Global Indoor Farming Market - 2023-2030
The Global Indoor Farming Market reached US$ 34.2 billion in 2022 and is expected to reach US$ 56.1 billion by 2030 and is expected to grow with a CAGR of 6.4% during the forecast period 2023-2030.
The indoor farming market is experiencing significant growth due to increasing demand for sustainable and locally grown produce. The market is driven by factors such as limited arable land, changing climatic conditions, and the need for year-round crop production. Vertical farming, hydroponics, and aquaponics are popular techniques within the indoor farming market. The market is witnessing advancements in technology, including the use of AI, IoT, and LED lighting systems to optimize plant growth and improve productivity.
Food security is another driver for indoor farming. For instance, Bowery Farming, an indoor farming company based in New York, aims to address the challenge of feeding a growing global population by utilizing controlled environments. They are able to produce 100 times more crops per square foot compared to traditional farming methods while using 95% less water and zero pesticides. AeroFarms, a company based in New Jersey, utilizes vertical farming to produce leafy greens and herbs without soil, using up to 95% less water compared to traditional farming methods.
Market Dynamics
Consumer Demand Drives Indoor Farming Market for Fresh and Chemical-Free Produce
Indoor farming is experiencing significant growth due to increasing consumer demand for fresh, locally sourced, and pesticide-free produce. Controlled environment agriculture, artificial lighting, climate control, nutrient management, and crop optimization techniques enable farmers to meet this demand by cultivating high-quality crops in optimal conditions. Artificial lighting allows for year-round production, while climate control ensures stable temperature and humidity levels.
Nutrient management techniques optimize plant nutrition, resulting in healthier and more nutritious crops. Crop optimization strategies maximize space efficiency, enabling higher crop yields in limited areas. Indoor farming addresses consumer concerns about chemical pesticide use and reduces the carbon footprint associated with transportation, providing sustainable and healthier food options.
Indoor Farming Market Grows in Response to Need for Sustainable Food Systems
The indoor farming market trend is driven by the increasing need for sustainable and resilient food systems. Controlled environment agriculture, artificial lighting, climate control, nutrient management, and crop optimization techniques play a crucial role in achieving these objectives. Indoor farming offers a sustainable alternative to traditional agriculture by utilizing artificial lighting, which allows for year-round crop production in any location.
Climate control systems provide optimal growing conditions, minimizing the impact of extreme weather events and ensuring consistent yields. Nutrient management optimizes fertilizer use, reducing waste and environmental pollution. Crop optimization techniques maximize productivity per square foot, making efficient use of limited space. Indoor farming promotes local food production, reduces transportation emissions, conserves water resources, and contributes to building sustainable and resilient food systems.
Limited Scalability Poses Challenges for Indoor Farming Market Size and Market Share
One significant restraint of indoor farming is the limited scalability, which poses challenges for the overall indoor farming market share and size of indoor farming market. While indoor farming offers numerous advantages such as controlled environments and year-round production, it is often constrained by high upfront costs and operational expenses. The infrastructure required for indoor farming, including sophisticated climate control systems, artificial lighting, and advanced technology, can be expensive to set up and maintain.
This limits the scalability of indoor farms, especially for small-scale farmers or regions with limited financial resources. As a result, the indoor farming market size remains relatively smaller compared to traditional farming methods. Moreover, the high capital investment required for indoor farming can lead to a concentrated market share, with larger companies dominating the industry due to their financial capabilities, hindering the entry and growth of smaller players.
COVID-19 Impact Analysis
The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it to pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).
Segment Analysis
The global Indoor farming market has been segmented by the growing system, facility type, crop type, technology, and region.
Revolutionizing Indoor Farming with Sustainable Aquaponics
The global indoor farming market has been segmented by growing systems into aeroponics, hydroponics, aquaponics, soil-based, and hybrid.
Aquaponics, the combination of aquaculture and hydroponics, is a sustainable growing system within the global indoor farming market. It offers significant advantages, including approximately 90% less water usage compared to traditional farming methods. Aquaponics has the potential to yield up to four times more crops per unit of area, resulting in higher productivity. This innovative approach is gaining traction worldwide, driven by the increasing demand for organic and locally-grown produce.
The aquaponics segment is projected to experience substantial growth, with an estimated annual growth rate of around 14.2%. This growth is attributed to the rising awareness of sustainable food systems and the need for resource-efficient agriculture. Aquaponics presents a promising solution for integrated and environmentally friendly food production in indoor farming.
Geographical Analysis
Asia Pacific Indoor Farming Market Thrives on Growing Demand for Sustainable Produce
By region, the global indoor farming market is segmented into North America, South America, Europe, Asia-Pacific, Middle-east, and Africa.
The Asia Pacific indoor farming market is fastest growing region, driven by the increasing demand for sustainable and locally sourced produce. With limited arable land and a rapidly urbanizing population, the region is turning to indoor farming as a viable solution. The market growth is driven by countries like China, Japan, and South Korea. Indoor farming offers several advantages in the region.
The adoption of advanced technologies like vertical farming, hydroponics, and LED lighting is further propelling market growth. Government initiatives and investments are also promoting the expansion of the indoor farming sector. The Asia Pacific indoor farming market is flourishing due to the rising demand for sustainable produce. The adoption of advanced technologies and government support are driving the growth, enabling the region to achieve a more secure and environmentally friendly food system.
Competitive Landscape
The major global players in the market include AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Metropolis Farms Inc., Garden Fresh Farms, Village Farms International Inc. Green Sense Farms LLC, Sky Greens, and Argus Control System Limited.
Why Purchase the Report?
• To visualize the global indoor farming market segmentation based on growing system, facility type, crop type, technology, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of indoor farming market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.
The global Indoor Farming market report would provide approximately 61 tables, 62 figures, and 190 Pages.
Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies
- 1. Methodology and Scope
- 1.1. Research Methodology
- 1.2. Research Objective and Scope of the Report
- 2. Market Definition and Overview
- 3. Executive Summary
- 3.1. Market Snippet, by Growing System
- 3.2. Market Snippet, by Facility Type
- 3.3. Market Snippet, by Crop Type
- 3.4. Market Snippet, by Technology
- 3.5. Market Snippet, by Region
- 4. Market Dynamics
- 4.1. Market Impacting Factors
- 4.1.1. Drivers
- 4.1.2. Restraints
- 4.1.3. Opportunity
- 4.1.4. Impact Analysis
- 5. Industry Analysis
- 5.1. Porter's Five Force Analysis
- 5.2. Supply Chain Analysis
- 5.3. Pricing Analysis
- 5.4. Regulatory Analysis
- 6. COVID-19 Analysis
- 6.1. Analysis of COVID-19 on the Market
- 6.1.1. Scenario Before COVID-19
- 6.1.2. Scenario During COVID-19
- 6.1.3. Scenario Post COVID-19
- 6.2. Pricing Dynamics Amid COVID-19
- 6.3. Demand-Supply Spectrum
- 6.4. Government Initiatives Related to the Market During the Pandemic
- 6.5. Manufacturer’s Strategic Initiatives
- 6.6. Conclusion
- 7. By Growing System
- 7.1. Introduction
- 7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 7.1.2. Market Attractiveness Index, By Growing System
- 7.2. Aeroponics *
- 7.2.1. Introduction
- 7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 7.3. Hydroponics
- 7.4. Aquaponics
- 7.5. Soil-based
- 7.6. Hybrid
- 8. By Facility Type
- 8.1. Introduction
- 8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 8.1.2. Market Attractiveness Index, By Facility Type
- 8.2. Glass or Poly Greenhouses *
- 8.2.1. Introduction
- 8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 8.3. Indoor Vertical Farms
- 8.4. Container Farms
- 8.5. Indoor Deep Water Culture Systems
- 8.6. Others
- 9. By Crop Type
- 9.1. Introduction
- 9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 9.1.2. Market Attractiveness Index, By Crop Type
- 9.2. Fruits & Vegetables*
- 9.2.1. Introduction
- 9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 9.3. Herbs and Microgreens
- 9.4. Flowers and Ornamentals
- 9.5. Others
- 10. By Technology
- 10.1. Introduction
- 10.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 10.1.2. Market Attractiveness Index, By Technology
- 10.2. Hardware*
- 10.2.1. Introduction
- 10.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 10.3. Software
- 10.4. Integrated Systems
- 11. By Region
- 11.1. Introduction
- 11.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
- 11.1.2. Market Attractiveness Index, By Region
- 11.2. North America*
- 11.2.1. Introduction
- 11.2.2. Key Region-Specific Dynamics
- 11.2.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 11.2.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 11.2.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 11.2.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 11.2.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.2.7.1. The U.S.
- 11.2.7.2. Canada
- 11.2.7.3. Mexico
- 11.3. Europe
- 11.3.1. Introduction
- 11.3.2. Key Region-Specific Dynamics
- 11.3.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 11.3.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 11.3.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 11.3.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 11.3.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.3.7.1. Germany
- 11.3.7.2. The U.K.
- 11.3.7.3. France
- 11.3.7.4. Italy
- 11.3.7.5. Spain
- 11.3.7.6. Rest of Europe
- 11.4. South America
- 11.4.1. Introduction
- 11.4.2. Key Region-Specific Dynamics
- 11.4.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 11.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 11.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 11.4.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 11.4.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.4.7.1. Brazil
- 11.4.7.2. Argentina
- 11.4.7.3. Rest of South America
- 11.5. Asia-Pacific
- 11.5.1. Introduction
- 11.5.2. Key Region-Specific Dynamics
- 11.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 11.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 11.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 11.5.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 11.5.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 11.5.7.1. China
- 11.5.7.2. India
- 11.5.7.3. Japan
- 11.5.7.4. Australia
- 11.5.7.5. Rest of Asia-Pacific
- 11.6. Middle East and Africa
- 11.6.1. Introduction
- 11.6.2. Key Region-Specific Dynamics
- 11.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Growing System
- 11.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Facility Type
- 11.6.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Crop Type
- 11.6.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 12. Competitive Landscape
- 12.1. Competitive Scenario
- 12.2. Market Positioning/Share Analysis
- 12.3. Mergers and Acquisitions Analysis
- 13. Company Profiles
- 13.1. AeroFarms
- 13.1.1. Company Overview
- 13.1.2. Product Portfolio and Description
- 13.1.3. Financial Overview
- 13.1.4. Key Developments
- 13.2. Bright Farms Inc.
- 13.3. Bowery Inc.
- 13.4. FreshBox Farms
- 13.5. Metropolis Farms Inc.
- 13.6. Garden Fresh Farms
- 13.7. Village Farms International Inc.
- 13.8. Green Sense Farms LLC
- 13.9. Sky Greens
- 13.10. Argus Control System Limited.
- LIST NOT EXHAUSTIVE
- 14. Appendix
- 14.1. About Us and Services
- 14.2. Contact Us
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