Market Research Report

Southeast Asia Indoor Farming Market Research Report: Forecast (2024-2030)

Southeast Asia Indoor Farming Market Report - By Facility (Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture Systems), By Type (Aeroponics, Hydroponics..., Aquaponics, Vertical Farming), By Crop, (Fruits, [Vegetables, Leafy Greens, Other Vegetables (Eggplant, Tomato, Bell Peppers, Chilies, etc.)], Herbs and Microgreens, Flowers and Ornamentals), By Component (Hardware, [Climate Control Systems, Lightening Systems, Sensors, Irrigation Systems], Software, [Web-Based, Cloud-Based]), Read more

  • Environment
  • Jan 2024
  • 144
  • ET55038

Market Definition

Indoor farming is a technology that produces crops by creating an artificial environment inside a closed facility with the help of technologies such as LED lighting, irrigation systems, and other climate control technologies. It takes less area than conventional farming techniques to cultivate plants and is thus highly prevalent in Southeast Asia due to the limited availability of arable land in the region.

Market Insights & Analysis: Southeast Asia Indoor Farming Market (2024-30)

The Southeast Asia Indoor Farming Market size is projected to grow at a CAGR of around 7.20% during the forecast period, i.e., 2024-30. One of the primary factors driving market growth for indoor farming in the region is the high frequency of natural calamities such as earthquakes and floods that are happening due to worsening climate change. Such frequent natural disasters have led to soil degradation and groundwater depletion, which has further deteriorated the quality of food grown via traditional farming methods. Since indoor farming takes place in a closed and controlled environment, it maintains the quality and quantity of the crops cultivated.

Thus, the national governments in the region have been supporting the development of indoor farms by providing tax benefits and other initiatives, which are anticipated to fuel market expansion in the forthcoming years. For instance, in 2021, the government of Singapore established a fund of approximately USD 45 million to increase the adoption of advanced technologies such as AI and ML in the agriculture industry. These technologies can analyze large data sets for soil conditions and weather patterns, which helps indoor farmers optimize their operations. These initiatives are expected to boost the adoption of indoor farming techniques in the region.

Report Coverage

Details

Study Period

Historical Data: 2019-22

Base Year: 2023

Forecast Period: 2024-30

CAGR (2024-2030)

7.20%

Country Covered

Indonesia, Vietnam, Malaysia, Singapore, Thailand, The Philippines, Rest of Southeast Asia

Key Companies Profiled

Sky Green, Signify Holdings, Vana Farming, HAVVA Agrotech, Netafim, Orlar, Verti Veggies, Kalera, Ariane Tech, Upgrown Farming, and others

Market Denominations

USD Million/Billion

 

Moreover, indoor farming could be a potential solution for the declining arable land in Southeast Asia, as it can produce more food per square unit compared to conventional farming methods. The mounting demand for high-value crops like specialty herbs & vegetables is also boding well for the growth of the indoor farming market, as these crops can be better grown in a controlled environment, thereby attaining high productivity levels to cater to the evolving consumer demand in the region.

Furthermore, the demand for high-value crops like specialty herbs and vegetables is further fueling market growth in the region. Specialty crops can be better grown in a controlled environment via indoor farming as compared to traditional farming methods. Thus, the desire to attain high productivity levels and meet the rising demand for these crops in the region is further expected to enhance market growth in the forthcoming years.

 


Southeast Asia Indoor Farming Market Research Report: Forecast (2024-2030)

 Southeast Asia Indoor Farming Market Driver:

Limited Availability of Arable Land in the Region – Arable land in countries like Singapore and Malaysia has been continuously decreasing over the past few years, owing to rapid urbanization, expanding cities, and growing populations. As per the World Bank, the population of countries like Singapore and Malaysia has been constantly rising in recent years. For instance, the population of Singapore was approximately 5.45 million in 2021 as compared to 5.64 million in 2022 as per the Singapore government, and similarly, the population of Malaysia stood at around 33.5 million in 2021 and rose to nearly 33.8 million in 2022 as per the Department of Statistics Malaysia.

As a result of an increase in population, the arable land per capita is decreasing in these countries, which is driving the growth of indoor farming in the region because indoor farming methods can produce large amounts of crops per unit area as compared to traditional farming while using fewer resources such as water and fertilizers.

Southeast Asia Indoor Farming Market Opportunity:

Crop Diversification and Sustainability for Indoor Farmers – The increased adoption of indoor farming in Southeast Asia provides local farmers with the opportunity for crop diversification in the coming years. They grow specialty crops in their indoor vertical farms that are otherwise difficult to cultivate via traditional farming methods due to the absence of specific environmental conditions. In addition, governments across Southeast Asian countries are recognizing the potential of indoor farming and are providing support through grants, subsidies, and favorable regulations to enhance the adoption of sustainable indoor farming practices in recent years. Moreover, the techniques used in growing these crops via indoor farming, such as hydroponics or aeroponics, utilize relatively less water & fertilizer than traditional farming techniques, which would also help the farmers achieve their sustainability targets in the coming years.

Southeast Asia Indoor Farming Market Challenge:

Higher Dependency of Indoor Farming on Energy – Unlike traditional farming methods, indoor farms are highly energy-dependent for the functioning of systems such as lighting and climate control. LED lights, which are used for providing controlled lighting to indoor crops, consume a lot of energy. For instance, as per iFarm, lighting systems account for approximately 65% of the total energy consumption of an indoor farm.

Furthermore, indoor farms require controlled heating, ventilation, and air conditioning, known as HVAC systems. Running indoor farming facilities demands a constant and considerable energy supply to power artificial lighting, maintain controlled temperatures, and operate other equipment. If the farm loses its energy supply for a substantial amount of time, it would result in large-scale crop loss.

There is an uneven distribution of power in nations such as Vietnam, the Philippines, and Malaysia, which get the majority of their energy from coal that is imported from Indonesia. In Southeast Asia, where electricity prices vary and might be higher in some regions, energy expenses could be a significant portion of the operational costs. For instance, in 2022, the Indonesian government banned the export of coal, which can create a power supply problem in the region. Therefore, the uneven power supply could be a bottleneck in the growth of indoor farming in the region.

Southeast Asia Indoor Farming Market Trend:

Growing Technological Advancements for Indoor Framing – The indoor farming industry in Southeast Asia is going through a phase of technological transformation. Advanced technologies such as big data analytics, vertical farming robotics, and artificial intelligence are being used for crop management on indoor farms. For Instance,

  • In 2022, iFarm, which provides technologies for indoor vertical farming, provided automation technologies for hydroponic farms through its StackGrow technology. The technology is specifically used for the cultivation of leafy green veggies and herbs in the region.

Thus, utilizing advanced technologies like artificial intelligence (AI) and machine learning (ML), farm management software aids indoor farmers in optimizing their operations. Consequently, the trend of using advanced technologies in indoor farming in the region is propelling the vast adoption of indoor farming.

Southeast Asia Indoor Farming Market (2024-30): Segmentation Analysis

The Southeast Asia Indoor Framing Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It also includes predictions for the period 2024–2030 at the regional level. According to the analysis, the market has been further classified as:

Based on Facility:

  • Green Houses
  • Indoor Vertical Farms
  • Container Farms
  • Indoor Deep Water Culture Systems

Indoor Vertical Farms dominated market revenue during the historical period and are expected to dominate the market during the forecast period.  The primary factor driving the demand for indoor vertical farming in Southeast Asia is the continuous increase in population over the last few years. The total population of the region was approximately 1.86 billion in 2019, which increased to approximately 1.9 billion in 2021, as per the World Bank. The continuous increase in population has increased the demand for food in the region, which cannot be fulfilled via traditional farming methods given the limited arable land availability.

Moreover, as the urban population rises and the water available for food production gradually declines due to depleting groundwater levels, vertical farming techniques will become more & more feasible for meeting the region’s food requirements in the coming years.

Based on Type:

  • Aeroponics
  • Hydroponics
  • Aquaponics
  • Vertical Farming

Here, hydroponics accounted for a considerable market share in the historical years, and it is anticipated to dominate the market in the forecast period as well. Hydroponics can eliminate the need for pesticides & herbicides due to the controlled environment, which reduces the risk of diseases & crop loss caused by bacterial attacks. As a result, hydroponically grown products are healthier & safer for both consumers and the environment, and they also align well with the ever-evolving demand for organic & sustainable farming practices in Southeast Asia, contributing to the growth of the Indoor Farming Industry.

Southeast Asia Indoor Farming Market (2024-30): Regional Projections

Geographically, the market expands across:

  • Indonesia
  • Vietnam
  • Malaysia
  • Singapore
  • Thailand
  • The Philippines
  • Rest of Southeast Asia

Singapore is expected to witness significant growth in the Indoor Farming Market during 2024-30, owing to various aspects such as food shortages, rising temperatures, uneven land terrains, and unpredictable weather. Singapore is a small city-state with limited land resources. Since indoor farming allows for the most efficient use of space, it addresses the issue of the ratio of food required per square kilometer of land by producing sufficient food for most of the population.

Due to its limited agricultural land, Singapore imports approximately 90% of its food from nearly 30 countries, according to the Singapore Food Agency. Ongoing indoor farming practices in the country are helping to enhance food security by reducing reliance on imports and increasing local food production, thereby allowing for year-round cultivation while minimizing the vulnerability to external factors like climate change, extreme weather events, and supply chain disruptions.

Moreover, the government plans to produce roughly 30% of its food domestically by 2030 under its 30 by 30 initiative launched under the Singapore Green Plan 2030 in 2019. Thus, all these aspects indicate lucrative prospects for the Singapore Indoor Farming Market through 2030.

Southeast Asia Indoor Farming Industry Recent Development:

  • In 2022, Kalera completed the construction of phase one of their fully automated farm at Changi Logistics Farm in Singapore. The farm allows the cultivation of crops throughout the year, irrespective of the climate conditions.

Gain a Competitive Edge with Our Southeast Asia Indoor Farming Market Report

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

Frequently Asked Questions

   A. The Southeast Asia Indoor Farming Market is expected to grow at a CAGR of around 7.20% during 2024-30.

   A. Limited availability of arable land in the region is a prominent factor expected to drive the Southeast Asia Indoor Farming Market during 2024-30.

   A. Sky Green, Signify Holdings, Vana Farming, HAVVA Agrotech, Netafim, Orlar, Verti Veggies, Kalera, Ariane Tech, Upgrown Farming, and others are the top companies in the Southeast Asia Indoor Farming Market.

   A. Indoor vertical farming is the leading facility in the Southeast Asia Indoor Farming Market.

   A. Growing technological advancements in indoor farming are the key trend shaping the growth of the Southeast Asia Indoor Farming Market.

   A. Crop diversification and sustainability are the growth opportunities driving the Southeast Asia Indoor Farming Market through 2030.

   A. The higher dependency of indoor farming on energy is one of the possible restraints affecting the growth of the Southeast Asia Indoor Farming Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Southeast Asia Indoor Farming Market Supply Chain Analysis
  5. Southeast Asia Agriculture Industry Outlook, 2022-2023
    1. Current Scenario
      1. Total Cultivable Land (Hectares), By Country
      2. Total Production, By Country
        1. Fruits & Vegetables
        2. Pulses & Grains
        3. Others (Herbs, flowers, etc.)
      3. Renewable Energy Usage in Agriculture Sector
      4. Agriculture Free Trade Agreements, By Country
    2. Government Initiatives, By Country
      1. Thailand
      2. Singapore
      3. Malaysia
      4. Vietnam
      5. Indonesia
      6. The Philippines
      7. Rest of Southeast Asia
    3. Others
  6. Southeast Asia Indoor Farming Market Startup Ecosystem
    1. Entrepreneurial Activity
    2. Year-on-Year Funding Received
    3. Funding Received by Top Companies
    4. Key Investors Active in the Market
    5. Series Wise Funding Received
      1. Seed Funding
      2. Angel Investing
      3. Venture Capital Funding
      4. Others
  7. Southeast Asia Indoor Farming Market Trends & Developments
  8. Southeast Asia Indoor Farming Market Dynamics
    1. Drivers
    2. Challenges
  9. Southeast Asia Indoor Farming Market Regulations and Policy
  10. Southeast Asia Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility
        1. Greenhouses- Market Size & Forecast 2019-2030, (USD Million)
        2. Indoor Vertical Farms- Market Size & Forecast 2019-2030, (USD Million)
        3. Container Farms- Market Size & Forecast 2019-2030, (USD Million)
        4. Indoor Deep Water Culture Systems - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type
        1. Aeroponics- Market Size & Forecast 2019-2030, (USD Million)
        2. Hydroponics- Market Size & Forecast 2019-2030, (USD Million)
        3. Aquaponics- Market Size & Forecast 2019-2030, (USD Million)
        4. Vertical Farming- Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop
        1. Fruits - Market Size & Forecast 2019-2030, (USD Million)
        2. Vegetables- Market Size & Forecast 2019-2030, (USD Million)
          1. Leafy Greens- Market Size & Forecast 2019-2030, (USD Million)
          2. Other Vegetables (Eggplant, Tomato, Bell Peppers, Chilies, etc.) - Market Size & Forecast 2019-2030, (USD Million)
        3. Herbs and Microgreens- Market Size & Forecast 2019-2030, (USD Million)
        4. Flowers and Ornamentals- Market Size & Forecast 2019-2030, (USD Million)
      4. By Component
        1. Hardware- Market Size & Forecast 2019-2030, (USD Million)
          1. Climate Control Systems- Market Size & Forecast 2019-2030, (USD Million)
          2. Lightening Systems- Market Size & Forecast 2019-2030, (USD Million)
          3. Sensors- Market Size & Forecast 2019-2030, (USD Million)
          4. Irrigation Systems - Market Size & Forecast 2019-2030, (USD Million)
        2. Software- Market Size & Forecast 2019-2030, (USD Million)
          1. Web-Based-Market Size & Forecast 2019-2030, (USD Million)
          2. Cloud-Based- Market Size & Forecast 2019-2030, (USD Million)
      5. By Country
        1. Indonesia
        2. Vietnam
        3. Malaysia
        4. Singapore
        5. Thailand
        6. The Philippines
        7. Rest of Southeast Asia
      6. By Company
        1. Market Share
        2. Competition Characteristics
  11. Indonesia Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  12. Vietnam Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  13. Malaysia Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  14. Singapore Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  15. Thailand Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  16. The Philippines Indoor Farming Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Facility - Market Size & Forecast 2019-2030, (USD Million)
      2. By Type - Market Size & Forecast 2019-2030, (USD Million)
      3. By Crop - Market Size & Forecast 2019-2030, (USD Million)
      4. By-Component- Market Size & Forecast 2019-2030, (USD Million)
  17. Competitive Outlook
    1. Company Profiles 
      1.  Sky Green
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Signify Holdings
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3.  Vana Farming
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. HAVVA Agrotech
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Netafim
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Orlar
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Verti Veggies
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Kalera
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Ariane Tech
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Upgrown Farming
        1. Business Description
        2. Facility Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Others
  18. Disclaimer


Southeast Asia Indoor Farming Market Segmentation Slide