The grow lights market is expected to grow from USD 1.0 billion in 2020 to USD 2.5 billion by 2025, at a CAGR of 19.9%. The factors such as increasing adoption of indoor farming in urban areas, ongoing government initiatives to support energy-efficient lighting, growing need for long-lasting, energy-efficient , and economical grow lights, and emerging trend of farm-to-table concept drive the demand for grow lights.
Market for new installations is expected to hold largest share during forecast period
The introduction of new grow light technologies such as LED, plasma, and induction has provided the growers with more options to choose from while retrofitting their grow light systems. LED grow lights offer variable spectrums that make them suitable for various plants. As a result, this technology is being preferred by the growers for most of the applications. New installations of grow lights are driven by the expansion of existing facilities and the construction of new facilities, such as commercial greenhouses or vertical farms.
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Market for interlighting is expected to register a higher CAGR during forecast period
Interlighting is a relatively new concept in horticulture lighting. In this type of lighting, lights are placed inside the canopy of high-wire plants, which direct growth-stimulating light on the most vital parts of the crop, such as its leaves and veins. It has bidirectional lights that reduce shadowing of leaves, which occurs in the case of toplighting, ensuring lower parts of a plant are also exposed to adequate light. Interlighting provides greater light efficacy, which results in higher yield compared to top lighting as the design of interlighting allows a plant to absorb light rays from the entire spectrum.
Commercial greenhouse segment held the largest market share in 2019
Commercial greenhouses have witnessed increased automation in the last decade, and the concept of controlled environment agriculture (CEA) is being implemented in greenhouses to maintain optimum growing conditions and obtain a higher yield. Growers are gradually realizing the potential benefits of cultivating plants inside a greenhouse; this has contributed to the development of commercial greenhouses. LED grow lights can be easily programmed and integrated into the CEA setup within a greenhouse. Hence, growers with greater investment capabilities have started shifting toward LED grow lights from conventional lighting systems.
Europe expected to account for largest market share from 2020 to 2025
Europe held the largest share in grow lights market, among all regions. This region has been using grow light systems for the past few decades to grow plants in commercial greenhouses. The use of grow light in this region is gradually increasing from being a supplemental lighting source to becoming the primary source of light in indoor operations. The population of Europe has expanded rapidly in recent times, and countries are importing fruits and vegetables in frozen form from the external markets in Africa and Asia. Indoor horticulture is gaining rapid momentum in some of the major countries in this region, to obtain fresh produce from locally cultivated farms. This factor is expected to generate massive demand for grow light systems in the future.
Key Market Players
Major players in the grow lights market include Signify Holding (The Netherlands), General Electric Company (US), Osram GmbH (Germany), Gavita International B. V. (The Netherlands), Helliospectra AB (Sweden), Iwasaki Electric Co., Ltd. (Japan), Illumitex (US), Hortilux Schréder (The Netherlands), and California Lightworks (US).