According to the new market research report "Grow Lights Market with Covid-19 Impact and Analysis by Offering (Hardware, Software & Services), Installation Type (New and Retrofit), Application (Greenhouses, Vertical Farms), Sales Channels, Spectrum, and Geography - Global Forecast to 2026", published by MarketsandMarkets, the market is projected to grow from USD 1.2 billion in 2021 to USD 4.9 billion by 2026, at a CAGR of 32.2% during the forecast period. The key factors fueling the growth of this market include increasing government support for the adoption of solid-state lighting technology and controlled-environment agriculture (CEA) practices, growing investments in projects related to vertical farms and greenhouses, and rising adoption of indoor farming in urban areas.
The hardware segment of grow lights market to hold larger market share between 2021 and 2026
The hardware segment of the grow lights market, by offering is estimated to hold larger market share in 2026. The key factors for the growth of the market are the increasing number of new lighting installations in greenhouses and vertical farms and the growing support of governments of different countries promoting the adoption of CEA facilities.
The cannabis segment to register highest CAGR during the forecast period
The cannabis segment of the grow lights market, by cultivation, is projected to register the highest CAGR during the forecast period. The legalization of cannabis production is gaining momentum in different parts of the world as lawmakers globally are working toward this process. This is certainly going to benefit all categories of cannabis growers, and at the same time, manufacturers of LED grow lights are expected to benefit the most from this. Cannabis is also considered as a high value crop by growers and hence the cultivation of cannabis is growing at a faster pace.
The new installations segment to hold larger market share from 2021 to 2026
The new installations segment is estimated to hold a larger share of the grow lights market from 2021 to 2026. The growth of this segment can be attributed to the extensive deployment of LED grow lights in new vertical farms and greenhouses. Strong government support for adopting CEA practices and surging awareness regarding the benefits associated with LED grow lights are also expected to contribute to the growth of this segment during the forecast period.
The interlighting segment to register highest CAGR during the forecast period.
The interlighting is a relatively new concept, and the market for interlighting grow light systems is expected to grow at a higher CAGR during the forecast period owing to the increasing awareness about the benefits of this lighting technique. For example, interlighting provides greater light efficacy, which results in higher yield compared to toplighting as the design of interlighting grow light system allows a plant to absorb light rays from the entire spectrum.
Europe to hold largest share of the grow lights market between 2021 and 2026
Europe is projected to register largest market share of the grow lights market from 2021 to 2026. The growth of the market in this region can be attributed to the fact that the region has the strongest economies in the world, along with flourishing industries that lead to increased capital investment capabilities. 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 a frozen form from external markets in Africa and Asia. Indoor horticulture is gaining rapid momentum in some major countries such as the Netherlands, Belgium, and France 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 near future. Technological developments in artificial grow lights have led the government in the European region to favor efficient and eco-friendly technologies such as LED and have implemented rigorous resolutions to ban the use of incandescent bulbs.
Signify Holding (Netherlands), OSRAM (Germany), Gavita (Netherlands), Valoya (Finland), California Lightworks (US), Helliospectra AB (Sweden), LumiGrow Inc. (US), Hortilux Schréder (Netherlands), Eye Hortilux (US), ILUMINAR Lighting (US), GE Current, A Daintree Company (US), PARsource (US), GE Lighting, A Savant Company (US), Hubbell (US), and Agrolux (Netherlands) are the key players in the global grow lights market. These players are increasingly undertaking strategies such as product launches and development, expansions, partnerships, contracts, and acquisitions to increase their market share.