Plant Factory Market by Facility Type (Container Farms, Greenhouses, Indoor Farms), Light Type (Fully Artificial, Sunlight), Growing System, Crop Type, End-Use - Global Forecast 2024-2030

Plant Factory Market by Facility Type (Container Farms, Greenhouses, Indoor Farms), Light Type (Fully Artificial, Sunlight), Growing System, Crop Type, End-Use - Global Forecast 2024-2030

The Plant Factory Market size was estimated at USD 168.37 billion in 2023 and expected to reach USD 182.31 billion in 2024, at a CAGR 9.40% to reach USD 315.82 billion by 2030.

A plant factory, also known as a vertical farm or indoor farming system, is a form of controlled environment agriculture (CEA) that leverages precise technology to cultivate plants within an enclosed setting. This innovative farming approach seeks to optimize plant growth, productivity, and resource efficiency by closely monitoring and controlling environmental factors such as light, temperature, humidity, carbon dioxide levels, and nutrient delivery to the plants. The proliferation of plant factories can be attributed to the rising demand for fresh, local produce in urban areas, where traditional farming space is limited. This trend is particularly significant as the global population becomes more urbanized, fueling concerns about food security and the environmental impact of traditional agriculture. However, the chance of contamination by pests such as aphids and microorganisms can prevent hurdles to the growth and expansion of plant factories. Furthermore, the need for precise control of environmental parameters also proves cumbersome for new entrants in the field who lack access to advanced technologies. However, efforts by major manufacturers to explore the integration of technological innovations in artificial lighting, such as the extensive use of LED systems, have made plant factories more energy-efficient and productive. Moreover, the use of advanced sensors and the Internet of Things (IoT) in these cultivation systems has fuelled advancements in precision farming. Data-driven agriculture practiced in plant factories ensures optimal resource use and waste reduction, aligning with the sustainability goals that are important to consumers and governments.

Regional Insights

The Americas region is characterized by advancements in lighting and automation technology, high investment capital, and the presence of key industry players. The United States leads the demand for plant factories with large-scale commercial farms and numerous startups focusing on technology-driven agriculture. Rising consumer awareness about healthy dietary habits and a preference for locally grown and organic crop produce has stimulated the growth of plant factories in this region. European markets are rapidly adopting plant factory systems as the region has a strong focus on reducing greenhouse gas levels and promoting sustainable agricultural practices. Multiple European nations serve as a hub for research and innovation in vertical farming. Scandinavian countries, with their limited daylight hours and cold climates, are increasingly looking towards indoor agriculture to ensure year-round fresh produce. In addition, countries such as the UK, France, and Germany are investing in research and adopting policies that encourage the development of urban farm facilities. Multiple APAC nations are focusing on advancing plant factory initiatives to cater to the demand for native crop plants and locally produced plant-based food. Japan has a strong focus on plant biotechnology research and has established the Japan Plant Factory Association (JPFA) to advance academic and business improvements in the global industry of plant factory and controlled environment agriculture. China, India, and South Korea are integrating plant factories into their urban and semi-urban areas to address food safety concerns.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Plant Factory Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Emphasis on year-round crop production owing to escalating food security concerns
Government initiatives promoting greenhouses and vertical farming activities
Rising popularity of hydroponic and aeroponic plant factory

Market Restraints

Concerns associated with limited crop variety and complex maintenance

Market Opportunities

Advancements in lighting, automation, and farming equipment in plant factories
Strategic expansion of existing and construction of new plant factories

Market Challenges

Risk of equipment failure and delay in the learning curve among growers

Market Segmentation Analysis

Facility Type: Presence of government incentives and subsidies for greenhouses
Growing System: Research initiatives to improve performance of non-soil based systems
Light Type: Improvements in fully artificial light types owing to growing number of technological advancements
End-Use: Expanding preference for urban agriculture and demand for nutritionally-dense crop plant from residential users

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Plant Factory Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Plant Factory Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Lactuca Holdings Acquires Vertical Farming Company Kalera

Lactuca Holdings, LLC acquired the assets of Kalera, a US-based vertical farming company. Kalera is dedicated to producing pesticide-free, non-GMO produce with an extended shelf life. Their unique process combines optimized nutrients, precise environmental controls, and cleanroom standards to ensure consistent quality throughout the year. This strategic acquisition is supported by Sandton Capital Partners, providing the necessary investment to fuel Kalera's growth.

Yaskawa Partners with US-Based Start-Up Oishii on Plant Factory Automation

Yaskawa Electric Corporation and Oishii Farm Corporation have announced a partnership to establish themselves as major players in automation for agricultural plant factories. This partnership aims to leverage Yaskawa's solution concept, known as i³-Mechatronics, to deliver automated systems for Oishii's plant factories. This partnership aims to develop a sustainable society by ensuring a stable food supply.

Plenty Opens Technologically Advanced Indoor Vertical Farm in Compton

Plenty opened its new advanced vertical farming facility known as Plenty Compton Farm in Crompton, California. This innovative farming approach can be fully automated, from planting to harvest, ensuring optimal efficiency. Moreover, implementing this technology allows Plenty to reduce the cost of indoor-grown produce, making it more accessible to communities. Through these advancements, Plenty Compton Farm demonstrates its commitment to sustainable and accessible agriculture.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Plant Factory Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Plant Factory Market, highlighting leading vendors and their innovative profiles. These include 4D Bios, Inc., AeroFarms, LLC, AppHarvest, Inc., Avisomo, Babylon Micro-Farms, Badia Farms, Bowery Farming, Inc., BrightFarms, CityCrop, Crop One, CubicFarm Systems Corp., Dream Harvest Farming LLC, Eden Green Technology, FARMINOVA Plant Factory, Gotham Greens Holdings, LLC, iFarm, Iron Ox, Inc., Kalera Inc., Mirai Co. Ltd., Plenty Unlimited Inc., SANANBIO, Sky Greens, Smallhold, Square Roots Urban Growers, Inc., Taiksha Ltd., Urban Crop Solutions, Vertical Harvest Farms, and VerticalField.

Market Segmentation & Coverage

This research report categorizes the Plant Factory Market to forecast the revenues and analyze trends in each of the following sub-markets:

Facility Type
Container Farms
Greenhouses
Indoor Farms
Water Culture Farms
Light Type
Fully Artificial
Sunlight
Growing System
Hybrid
Non-Soil Based
Soil-Based
Crop Type
Flowers & Ornamentals
Fruits
Vegetables
End-Use
Commercial/Industrial
Research & Academic Institutions
Residential
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year