NEW YORK, March 19, 2024 /PRNewswire/ — The Light-emitting Diode (LED) Grow Lights Market report has been added to Technavio’s offering. With ISO 9001:2015 certification, Technavio has proudly partnered with more than 100 Fortune 500 companies for over 16 years. The potential growth difference for the light-emitting diode (LED) grow lights market between 2022 and 2027 is USD 4.87 billion. The surge in demand for energy-efficient and durable grow light technology is fueling market expansion. Outperforming fluorescent and HPS devices, LED grow lights offer approximately 50% greater efficiency. With minimal heat emission, they are indispensable in commercial greenhouse management, enhancing crop quality and meeting market demands. Additionally, these devices play a pivotal role in enhancing food taste by providing precise control over light parameters. By optimizing light exposure, growers ensure high yields, superior quality, and enhanced flavor. Consequently, the global market is poised for substantial growth in the forthcoming period.
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- The harmful effects of LED grow lights challenge the growth of the LED grow lights market.
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The light-emitting diode (LED) grow lights market is segmented by application (commercial greenhouses, vertical farming, indoor farming, and others), power rating (low power (<100 w), medium power (100-300 w), and high power (>300 w)), and geography (Europe, North America, APAC, South America, and Middle East and Africa).
- The commercial greenhouses segment will be significant during the forecast period. LED grow lights help increase the production capacity and thus, are increasingly chosen by commercial greenhouse operators. Initially, about 25% of the total greenhouse area was fitted with LED lights on top of the Hyperion 1750, which provided over 200 micromol/s/m2 of artificial light. However, vendors like Sterling Suffolk plan to expand the LED grow lights area in the following years. This is estimated to help to produce high-yielding tomatoes year-round. Hence, such factors drive the commercial greenhouses segment of the LED grow lights market during the forecast period.
- Europe will contribute 35% to the growth of the global market during the forecast period.
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Key Companies
Advanced Grow Lights American Co., Biological Innovation and Optimization Systems LLC, Black Dog Grow Technologies Inc., Bridgelux Inc., Controlled Environments Ltd., Dool Industries, General Electric Co., GrowRay Lighting Technologies, Heliospectra AB, Kessil, Kind LED Grow Lights, LED Hydroponic Ltd., Samsung Electronics Co. Ltd., SANlight GmbH, Senmatic AS, Shenzhen Grow LED Technology Co. Ltd., Valoya Oy, Signify NV, OSRAM Licht AG, SMART Global Holdings Inc.
Analyst Review
The Light-emitting Diode (LED) Grow Lights Market in the Asia-Pacific region is experiencing exponential growth, fueled by the rise in adoption of vertical farming and the legalization of cannabis in various countries. LED grow lights have revolutionized indoor plant growth by providing a full spectrum of light essential for photosynthesis, ensuring higher efficiency and controllability compared to traditional lighting technologies. This has led to a surge in collaborations between key vendors and buyers in the region, aiming for geographical expansion and product portfolio expansion.
However, despite the promising growth prospects, the market faces challenges such as the lack of standardization in LED lighting technologies and the high initial investments required for new installations and facility closures. Additionally, the unavailability of workforces due to travel bans and facility closures has impacted manufacturing utilization and installation types.
To address these challenges, top impacting factors such as temperature controllability, wattage efficiency, and lifespan of LED grow lights are crucial considerations for buyers and suppliers in the region. Moreover, legal regulations, such as state rebates and the legalization of cannabis, play a significant role in shaping market dynamics.
A competitive analysis using Porter’s five forces reveals intense competition among key vendors, leading to mergers & acquisitions and product portfolio expansions to gain a competitive edge. Companies like Signify Holding are at the forefront of innovation, focusing on compact size, higher efficiency, and controllability in their LED grow lights.
In Europe and North America, where indoor farming is prevalent, LED grow lights dominate the market due to their higher efficiency and controllability. Market trends indicate a shift towards higher power LED grow lights for commercial greenhouse applications and turf and landscaping.
Despite the slowdown caused by the COVID-19 pandemic, the market is expected to rebound during the forecast period, driven by the rising demand for indoor farming and the increasing awareness of sustainability practices. However, achieving standardization in lighting technologies and addressing issues like facility closures and the shortage of workforces remain key priorities for industry stakeholders.
In conclusion, the LED grow lights market presents lucrative opportunities for players across regions, but success hinges on factors like product innovation, geographical expansion, and strategic collaborations amidst evolving market dynamics.
Market Overview
The Light-emitting Diode (LED) Grow Lights Market in the Asia-Pacific region is experiencing exponential growth, fueled by the burgeoning demand for compact size and higher efficiency lighting solutions in the agriculture sector. With facility closures pushing growers towards more controllable and efficient options, LED grow lights have emerged as the preferred choice. Collaborations between electronics and semiconductor manufacturers have led to the development of LED systems offering full spectrum lighting, catering to the diverse needs of crops. Competitive analysis indicates that LED grow lights offer higher controllability over traditional lighting methods, making them attractive to buyers despite the high initial investments. Geographical expansion strategies are further driving the growth of the industry, as companies aim to tap into new markets and broaden their spectrum of offerings.
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ToC:
1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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