Canada Indoor Farming Market Size, Share, Opportunities, And Trends By Growing System (Hydroponics, Aeroponics, Aquaponics, Soil-based, Hybrid), By Component (Hardware, Software And 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) - Forecasts From 2023 To 2028

The Canadian indoor farming market is expected to grow at a CAGR of 6.61% from an estimated market size of US$849.087 million in 2021 to reach US$1,329.038 million in 2028.

Indoor farming refers to growing crops in controlled indoor environments, such as greenhouses, hydroponic systems, and vertical farms. Canada's indoor farming market has been growing steadily in recent years, driven by several factors, such as growing demand for locally grown fresh produce, technological advancements, and an increasing need for sustainable and environmentally friendly agricultural practices. One of the main advantages of indoor farming is the ability to grow crops all year round, regardless of the season or weather conditions. This provides a reliable source of fresh products for consumers and reduces the need to import produce from other countries. Indoor farming is also more resource-efficient than traditional agriculture, using less water, fertilizers, and pesticides.

Moreover, the main growing systems used in Canada's indoor farming market are hydroponics, aeroponics, aquaponics, soil-based, and hybrid systems. Aeroponics systems are gaining popularity in Canada due to their high efficiency, low water usage, and faster growth rates. Hybrid growing systems combine different growing systems to create a unique and efficient growing environment. For example, a hybrid system could combine hydroponics and aeroponics to create a system that uses water and air to grow plants.

Technological advancements are driving the Canadian indoor farming market. 

The prime factor predicted to drive the growth of the Canadian indoor farming market is the advancement in technologies. LED lighting is a critical technology that has revolutionized indoor farming. LEDs use less energy and generate less heat than traditional lighting systems, making them more energy-efficient and cost-effective. Sensors and other monitoring tools collect data on environmental conditions and plant growth, which can be analyzed to identify trends, patterns, and potential issues. This data can then be used to optimize growing conditions and improve crop yields. Robotics and automation technologies are becoming increasingly common in indoor farming. These technologies can automate tasks such as planting, harvesting, and packaging, leading to more efficient use of labor and increased productivity. Technology advances enable indoor farmers to grow crops more efficiently and sustainably and optimize yields and quality. As these technologies evolve and become more cost-effective, the indoor farming industry is likely to continue its growth trajectory in Canada.

The prime factor predicted to drive the growth of the Canadian indoor farming market is the advancement in technologies. LED lighting is a critical technology that has revolutionized indoor farming. LEDs use less energy and generate less heat than traditional lighting systems, making them more energy-efficient and cost-effective. Sensors and other monitoring tools collect data on environmental conditions and plant growth, which can be analyzed to identify trends, patterns, and potential issues. This data can then be used to optimize growing conditions and improve crop yields. Robotics and automation technologies are becoming increasingly common in indoor farming. These technologies can automate tasks such as planting, harvesting, and packaging, leading to more efficient use of labor and increased productivity. Technology advances enable indoor farmers to grow crops more efficiently and sustainably and optimize yields and quality. As these technologies evolve and become more cost-effective, the indoor farming industry is likely to continue its growth trajectory in Canada.

Market Developments:

• In March 2023, UP Vertical Farms launched its inaugural vertical farming facility in Pitt Meadows, owned by a startup Fresh Green Farms.
• In December 2022, GoodLeaf Farms, a Guelph, Ontario-based commercial indoor vertical farm operation, seized C$150 million in growth funding and partnered with Power Sustainable Lios.

The hydroponics segment will experience robust growth over the forecast period.

The demand for locally sourced and sustainable produce in Canada is driving the adoption of hydroponics in indoor farming. Consumers are increasingly concerned about the environmental impact of food production and prefer locally grown options. Hydroponics allows for year-round cultivation in a controlled indoor environment, reducing the need for transportation and enabling local production. Hydroponic systems optimize resource utilization, allowing for precise control over nutrients, pH, and water usage. This results in efficient nutrient absorption and reduced water wastage compared to traditional soil-based farming, making it an attractive option for resource-conscious indoor farmers in Canada.

The potential for year-round cultivation in a controlled environment is a significant growth factor for hydroponics in Canada, where harsh climates and limited growing seasons pose challenges for traditional outdoor farming. Hydroponic systems offer a consistent and reliable supply of fresh produce regardless of weather conditions, making it an appealing option for indoor farmers. The growth of greenhouse vegetable operations is a significant growth factor for hydroponics in the indoor farming industry in Canada. Greenhouses provide a controlled environment ideal for hydroponic cultivation, precisely controlling factors like temperature, humidity, light, and nutrient delivery. Hydroponic systems offer advantages such as water and nutrient efficiency, year-round production, reduced pesticide use, and higher yields. As greenhouse vegetable operations expand, the demand for hydroponics may increase, creating opportunities for growth and innovation. Hydroponics also aligns with sustainable agricultural practices, reducing environmental impact and meeting consumer demand for sustainable, locally-produced food.

Canada Indoor Farming Market Scope:

Market Segmentation:

• BY GROWING SYSTEM
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil-based
  • Hybrid
• BY COMPONENT
  • Hardware
  • Software
  • Services
• BY FACILITY TYPE
  • Glass or Poly Greenhouse
  • Indoor Indoor Farm
  • Container Farm
  • Indoor DWC System
• BY CROP TYPE
  • Fruits and Vegetables
  • Herbs and Microgreens
  • Flowers and Ornamentals
  • Others