Global Grow Lights Market - Segmented by Technology (HID Lights, LEDs, Fluorescent Lights), Type of Installation (New, Retrofit), Application (Indoor Farming, Vertical Farming, Rooftop Farming), and Region - Growth, Trends, and Forecast (2018 - 2023)
The grow lights market was valued at USD 2.82 billion in 2017 and is expected to reach a value of USD 5.79 billion by 2023 at a CAGR of 13.10% over the forecast period of 2018–2023. The regions considered in the scope of the report include North America, Europe, Asia-Pacific, and the rest of the world.
Gardening has evolved to be a diverse field of occupation and business for the population, globally. Advancements in technology and innovation in the field of gardening is assisting enthusiastic growth of domestic plants, in a closed environment. Development of a garden within living condos and apartments are becoming increasingly common. Indoor gardening above all has centered food, décor, and freshening of the atmosphere. With the rise of new technology, in the grow lights and affordable gardening systems, research indicates that one-third of the millennia are practicing growing herbs, indoors. Growing environmental concerns and uncertainty over the existing rainfall patterns has led the population to willingly invest in the domestic garden set-up. The further developments in the innovative farming practices, like the vertical farming method have been driving the growth of grow lights market. On the contrary, the high set-up and maintenance cost are hindering the growth of the market.
Emergence of Vertical Farming Methods
Vertical farming, due to increasing food and its origin consciousness, has been a rapidly growing concept, globally. In the recent past, organic food sales were experiencing robust growth, and it is set to continue growing over the forecast period. Vertical farming (the use of hydroponic technology and stacking the layers vertically in a closed space), requires the controlled environment agriculture (CEA) technology. Grow lights play a crucial role in indoor farming, especially in the vertical farming methodology, as the lights can be adjusted, ensuring exposure to the maximum area. Globally, the two factors majorly driving the growth of the vertical farming industry are the demand for local organic food and the growing urbanization. Different research indicates that more than 80% of the earth's population, i.e., beyond ten billion, by 2050 is estimated to reside in urban centers. Therefore, the requirements of the agricultural industry are expected to increase, immensely.
LED Lights Generate Huge Potential for Grow Lights
Over the recent years, light emitting diodes have evolved significantly and have become widely adopted lighting solution for indoor farming, worldwide. Its increasing popularity in indoor farming has been focused on the hobbyist and commercial greenhouse applications. Compared to other existing alternatives such as HID grow lights, LED grow lights are more energy-efficient, becoming the consumer favorite in the market. Further, with an operational lifecycle span of about five to seven years, and cost saving, in the long run, they are considered quite a sustainable solution.
Presently, dominating the market, LEDs are replacing the conventional fluorescent lights, as a number of retrofit installations involve LED lights. LED grow lights span across a wide range of products with diverse light intensity and their coverage area. Such offerings have helped sustain the market presence of LED grow lights. LED market has been very dynamic, with rapid technology changes, which cater to the requirements such as high intensity and wide coverage area. In addition, an increasing application in the vegetative growth and supplemental flowering and fruiting is found. The initial cost investment required for setting up the LED grow lights was a strong restraining factor for the growth of the market. However, the consumers’ acquired insights into the long-term benefits of the technology, leading to rapid growth of LED grow lights, over the forecast period.
North American to Witness a Significant CAGR
The legalization of growing marijuana in North America, mainly in the United States, for medical and recreational purposes has created a huge potential opportunity for the grow lights market to expand. With growing urbanization and the highest migration rate towards the urban settlements, the region is at a turnaround point in the agricultural industry, with immense pressure on industrial production. The legalization of marijuana has further created huge potential opportunities for the grow lights market, as consumers are now setting up small-scale indoor farming plantations. The growing popularity among the consumers and their preferences for the local and organically produced food have created a huge demand for the organic production units. Moreover, with the United States government encouraging the organic and small-scale vendors dealing with organic food, a record of 12% of the total businesses include organic products based enterprises. Millennial parents have driven the shift toward organic products, by centering the emphasis on urban establishments and hence driving the growth of the indoor farming methods in the country. The population growth and the continuing trends, has led to innovative farming technologies, such as vertical farming, which is accelerating the adoption of grow lights in North America.
Key Developments in the Market