Light therapy, also known as phototherapy, involves exposure to artificial light which is used for the treatment of physical and mental health conditions. It is an effective treatment for conditions like seasonal affective disorder (SAD) and has advantages over traditional antidepressant medication as it is non-invasive and has negligible side-effects. Light therapy lamps are commonly used for SAD treatment which emits bright light that tricks the brain into thinking it's daytime.
The global light therapy market is estimated to be valued at US$ 989.2 Mn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Seasonal affective disorder is one of the key opportunities driving the growth of light therapy market. SAD is a type of depression that occurs annually during the change of seasons, especially winter. The reduction in daylight hours during winter triggers depression like symptoms among people suffering from SAD. It is estimated that up to 10% of American adults suffer from SAD indicating a huge patient pool opting for its treatment. Light therapy administered through light therapy lamps has proven to be an effective treatment option for SAD and is recommended as the first line of treatment by healthcare professionals. Rising awareness about non-drug therapies and proven effectiveness of light therapy in mitigating SAD symptoms is expected to boost its adoption rate.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established distribution channels lower barriers to entry in the light therapy market. However, major players have established brand names and a strong distribution network.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products and differentiated products offered by major players.
Bargaining power of suppliers: Suppliers have low bargaining power as there are several component manufacturers and raw material suppliers.
Threat of new substitutes: Substitutes like anti-depressants, and anxiety and sleep medications pose a threat.
Competitive rivalry: Major players compete based on product portfolio, innovation, and geographic presence.
SWOT Analysis
Strength: Wide application in treating various conditions like depression and sleep disorders. Growing awareness about light therapy benefits health.
Weakness: Side effects with long-term use like headaches and eye strain. Researches ongoing to improve efficacy for different conditions.
Opportunity: Untapped growth potential in developing countries. New product launches incorporating latest technology.
Threats: Strong competition from alternative treatment options. Regulations pertaining to different products.
Key Takeaways
The global light therapy market is expected to witness high growth over the forecast period owing to the increasing prevalence of seasonal affective disorder and other mood and sleep disorders. The global light therapy market is estimated to be valued at US$ 989.2 Mn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030.
North America dominates the light therapy market currently due to the growing geriatric population suffering from insomnia and a rapid adoption of novel technologies. However, Asia Pacific is likely to witness the highest growth rate owing to developing healthcare infrastructure and growing medical tourism in the region.
Key players operating in the light therapy market are Koninklijke Philips N.V., Verilux, Inc., Northern Light Technology, TheraLight, LLC, Zepter International, Photomedex Inc., Beurer GmbH, Nature Bright, Lucimed SA, PhotonMD, Inc., BioPhotas, Chal-Tec GmbH, Johnson & Johnson, and Carex Health Brands Inc. Major players are focusing on new product launches and geographical expansion strategies to gain further market share.
