Asia Pacific Indoor Farming Market Size, Share, Opportunities, And Trends By Growing System (Hydroponics, Aeroponics, Aquaponics, Soil-based, Hybrid), By Component (Hardware, Software, Services), By Facility Type (Glass Or Poly Greenhouse, Indoor Vertical Farm, Container Farm, Indoor DWC System), And By Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals, Others), And By Country - Forecasts From 2023 To 2028

The Asia Pacific Indoor Farming Market is projected to grow at a CAGR of 12.78% over the forecast period, increasing from US$9.045 billion in 2021 to reach a total market size of US$20.986 billion by 2028.

The growing consumer demand for chemical-free and organically rich food coupled with the growing adoption of hydroponics and aeroponics techniques in crop cultivation is expected to fuel the indoor farming market growth in Asia Pacific. The usage of advanced technologies like artificial intelligence, and data analytics for improving crop productivity and the favorable efforts to tackle soil erosion are further expected to boost the overall scope of indoor farming in the APAC region in the future.

Expansion in the R&D Programs

Several businesses in China & Indonesia are focusing on expanding their research & development programs for better integration of technology with food systems. This will expand the market for sustainable agricultural food production & thereby promote indoor farming techniques in the Asia Pacific. Moreover, the government initiative promoting indoor farming techniques amid growing food security concerns is expected to propel the market in the long term. For instance-in 2022, the Indian government provided a subsidy for aeroponic farming techniques which in turn will expand the adoption for indoor farming in India.

Increasing Food Security Issues & Scarcity of Resources

The rising population in major Asian countries such as India, and China has augmented the need for improved food production techniques. The rising demand for higher agricultural yields for fruits & vegetables, herbs & flowers in the present situation of limited land resources & water will provide an impetus for indoor farming culture in upcoming years. 

Additionally, indoor farming techniques are gaining more popularity due to their ability to ensure community sustainability & resource efficiency. It also supports biodiversity as well with minimal disturbance to wildlife & trees in inland areas. Farmers are also not exposed to heavy agricultural machines that cause huge pollution & also it minimizes contact with hazardous substances with indoor farming practices. Key developments in the market are expected to boost market growth.

According to the estimates from the World Bank, the population in Asia Pacific will grow by about 700 million by the year 2050 thereby reaching a figure of 5.3 billion from 4.7 billion in 2021. The Asia Pacific economies are expected to lose millions of hectares of agricultural land to meet urbanization & rising population needs. For instance- a recent study at Duke University highlights that regions like Asia & Africa are expected to lose around 24 million hectares due to urbanization in coming years. Therefore, less land availability will increase the preference towards the adoption of indoor farming technology for a better crop yield, thereby augmenting the overall market growth in the coming years.

India in Asia Pacific is an Expected Dominant Market

. Indoor farming involves crop production in a controlled environment with less pesticide usage. Such technology’s cost-effective nature and its ability to reduce reliance on fossil fuels and conventional farming equipment have provided a positive scope to its market demand in India. Also, the booming horticulture and floriculture in the country are further adding to the market growth. For instance, according to the Ministry of Agriculture and Farmers Welfare, in 2021, India’s horticulture production stood at 347.18 million tons which signified an increase of 3.8% over 2020’s 334.60 million tons. Moreover, as per the same source, 833 thousand tons of cut flowers and 2,295 thousand tons of loose flowers were produced in India for 2021.

Moreover, favorable initiatives and projects establishments for vertical farming are also acting as an additional driving factor for market growth. For instance, in December 2021, AS AGRI AND AQUA LLP inaugurated its state-of-the-art vertical farming project in Nagpur, Maharashtra. The project is expected to be Asia’s largest vertical farming project which aims to enable farmers in the Vidarbha region to tackle major agricultural issues relating to climatic and drought conditions as well poor irrigation facilities. Technological adoptions to propel urban farming coupled with the growing shift towards organic crops production and less chemical usage are paving the way for the further market growth of indoor farming in India.

Key Developments

• In December 2022, Vertical Future formed a collaboration with Vertical Farm Systems to initiate work on advanced vertical farming projects in Singapore.
• In May 2022, Woolworths formed a partnership with startup InvertiGro to launch its first in-store vertical indoor farm in Australia.

Asia Pacific Indoor Farming Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$9.045 billion
Market Size Value in 2028	US$20.986 billion
Growth Rate	CAGR of 12.78% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Growing System, Component, Facility Type, Crop Type, and Country
Regions Covered	China, India, Japan, Taiwan, Indonesia, Thailand, South Korea, Others
Companies Covered	Sananbio, Plenty Unlimited Inc, Xiamen Heseng Agricultural Technology Co., Ltd, Grow Pod Solutions, YesHealth Group, FlexiFarm, Thai Advance Agri Tech, AeroFarms, InFarm, Barton Breeze
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Growing System
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil-based
  • Hybrid
• By Component
  • Hardware
  • Software
  • Services
• By Facility Type
  • Glass or Poly Greenhouse
  • Indoor Vertical Farm
  • Container Farm
  • Indoor DWC System
• By Crop Type
  • Fruits and Vegetables
  • Herbs and Microgreens
  • Flowers and Ornamentals
  • Others
• By Country
  • Japan
  • China
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Data

2.3. Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. ASIA PACIFIC INDOOR FARMING MARKET ANALYSIS, BY GROWING SYSTEM

5.1. Introduction

5.2. Hydroponics

5.3. Aeroponics

5.4. Aquaponics

5.5. Soil-based

5.6. Hybrid

6. ASIA PACIFIC INDOOR FARMING MARKET ANALYSIS, BY COMPONENT

6.1. Introduction

6.2. Hardware

6.3. Software

6.4. Services

7. ASIA PACIFIC INDOOR FARMING MARKET ANALYSIS, BY FACILITY TYPE

7.1. Introduction 

7.2. Glass or Poly Greenhouse

7.3. Indoor Vertical Farm

7.4. Container Farm

7.5. Indoor DWC System

8. ASIA PACIFIC INDOOR FARMING MARKET ANALYSIS, BY CROP TYPE

8.1. Introduction 

8.2. Fruits and Vegetables

8.3. Herbs and Microgreens

8.4. Flowers and Ornamentals

8.5. Others

9. ASIA PACIFIC INDOOR FARMING MARKET ANALYSIS, BY COUNTRY

9.1. Introduction 

9.2. China

9.3. India

9.4. Japan

9.5. Taiwan

9.6. Indonesia

9.7. Thailand

9.8. South Korea

9.9. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisition, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.1. Sananbio

11.2. Plenty Unlimited Inc

11.3.  Xiamen Heseng Agricultural Technology Co., Ltd

11.4. Grow Pod Solutions

11.5. YesHealth Group

11.6. FlexiFarm

11.7. Thai Advance Agri Tech

11.8. AeroFarms

11.9. InFarm

11.10. Barton Breeze

Sananbio

Plenty Unlimited Inc

 Xiamen Heseng Agricultural Technology Co., Ltd

Grow Pod Solutions

YesHealth Group

FlexiFarm

Thai Advance Agri Tech

AeroFarms

InFarm

Barton Breeze