Plant Factory Market
Report ID: SQMIG20H2077
Report ID: SQMIG20H2077
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Report ID:
SQMIG20H2077 |
Region:
Global |
Published Date: January, 2025
Pages:
186
|Tables:
93
|Figures:
71
Global Plant Factory Market size was valued at USD 2.0 billion in 2024 and is poised to grow from USD 2.21 billion in 2025 to USD 4.99 billion by 2033, growing at a CAGR of 10.7% during the forecast period (2026-2033).
The global plant factory market growth is driven rapidly due to the convergence of pressing food security needs, continuing urbanization, and advancing controlled environment agriculture technologies. Global population increase and the growing risks climate change present to traditional agriculture created significant pressures that exposed the weaknesses and vulnerabilities of conventional agriculture due to the unpredictability of weather, diminishing arable land, and decreasing water supply. Plant factories with hydroponics, aeroponics, and LED traits produce crops sustainably in urban areas and inhospitable regions using up to 90% less land and water than conventional agriculture; this enabled year-round production and resource-efficient food production.
Consumers want safer, pesticide-free, and nutrient-abundant food products, and plant factories can meet and improve on these specifications while having the ideal growing conditions irrespective of the time of year or location. Governments have been supportive and strategic to elevate agricultural innovation; food insecurity is also driving political capital towards agricultural innovation into excess research, development, and support, in addition to efficiency with regards to sustainable food production in relation to technology capable of using AI and automation to optimize nutrient delivery and control climate. Same with all consumers, global and local, environmental sustainability and origins, respectively plus the need for reliable hyper-local high yield outputs for food-safety and nutrient production like supplements is driving some sense of growth of plant factories; something that will continue to grow for production of in and for urban environments.
How are Manufacturers Implementing AI in Production?
The implementation of AI-powered climate, and nutrient control systems in actual market environments has been a gamechanger, like we have seen in examples, such as the offerings from AeroFarms. AeroFarms is leveraging advanced data analytics and multiple sensors with machine learning capabilities, and proprietary aeroponic growing methods to both monitor and simultaneously adjust their growing environments in real time, such as light intensity, temperature, humidity, and amount of nutrients in the solution.
This AI-based technology allows AeroFarms to scale precision agriculture, achieving increased yield along with quality of crops while minimizing waste and energy use. The result is a consistently superior resilient performance, with lower resource and labor costs. This partnership from tech and growing has allowed plant farms to progress, from mostly pilot projects to a more robust opportunity to develop a profitable, scalable business. AeroFarms is now supplying major grocery chains with fresh, pesticide-free greens, and has recently entered into large scale and retail operations.
Market snapshot - 2026-2033
Global Market Size
USD 1.56 Billion
Largest Segment
Hydroponics
Fastest Growth
Aeroponics
Growth Rate
10.2% CAGR
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Global Plant Factory Market is segmented by Growing System, Facility Type, Light Type, Crop Type and region. Based on Growing System, the market is segmented into Soil based, Non-soil based and Hybrid. Based on Facility Type, the market is segmented into Greenhouses, Indoor farms and Other facility types. Based on Light Type, the market is segmented into Sunlight and Full artificial light. Based on Crop Type, the market is segmented into Vegetables, Fruits, Flowers & ornamentals and Other crop type. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
What Drives the Popularity of Hydroponics Growing System in Plant Factories?
As per the 2024 global plant factory market analysis, the most prevalent growing system used in the plant-factory market is hydroponics. Hydroponics allows plants to be grown in water, with precise control over the nutrients and environmental conditions, without the use of soil. Hydroponics entails providing plants with nutrients and nutrients solutions in water. Compared to traditional methods of growing in soil, hydroponics provides significant advantages such as increased yields, shorter growth cycles, and less water usage. Hydroponics is well established and easy to implement across a range of crops, especially leafy greens. Hydroponics can be scaled, and is also capable of being automated. Hydroponics can be utilized year-round in the right conditions, and is a very efficient growing system for urban farming and commercial applications.
Aerophonics is a soilless growing system, that provides no media, where the roots of the plants are suspended in the air, and they missed the actual roots with nutrient solutions in the air. Due to the fact, that there is no media of soil to provide support, water and nutrients usage is drastically less than a hydroponic system. The soilless method using less water and nutrients also greatly reduces the possibility of disease caused by media. Aeroponics has a sophisticated technology providing the highest efficiency with resource use and crop yield per square meter, which is important when growing high-value crops.
Why do Indoor Farms Facility Dominate the Plant Factory Market?
Based on the 2024 global plant factory market forecast, the largest segment of total facility type are indoor farms, which are completely sheltered growing space environments that employ greenhouse climate, artificial lighting, full automation, computerized crop production operations, and regimented environmental growth conditions irrespective of real-time weather. These indoor farms are an excellent source of year-round production and high-quality predictable yields. Indoor farm outputs and efficiencies make them a viable system compatible with urban centers and regions with minimal acres of arable land. Additionally, indoor farms contribute pest control, nutrient delivery, and energy reduction efficiencies, which in turn provides growers an opportunity to be more productive and reduce waste, production rates, and use of non-renewable resources.
Vertical farms are the newest and fastest growing facility type in the plant factory market. Vertical farms are dissimilar to greenhouse plants, as they are a space-optimizing, vertically stacked, multiple-layer controlled agricultural structure located in urban or close to urban areas. Vertical structures drastically increase yield per square foot (compared to an outdoor structure) employ fewer resources (water, land) and are capable of year-round production regardless of external or outdoor climate. Fostered/accelerated adoption of vertical farms are pushed forward by the technological advances of LED lighting, environmental and then growing systems automation, and resource recycling or full resource optimization.
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What is Driving the Surge in Plant Factory Demand Across Europe?
As per the plant factory market regional analysis, Europe is the strongest area in the plant factory market, as it has the necessary agricultural technology advanced infrastructure, along with extended government support, and sustainable food initiatives (such as the EU's Farm to Fork) to encourage actions such as reducing pesticide usage. European countries are heavily investing in smart farming technologies and urban agriculture to therefore help new technologies flourish by generating innovation in areas like vertical farming and automation. Europe has a unique and developed ecosystem propelling the large-scale adoption of plant factory infrastructure, while supporting start-ups and agriculture tech companies. Demand for pesticide-free and locally grown produce is also fuelling this area substantially.
Netherlands Plant Factory Market
The Netherlands is the number one country in the plant factory industry in Europe. The Netherlands has a sophisticated horticulture sector and is recognized as the leading country in controlled environment agriculture globally. The Netherlands has adopted hydroponic and vertical farming methods efficiently, while offering incentives for plant factories from its government. The Netherlands also benefits from leading R&D, which has made it an example of adopting technology and sustainable farming practices in Europe. The Netherlands maintains a strong diversification of horticultural products and continues to offer growth potential for its horticultural overseas markets.
Germany Plant Factory Market
The fastest-growing country in the European plant factory market regional outlook is Germany, their growth is supported by investments in urban farming, green technology and policies for sustainability from their government. They have a fast-growing number of new companies and extensions started to meet the demand for locally grown, fresh produce. Their focus on lessening environmental impact and engaging with technologies and networks, such as automation and IoT is also accelerating their growth, helping Germany emerge as a key player in the European plant factory market.
France Plant Factory Market
France has a rich agricultural tradition coupled with ever-increasing types of controlled environment agriculture technologies developed, coinciding with government movements geared towards sustainable farming and decreased use of pesticides, as well as a growing public interest in locally grown and organic products. All of these factors contribute to the growth of the plant factory sector in France. Her investments in hydroponics, aeroponics, and urban agriculture, especially in metropolitan areas like Paris, have increased its footprint in this bull market. France's increasing investments in R&D, collaborations between ag-tech companies and academia, have solidified growth.
What Factors are Fuelling the Growth of Asia-Pacific in the Plant Factory Market?
Rapid urbanization, population growth and amount of arable land in this region creates an urgent market need for sustainable, local food production solutions. The various governments of the Asia-Pacific region are making significant investments in plant factory technology, urban farming and smart agriculture initiatives. The region benefits from advantages in AI, LED lighting, and sustainable automated growing technologies across various climates in the region. The need for food security, as well as lessening regional dependencies on food imports, fuels the adoption of these solutions further.
Japan Plant Factory Market
Japan held the largest plant factory market share in Asia Pacific, being a pioneer of plant factory technology, Japan has a very seasoned market with extensive government support, such as subsidies toward installation and research and development. Their natural focus on urban agriculture tailored to their dense population which lacks substantial farming land enables them to produce fresh vegetables and herbs all year round. Japan hosts an impressive amount of infrastructure and healthy collaboration around applications for technology whether it be from academia, private industry, or government provided, which keeps their growth steady. Japan is a global market leader with extensive use of hydroponics, aeroponics, and robots providing it with the volume and scope to be the region's largest plant factory market.
China Plant Factory Market
The fastest growing country of the Asia-Pacific plant factory market regional forecast is China. China's government has made smart agriculture and food security a priority in its national development plans. As a result of establishing funding and policies that promote plant factory programs, the market has gained access to more funding opportunities. China's rapid urbanization along with increasing middle-class demand for high-quality, pesticide-free produce is leading to expansion of the plant factory market. In addition to sustained investment in controlled environment agriculture and automation technologies, there are major investments underway in vertical farming which help to accelerate the market pace.
Why is North America a Key Hub for the Plant Factory Market Growth?
The region's leverage derives from its superior technological innovation, rapid levels of automation and AI adoption, and major public and private investment in controlled environment agriculture. The demand from consumers continues to grow for fresh and locally grown, pesticide-free food; and its continuing growth results expansion. There is a strong force of aggrotech start-ups in both vertical and other indoor farming spaces. The favourable and supportive policies, funding and sustainability opportunities in the region will support North America's position as a strong player in the market.
U.S. Plant Factory Market
The United States is the most dominating country in North America. The United States leads due to its ability to research and develop new things, an innovative aggrotech ecosystem, and many commercial scale adopters of plant factory technologies, including hydroponics and vertical farming. Commercial scale plant factory operations are supplying fresh vegetables and greens to urban consumers 365 days of the year. Supportive government incentives to support sustainable agriculture and food security help reiterate U.S dominance. Additionally, consumer trends towards organic and local food options are driving growth in the market in both established and emerging states.
Canada Plant Factory Market
Canada is growing due to increasing knowledge and uptake of sustainable farming practices and the awareness that growing seasons must increase in harsh climates, supporting government subsidies to vertically & indoor farm, the agility of aggrotech start-ups, and urban areas producing large portions of their own fresh produce. The growth in Canada's urban populations looking for fresh, pesticide-free produce further supports the growth of these finite growing systems. Canada is also very focused on food security and creating resiliency to the impacts of climate change.
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Plant Factory Market Drivers
Growing Global Population and Urbanisation
Consumer Demand for Fresh, Locally Grown Produce
Plant Factory Market Restraints
High Initial Investment Costs
High Energy Consumption
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The plant factory is competitive market landscape that consists of established players and several innovative start-up companies that are advancing technology and enhancing sustainability. The plant factory market leaders are focused on leveraging AI, automation, and cutting-edge hydroponic and aeroponic systems to improve yield, optimize inputs, and capacity for urban farming.
These advantageous areas are formed due to strategic partnerships, mergers, and ongoing R&D. All around the world companies are responding to market demands for pesticide-free and no-spray fresh produce, and climate solutions to farming practices. There will be new product introductions, as well as diversification along the product portfolio, and exploring new geographies to tap into the growing market opportunity. The rapid evolution of climate-controlled agricultural solutions will continue to spur innovation and scale. These contributions will develop this future to advance modern agriculture.
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, the plant factory market penetration is expanding, with robust growth driven by urban population growth, climate-change pressures, and consumer demand for fresh and locally-grown food for direct consumption. Advancements in technology have also been significant, notably with artificial intelligence and other plant growing methods from hydroponics or aeroponics, that have increased efficiencies through lower resource consumption and extended growing periods.
Additional support for growth in plant factories arises from a resurgence in investment for plant factories and increased governmental support, along with growing installations in Asia-pacific and Europe. There also exist in-use challenges in the space (capital and energy requirements) space, nonetheless the competitive environment is interesting, with an increasing number of start-ups to challenge some of the largest companies for market position in the burgeoning plant factory market, and to meet the need for sustainable agriculture solutions as we forge not only urban food security but also the potential for a transition to "smart" farming across the globe.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 2.0 billion |
| Market size value in 2033 | USD 4.99 billion |
| Growth Rate | 10.7% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| 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
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Plant Factory 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 Plant Factory 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.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Plant Factory Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Global Plant factory Market size was valued at USD 1.56 Billion in 2023 and is poised to grow from USD 1.72 Billion in 2024 to USD 3.75 Billion by 2032, growing at a CAGR of 10.2% during the forecast period (2025-2032).
The plant factory is competitive market landscape that consists of established players and several innovative start-up companies that are advancing technology and enhancing sustainability. The plant factory market leaders are focused on leveraging AI, automation, and cutting-edge hydroponic and aeroponic systems to improve yield, optimize inputs, and capacity for urban farming. 'AeroFarms (US)', 'Gotham Greens (US)', 'Bowery Farming (US)', 'Oishii (US)', 'Plenty Unlimited Inc. (US)', 'MIRAI (Japan)', 'Agricool (France)', 'AppHarvest (US)', 'CropOne (UAE)', 'BrightFarms (US)', 'Iron Ox (US)', 'Infarm (Germany)', 'Spread Co. (Japan)', 'Vertical Future (UK)', 'Kalera (US) '
The global population growth and rapid urbanization have provided an opportunity to build a sustainable method of food production. A plant factory allows for the production of food 365 days a year in a controlled environment. This means we can avoid problems of land use and climate change like draught and floods to provide consumers with a consistent, quality product that is always able to make it to market.
Increasing Use of AI and Automation: Use of AI and automation is one of the global plant factory market trends. Companies are using AI-controlled systems to regulate climate and nutrient delivery, evaluate crop health, improve yield state, and lower labour costs. Automated systems including robotics used in planting and harvesting will allow plant factories to scale agricultural production up and down economically and efficiently, which is needed to scale urban agriculture.
What is Driving the Surge in Plant Factory Demand Across Europe?
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