Indoor Farming Technology Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Growing Systems (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 & Vegetables, Herbs & Microgreens, Flowers & Ornamentals, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Mar 2022 Report Code: KSI061612306 Pages: 110

The global indoor farming technology market is projected to grow at a CAGR of 10.17% during the forecast period to reach US$38.932 billion by 2027, from US$19.764 billion in 2020. Indoor farming is a way of cultivating plants and crops exclusively indoors. It frequently uses hydroponics and artificial lighting, where growing conditions can be better controlled, to offer plants a sufficient amount of nutrients and light levels they require for growth. Plants of all kinds can be cultivated inside, although the most common are fruits, vegetables, and herbs. Rising awareness about the consumption of residue-free food has cleared the pathway for innovative techniques such as indoor farming.

Increasing agriculture production using less water and land resources

According to Forbes, By 2050, the world's population is expected to reach 9.7 billion, requiring a 70 percent increase in global food production in the next 30 years to feed everyone. Agriculture needs to adapt to use less water and pesticides, make crops less vulnerable to climate change, meanwhile provide more consistent yields. When compared to outside farming, indoor farms recirculate and reuse water, requiring 95 percent less water to cultivate the same crops. The average production of standard lettuce farming doubled when cultivated vertically, according to the US Department of Agriculture. The transpiration process happens when plants or commodities are cultivated in vertical greenhouses, allowing farmers to reuse the water for irrigation. Greater production from less area is necessary, and indoor farming aids in a higher yield of various crops. As arable land becomes scarcer, the growing demand to maximize crop yields will drive the indoor farming business in the projected period.

The initial expense is high

Indoor farming is a costly enterprise, from locating suitable facilities to selecting the best-performing crops necessitates a significant investment. In addition, both greenhouses and vertical farms have a greater percentage of running expenditures due to the high use of electricity. For an optimal indoor farm, controlling the ambient atmosphere with adequate temperature, lighting, and pollination as well as the plant arrangement is crucial. Land prices alone, which are typically highly expensive in urban areas, considerably boost the initial upfront costs. Equipment prices placed further strain on the budget of many vertical farming enterprises. Climate controls, LED lights, computers, shelving units, water lines, and other pricey equipment are required by most indoor farms.

Key Developments

In November 2021, NASA Research debuted a new phase of indoor farming. This new agricultural approach paved the way for the controlled environment agriculture (CEA) industry. Aerofarms formed a partnership with Hortifrut SA in April 2021. R&D of blueberry and cranberry production in fully controlled vertical farms and indoor environs will be the focus of the partnership. BrightFarms established the newest indoor farm in Hendersonville in May 2021. The lettuce grown in the 6-acre greenhouse will yield 2 million pounds each year. Bright Farms also added three sustainable greenhouse farms to Massachusetts, North Carolina, and New York in 2019.

By growing systems, the global indoor farming technology market can be segmented into soil-based, aeroponics, hybrid, hydroponics, and aquaponics categories, respectively. Hydroponics is expected to account for a significant share in the market owing to advantages such as the low cost of water because the water remains in the system and maybe reused and the elimination of the need for soil. Aeroponics is expected to grow at a high CAGR in the projected period.

By component, the global indoor farming technology market can be segmented into software, hardware, and services. Over the estimation period, the hardware category is expected to have the biggest market share and develop quickly in the indoor farming technology market.

By facility type, the global indoor farming technology market can be segmented into indoor deep water culture systems, indoor vertical farms, container farms, and poly or glass greenhouses. The indoor vertical farm segment is expected to rise at a faster rate. Indoor vertical farms are enclosed, opaque chambers with artificial lighting and vertical growth methods, including hydroponics, aeroponics, and aquaponics.

By crop type, the global indoor farming technology market can be segmented into flowers and ornamentals, herbs and microgreens, fruits and vegetables, and others. The fruits and vegetable segment is expected to have a sizable market proportion. Fruit and vegetable consumption has increased by double digits over the last few decades, and this trend is anticipated to continue in the next years. One of the key factors that have accelerated the trend is the ever-increasing population. Herbs and microgreens segment is predicted to increase rapidly in the projected period.

By geography, the global indoor farming technology market can be segmented into the Asia Pacific, North America, the Middle East and Africa, South America, and Europe. Because of the increasing rise of greenhouses and vertical farms in the US and Canada, North America is one of the greatest indoor farming technology marketplaces. The greenhouse crop production sector currently dominates the indoor farming industry in the US. The Asia Pacific is expected to develop quickly, as demand for indoor farming technology has increased in the region owing to increasing international businesses investing in agricultural operations to fulfill the demands of crop growers for export-quality commodities exclusively.

COVID-19 Insights

The COVID-19 epidemic impacted the global indoor farming technology market significantly. The adoption rate of indoor farming systems, especially in urban areas worldwide, is expected to skyrocket due to the coronavirus epidemic. The agriculture industry was confronted with some difficulties. Some farmers missed their window of opportunity for harvesting seasonal crops, dropping agricultural product prices, and logistics disruption due to labor shortages. Many countries also realized that they were overly reliant on food imports and began focusing on domestic and internal production.

Indoor Farming Technology Market Scope:

Report Metric Details
 Market size value in 2020  US$19.764 billion
 Market size value in 2027  US$38.932 billion
 Growth Rate  CAGR of 10.17% from 2020 to 2027
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Growing Systems, Component, Facility Type, Crop Type, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Signify Holding, Argus Control Systems, Netafim, Logiqs, Richel Group, Vertical Farm Systems, General Hydroponics, Square roots, Gotham Greens
 Customization scope  Free report customization with purchase

 

Key Market Segments

  • By Growing Systems
    • 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 & vegetables
    • Herbs & Microgreens
    • Flowers & Ornamentals
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • United Kingdom
      • Germany
      • France
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Thailand
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the indoor farming technology market size by 2027?
A1. The global indoor farming technology market is projected to reach a total market size of US$38.932 billion by 2027. 


Q2. What are the growth prospects for the indoor farming technology market?
A2. The indoor farming technology market is projected to grow at a CAGR of 10.17% during the forecast period. 


Q3. What is the size of the global indoor farming technology market?
A3. Indoor Farming Technology Market was valued at US$19.764 billion in 2020. 


Q4. What factors are anticipated to drive indoor farming technology market growth?
A4. Rising awareness about the consumption of residue-free food has cleared the pathway for innovative techniques such as indoor farming.


Q5. Which region holds the largest market share in the indoor farming technology market?
A5. North America holds the largest share in the indoor farming technology market due to the increasing rise of greenhouses and vertical farms in the US and Canada.

1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The Threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis

5. GLOBAL INDOOR FARMING TECHNOLOGY MARKET, BY GROWING SYSTEM
5.1. Introduction
5.2. Hydroponics
5.3. Aeroponics
5.4. Aquaponics
5.5. Soil-based
5.6. Hybrid

6. GLOBAL INDOOR FARMING TECHNOLOGY MARKET, BY COMPONENT 
6.1. Introduction
6.2. Hardware
6.3. Software 
6.4. Services

7. GLOBAL INDOOR FARMING TECHNOLOGY MARKET, 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. GLOBAL INDOOR FARMING TECHNOLOGY MARKET, BY CROP TYPE
8.1. Introduction
8.2. Fruits & vegetables
8.3. Herbs & Microgreens
8.4. Flowers & Ornamentals
8.5. Others
9. GLOBAL INDOOR FARMING TECHNOLOGY MARKET, BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. United States
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. United Kingdom 
9.4.2. Germany
9.4.3. France
9.4.4. Italy
9.4.5. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. Israel
9.5.3. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. Japan
9.6.3. India
9.6.4. South Korea
9.6.5. Indonesia
9.6.6. Thailand
9.6.7. Taiwan 
9.6.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES 
11.1.  AeroFarms
11.2. Bright Farms Inc.
11.3. Bowery Inc.
11.4. FreshBox Farms
11.5. Signify Holding 
11.6. Argus Control Systems  
11.7. Netafim 
11.8. Logiqs 
11.9. Richel Group 
11.10. Vertical Farm Systems 
11.11. General Hydroponics 
11.12. Square roots
11.13. Gotham Greens

AeroFarms

Bright Farms Inc.

Bowery Inc.

FreshBox Farms

Signify Holding

Argus Control Systems 

Netafim

Logiqs

Richel Group

Vertical Farm Systems

General Hydroponics

Square roots

Gotham Greens

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