The Indoor Farming Technology Market is expected to grow from US$32.708 billion in 2025 to US$59.195 billion in 2030, at a CAGR of 12.60%.
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.
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, and 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.
Indoor farming is a costly enterprise, 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.
Hydroponics is expected to account for a significant share of the market owing to advantages such as the low cost of water because the water remains in the system and may be reused and the elimination of the need for soil. Aeroponics is expected to grow at a high CAGR in the projected period.
Over the estimation period, the hardware category is expected to have the biggest market share and develop quickly in the indoor farming technology market.
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.
The fruits and vegetables 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 few years. One of the key factors that have accelerated the trend is the ever-increasing population. The herbs and microgreens segment is predicted to increase rapidly in the projected period.
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 fulfil the demands of crop growers for export-quality commodities exclusively.
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