Indoor Farming Market Forecasts to 2028 - Global Analysis By Facility Type (Greenhouses, Container Farms and Other Facility Types), Growing System (Hydroponics, Soil-based, Aeroponics, Aquaponics and Hybrid), Component Type (Hardware and Software), Crop T

Indoor Farming Market Forecasts to 2028 - Global Analysis By Facility Type (Greenhouses, Container Farms and Other Facility Types), Growing System (Hydroponics, Soil-based, Aeroponics, Aquaponics and Hybrid), Component Type (Hardware and Software), Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals and Other Crop Types) and Geography

According to Stratistics MRC, the Global Indoor Farming Market is accounted for $38.7 billion in 2022 and is expected to reach $74.8 billion by 2028 growing at a CAGR of 11.6% during the forecast period. Indoor farming is the process of growing crops in a controlled environment indoors. In order to attain the fastest rate of plant development, it commonly employs soilless farming methods like hydroponics, aquaponics, and aeroponics as well as controlled-environment agriculture. The growing global population and the consequent need for securing sustainable food supplies are driving the growth of the indoor farming industry.

According to the European Commission, the amount of land used for agricultural purposes may fall to 172 million by 2030 from the current level of 176 million in 2017, with a corresponding decline in the level of EU arable land, from 106.5 million hectares in 2017 to 104 million hectares in 2030.

Market Dynamics:

Driver:

Growing Demand for Nutritious Food

Due to innovative system integrations that boost yields, efficiency, and costs, indoor farming is in more demand. Pesticide-free fruit is becoming more and more popular worldwide as people embrace healthy, active lifestyles. As a result of rising technology and health consciousness, customers expect complex claims about the environment, ethics, and health of their food. They are prepared to pay more for food that they believe is healthy. This trend is being observed by millennials worldwide. Furthermore, market expansion is driven by changing consumption habits and an increased willingness to pay for nutritious food.

Restraint:

Fluctuation in Climatic Conditions

Climate change has affected both agricultural land and productivity. Climate change may jeopardize the quality of the food supply and goods produced around the world. CO2 promotes plant growth, but crop nutrition is harmed as a result. Increased CO2 can promote plant development, although changing temperatures, ozone, and water and nutrient shortages may restrict this effects. Crop yields can be impacted by overheating as well as a lack of water and nutrients. Soybean protein and nitrogen levels are decreased by increased CO2. Flood and drought losses can be impacted by environmental changes.

Opportunity:

Technological Advancements

Because indoor-grown produce is more locally grown, long-lasting, safe, tasty, and of higher quality than produce from greenhouses or conventional farms, consumers are willing to pay more for it. Indoor farming may not employ irradiation, biosolids, or genetically modified organisms. Top chefs around the world are interested in the products from indoor farming. An indoor farm entitled Grow from Amsterdam produces greens for chefs in a variety of methods and at a rapid rate. This sort of rapid adaptation aids in the sector's expansion.

Threat:

Large Upfront Investments

The cost of production and the amount of energy needed to grow food have an impact on the cost of indoor farming. Small farms used 12% of their operational budget for energy, but large indoor farms used up to 25%. LED lights have taken the place of sunlight in indoor farming warehouses. Instead of using natural air to regulate temperature, air conditioners and heaters require significant upfront costs. Small indoor farms and beginner farmers are unable to afford the equipment required to control the plumbing, CO2 levels, lighting, and nutrient reservoirs.

Covid-19 Impact

The COVID pandemic has a significant influence on the market in terms of sales since more than 44% of sales are hindered due to disruptions in manufacturers' transportation operations as a result of strict lockdown regulations and rising safety concerns. Additionally, the indoor farming sector has been damaged by supply chain disruptions, demand destruction, and changes in consumer behaviour spurred on by strict lockdown restrictions worldwide.

The soil-based segment is expected to be the largest during the forecast period

Soil-based segment is anticipated to be the largest during the projection period as more pesticide-free crops are grown by soil-based farming than by conventional farming. On bunks, mobile homes, or cargo containers, this can be mounted. Farmers can increase agricultural yields while minimising their impact on the environment by using this technique. It involves growing leafy greens, root vegetables, tomatoes, ginger, mandarin oranges, onions, leeks, and microgreens. In a soil-based system, worms aerate the soil while a drip system circulates drainage. As it saves money and boosts plant harvests, soil-based farming is widespread.

The greenhouses segment is expected to have the highest CAGR during the forecast period

The category of greenhouses has the highest CAGR throughout the projected period because tomatoes, strawberries, watermelons, beans, green chilies, and capsicums are grown in greenhouses in Italy and Spain. Asia produces half of the world's greenhouse vegetables, with China, Japan, South Korea, and Taiwan having the largest number of greenhouses.

Region with largest share:

North America dominated the market share in 2021 and is anticipated to hold the largest revenue share over the course of the forecast period. The US, Canada, and Mexico all make significant contributions to the region's share. The potential to produce more with limited resources is one of the main reasons indoor farming has been gaining significant traction. For instance, according to the US Department of Agriculture (USDA), the production of conventional lettuce farming doubled when it was grown using vertical farming. Furthermore, customers are opting to produce many essential crops on a small scale in their own residences in order to obtain pest-free food due to changing lifestyles and high awareness levels. As a result, the national market for indoor farming is expanding.

Region with highest CAGR:

Due to the expansion of indoor farming in nations like China and Japan, Asia Pacific is anticipated to have the highest CAGR during the projected period. Furthermore, the growing use of greenhouses and vertical farms is expected to promote regional expansion. Additionally, the regional industry is expected to develop as a result of the growing demand for fresh produce free of pesticides.

Key players in the market

Some of the key players in Indoor Farming market include AeroFarms, Bright Farms Inc, Garden Fresh Farms, Metropolis Farms Inc, Crop One Holdings, Bowery Inc, Village Farms International Inc, Superior Fresh Farms, Gotham Greens, Green Sense Farms LLC, Sky Greens (Sky Urban Solutions) and Windset Farms

Key Developments:

In May 2021, Bowery Farming, a New York City-based vertical farming startup, declared a USD 300 million Series C round of funding. Bowery stated that it would use the funds to continue the expansion of its network of smart indoor farms across the United States.

In May 2021, Bright Farms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse is expected to produce 2 million pounds of lettuce per year. Similarly, in 2019, Bright Farms expanded its construction unit with three new sustainable greenhouse farms in Massachusetts, New York, and North Carolina.

In April 2021, Aero farms partnered with Hortifrut SA, a certified B corporation in Chile. The partnership is expected to focus on researching and developing blueberry and cranberry production in fully-controlled vertical farms and indoor environments.

Facility Types Covered:
• Greenhouses
• Container Farms
• Indoor Vertical Farms
• Indoor Deep Water Culture Systems
• Low Tech Plastic Hoop House

Growing Systems Covered:
• Hydroponics
• Soil-based
• Aeroponics
• Aquaponics
• Hybrid

Component Types Covered:
• Hardware
• Software

Crop Types Covered:
• Fruits and Vegetables
• Herbs and Microgreens
• Flowers and Ornamentals
• Other Crop Types

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements