According to a report by MarketsandMarkets, the overall grow lights market is expected to be valued at USD 5.11 Billion by 2022, growing at a CAGR of 11.86 % between 2017 and 2022. The key factors driving the growth of the market include growth in indoor farming practices, government initiatives to encourage the adoption of solid state lighting (SSL) technology such as LED, and rising demand for energy-efficient and long lasting grow lights technology.

Retrofit installations to lead the grow lights market in the coming years

Retrofit installations held a major share of the grow lights market than new installations in 2016. Retrofitting is generally performed in grow lights when the light intensity drops below the desired levels after regular usage, or when grow lights suffer any failure or damage during operations. Growers may retrofit their old grow lights with new ones of any technology to ensure that their plants get the required amount of light to grow. Hence, when the light intensity decreases, the grow lights are required to be retrofitted immediately. The introduction of new grow light technologies such as LED, plasma, and induction has provided the growers with more options to choose from, while retrofitting their grow light systems. LED grow lights offer variable spectrums that make them suitable for a large number of plants. As a result, this technology is being preferred by the growers for most of the applications.

Market for vertical farming to witness a high growth in the near future

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Vertical farming is an emerging application for grow lights, which is quite similar to indoor farming. The main difference between the two is that indoor farming is carried out on a single level, whereas vertical farms have two or more levels of growing equipment. Vertical farming allows the growing of more number of plants within a single enclosed structure, with the use of artificial lightings and Controlled Environment Agriculture (CEA) methods.

These plant factories can be built to produce fruits and vegetables throughout the year, within urban establishments. As a result, the city dwellers can get fresh produce at competitive prices, and it can also become a source of revenue from unused real-estate. Consequently, the market for vertical farming applications is expected to exhibit a high growth in the coming years.

Europe held the largest share of the grow lights market in 2016

Europe was the leading market for grow lights in 2016. Within Europe, the Netherlands is a leading exporter of horticultural produce, grown within its numerous automated commercial greenhouses. The concept of vertical farming is also gaining popularity in Europe. The rising population in Europe is a major driver for the increasing need to practice indoor horticulture in this region. Also, the severe cold in winters and insufficient sunlight in parts of Europe mandates indoor growing with the help of artificial lightings.

Some of the major companies such as Royal Philips (Netherlands) and Osram Licht AG (Germany) are also responsible for the dynamic growth of the grow lights market in Europe. This region has always been at the forefront at utilising artificial lighting to accelerate the growth of plants in greenhouses.

The leading players operating in the grow lights market include Royal Philips (Netherlands), General Electric Company (U.S.), Osram LichtAG (Germany), Gavita Holland B.V. (Netherlands), LumiGrow, Inc. (U.S.), Heliospectra AB (Sweden), Iwasaki Electric Co., Ltd. (Japan), Illumitex, Inc. (U.S.), Hortilux Schreder B.V. (Netherlands), and Sunlight Supply, Inc. (U.S.).

Source: www.marketsandmarkets.com