Grow Lights Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022
The Grow Lights Market is anticiapted to register a CAGR of 19. 5% during the forecast period. An increasing number of plant factories need sustainable development, and a rise in urban agriculture are current catalysts for the grow lights market.
New York, Dec. 15, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Grow Lights Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06373296/?utm_source=GNW
Fresh and nutritious vegetables, beautiful floral arrangements, fragrant herbs, etc., are in demand all year round, and it has become easier to buy 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.
The rise in farming companies worldwide is driving global investments toward technology providers for the industry. The propensity towards high-tech farming solutions such as vertical farming is attracting investment. For instance, in June 2022, IKEA and Infarm joined into a partnership and bred high-quality herbs in in-farm vertical farms in the consumer restaurants in three IKEA stores in Germany. The purpose of the joint project for IKEA and Infarm is to encourage IKEA employees and customers to adopt a healthier and more sustainable lifestyle.
LED lighting solutions in the grow lighting are expected to see higher demand from various AgTech firms for cost-saving and low energy consumption benefits, which in turn help reduce farming costs. Farming companies worldwide are expected to leverage LED-based lighting solutions to enhance their farming. For example, Scottish vertical farming technology firm Intelligent Growth Solutions (IGS) is seeing a growth in its funding; the company develops vertical farming solutions to boost LED grow light efficiency, enhancing plant production.
In order to meet the demand, the agriculture industry is currently on the verge of technological change by incorporating indoor farming, vertical farming, commercial greenhouse, urban farming, etc. Such techniques are increasingly gaining traction, which, in turn, is driving the demand for agritech products such as grow light. By recognizing the trend, governments worldwide are helping farmers innovate their cultivation methods and subsidizing such equipment to promote its adoption.
Growing environmental concerns and uncertainty over the existing rainfall patterns have willingly led the population to invest in the domestic garden set-up. Further developments in 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 costs hinder market growth.
Furthermore, in December 2021 – Signify entered into a definitive agreement with AMS OSRAM to acquire Austin, Texas-based Fluence for USD 272 million (EUR 242 million). This acquisition will strengthen Signify’s global Agriculture lighting growth platform and extend its position in the attractive North American horticultural lighting market.
Supply chain impacts were observed in the market early in the COVID-19 pandemic. Many manufacturing facilities in China were shut down or reduced significantly to reduce operations and staff, resulting in shortages in LED packages, driver components, and materials. These shortages had a ripple effect across the lighting industry, affecting manufacturing plants across the globe.
Key Market Trends
Indoor Farming is Expected to Hold Significant Market Share
Indoor farming operations are done on a large scale required to grow lights that can completely replace direct sunlight by mimicking the same. In some applications, they can even outperform sunlight. Grow lights for indoor cultivation constitute three essential types: fluorescent lights, HPS or HID develop lights, and LED grow lights.?
Companies such as Bright Farms were focused on expanding the production base and actively involved in setting up new indoor farming systems during the study period. For instance, in 2021, BrightFarms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse aims to produce 2 million pounds of lettuce per year.
The technological advancements in farming and affordable gardening systems are some factors augmenting the market’s growth.? Furthermore, according to PIB, in July 2021, India has given 27.2 million hectares of area for total horticulture cultivation for the fiscal year 2021, which seems to drive indoor farming market growth in the future.
Indoor grow lights provide the plants with the optimal red and blue wavelengths to grow big, healthy, and strong. When sensed by the plants using a special light receptor, release light releases a hormone that keeps chlorophyll from breaking down. Hence, red light yields large, healthy plants in addition to its ability to grow flowers and seeds/fruits. With grow lights, it is possible to regulate the red light as too much red light can cause serious problems, namely lanky and spindly plants.
Furthermore, In 2021, Bowery Farming, a New York City-based vertical farming startup, declared a USD 300 million Series C round of funding. Bowery stated that it would use the funds to continue the expansion of its network of smart indoor farms across the US.
Asia Pacific Expected to Witness Significant Growth
The Asia Pacific region is one of the fastest-growing regions for growth lights. A rapid increase in urban agriculture, such as vertical farming, greenhouses, and growth chambers, is fueling the demand for growth light in the region. Countries like Japan, Taiwan, and China are the major sources of demand for grow lights in the region and are estimated to stay so over the forecast period.? Furthermore, in March 2021, according to the Ministry of Agriculture and Rural Affairs, China plans to have over 2 million hectares of greenhouse buildings with mechanized farming automation by 2025.
Traditionally, Japan was the primary source of demand for grow lights, owing to high technological advances in the urban farming technology of the country. In Japan, urban agriculture establishments are addressed as plant factories, and the country’s largest plant factory can produce over 20,000 heads of lettuce in a day in just over a 3000-square-meter facility.
Moreover, in the Asia-pacific region, countries like Singapore, despite making little of its own, people in the country have better access compared to others to affordable, abundant, and high-quality produce. The country has also been ranked first in an index of food security for two years. It is now increasing its focus as the recent outbreak of the coronavirus crisis has exposed the fragility of the global food supply chains.?
As multiple countries across the globe are confronted with the prospect of increasing food demand that is also forecasted to rise by more than half by 2050, Singapore is finding itself at the vanguard of work to keep a swelling population fed while also addressing the land constraints with the threat of climate change.?
With smart and connected systems advancements, the Grow Lights Market is witnessing technological innovations by major players like Signify and Everlight. With more investments toward large-scale deployment of grow lights, companies seek to merge, partner, or acquire technical capabilities.
April 2021 – Signify launched Philips solar fish grow lights that help to optimize farming for ponds while harnessing the power of the sun. It provides spectral light designed to suit many fish species, including tilapia. The grow lights enable fish farmers to increase fish productivity and efficiency. Research by the South China Agricultural University in a commercial size trial at a tilapia farm using 60 solar luminaires in a 7,000 m2 pond confirmed a 10% increase in fish growth and a 10% reduction in feed conversion ratio (FCR), meaning that fish farmers need less feed per kilogram of fish.
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