Various industries make use of artificial lighting for cultivation purposes, however, the emerging legal cannabis industry is undoubtedly one of the biggest driving forces for the indoor grow lighting sector right now, and that trend will only increase in the coming years.
Many cannabis cultivation operations are located outdoors. Yet, even many greenhouse operations still incorporate artificial lighting for one reason or another. Some producers use artificial grow lighting to extend grow seasons, while others do so in order to provide plants specific spectrums of light.
Of course, indoor cannabis cultivation operations rely solely on artificial lighting. In many jurisdictions where home cultivation and/or commercial cultivation is permitted, cultivation has to be out of public view in a private residence or in a highly secured commercial facility, respectively.
Transparency Market Research recently released a report in which it provided findings of a global grow light market analysis it conducted. Below are some of the key excerpts, findings, and other information about the report:
- The grow light industry generated US$ 890.0 million in 2022. From 2023 to 2031, the market is predicted to increase by 7.5% CAGR. It is expected to reach US$ 1.2 billion by 2031.
- In 2022, Europe held the largest share of the grow light market. The grow light market in Europe is expected to grow significantly in the coming years.
- Based on technology, the LED segment will likely drive demand for grow lights in the market.
An increasing number of jurisdictions are permitting cannabis consumers and patients to cultivated cannabis in their private residences. The most recent one is Germany, where the nation’s new adult-use cannabis legalization measure went into effect on April 1, 2024.
Adults in Germany, aged 18 and older, can now cultivate up to three plants in their private residences. Home cultivation was previously legalized in Malta in 2021 and in Luxembourg in 2023. Home cultivation is also legal in Uruguay, Canada, and in many parts of the United States.
Home cultivation reform will be a major driving force for future growth of the indoor grow light sector, in addition to the commercial cultivation.