Indoor Farming Market Size, Share, Growth Analysis, By Facility Type (Greenhouses, Vertical Farms), By Component (Hardware, Software), By Growing Mechanism (Aeroponics, Hydroponics), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG30H2162 |
Region:
Global |
Published Date: November, 2024
Pages:
177
|Tables:
0
|Figures:
0
Indoor Farming Market Insights
Global Indoor Farming Market size was valued at USD 34.2 Billion in 2022 poised to grow from USD 38.61 Billion in 2023 to USD 101.92 Billion by 2031, growing at a CAGR of 12.9% in the forecast period (2024-2031).
Due to increasing consumer knowledge regarding the benefits of consuming fresh and quality food, it is expected that the sector will grow. Additionally, the growing population especially in the emerging countries such as China and India have created a shortage for food which is expected to drive the growth of global indoor farming industry in the coming years. To address this issue, governments support the construction of indoor farms in addition to other measures, which are anticipated to support market expansion. People believe that eating organic food is safer, more nutrient-dense, healthier, and more environmentally friendly.
Consumer food purchasing behavior is a significant determinant of the demand for organic food, and it is crucial for suppliers, producers, and legislators to employ effective marketing methods. By using stacked layers of potted seeds, indoor farms contribute to increasing the overall crop output per unit area, which in turn drives the market. Indoor farming is the term given to the practice of growing food or plants under cover, whether on a small scale or a large scale. Indoor farming employs concepts such as hydroponics, aquaponics and artificial lighting in order to maintain appropriate light levels and nutrients. Indoor farming methods and technology are still in their infancy and are becoming more popular in the agriculture sector.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Indoor Farming Market Segmental Analysis
The global indoor farming market is segmented based on facility type, component, growing mechanism, and region. in terms of facility type, the market is trifurcated into greenhouses, vertical farms, and others. Based on components, the market is segmented into hardware, software, and services. Based on the growing mechanism, the market is grouped into aeroponics, hydroponics, and aquaponics. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.
Analysis by Facility Type
As per categorization by facility type, the market is classified as greenhouses, vertical farms, and others. Among these, vertical farms earned the largest share and continue to hold the dominant global indoor farming market share. Vertical farms are changing the global indoor farming market by introducing the concept of growing in layers in controlled environments. Innovations such as hydroponics, aeroponics and the advent of LED lights have enhanced the yields while decreasing the amount of land and water required for farming. The popularity of vertical farming is associated with the year-round edibility of fresh and locally produced crops in towns eliminating food security threats and sustainable agricultural concerns in cities that are becoming more and more populated.
Greenhouses are set to be the fastest-growing segment in the global indoor farming market due to their ability to combine the benefits of controlled environments with natural sunlight, optimizing energy use. They provide adjustable frameworks for the cultivation of different crops in different environments which help in achieving food security and sustainability. Improved technology focused on the enhancement of climate control, control of automation, and management of resources has led to enhanced greenhouse efficiency and production. There is an increasing demand for fresh, locally sourced vegetables and so there is a greenhouse which is also relatively cheaper and less harmful to the environment making it easy to cater for the food production needs of the increasing populations around the world in a more sustainable manner.
Analysis by Component
Hardware innovations in the global indoor farming market are driving efficiency and productivity through advanced systems like automated climate control, nutrient delivery, and monitoring technologies. Sensor-based irrigation systems, planting and harvesting robots, and crop growth optimization solutions based on analytics are among the key constituents. These hardware systems allow managing the environmental factors in a more accurate manner, resulting in better produce with minimum wastage of resources. The hardware is gaining prominence in practice as it improves performance more directly and lowers the cost of labor as well as encouraging more intensive farming without risks to the environment. Considering the growing need for the safe provision of food and the growth of food produced in an environmentally friendly manner, the high-tech hardware in commercial indoor farming will become an imperative in purpose to meet the people’s demand.
Software is poised to be the fastest-growing segment in the global indoor farming market due to its ability to integrate data analytics, automation, and precision agriculture technologies. The software applications make it possible to monitor, carry out predictive analysis and improve the growth conditions in real-time which in turn maximizes the yields while minimizing the resource waste. The growth of the AI technology, machine learning and even internet of things have software platforms that can perform lots of management functions such as supply of nutrients, control of lighting and regulation of climate among others increasing the productivity of managing the farms. The increase in demand for farming solutions that are scalable and utilize a lot of data necessitates the need for transformational software within the indoor farming sector and highly propels the global indoor farming market growth.
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Indoor Farming Market Regional Insights
Europe is dominating the global indoor farming market due to a strong focus on sustainability, advanced agricultural technologies, and supportive government policies. European countries are leaders in adopting energy-efficient farming practices, such as vertical farming and greenhouse systems, driven by environmental concerns and the need to reduce carbon footprints. Additionally, Europe’s commitment to food security, coupled with urbanization and limited arable land, is fueling the growth of indoor farming solutions. The region is also advantaged by considerable input in agricultural innovation, as both public and private sectors are advocating for advanced and efficient technologies that improve crop yields, thus reinforcing Europe’s dominant market position.
Asia is the fastest-growing region in the global indoor farming market due to rapid urbanization, rising population, and increasing demand for food security. The decreasing amount of cultivable land and adverse climatic conditions such as insufficient water supply are pushing the usage of advanced farming techniques including but not limited to vertical and hydroponic farming. Countries such as Japan, China and Singapore have made considerable investments in technology to maximize food production in record time. Also, the encouragement from authorities and the emphasis on food production without harming the environment are contributing to the expedited development of global indoor farming market. Therefore, Asian region has a significant role to play in the advancement and adoption of productive highly intensive agriculture in modern times.
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Indoor Farming Market Dynamics
Drivers
LED Lighting and AI are Revolutionizing Indoor Farming
- Cutting-edge technologies such LED lamps, automation and AI backed monitoring systems are changing the face of the indoor farming industry on a global scale. These machines optimize resource use, facilitate higher yields as well as mild environmental command. Further developments in the field of technology improve the size and eco-friendliness of the indoor farms, making the market more aggressive.
Urbanization and Limited Arable Land
- The rapid growth of urban populations and the decreasing availability of arable land are pushing the demand for efficient farming solutions. The provision of fresh, local produce with little land use by cities is made possible by indoor farming, which is an alternative better than traditional farming techniques especially in highly populated centers which have little or no land for farming activities.
Restraints
Energy Consumption and Operational Costs
- Indoor farming provides advantages such as the ability to grow crops all year round, but it has high energy usage especially in terms of lighting and climate control. Due to the fact that certain regions have very high electricity costs, this may discourage the practice of growing crops indoors and its development too. One of the major problems facing the sector is the need to control costs of energy use in order to enhance profitability.
Limited Crop Variety
- Indoor farming systems are best suited for certain crops like leafy greens and herbs, but the variety of crops that can be grown efficiently is still limited. Such limitations on the types of crops that can be cultivated may limit the ability to scale indoor agriculture, thus reducing its flexibility in comparison to other forms of farming.
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Indoor Farming Market Competitive Landscape
The competitive landscape of the global indoor farming market is primarily steered by innovations and developments with all the players striving to increase crop yield as well as sustainability. Players such as Infarm, Plenty, Aerofarms, and Gotham Greens are at the forefront of developing advanced vertical farming and hydroponic systems. Furthermore, Signify, which is known for its LED lighting solutions, RDI, which provides automation systems, are keen for indoor farming too, raising the level of competition in the market.
Top Player’s Company Profiles
- Infarm (Germany)
- Plenty (USA)
- Aerofarms (USA)
- Gotham Greens (USA)
- Sky Greens (Singapore)
- Lufa Farms (Canada)
- Farm8 (South Korea)
- Urban Crop Solutions (Belgium)
- Agrilution (Germany)
- Inno-3B (Canada)
- Verdant Robotics (USA)
- Royal Philips (Netherlands)
- Signify (Netherlands)
- Seedo (Israel)
- Sundrop Farms (Australia)
Recent Developments
- In October 2024, Plenty, a company specializing in indoor farming that is headquartered in the USA, with great pleasure announced the opening of its new vertical farm in California. This high-tech greenhouse employs cutting-edge artificial intelligence as well as other systems to help maximise production whilst minimizing resource consumption. The establishment will greatly enhance local food availability.
- In September 2024, Aerofarms has recently announced its partnership with one of the most popular supermarket chains to distribute its organic vegetables to the cities in the United States. Such a collaboration emphasizes the need for fresh and sustainable food and therefore places Aerofarms in the center of urban food production.
- In July 2024, Signify, an international leader in LED lighting, introduced new energy-efficient grow lights for indoor farms. The lights are intended to increase crop quality and quantity at a lower energy cost. The new development is anticipated to facilitate the growth of vertical farming in different parts of the world.
Indoor Farming Key Market Trends
- Rise of Automation in Indoor Farming: The evolution of indoor farming comes with the adoption of innovative techniques such as robotic harvesting and climate control systems known as automation technologies. These technologies facilitate operations and reduce costs in labor, while at the same time, improving the management of crops, which increases the scalability and efficiency of food production in any market all over the world.
- Shift Towards Sustainable Agriculture Practices: Agricultural expansion and urbanization, in reinforcement, stimulate the indoor market for agriculture, vertical farming and hydroponics in emphasis on resource saving technologies. These practices are more effective in using water, cause no use of pesticides and make it possible to grow crops all year round as more people are looking for green farming practices.
Indoor Farming Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, in conclusion, the global indoor farming industry is experiencing robust growth driven by consumer demand for fresh, high-quality food, increased food security concerns, and environmental sustainability. Automation and the growth of artificial intelligence applications in developing activities, as well as drought-friendly agricultural practices such as hydroponics and vertical farming, are serving as the primary drivers for the advancement of the market.
The trend of urbanization accompanied by population increase will also enhance the demand for innovative farming practices, especially those that will be incorporated in indoor farming systems. Given constraints like energy cost and limited range of crops, the dispelling of these notions will depend on government policies and management – meaning that advances in indoor farming will take place and will drive the growth of the indoor farming space as a solution to the food production issues across the world.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 34.2 Billion |
| Market size value in 2031 | USD 101.92 Billion |
| Growth Rate | 12.9% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Indoor Farming Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Indoor Farming Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Indoor Farming Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Indoor Farming Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Indoor Farming Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Indoor Farming Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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