integration of Hardware, Software, and Data Analytics Platforms for Horticulture Yield Estimation and Energy Conservation
Challenges
- Grow Lights Placement and Positioning
- Need for Technical Know-How and Complexities Associated with Deployment of CEA Technology
- Absence of Standard Testing Practices for Assessing Product Quality of Horticulture Lights and Fixtures
- Difficulties in Integrating Different Components and Technologies in CEA Facilities
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 249 |
| Forecast Period | 2021 - 2026 |
| Estimated Market Value (USD) in 2021 | $1.2 billion |
| Forecasted Market Value (USD) by 2026 | $4.9 billion |
| Compound Annual Growth Rate | 32.5% |
| Regions Covered | Global |
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Grow Lights Market, by Offering
6.1 Introduction
6.2 Hardware
6.2.1 Large Number of Manufacturing Companies Providing Grow Lights as Hardware Components to Drive Market Growth
6.3 Software & Services
6.3.1 Growing Use of Software Solutions to Improve Plant Quality to Boost Market
7 Grow Lights Market, by Wattage
7.1 Introduction
7.2 <300 Watts
7.2.1 Ability to Use Low-Power Lights for Extended Periods Without Harming Plants to Propel Market Growth
7.3 >300 Watts
7.3.1 Improved Grow Quality and Energy Savings to Drive Demand for >300-Watt Grow Lights
8 Grow Lights Market, by Spectrum
8.1 Introduction
8.2 Full Spectrum
8.2.1 Advantages Such as Enhanced Root Development and Improved Nutrition and Color to Drive Adoption of Full-Spectrum Lights
8.3 Limited Spectrum
8.3.1 Advantages Such as High Efficiency for Plant Growth and Energy Efficiency to Boost Market
9 Grow Lights Market, by Cultivated Plant
9.1 Introduction
9.2 Fruits & Vegetables
9.3 Flowers
9.4 Cannabis
10 Grow Lights Market, by Installation Type
10.1 Introduction
10.2 New Installations
10.3 Retrofit Installations
11 Grow Lights Market, by Lighting Type
11.1 Introduction
11.2 Toplighting
11.3 Interlighting
12 Grow Lights Market, by Light Source
12.1 Introduction
12.2 Light-Emitting Diodes (Led)
12.3 Fluorescent Lights
12.4 High-Intensity Discharge (Hid) Lights
13 Grow Lights Market, by Sales Channel
13.1 Introduction
13.2 Distribution Channels
13.3 E-Commerce Channels
13.4 Direct Sales Channels
14 Grow Lights Market, by Application
14.1 Introduction
14.2 Greenhouses
14.3 Vertical Farming
14.4 Indoor Farming
14.5 Other Applications
15 Grow Lights Market, by Region
16 Competitive Landscape
17 Company Profiles
18 Appendix
Companies Mentioned
- Agrolux
- Ams-Osram Ag
- Bridgelux, Inc.
- California Lightworks
- Current
- Econolux
- Everlight Electronics Co. Ltd.
- Eye Hortilux (Eye Lighting International)
- Foxconn (Hon Hai Precision Industry Co. Ltd.)
- Gavita International B.V. (Hawthorne)
- GE Lighting
- Glaciallight Inc.
- Heliospectra Ab
- Hortilux Schreder (Dool Industries)
- Hubbell
- Hyperion Grow Lights
- Iluminar Lighting
- Ledestar Opto-Electronics Tech. Co. Ltd.
- Nichia Corporation
- Oreon
- Parsource
- Sananbio
- Signify Holding
- Valoya Oy
- Vividgro
For more information about this report visit https://www.researchandmarkets.com/r/1rfmgp
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