The Global Indoor Farming Market is projected to grow at a CAGR of 11.2% in the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The market is anticipated to expand as such kind of farming is seen as a viable solution to address the issue of decreasing agricultural land per person. Farmers are now using these farming techniques along with high-yielding crops to increase output while overcoming the limitations of cropland. Vertical farming is the prominent type where crops are grown in layers piled on racks in multi-story buildings or warehouses.
Further, hydroponics and artificial lighting are used to provide plants with nutrients and light, increasing productivity even in limited arable land areas. Given this, the demand for equipment related to indoor farming is expected to elevate in the coming years, thereby positively influencing the market growth. However, many such farming techniques lack a long history of commercial success, and research is being done to assess their impact on plant shelf life.
The market is broadly fragmented based on Type, Facility, Component, Crop. Further classification of type can be done into Hydroponics Farming, Aeroponics Farming, Aquaponics Farming, and Vertical Farming. Based on facility, the industry is segmented into Greenhouses, Container Farms, Indoor Vertical Farms, Indoor Deep Water Culture. Likewise, on the basis of component, the industry bifurcates into hardware and software. Finally, on the basis of crop, the market is segmented into Fruits and Vegetables, Herbs and Microgreen and Flowers and Ornamentals.
Growing Adoption of Sustainable Production of Fruits and Vegetables Promotes Indoor Vertical Farms
The Indoor Vertical Farm segment dominated the market due to factors like population growth, land scarcity, urbanization, industrialization, and increasing consumer awareness regarding homegrown fresh foods. Vertical farms use advanced technologies to grow crops in controlled environments, reducing transportation costs and providing fresh produce to urban areas. Year-round production also helps address off-season food shortages, consequently facilitating the sustainable production of fruits and vegetables.
North America Strengthening Spending Capacity Propels the Market Development
North America accounted for the largest market share in the historical period, with The US, Canada, and Mexico making significant contributions. The potential to produce more with fewer resources is one of the main reasons indoor farming has been gaining major support across the region. The average production of conventional lettuce farming, for instance, increased twofold when grown using vertical farming, according to the US Department of Agriculture (USDA).
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including the prominent players anticipated to stiffen the competition globally are Argus Control Systems Limited, Richel Group, Certhon, BrightFarms, Netafim, Bowery Farming Inc, Aessense Corporation, Crop One Holdings, Inc, Village Farms International Inc, Windset Farms, Metropolis Farms Inc, Priva, General Hydroponics, Signify Holdings , Green Sense Farms Holdings, Inc, others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report