The trend of indoor farming is picking up as it can protect crops from natural forces, such as too much rain, drought, hail and snow, too much sunlight, and pests and rodents. This is becoming important in a time when the weather patterns are becoming increasingly erratic. Now, incessant or no rain, extended droughts and periods of dryness, and sudden hail are becoming common. Such events destroy crops growing in the open, which leads to revenue loss for farmers and reduced food supply for the millions of people on the earth.

Thus, the growing trend of indoor farming will drive the grow lights market to $5,954.1 million by 2023 from $2,653.2 million in 2016, at a 12.5% CAGR between 2017 and 2023, as per P&S Intelligence. This will be because being farmed indoors, plants need to be provided with artificial light in order to carry out photosynthesis. Hence, the role of the natural sunlight is taken over by modern lights, the color and intensity of which can be controlled based on the crop type and stage of growth.

Browse detailed - Grow Lights Market Revenue Estimation and Growth Forecast Report

In this regard, the burgeoning population is playing a key role in the rising sale of such products. Farmers are already finding it hard to feed people from the land they own, and the population growth predicted over the years is only going to make this situation worse. Moreover, with the increasing number of people, cities are expanding, which is eating into arable land, thus putting the agrarian community under added pressure. This is the key reason that in many parts of the world, indoor farming is being practiced in large warehouses, buildings, and even shipping containers.

However, this approach significantly increases the capital and operational expenditure. This is because specialized equipment, such as grow lights, needs to be procured, maintained, and regularly replaced. This is why among the different types of lights available for the purpose — fluorescent, high-intensity discharge, induction, light-emitting diode (LED), and plasma — LED lights have been the most popular till now and they will continue being so in the coming years. “Residential LEDs -- especially ENERGY STAR rated products -- use at least 75% less energy, and last up to 25 times longer, than incandescent lighting.”, says the U.S. Department of Energy.