The market for plant growth lamps has reached $3.23 billion in 2018 and is expected to exceed $7.66 billion by 2024. It is predicted that the compound annual growth rate will be 13.14% between 2019 and 2024. Growth lamps are an important part of urban farming practices and are often used to provide the various wavelengths of light required for plant growth or, in some cases, to supplement natural light, especially during periods of low sunshine and long winters. Cold country.
The increase in the number of plant factories, the need for sustainable development, and the rise of urban agriculture are the catalysts for the current growth lamp market.
It is widely used in the cultivation and cultivation of various plant types, such as fresh and nutritious vegetables, beautiful flower arrangements, aroma, herbal cultivation and the like. With the popularity of e-commerce, farmers or agronomists can easily buy it through the Internet. In the application market classification, indoor planting occupies the largest market share, and the growth lamps used to assist indoor planting are also available in a wide variety of products, which are available online.
Increasing environmental problems and uncertainty about existing rainfall patterns have led to a willingness to invest in a more efficient garden-based planting industry. In the long-term development of innovative agricultural practices, such as the vertical agricultural approach, the growth of the growth lamp market has been invisibly promoted. Conversely, high installation and maintenance costs also limit and hinder the market's faster growth.
Key Market Trends
Indoor planting occupies the largest market share
One of the main benefits of indoor agriculture is higher than traditional agricultural production. Closed facilities create the ideal growing environment, reducing the time required for harvesting and increasing the frequency of harvests throughout the year.
For example, according to the US Department of Agriculture's 2016 estimate, the average yield of traditional tomato planting in the United States is estimated to be 805 pounds per acre or 1.85 pounds per square foot. In the same year, the average production of greenhouse tomato growers in greenhouses was 10.59 pounds per square foot.
In addition, indoor agricultural activities are exponentially growing in areas such as North America. According to Agrilyst Inc., in 2016, the average production of each indoor green leafy vegetable farm in North America was 5.5 lbs. per square foot. During the forecast period, such high productivity is expected to attract more investment into the industry and create more opportunities for the growing lamp market.
The fastest growth rate is expected in the Asia Pacific region
Asia Pacific is one of the fastest growing regions in the growing light market, and the rapid growth of urban agriculture, such as vertical agriculture, green housing and growth rooms, is driving demand for growing lights in the region. Some countries or regions such as China, Japan, and Taiwan are the main sources of demand for growth lamps in the region. It is expected that this demand will continue to be maintained for some time to come.
In Japan, urban agricultural facilities are known as plant factories. The country's largest plant factory covers an area of more than 3,000 square meters, producing more than 20,000 vegetables per day.
In addition, the government and the private sector encourage urban farming practices. For example, electronics giant Fujitsu has transformed its factory, which was originally a semiconductor manufacturing company, into a plantation plant in recent years.
With the advancement of smart and connected systems, the growth lamp market has witnessed technological innovations of key players such as Osram Richter, Royal Philips Electronics BV and others. As more and more investments tend to grow lights on a large scale, companies are looking to merge, collaborate or acquire technology capabilities.