Plants LED Grow Light Market, by Offering (Hardware, Software, Services), by Lighting Type (Toplighting, Interlighting), by Installation Type (New Installations, Retrofit Installations), by Watts (Less than 300 Watts, and300 Watts), by Application (Greenhouses, Vertical Farms, Indoor Farms, Research and Tissue Culture Laboratories, Others), by Cultivated Plants (Fruits and Vegetables, Flowers, Cannabis), by Spectrum (Full Spectrum, Limited Spectrum) and, by Distribution Channel (Distribution Channels, E-Commerce Channels, Direct Sales Channels): Global Opportunity Analysis and Industry Forecast, 2023-2032

COVID-19 impact analysis

Many companies' grow lights such as Signify Holding, California Lightworks are purchased by a variety of stakeholders for a variety of applications. COVID-19 had an impact not only on the operations of various grow light manufacturers but also on the businesses of their suppliers and distributors. The drop in export shipments and slow domestic demand for grow lights compared to pre-COVID-19 levels are also expected to have a negative impact and slightly stagnate demand for grow lights in the short term. The impact of the pandemic on order intakes for grow lights during the first half of 2020 has also been observed by the key players in the plants LED grow light market share.

Top impacting factors

The legalization of cannabis cultivation has increased the demand for vertical farms and greenhouses, which is driving up demand for plants LED grow light market size. Several factors must be considered when growing cannabis in a sunless medium. The heat emitted by HPS lights, for example, can harm the produce. As a result, LEDs, which operate at much lower temperatures, may be a viable solution to the excessive heat emitted. Companies that grow cannabis through vertical farming have seen significant productivity gains. MedMen Cannabis Vertical Farm (US) used LED systems provided by Fluence Bioengineering (US), a horticulture lighting company owned by OSRAM (Germany), which resulted in reduced production time, lower cost per pound of finished product, lower energy consumption, and lower heating, ventilation, and air conditioning (HVAC) load. 

The grow lights market has yet to see the involvement of cannabis cultivation on a larger scale, but rising cannabis demand, technology support, an increase in the number of vertical farms, and the development of LED technology that would significantly reduce lighting costs are some of the potential plants LED grow light market opportunity. The use of LED grow lights is increasing as people become more aware of the benefits these solutions provide. To grow plants indoors, various artificial light sources have been used. Previously, HPS and electric ballasts were widely used as effective light sources in indoor farming. LEDs are currently popular; these grow lights overcome the shortcomings of HPS, fluorescent (FL), metal-halide lights, and electric ballasts. However, the initial investment required to purchase high-quality LED grow lights is greater than that required to purchase conventional lighting technologies such as FL and HID lamps. 

This is primarily due to the fact that each LED grow light industry contains arrays of LEDs that are specifically designed for horticultural applications. For commercial indoor growing, a high-quality, full-spectrum LED grow light can be installed as the primary light source. Depending on the power output and other specifications, it can cost around $2,000 or more. A high-powered induction grow light can also cost up to $1,300, whereas a high-powered plasma grow light can cost up to $3,000. These grow lights are more expensive than a 1,000-watt HPS light, which costs between $100 and $150 and provides enough light for photosynthesis. Due to the significant price difference, growers are hesitant to adopt energy-efficient grow light technologies such as LED, induction lighting, and plasma lighting.

Market trends

New product launches to flourish the market

Valoya's RX-Series line of greenhouse LEDs will be expanded with two new models, the RX500 and RX600, in September 2020. The new models can be used as true 1-to-1 HPS replacements, producing up to 1700 mol/s of uniform light output. Due to the high light intensity they produce, they can be placed up to 4 meters above the canopy. In September 2020, Valoya's RX-Series line of greenhouse LEDs will be expanded with two new models, the RX500 and RX600. The
new models can be used as true 1-to-1 HPS replacements, with uniform light output of up to 1700 mol/s. They can be placed up to 4 meters above the canopy due to the high light intensity they produce.

Surge in LED grow lights with remarkable advantages over traditional lighting technologies

LED-based grow lights have outperformed all conventional lighting technologies in terms of energy efficiency, lifetime, versatility, and color quality, and they are widely used in applications such as vertical farms, indoor farms, and greenhouses due to their increasing cost competitiveness. Indoors, grow lights are used to grow a variety of plants. The spectrum of grow lights can be adjusted to meet the needs of the plants. Plant growth and development can be aided by the use of various types of grow lights. High-intensity discharge (HID) lamps are preferred by horticultural growers as a source of light for both outdoor and indoor applications.

These lamps are widely available on the market, are reasonably priced, and can provide the necessary light intensity for plant growth. To obtain the overall light spectrum for plants, growers have combined HID lamps such as high-pressure sodium (HPS) lamps with metal-halide (MH) lamps. However, these lamps use a lot of electricity and produce a lot of heat. As a result, growers must install cooling systems to keep the temperature in the growing units stable, which increases their energy costs. These factors have increased the demand for more energy-efficient and long-lasting horticultural lighting solutions.

Key benefits of the report

• This study presents the analytical depiction of the plants LED grow light market along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the plants LED grow light market share.
• The current market is quantitatively analyzed to highlight plants LED grow light market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed plants LED grow light market analysis based on competitive intensity and how the competition will take shape in coming years

Questions answered in plants LED grow light market research report

• What are the leading market players active in the plants LED grow light market?
• What are the current trends that will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What are the projections for the future would help in taking further strategic steps?
  • Upcoming report specific FAQs examples:  
    • What is plants LED grow light?
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    • Which niches should companies associated with recent improvements establish a presence in?