Market Size of Cannabis Lighting Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 7.60 % |
Fastest Growing Market | North America |
Largest Market | Europe |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Cannabis Lighting Market Analysis
The cannabis lighting market is expected to grow at a CAGR of 7.6% over the forecast period. The cannabis market has been driven by an increase in interest in the medical use of cannabis for patient treatment, accompanied by a scientific interest in the medical use of cannabis plants. As a result, growing indoor cannabis has experienced a positive impact, driving the cannabis lighting business. For example, the NHS in England authorized two cannabis-based medicines to treat epilepsy and multiple sclerosis.
- Increased patient interest in the medical usage of cannabis has been accompanied by a scientific interest in the medical use of cannabis plants, which has driven the cannabis market. As a result, the cannabis lighting market has grown.
- Increased patient interest in the medical use of cannabis has been accompanied by a scientific interest in the medical use of cannabis plants which has driven the cannabis market. This, in turn, has increased the indoor cultivation of cannabis, which drives the cannabis lighting market.
- In December 2021, Pfizer, an American multinational pharmaceutical and biotechnology corporation, entered the medical cannabis industry in the hopes of developing a promising cannabinoid-based bowel disease treatment. Arena Pharmaceuticals, a clinical-stage company, and the company signed an agreement for a total equity value of around USD 6.7 billion.
- Moreover, the increasing phase of the second legalization of cannabis, which states that cannabis-based products such as edibles, extracts, and topicals are expected to be commercialized, is expected to increase the cultivation of cannabis, which in turn, will drive the cannabis lighting market during the forecast period.
- Further, with legislation moving rapidly, the cannabis industry in Europe has already received positive feedback in 2021. The first patients were treated as part of a pilot medical program in France. Switzerland has adopted new medical cannabis regulations that have made it easier for patients to obtain it. It was to legalize the sale of adult-use cannabis under pilot programs by May 15, 2021. Portugal, too, approved its first medical cannabis product for marketing.
- However, since LEDs are more efficient than HIDs, less wattage means less heat is emitted in the area, potentially lowering HVAC loads and operating costs for cannabis growers. The high cost of indoor cannabis growing, on the other hand, is likely to stifle market expansion during the forecast period.
Cannabis Lighting Industry Segmentation
Cannabis can be seen in several forms, and the health advantages of cannabis are increasing. Lighting is crucial during cannabis cultivation, whether indoor or outdoor. The light cycle for flowering cannabis directly correlates to a crop's quality and overall yield. Cannabis is a photosensitive plant, which means that the amount of light it receives in 24 hours causes it to respond. There are different types of Lighting Technology such as Light Emitting Diodes (LEDs), T5 High Output Fluorescent Light, Ceramic Metal Halide Light, Compact Fluorescent Light, and Magnetic Induction Light that include different Applications such as Greenhouse, Indoor, Vertical Farming, multiple geographies. The impact of Covid-19 on the market and affected segments are also covered under the scope of the study.
By Lighting Technology | |
Light Emitting Diodes (LEDs) | |
T5 High Output Fluorescent Light | |
Ceramic Metal Halide Light | |
Compact Fluorescent Light | |
Magnetic Induction Light | |
Other Lighting Preferences |
By Application | |
Greenhouse | |
Indoor | |
Vertical Farming |
By Geography | |
North America | |
Europe | |
Asia Pacific | |
Rest of the World |
Cannabis Lighting Market Size Summary
The cannabis lighting market is poised for significant growth, driven by the increasing interest in the medical applications of cannabis and the subsequent rise in indoor cultivation. This trend is further bolstered by the legalization of cannabis-based products, such as edibles and extracts, which is expected to enhance cultivation activities. The market is also witnessing a shift towards energy-efficient LED lighting solutions, which offer substantial savings on electricity and reduced maintenance costs compared to traditional lighting options. This transition is supported by the World Health Organization's findings on the efficiency of indoor cultivation under controlled conditions, encouraging cultivators to adopt LED technology to lower production costs. The market's expansion is further fueled by innovations and product launches from key players, who are focusing on optimizing lighting efficiency to enhance crop yields.
In North America, the cannabis lighting market is experiencing robust growth due to the legalization of cannabis for medical purposes, particularly in the United States and Canada. This has led to increased research and product development, with significant investments from major corporations aiming to capitalize on the burgeoning market. The region's demand for cannabis lighting is further driven by the rising need for vertical farms and greenhouses, where LED-based lights are preferred due to their lower heat output. The market is characterized by strategic partnerships and collaborations between lighting vendors and commercial enterprises, aimed at leveraging advancements in lighting technology to optimize cannabis cultivation. As the market continues to evolve, the focus on energy efficiency and innovative lighting solutions is expected to play a crucial role in sustaining its growth trajectory.
Cannabis Lighting Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porters Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Lighting Technology
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2.1.1 Light Emitting Diodes (LEDs)
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2.1.2 T5 High Output Fluorescent Light
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2.1.3 Ceramic Metal Halide Light
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2.1.4 Compact Fluorescent Light
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2.1.5 Magnetic Induction Light
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2.1.6 Other Lighting Preferences
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2.2 By Application
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2.2.1 Greenhouse
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2.2.2 Indoor
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2.2.3 Vertical Farming
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia Pacific
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2.3.4 Rest of the World
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Cannabis Lighting Market Size FAQs
What is the current Cannabis Lighting Market size?
The Cannabis Lighting Market is projected to register a CAGR of 7.60% during the forecast period (2024-2029)
Who are the key players in Cannabis Lighting Market?
OSRAM Licht AG, Gavita Holland BV, Illumitex Inc., Signify Holding and LumiGrow, Inc. are the major companies operating in the Cannabis Lighting Market.