Market Research Report

Global Indoor Farming Market Research Report: Forecast (2023-2028)

By Type (Hydroponics Farming, Aeroponics Farming, Aquaponics Farming, Vertical Farming), By Facility (Greenhouses, Container Farms, Indoor Vertical Farms, Indoor Deep Water Culture...), By Component (Hardware, Software), By Crop (Fruits and Vegetables, Herbs and Microgreen, Flowers and Ornamentals), By Region (North America, South America, Europe, The Middle East & Africa, Asia-Pacific), By Company (Aessense Corporation, Argus Control Systems Limited, Bowery Farming Inc, BrightFarms, Certhon, Crop One Holdings, Inc., General Hydroponics, Green Sense Farms Holdings, Inc., Metropolis Farms Inc, Netafim, Priva, Richel Group, Signify Holdings, Village Farms International Inc, Windset Farms, Others) Read more

  • Environment
  • Apr 2023
  • 183
  • PDF, Excel, PPT

Market Definition

Indoor farming technology produces a synthetic environment inside a closed facility, hastening plant development and nutrient uptake. It demands multilayer indoor plant growth, LED lighting, and controlled growing and nutrient systems. Indoor farming increases crop yield and reduces the farming impact on the environment by reducing the distance traveled in the supply chain. It takes less area than conventional farming techniques to cultivate plants using growing shelves installed vertically.

Market Insights & Analysis: Global Indoor Farming Market (2023-28)

The Global Indoor Farming Market is projected to grow at a CAGR of around 11.2% during the forecast period, i.e., 2023-28. The World Bank Group reports that the average amount of arable land per person decreased from 0.197 hectares in 2013 to 0.192 hectares in 2016. The loss of agricultural land has primarily been brought about by its redistribution for non-agricultural uses, including urbanization, highways, industry and housing, as well as soil erosion and pollution in many developing countries.

For example, there are over 334 million acres of arable land in China, of which about 37 million acres cannot be farmed. Given this, farmers are being forced to find new ways to produce fresh food. High-yielding plant types, fertilizer and pesticide control paired with mechanization, proper irrigation management, and the adoption of cutting-edge farming practices like indoor farming are a few ways to counter these issues.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 11.2%
Regions Covered North America: US, Canada, Mexico
Europe: Germany, The UK, France, Spain, Italy, Rest of Europe
Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific
South America: Brazil, Argentina, Rest of South America
Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA
Key Companies Profiled Aessense Corporation, Argus Control Systems Limited, Bowery Farming Inc, BrightFarms, Certhon, Crop One Holdings, Inc., General Hydroponics, Green Sense Farms Holdings, Inc., Metropolis Farms Inc, Netafim, Priva, Richel Group, Signify Holdings, Village Farms International Inc, Windset Farms, Others
Unit Denominations USD Million/Billion

 

In fact, Indoor farming could be an adequate method to deal with the prevailing loss in agricultural availability per person. As such, farmers are switching to such farming practices along with high-yielding crops in order to overcome the issue of limited cropland without compromising output quantities. Moreover, using vertical farming, one of its prominent types, they are able to produce crops indoors in layers piled on racks, in a multi-story building, or a warehouse.

Thus, enhancing the yield and productivity of existing cultivated land is the most effective alternative, and by 2030, the trend is likely to become more prominent. Further, by employing hydroponics and artificial lighting to provide plants with the nutrients and light, they would otherwise receive only when grown outdoors, such techniques may be advantageous in raising productivity even in limited arable land areas. As a result, the demand for equipment related to indoor farming is expected to surge during the forecast period.


Global Indoor Farming Market Research Report: Forecast (2023-2028)

Global Indoor Farming Market Key Drivers:

Decreased Cultivable Area Globally, Prompting The Repurposing of Existing Agricultural Land. - Unfavorable weather conditions like droughts, soil erosion, floods, and intensive pesticide usage, which are the prominent causes of the decreased cultivable area, have led to reduced yield over time. Growing crops indoors is the best way to address this severe concern affecting soil fertility globally. In addition, it creates new arable land, subsequently increasing the output and productivity of existing agricultural land. With innovative methods like Hydroponics Farming, Aeroponics Farming, Aquaponics Farming, and Vertical Farming, indoor methods are anticipated to gain traction and drive the market during the forecast period.

Global Indoor Farming Market Possible Restraint:

Expensive Initial Setup and Deployment of Equipment - The availability of sufficient funds to begin the process is one of the most crucial components of these practices. Although the method is cost-effective, indoor farming equipment's initial setup and deployment are expensive and require a significant financial commitment. In fact, many agriculture-related businesses find it exceedingly difficult to find investors, thereby discouraging farmers from tapping into this lucrative opportunity. As a result, the installation of IF systems worldwide may be disrupted by the absence of necessary funds, making market expansion challenging.

Global Indoor Farming Market Growth Opportunities

Advent of Cost-Effective and Innovative Technologies for Farming - Many innovations in indoor farming have a short history in the market, and research is now being done to ascertain how they affect a plant's shelf life. For example, LED lighting has a good effect on plants, and the results were encouraging. However, before it can be regarded as optimally beneficial and commercially feasible, the technology is still in its infancy and needs improvement. Many research and development projects are underway to ascertain these technologies' impact on plant shelf life because many such techniques lack a long history of commercial success.

Global Indoor Farming Market Key Trends:

Frequent Adoption of Vertical Farming Across European Countries - Considering a few instances from across the world, Europe is emerging as a leader in vertical farming due to numerous new farms resulting from the competition among nations to control this market. For instance, the Jones Food Company uses vertical farming to produce about 400 tonnes of vegetables like kale, coriander, and radish annually in the United Kingdom. In addition, the business has approximately 5000 square meters of vertical farm area throughout Europe. The uptake of vertical farming paired with strategic alliances is driving the development of indoor farming technology.

Global Indoor Farming Market (2023-28): Segmentation Analysis

Global Indoor Farming Market report by Markntel Advisors includes segmentation analysis based on Facility, and Crop. This breakdown allows businesses to identify specific market segments and tailor their marketing and product strategies accordingly, maximizing their chances of success in the Global Indoor Farming Market.

Based on Facility,

  • Greenhouses
  • Container Farms
  • Indoor Vertical Farms
  • Indoor Deep Water Culture

Among all, The Indoor Vertical Farm segment of the market recorded a sizeable revenue share in the historical period. This growth can be attributed to several factors, including the increasing global population and the shortage of fertile land to grow food. As urbanization continues to spread rapidly and industrialization increases, more and more agricultural land is becoming infertile due to various toxic substances in the environment.

Vertical farms offer a unique solution to this problem by utilizing advanced technologies such as hydroponics, aeroponics, and aquaponics to grow crops in a controlled environment. These farms can be set up in urban areas, which helps reduce transportation costs and provides fresh produce to city dwellers who may not have access to fresh, locally grown produce. Additionally, vertical farming allows for the year-round production of crops, which helps address food shortages during the offseason.

Based on Crop,

  • Fruits and Vegetables
  • Tomato
  • Lettuce
  • Bell & Chili Peppers
  • Strawberry
  • Cucumber
  • Others (Leafy Greens, Kale)
  • Herbs and Microgreen
    • Herbs
    • Tarragon
    • Wheatgrass
    • Others (Basil, Bay)
  • Flowers and Ornamentals
    • Annuals
    • Perennials
    • Ornamentals
    • Others (Orchids, Succulents)

In 2022, the flowers and ornamentals sector accounted for a significant portion of revenue in the indoor farming market. This segment is expected to contribute significantly to the overall market growth due to the use of ornamentals and flowers for decorative and aesthetic purposes. Annuals, perennials, and ornamentals have been segregated from the rest of the segment. Consequently, the sales of flowers and other decorative items drive the segment's growth.

On the other hand, herbs and microgreens will likely grow at a substantial CAGR in the coming years. Indoor herb cultivation can be done as perennial houseplants or specifically during winter to safeguard delicate herbs like basil and rosemary. Additionally, herbs grown indoors offer several advantages, including aromatic foliage with diverse shapes and hues. However, not all herbs thrive indoors, as their root systems necessitate larger containers. Likewise, Microgreens, with an average growth time of 10-14 days, are used as both visual and flavor ingredients in various dishes, thus, necessitating their cultivation by indoor farmers.

Global Indoor Farming Market Regional Projection

Geographically, the Global Indoor Farming Market expands across:

  • North America
  • South America
  • Europe
  • Middle East & Africa
  • Asia-Pacific

In the historical period, North America accounted for the largest share of the Global Indoor Farming Market. The US, Canada, and Mexico contribute significantly to the region's share. The potential to produce more with fewer resources is one of the main reasons such farming methods have gained significant traction in developed countries. The average production of conventional lettuce farming, for instance, increased twofold when grown using vertical farming, according to the US Department of Agriculture (USDA). As a result, the region's market is expanding quickly, with government regulations helping the sector.

Global Indoor Farming Industry Recent Developments 

  • In July 2022, Crop One Holdings, Inc., in partnership with Emirates Flight Catering, announced the official opening of Emirates Crop One (ECO 1), the world’s largest vertical farm in Dubai, United Arab Emirates. The more than 330,000-square-foot facility spans 175 yards and aims to produce over 2 million pounds of high-quality leafy greens annually.
  • In addition, the farm claim to use 95% less water than field-grown produce and guarantees an output of three tons per day.In May 2021, In Hendersonville, North Carolina, BrightFarms opened its newest indoor farm. 2 million pounds of lettuce are anticipated to be produced annually in the 6-acre greenhouse.
  • In April 2021, Chilean B corporation Hortifrut SA, a partner of Aerofarms, was established. The alliance is anticipated to concentrate on studying and advancing the production of blueberries and cranberries in fully-regulated vertical farms and indoor settings.

Gain a Competitive Edge with Our Global Indoor Farming Market Report

  1. Global Indoor Farming Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
  3. Global Indoor Farming Market report aids in assessing and mitigating risks associated with entering or operating in the market.
  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations

Frequently Asked Questions

   A. The Indoor Farming Market is projected to grow at a CAGR of around 11.2% during 2023-28.

   A. Decreased cultivable area globally, prompting the repurposing of existing agricultural land is expected to drive the Market during 2023-28.

   A. 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.

   A. The indoor farming market's vertical farm segment recorded a sizeable revenue share in 2022.

   A. Globally, North America would provide lucrative prospects for the market in the years ahead.

   A. frequent adoption of vertical farming across European countries is shaping the growth of the Market.

   A. Introduction of cost-effective and innovative technologies for farming is expected to present remunerative opportunities for the leading players in the market during the forecast period.

   A. Inefficient funding in the sector, high initial investments are the possible restraints affecting the growth of the market.

Global Indoor Farming Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Indoor Farming Market Trends & Insights
  5. Global Indoor Farming Market Dynamics
    1. Growth Drivers
    2. Challenges
  6. Global Indoor Farming Market Hotspot & Opportunities
  7. Global Indoor Farming Market Policies & Regulations
  8. Global Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
        1. Hydroponics Farming
        2. Aeroponics Farming
        3. Aquaponics Farming
        4. Vertical Farming
      2. By Facility
        1. Greenhouses
        2. Container Farms
        3. Indoor Vertical Farms
        4. Indoor Deep Water Culture
      3. By Component
        1. Hardware
          1. Climate Control Systems
          2. Lighting Systems
          3. Sensors
          4. Irrigation Systems
        2. Software
          1. Web-Based
          2. Cloud-Based
      4. By Crop
        1. Fruits and Vegetables
          1. Tomato
          2. Lettuce
          3. Bell & Chili Peppers
          4. Strawberry
          5. Cucumber
          6. Others (Leafy Greens, Kale)
        2. Herbs and Microgreen
          1. Herbs
          2. Tarragon
          3. Wheatgrass
          4. Others (Basil, Bay)
        3. Flowers and Ornamentals
          1. Annuals
          2. Perennials
          3. Ornamentals
          4. Others (Orchids, Succulents)
      5. By Region
        1. North America
        2. South America
        3. Europe     
        4. The Middle East & Africa
        5. Asia-Pacific
      6. By Competitors
        1. Competition Characteristics
        2. Market Share & Analysis
  9. North America Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Crop
      3. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The US Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    4. Canada Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    5. Mexico Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
  10. South America Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Crop
      3. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    3. Brazil Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    4. Argentina Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
  11. Europe Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Crop
      3. By Country
        1. The UK
        2. Germany
        3. France
        4. Italy
        5. Spain
        6. Rest of Europe
    3. The UK Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    4. Germany Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    5. France Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    6. Italy Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    7. Spain Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
  12. The Middle East & Africa Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Crop
      3. By Country
        1. The UAE
        2. Saudi Arabia
        3. South Africa
        4. Rest of Middle East & Africa
    3. The UAE Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    4. Saudi Arabia Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    5. South Africa Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
  13. Asia-Pacific Indoor Farming Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Crop
      3. By Country
        1. China
        2. Japan
        3. South Korea
        4. India
        5. Australia
        6. Rest of Asia Pacific
    3. China Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    4. Japan Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    5. South Korea Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    6. India Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
    7. Australia Indoor Farming Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenue (USD Million)
      2. Market Share & Analysis
        1. By Type
        2. By Crop
  14. Global Indoor Farming Market Key Strategic Imperatives for Success & Growth
  15. Competition Outlook
    1. Competition Matrix
      1. Target Markets
      2. Research & Development
      3. Collaborations & Strategic Alliances
      4. Key Business Expansion Initiatives
      5. Business Restructuring- Mergers, Acquisitions, JVs
      6. Strategic Initiatives
    2. Company Profiles (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Aessense Corporation
      2. Argus Control Systems Limited
      3. Bowery Farming Inc
      4. BrightFarms
      5. Certhon
      6. Crop One Holdings, Inc.
      7. General Hydroponics
      8. Green Sense Farms Holdings, Inc.
      9. Metropolis Farms Inc
      10. Netafim
      11. Priva
      12. Richel Group
      13. Signify Holdings
      14. Village Farms International Inc
      15.           Windset Farms
      16.           Others
  16. Disclaimer


Indoor Farming Market - Segmentation Slide