The global grow lights market is expected to reach $5,954.1 million by 2023, registering a CAGR of 12.5% during 2017–2023 (forecast period). Increasing focus on indoor farming coupled with the surge in population is resulting in the demand for energy-efficient and economical grow lights across the world.
Insights into the market segments
Among various technologies, the light-emitting diode (LED) technology accounted for the highest revenue and registered the fastest growth in the grow lights market in 2016. Owing to the energy-efficient nature of this lighting technology, the demand for LED grow lights is further projected to grow during the forecast period. Moreover, with increasing urbanization in the Asia-Pacific (APAC) region, the adoption of LED lights is expected to increase in the near future.
Europe to remain the largest market for grow lights, globally
Globally, Europe is expected to continue leading the grow lights market in the coming years. Germany, the U.K., the Netherlands, and Scandinavia have been the major revenue contributors in the regional market. However, in terms of growth, APAC is expected to register the highest CAGR in the market during forecast period. This can be attributed to the increasing focus on modern farming techniques, including indoor and vertical farming, coupled with the growing population in the region. China, Japan, Singapore, and Australia are the key markets for grow lights in the APAC region.
Increased focus on indoor and vertical farming driving the market growth
Increased focus on indoor and vertical farming is a major factor driving the grow lights market across the world. With the increasing demand for reliable and consistent food supply and rising awareness on the use of LED grow lights for plant growth, indoor farming and vertical farming are gaining traction around the globe.
Another factor driving the grow lights market is the increasing demand for plant growth chambers. Due to the rising population across the world and growing space constraints, the demand for indoor farming chambers is increasing. According to the Food and Agriculture Organization (FAO) of the United Nations, the production of food must increase by 70% to feed the global population in the next 40 years. Hence, to maintain a continuous supply of food, there is an increasing focus on indoor farming techniques, which is resulting in the demand for plant growth chambers and grow lights to support crop production.
Fragmented market structure
The global grow lights market is fragmented in nature, with the presence of numerous players offering a wide range of products. Some of the major players operating in the market are Koninklijke Philips N.V., Osram Licht AG, General Electric Company, Heliospectra AB, Dool Industries, Illumitex Inc., Gavita International B.V., Lumigrow Inc., Iwasaki Electric Co. Ltd., Sunlight Supply Inc., Hydrofarm Inc., and Fluence Bioengineering Inc.
GROW LIGHTS MARKET SEGMENTATION
By Installation Type