Indoor Farming Technology Market Forecasts to 2028 – Global Analysis By Crop Type (Herbs and Microgreens, Fruits and Vegetables, Flowers and Ornamentals and Other Crop Types), Facility Type, Growing System and By Geography

Indoor Farming Technology Market Forecasts to 2028 – Global Analysis By Crop Type (Herbs and Microgreens, Fruits and Vegetables, Flowers and Ornamentals and Other Crop Types), Facility Type, Growing System and By Geography

According to Stratistics MRC, the Global Indoor Farming Technology Market is accounted for $17.9 billion in 2022 and is expected to reach $34.3 billion by 2028 growing at a CAGR of 11.4% during the forecast period. The technique of growing food and plants within the home using various technologies is known as indoor farming. This technique combines soil-based, aeroponic, aquaponic, and hybrid technologies to grow plants with enhanced nutrient levels. The present agricultural landscape is being revolutionised by this farming system, which has many advantages over conventional farming practises. Due to the little amount of land needed, indoor farming is well suited for urban areas and is frequently used to grow organic vegetables, fruits, and herbs that are free of any chemical-based pesticides or insecticides.

According to Forbes, by 2050, the world's population is expected to reach 9.7 billion, requiring a 70 percent increase in global food production in the next 30 years to feed everyone. According to The World Bank Group, the overall arable land per capita has declined from 0.197 hectares to 0.192 hectares.

Market Dynamics

Driver:

Rising adoption of vertical farming practices

Growing in popularity among younger generations, indoor vertical farming has brought in a brand-new age in agriculture. In comparison to other conventional farming techniques, this sort of farming allows crop production optimisation and is more environmentally sustainable and cost-effective. Improved crop growth, reduced water usage, lower labour expenses, and improved energy conservation are driving market expansion.

Restraint

Disadvantages associated with indoor farming

Various challenges associated with indoor farming are expected to hamper market growth. The need for complex machinery and artificial lights such as LEDs in indoor farming increases electricity usage. Most indoor farms require climate controls, computers, shelving units, water pipes, and other costly equipment. Use of complex processes and lack of skilled workforce are among some of the key factors restraining market growth.

Opportunity

Increase in demand for local food

Health and nutrition, food safety and transparency, education, urban sustainability, and the rising desire for local foods are the main causes driving popularity. Consumers expect complex claims about a food's health, wellness, ethics, and ecology due to rising technology and health awareness. The production of fruit and vegetables in a limited area and increasing demand for high-quality foods are some of the factors that drive growth on the market.

Threat

High initial investment

Finding proper facilities and choosing the crops that perform the best inside are expensive ventures that need a substantial financial outlay. Due to the high usage of power, greenhouses and vertical farms both have a higher percentage of operating costs. Equipment prices placed further strain on the budget of many vertical farming enterprises. Hence, these are the factors hampering the growth of the market.

Covid-19 Impact

The COVID-19 pandemic had a large effect on the world market for indoor agricultural technologies. Due to the corona virus outbreak, indoor farming systems are anticipated to become increasingly popular, particularly in urban regions around the world. There were certain challenges facing the agriculture sector. Due to manpower constraints, several farmers lost their window of opportunity to harvest seasonal crops, benefit from declining agricultural product prices, and avoid disruptions in logistics. Many nations also became aware of their over reliance on food imports and started concentrating on domestic and internal production.

The indoor vertical farms segment is expected to be the largest during the forecast period

The indoor vertical farms segment is estimated to have a lucrative growth, due to they are modular and can be adjusted to fit any building. Vertical farms indoors are made up of vertical growth systems in fully enclosed, opaque rooms that employ artificial lighting. Crops are grown indoors in layers that are piled vertically. With this method, the enclosed structure can be used to manage all environmental conditions.

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

The aeroponics segment is anticipated to witness the fastest CAGR growth during the forecast period, due to it is key component of indoor farming development. Faster plant growth makes it possible to grow more plants in a shorter amount of time than under normal circumstances. This aeroponics system does not require frequent usage of weeding, pesticides, or other maintenance techniques and may be externally controlled using timers or computers to release moist air at even intervals.

Region with Largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to technological advancements. The rising involvement of foreign business lines in agricultural operations to exclusively meet crop producers' expectations for export-quality products has been expanding in this region. Furthermore, the region's farming business has been moving away from conventional agricultural methods and towards cutting-edge, contemporary ones.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to the rising adoption of technologies for indoor farms. The industry is being driven by a growing emphasis on implementing technology like active heat systems and LEDs to increase yield. The regional government is pursuing several initiatives for constructing indoor farms, including expanding population, climate change, and unsustainable food production.

Key players in the market

Some of the key players profiled in the Indoor Farming Technology Market include Bowery Inc., Square roots, Richel Group, Argus Control Systems, Gotham Greens, AeroFarms, Signify Holding, American Pasteurization Company, Vertical Farm Systems, Netafim, Metropolis Farms Inc., General Hydroponics, Bright Farms Inc., Green Sense Farms LLC, Village Farms International Inc., Garden Fresh Farms and FreshBox Farms.

Key Developments

In November 2021, Square Roots and United Natural Foods to Co-locate Indoor Farms at Distribution Centers Across North America. United Natural Foods, Inc. and Square Roots, the technology leader in indoor farming, announced a new agreement to co-locate Square Roots' indoor farms on-site at select UNFI distribution centers.

In January 2019, American Pasteurization Company (APC), a national leader in High Pressure Processing (HPP), has acquired FreshCo Foods, a Milwaukee-based, end-to-end co-manufacturer of premium and specialty food products. As part of the acquisition, FreshCo has been renamed APC Manufacturing.

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

Facility Types Covered:
• Glass or Poly Greenhouse
• Indoor Vertical Farm
• Indoor DWC System
• Container Farm
• Other Facility Types

Growing Systems Covered:
• Hydroponics
• Hybrid
• Aquaponics
• Aeroponics
• Soil-Based
• Other Growing Systems

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