Grow Lights Market - Growth, Trends, and Forecast (2019 - 2024)

The Grow Lights Market is Segmented by Light Source (High-intensity Discharge (HID) Lights, High-pressure Sodium (HPS), Light Emitting Diodes (LEDs). and Fluorescent Lights), Installation Type (New and Retrofit), Application (Indoor Farming, Vertical Farming, Commercial Greenhouse), and Geography.

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

13.14%

Key Players:

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Market Overview

The grow lights market was valued at USD 3.23 billion in 2018, and it is expected to reach USD 6.76 billion by 2024, at a CAGR of 13.14% over the forecast period (2019 - 2024). Growth light is a key component of the urban agriculture practices. It is generally used to provide all the light a plant needs to grow or in some cases, to supplement natural sunlight, especially in cold countries that have low daylight hours, especially in the winter season. 

  • An increasing number of plant factories, need for sustainable development, and rise in urban agriculture are current catalysts for the grow lights market. 
  • Fresh and nutritious vegetables, beautiful floral arrangements, fragrant herbs, etc., are in demand all year round, and it has become easier at the touch of a button with the pervasiveness of e-commerce. Indoor farming represents the largest market share, with the availability of affordable yet fashionable grow lights.
  • Growing environmental concerns and uncertainty over the existing rainfall patterns has led the population to invest in the domestic garden set-up willingly. 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.

Scope of the Report

Grow lighting is majorly produced for three light sources, which include light emitting diodes (LED), high-intensity discharge (HID) lights, and fluorescent lights. In some cases, high-pressure sodium (HPS) sources, light emitting plasma, and induction lights are also used. The report is further segmented by installation type (new and retrofit) and applications (indoor farming, vertical farming, commercial greenhouse).

By Light Source
High-intensity Discharge (HID) Lights
High-pressure Sodium (HPS)
Light Emitting Diodes
Fluorescent Lights
Other Light Sources
By Installation Type
New Installations
Retrofit Installations
By Application Type
Indoor Farming
Vertical Farming
Commercial Greenhouse
Other Application Types
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Rest of the World

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Key Market Trends

Indoor Farming to Hold Largest Market Share

  • The advent of new technology in the field of grow lights and affordable gardening systems indicate that one-third of the millennia are growing herbs, indoors.
  • One of the major benefits of indoor agriculture is its higher yield compared to traditional farming. Enclosing facilities creates ideal growing environments, leading to less harvest time and repeating the harvest more times in a year.
  • For example, according to the 2016 estimates of USDA, the average yield of conventionally-grown tomatoes in the United States was estimated to be 805 cwt per acre or 1.85 pounds per square foot. In the same year, greenhouse hydroponic tomato farmers in the country experienced an average yield of 10.59 pounds per square foot.
  • Further, in regions like North America, indoor farming activities are multiplying. According to Agrilyst Inc., North America had an average yield of 5.5 pounds per square foot per indoor farm of leafy green vegetable produce, in 2016. Over the forecast period, such high productivity is expected to draw more investments into the sector, creating more opportunities for the grow lights market over the forecast period.
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Asia-Pacific to Witness the Fastest Growth Rate during the Forecast Period

  • Asia-Pacific is one of the fastest-growing regions for the grow lighting market. Rapid growth in urban agriculture, such as vertical farming, green houses, and growth chambers, is fueling the demand for growth light in the region. Countries, like Japan, Taiwan, and China are the major source of demand for grow lights in the region and are estimated to stay so over the forecast period.
  • In Japan, the urban agriculture establishments are addressed as plant factories and the country’s largest plant factory has the capacity to produce more than 20,000 heads of lettuce in a day, in just over a 3000-square-meter facility.
  • Also, the country’s government and private sector encourage urban agriculture practices. For example, electronics giant Fujitsu, in recent years, converted its factories, that were formerly semiconductor manufacturing establishments, into plant factories.
  • Taiwan is emerging as a major player for grow lights market housing the largest indoor plant production facility in the Asia-Pacific region. Over the forecast period, increasing urban agriculture initiatives in countries, like China and India, are expected to drive the demand for grow lights in the region.
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Competitive Landscape

With advancements in smart and connected systems, the grow light market is witnessing technological innovations by major players, like OSRAM Licht AG, Royal Philips Electronics BV, among others. With more investments inclined toward large-scale deployment of grow lights, companies are seeking to merge, partner, or acquire for technical capabilities.

  • March 2019: Signify, the world leader in lighting, used the Philips GreenPower LED production module range to provide the Japanese food supplier, Prime Delica, the capability to grow high-quality lettuce varieties, spinach, and coriander all year round.

Major Players

  1. OSRAM Licht AG
  2. Royal Philips Electronics BV
  3. Illumitex Inc.
  4. Heliospectra AB
  5. General Electric Company

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Introduction to Market Drivers and Restraints

    5. 4.5 Market Drivers

      1. 4.5.1 Increasing Number of Plant Factories

      2. 4.5.2 Need for Sustainable Development among Growers

    6. 4.6 Market Restraints

      1. 4.6.1 High Setup and Maintenance Costs

      2. 4.6.2 Constant Monitoring from the Providers Required

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Light Source

      1. 5.1.1 High-intensity Discharge (HID) Lights

      2. 5.1.2 High-pressure Sodium (HPS)

      3. 5.1.3 Light Emitting Diodes

      4. 5.1.4 Fluorescent Lights

      5. 5.1.5 Other Light Sources

    2. 5.2 By Installation Type

      1. 5.2.1 New Installations

      2. 5.2.2 Retrofit Installations

    3. 5.3 By Application Type

      1. 5.3.1 Indoor Farming

      2. 5.3.2 Vertical Farming

      3. 5.3.3 Commercial Greenhouse

      4. 5.3.4 Other Application Types

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Royal Philips Electronics BV

      2. 6.1.2 General Electric Company

      3. 6.1.3 Heliospectra AB

      4. 6.1.4 OSRAM Licht AG

      5. 6.1.5 Illumitex Inc.

      6. 6.1.6 LumiGrow Inc.

      7. 6.1.7 Everlight Electronics Co. Ltd

      8. 6.1.8 Iwasaki Electric Co. Ltd

      9. 6.1.9 Grow LED Hydro

      10. 6.1.10 Epistar Corp.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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