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

– 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.

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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.

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.

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.

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