Grow Light Market: The Role Of Smart Technology In Agriculture

 The global grow light market size was valued at USD 4.23 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Growing urban cultivation, vertical farming and growing adoption of environment-friendly production of fruits and vegetables is boosting the growth of the market. The unprecedented growth of the global population has also increased the demand for urban agriculture. Furthermore, the practice of vertical farming for producing food in a vertically stacked-layer such as a used warehouse, skyscraper, or shipping container is boosting the market growth.

Grow light 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.

 

Gather more insights about the market drivers, restrains and growth of the Grow Light Market

 

Detailed Segmentation:

 

Product Insights

Based on product, the industry has been classified into < 300 Watt and > 300 Watt. The < 300 Watt segment dominated the industry in terms of revenue in 2021 with a market share of more than 64% and is expected to remain dominant over the forecast period. The growth is attributed to technological advancements in energy conservation and efficiency. The <300 Watt segment is expected to grow at the highest CAGR during the forecast period. The grow lights with low power (< 300 Watt) are more efficient as compared to high power grow lights. Low power lights generate a lesser amount of heat and can be used for an extended period of time without harming plants.

 

System Insights

Based on system, the industry has been classified into hardware and software. The hardware segment dominated the industry with a market share of about 75% in terms of revenue in 2021. It is expected to remain dominant over the forecast period. Hardware segment includes various types of grow lights such as LEDs, plasma lights, high intensity discharge (HID) lights, and ballasts. Whereas software segment is expected to show the highest growth rate over the forecast period. This growth is attributed to the increasing penetration of Controlled-Environment Agriculture (CEA) to control various environmental factors using software.

 

Technology Insights

Based on technology, the industry has been classified into High Intensity Discharge (HID), LED, fluorescent and plasma. The HID segment dominated the industry in terms of revenue in 2021 commanding a market share of more than 36%. The HID is majorly used for commercial growing such as commercial greenhouses, and vertical farms. Whereas the LED segment is expected to dominate over the forecast period. Increasing urban cultivation and government initiatives to adopt energy efficient LEDs are expected to drive LED segment. LED lamps are most efficient at a higher price point. LEDs produces exact wavelength of desired light. It can produce dual band spectrum (red & blue) simultaneously. LEDs are good for all growth phases. LEDs are more expensive at initial stage but gets cheaper over the period of time.

 

Spectrum Insights

Based on spectrum, the industry has been classified into partial spectrum and full spectrum. The partial spectrum segment marginally dominated the industry with a market share of about 42% in 2021. The partial spectrum grow lights emits light of a specific spectrum such as yellow, blue, or green. These light spectrums are useful at various growth stages of plants. These are targeted to specific stages of plant growth, and they considerably reduce the growth time of plants and also improve yields. Red and blue wavelengths are conducive for the vegetative growth stage while for the flowering red and far-red wavelengths promote better growth.

 

Application Insights

Based on applications, the industry has been classified into indoor farming, vertical farming, commercial greenhouse, and others. The commercial greenhouse segment dominated the industry in terms of revenue in 2021 with a market share of more than 44%. This growth is attributed to technological advancements and the increasing use of grow lights. Vertical farming segment is expected to grow the highest over the forecast period.

 

Regional Insights

In terms of revenue, the Europe region dominated the industry in 2021 commanding a market share of more than 32% and is expected to remain dominant over the forecast period. 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.

 

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Some prominent players in the global grow light market include:

• AeroFarms
• EVERLIGHT ELECTRONICS CO., LTD.,
• GAVITA Holland bv
• Heliospectra AB
• Hortilux Schréder
• Illumitex
• LumiGrow Inc
• Osram Licht AG 

 

Grow Light Market Segmentation

 

Grand View Research has segmented the global grow light market based on application, product, system, technology, installation, spectrum, and region:

 

Grow Light Application Outlook (Revenue, USD Million, 2017 - 2030)
• Indoor Farming
• Vertical Farming
• Commercial Greenhouse
• Others

Grow Light Product Outlook (Revenue, USD Million, 2017 - 2030)
• < 300 Watt
• > 300 Watt

Grow Light System Outlook (Revenue, USD Million, 2017 - 2030)
• Hardware
• Software

Grow Light Technology Outlook (Revenue, USD Million, 2017 - 2030)
• High Intensity Discharge (HID)
• LED
• Fluorescent
• Plasma

Grow Light Installation Outlook (Revenue, USD Million, 2017 - 2030)
• New Installation
• Retrofit

Grow Light Spectrum Outlook (Revenue, USD Million, 2017 - 2030)
• Partial Spectrum
• Full Spectrum

Grow Light Regional Outlook (Revenue, USD Million, 2017 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o Germany
o U.K.
• Asia Pacific
o China
o India
o Japan
• South America
o Brazil
• Middle East and Africa (MEA)

 

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