GROW LIGHTS MARKET ANALYSIS

Market Challenges And Opportunities

Global Grow Lights Market Drivers:

Growing adoption of indoor farming practices to fuel the market pace

In recent times, there has been a substantial growth investment in innovation technology of food and agriculture sector. This is owing to the rise in difficulties in the cultivation of crops in natural conditions resulting from changes in climatic conditions. As per the Union Bank of Switzerland, food and agriculture innovation is showing an ascent in capital investor and is likely to become US$ 700 billion market by 2030. Thus, indoor farming practices are increasingly being adopted all over the world, which is expected to support growth of the global grow lights market over the forecast period.

Surge in the number of startups innovating novel technologies to boost the market growth

The number of startups in this space that are involved in innovation of novel technologies for farming is increasing around the world. For instance, Bowery Farming raised US$ 140 million since its start in 2015, and it has made its leafy greens available in the U.S. to be bought in whole foods market and foragers. The company claimed that it uses 95% less water compared to conventional farming and it offers it is 100 times more productive. This in turn is promoting the adoption of farming techniques such as indoor farming, which in turn is creating demand for grow lights. Thus, these factors are likely to boost growth of the market in the near future.

Global Grow Lights Market Opportunities:

Penetration of advanced technologies such as IoT, Artificial Intelligence, and robotics in farming technologies is expected to offer business opportunities in the global grow lights market over the forecast period. The number of enterprises using such advanced technologies through approaches such as exploitation of advanced technologies for boosting innovation, revenues by increasing production, and forming new business models. Thus, the market is likely to witness several growth opportunities in the near future.

Furthermore, growing advancements in LED technology is also anticipated to create growth opportunities in the global grow lights market over the forecast period. With the rise in technological developments in LEDs, several issues associated with energy savings are being addressed. Due to its benefits such as reduced energy consumption indoor farming operations are inclining towards use of LED technology from high-pressure sodium lights, as traditional lights produce excess heat. Thus, this factor is creating various opportunities for the grow lights market.

• Changing lighting needs for different crops
• High cost of setup and maintenance

Global Grow Lights Market Restraints:

Changing lighting needs for different crops to hamper the market pace

Different crops cultivated in the modern agricultural setup need different grow light spectrum. Grow light spectrum is electromagnetic wavelengths of light generate by a source for promoting growth of a plant. For photosynthesis process, plants use light in the active photosynthetic radiation region of wavelengths that are measure in nanometers. Based on the species of crop, and environmental conditions, the light spectrum affects growth of the plant in different ways. Such changes in the use of lighting technologies in the setup can add into the cost of solutions. This in turn is expected to restrain growth of the global grow lights market over the forecast period. However, advent of LED-based grow light solutions is likely to drive growth of the market in the near future.  

High cost of setup and maintenance to impede the market growth

The upfront cost required for designing and establishing the facility of indoor farming methods such as vertical farming, greenhouse among others is high. Along with this, the ROI of the cost requires high maturity as well as it depends on profits in the future. Lighting technology plays an important role in the indoor farming and it is still being progressed. The cost of setting up lighting technology for these farming facilities is high and the maintenance of these systems also requires high cost. These factors hence, affect the adoption of grow light technology, which in turn is anticipated to restrain growth of the global grow lights market over the forecast period.