Indoor Farming Market Overview:

The global indoor farming market size was worth USD 40,125 million in 2021. It is projected to grow at a CAGR of 14.2% between the forecast period 2023 and 2032.

The market is expected to grow due to increasing consumer awareness about the benefits of fresh, high-quality foods. A rising global population, particularly in emerging countries like India and China, has resulted in an increase in food consumption and the availability of less fertile agricultural land degradation. This will in turn drive the market for the indoor agriculture industry to expand in the coming years.

Global Indoor Farming Market Scope:

Facility Type Analysis

By 2021, the spices segment held the largest share of global revenue and will continue to dominate Vertical farming market size is expected to grow at a rate of 23.2% between the forecast period 2023 and 2032 due to the increasing adoption of environmentally-friendly farming methods.

The changing purchasing habits of consumers, which result in a growing demand for organic foods, are also expected to drive this demand. Indoor farming industry facilities protect crops against extreme weather conditions by using advanced techniques such as controlled environment agriculture technology. This technology uses artificial environmental monitoring and control of light to ensure that the plants are fertigated. Because of less arable land and fertile land, food insecurity issues among farmers, and the growing population has brought high-yielding farming techniques, such as precision farming and indoor farming systems.

To meet increasing fresh and high-quality food demand, farmers are using new crop production methods such as indoor vertical farming systems and greenhouses. In 2021, the greenhouses type held the largest market share at 82.8%.

A greenhouse, also known as a hothouse or a greenhouse, is a closed structure that is made of transparent material. It is used for growing plants, crops, and flowers. To increase the quantity and quality of produce, greenhouses can be controlled by controlling the climatic conditions. Due to the adoption of greenhouse farming, greenhouses can produce higher yields than conventional farming methods.

Compare to outdoor farming, Indoor farming helps the farmer to control crop growth, reduce water consumption, owing to the limited land use, and increase crop yield with limited resources. In indoor farming instead of soil, the farmer uses containers filled with plant nutrients and inserts plant roots in them, which reduces negative environmental impact. Indoor farming also resolves the crop and food insecurity issue.

Component Analysis

With a revenue share greater than 69.3%, the hardware segment was the dominant player in the indoor farming market growth rate. It is expected to continue its dominance between 2023-2032 as hardware plays an important role in maintaining indoor farms. This segment can be further divided into lighting systems, climate control systems, sensors, as well as irrigation systems.

These systems allow indoor-grown crops to be grown. Because it provides a favorable environment for plant growth, the climate control system will be the fastest-growing segment in the forecast period. This system controls the indoor climate using chillers, heaters, and air-conditioning units. It also includes humidifiers and air movement fans.

Due to the new trends in technology and farming practices, the software segment will experience a 15.2% CAGR between 2023-2032. The software traces fruit and vegetable back to the grower, crop batch/patch, and area of land/field. It also provides details about suppliers. This segment was further divided into cloud-based and web-based software.

Cloud-based software is expected to grow significantly in the coming years. It collects millions upon millions of data points, which can then be analyzed with machine learning techniques to determine changes in specific environmental parameters that impact the yield and taste.

Crop Category Analysis

With a CAGR of 13.4%, indoor farming’s fruits, vegetables, and herbs will dominate between 2023-2032. This segment is growing due to the increasing production of common fruits, vegetables, and herbs like tomatoes, lettuce, leafy leaves, cucumbers, and bell peppers. These crops can be grown on large scales and bring maximum profits to the producers. In 2021, the tomato segment held the highest market major share due to its high production rate.

Market growth is expected to be a significant contribution from the flowers and ornamental segment during the forecast period. This segment represented more than 27.2% market share in 2021. Market rapid growth is expected to be driven by the increasing use of ornamentals and flowers for aesthetic and decorative purposes. This segment can be further divided into ornamentals, annuals, and perennials. Due to growing sales, ornamental flowers held the largest market share for 2021.

Кеу Маrkеt Ѕеgmеntѕ

By Facility Type

• Vertical Farms
  • Shipping Container
  • Building-Based
• Greenhouses
• Other Facilities

By Component

• Software
• Hardware
  • Sensors
  • Climate control systems
  • Irrigation systems
  • Lighting systems
  • Cloud-Based
  • Web-Based

By Crop Category

• Fruits, Vegetables, & Herbs
  • Tomato
  • Lettuce
  • Bell & Chili Peppers
  • Others
• Flowers & Ornamentals
  • Perennials
  • Annuals
  • Ornamentals
• Other Crop Categories

Market Dynamics:

The changing climate can lead to environmental problems such as soil erosion and groundwater depletion that affect food production, agriculture production, and agricultural products. In order to address this problem, governments encourage the construction of indoor farms. This will in turn fuel the market’s growth.

Organic foods are considered healthier, more nutritious, safer, and more environmentally friendly. The fresh food buying behavior of consumers is a key factor in determining the demand for organic foods. This is crucial for policymakers and producers to develop successful marketing strategies.

By using stacked layers of potted seed, indoor farms can increase the yield per area. This helps to drive the market. Indoor farming refers to the practice of growing a variety of crops or plants indoors, on both a small scale and a large one. The indoor farming technology market uses methods like aquaponics or hydroponics and makes use of artificial lighting to provide adequate light and nutrients. The market will be constrained by the high initial investment and limited crop variety.

Europe held the dominant market share for 2021 due to the adoption of technologies for greenhouses, and vertical farming techniques. The U.K. and Canada are among the first to adopt farming technology. Emerging economies like India, China, and Mexico are seeing a significant increase in the use of technology integrated into indoor farms. This is due to the growing demand for fresh crops and an increase in food demand. Indoor farming is expected to grow due to rising disposable income and growing urban populations in emerging economies.

Regional Analysis

Europe’s indoor farming market held 33.5% of the market in 2021, and it is expected to continue its dominance during the estimated period. The rising adoption of technologies for indoor farms. The market is growing rapidly because of the increased focus on using technologies such as LEDs and active heat systems to increase the average yield. The regional government has taken several initiatives to build indoor farms in order to address challenges such as climate change and the growing population. Farmers are investing in technology, such as LED lighting or crop monitoring sensors, to reduce labor costs.

Asia Pacific region will see the fastest CAGR, at over 14.2%, from 2023 to 2032. Many indoor farms will lead to a significant annual growth rate in advanced countries like Japan and China. Due to the growing population, there is a rising demand for organic foods. This has led to the construction of vertical farms and greenhouses to grow crops. Regional demand will continue to grow due to increasing awareness of the importance of alternative farming methods, especially in light of the limited availability of fertile land.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• The Middle East and Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Competitive Landscape:

The key market players participate in partnerships, product development, contracting, and business expansions, and also prominent players have adopted different strategies like a product launches, joint ventures, collaboration, and acquisition to increase their market share. The company focuses is on expanding indoor farms and building greenhouses to meet market demands.

Richel Group announced, for instance, the creation of a multi-span greenhouse to be used in Mexico. This greenhouse was created to meet the growing requirements of growers who need larger structures. It’s well-suited to optimal light transmission, improved air circulation, climate control, and easy movement.

A major market key players in the indoor farming market are Certhon, Richel Group, Netafim, General Hydroponics, Metropolis Farms Inc., Bright Farms Inc., Argus Control System Limited (Canada), Bowery Inc., Everlight Electronics Co., Ltd., 4D Bios Inc., Argus Control Systems Ltd., Heliospectra AB, Everlight Electronics (China) and others.

These are the main players in the global indoor farming market:

Маrkеt Key Companies:

• Argus Control System Ltd.
• Certhon
• Richel Group
• Netafim
• General Hydroponics
• Bowery Inc.
• Argus Control Systems Limited
• Hydrodynamics International
• Bright Farms Inc.
• Signify Holding (Netherlands)
• Scotts Miracle-Gro
• Green Sense Farms LLC
• Everlight Electronics Co., Ltd.
• Village Farms International Inc.
• Illumitex Inc.
• 4D Bios Inc.
• Lumigrow Philips Lighting
• Metropolis Farms Inc.
• Еvеrlіght Electronics
• Vertical Farm Systems
• Other Key Players