LED grow lights are a fundamental part of the operations of a vertical farm or indoor farm. The global leaders have acknowledged the future potential LED grow lights market holds and are investing their time and money in the research and development of this technology. The main challenges faced by the market are the large investment cost and energy consumption of the grow lights, and to overcome these challenges, market players are developing new products to suit the needs of the vertical and indoor farming industry. Key players in the LED grow lights industry are already adopting strategies to grow in the market, in the form of business expansions and product launches.
One of the leading lighting developer, Osram Licht AG, acquired a stake in Agrilution GmbH, a developer of an LED-based plant-growing home appliance, in May 2017. The lighting group holds a strategic minority interest in the company via its venture capital arm Fluxunit.1 Another significant market player, Heliospectra, supplied a greenhouse grower of lettuce, herbs, and other greens located in Vermont, with the greenhouse operation realizing a 25% increase in business attributable to the solid-state lighting (SSL) in August 2017. Horticultural supplier and consultant Griffin Greenhouse Supplies, Inc. assisted the company with the project at grower Green Mountain Harvest Hydroponics that has successfully both reduced the length of crop cycles and improved yield.2
Another Austin-based market player, Illumitex, Inc. announced in September 2017 the launch of a wireless control system for the Power Harvest product family. The control system will provide a solution to growers looking for more control over the light intensity delivered to their plants and the ability to monitor power consumption or voltage levels of the LED fixtures. Additionally, at the start of October 2017, Heliospectra announced a new cooperation with NYSK Holdings, a state-of-the-art medicinal cannabis facility in Macedonia, and the investment is valued at around $125,000.
Acknowledging the rising trend of vertical farming and the future potential of the LED grow lights market, BIS Research has published a research report titled ‘Global LED Grow Lights Market, Analysis & Forecast- 2016 to 2021'. According to the analyst, "the LED grow lights market is expected to grow from $726.6 million in the year 2016 to $2.59 billion by 2021, at a CAGR of 28.9% from 2016 to 2021. The growth is attributed to the increase in demand for food which leads to the need for increasing farm yields." The growing market of software-based products is further expected to increase the involvement of companies across different segments of the value chain.