Cannabis Lighting Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The cannabis lighting market is segmented by Lighting Technology ( Light Emitting Diodes (LEDs), T5 High Output Fluorescent Light, Ceramic Metal Halide Light), and Geography.

Market Snapshot

Cannabis
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: North America
Largest Market: Europe
CAGR: 8 %

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Market Overview

The cannabis lighting market is expected to grow at a CAGR of 8% over the forecast period (2021-2026). The growth of cannabis plant growth is determined by the way the lights are used at different growth phases.

  • 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 result has increased the indoor cultivation of cannabis, which drives the cannabis lighting market. For instance, in November 2019, Two cannabis-based medicines used to treat epilepsy and multiple sclerosis, have been approved for use by the NHS in England.
  • Also, with the increasing phase of the second legalization of the 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 result will drive the cannabis lighting market during the forecast period.
  • For instance, in Canada, several Canadian beverage companies have announced to sell cannabis beverages in the region and those beverages can contain a maximum of 10mg of THC as per Health Canada's regulations. Such an initiative would increase the cultivation of cannabis in the region, which in result would drive the lighting market.
  • However, the high cost associated with the indoor cultivation of cannabis is expected to hinder the market growth during the forecast period.

Scope of the Report

Cannabis can be found in various forms, and the health benefits 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. 

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
Geography
North America
Europe
Asia Pacific
Rest of the World

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Key Market Trends

LED Light is Expected to Occupy Significant Share

  • As per, World Health Organization, indoor cultivation of cannabis under controlled environmental conditions can generate three or four crops per year. Thus, the cultivators, in order to reduce the overall production cost is shifting towards LED lighting. It is due to its ability to significantly reduce energy use is during cultivation. 
  • According to a report published by the  Resource Innovation Institute, LED lights have the potential to save 40% on electricity relative to HID and other traditional lighting choices available for cannabis.
  • Another benefit associated with the LED bulbs is that these bulbs are required less maintenance. As LEDs are more efficient than HID, less wattage equals less heat into space, allowing for potentially lower HVAC loads and operating expenses for the cannabis cultivators.
  • Seeing the benefits associated with the LED bulbs and with increasing shifts towards LED, cannabis lighting vendors are coming up with new products to augment the market growth.
  • For instance, in June 2019, Koninklijke Philips N.V. introduced Philips GreenPower LED top lighting compact which is a high-pressure sodium (HPS) replacement. The company claimed that the top lighting compact replaces 1,000-watt HPS lighting while offering the same amount of light and consuming 40% less power.
  • Therefore, such benefits associated with the LED lightings are expected to augment the market growth. 
OSRAM Licht AG

North America Dominate the Market Growth

  • North American is the largest cannabis market owing to the progressive legislative changes and increasing the commercial market in the region.
  • Also, with the increasing medicinal market in the region, North America is expected to be the largest consumers of cannabis, which will drive the cannabis lighting market in the region. According to Health Canada in September 2018, there were 342,103 registered medical cannabis clients in Canada. The Alberta and Ontario regions combined accounted for over 78% of that number. And also, in March 2019, New York and Illinois, have legalized the use of cannabis as an alternative to addictive opioids to help treat chronic pain.
  • Also, with the increasing legalization of cannabis in both Canada and the United States, is another factor that is driving the cannabis market, which would increase the cultivation of cannabis which in result will drive the cannabis lighting market in the region.
region

Competitive Landscape

The cannabis lighting market is evolving with the increasing legalization in the region and also with the increasing cultivation of cannabis. The vendors of the cannabis lighting market partners with major commercial enterprises and research institutions to understand how light can be used to optimize crop production, as well as how lighting efficiency can be better managed in the greenhouse and in growth chambers. They also focus on product launches to gain a competitive advantage. Few recent developments are: 

  • January 2020 - Fluence by OSRAM announced that they had expanded their geographical reach in the Emsland region of Germany through partnerships with growers and other horticulture specialists operating out of Papenburg.Elektro Evers, a firm specializing in greenhouse technology, is Fluence’s exclusive systems integrator in the Papenburg region.
  • September 2019 - FOHSE INC. partnered with cannabis cultivator Green Life Productions, LLC to supply lighting products to the company. GLP is a licensed cannabis cultivation facility that has a primary focus on organic production of cannabis through no-till living soil systems, using the ethics and principles of permaculture. 

 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Growing Legalization of Medical Cannabis in Various Countries

    3. 4.3 Market Restraints

      1. 4.3.1 High Cost Associated With the Cultivation

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Industry Regulations

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Lighting Technology

      1. 5.1.1 Light Emitting Diodes (LEDs)

      2. 5.1.2 T5 High Output Fluorescent Light

      3. 5.1.3 Ceramic Metal Halide Light

      4. 5.1.4 Compact Fluorescent Light

      5. 5.1.5 Magnetic Induction Light

      6. 5.1.6 Other Lighting Preferences

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia Pacific

      4. 5.2.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 OSRAM(Fluence BioEngineering)

      2. 6.1.2 Illumitex Inc.

      3. 6.1.3 General Electric Company

      4. 6.1.4 Signify Holding

      5. 6.1.5 LumiGrow, Inc.

      6. 6.1.6 BIOS, LLC

      7. 6.1.7 Heliospectra AB

      8. 6.1.8 Cultilux

      9. 6.1.9 Vivosun

      10. 6.1.10 Gavita Holland BV

      11. 6.1.11 Sun System

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. INVESTMENT ANALYSIS

**Subject to Availability

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Frequently Asked Questions

The Cannabis Lighting Market market is studied from 2018 - 2026.

The Cannabis Lighting Market is growing at a CAGR of 8% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

OSRAM Licht AG, Gavita Holland BV, Illumitex Inc., Signify Holding, LumiGrow, Inc. are the major companies operating in Cannabis Lighting Market.

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