North America 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), By Crop Type (Fruits And Vegetables, Herbs And Microgreens, Flowers And Ornamentals, Others), And By Country - Forecasts From 2023 To 2028

Indoor framing can be defined as the practice of growing plants in soilless environments, using techniques such as aquaponics, hydroponics, and aeroponics, or it can refer to controlled-environment agriculture, which focuses on maximizing plant growth. An indoor farm commonly consists of shallow trays piled inside a structure and illuminated by LED lights on each level. These farms have to provide everything, including water, fertilizers, sunlight, and perhaps pollinators and pest control as well. Others may be constructed in enormous greenhouses to maximize the Sun's heat and light while also managing other inputs like fertilizer and water.

Indoor farming approaches have arisen in recent years to meet the confluence of difficulties such as food production, community sustainability, and resource efficiency. Indoor farming allows for the production of nutrient-rich food near home while conserving resources. Such creative agricultural approaches that produce what we need where we need it might help to address some of North American food production, storage, distribution, and loss concerns. Food production challenges due to land scarcity, a growing population, pressing food security problems, and climate change are boosting indoor farming approaches as governments in this country encourage farmers to grow more while using fewer resources to enhance food output. The North American market is predicted to increase rapidly throughout the projection period because of the requirement for better output with fewer resources and land. World Bank figures indicate that approximately 597 million are living in the North American region in 2021 as compared to 592 million in 2020. World Bank database shows that 4,635,537 square kilometers of land were available for agriculture down from 4,728,660 square kilometers of land in 2007 in North America. As a result, the growing population, rising urbanization, and decreasing arable land are propelling demand for indoor framing practices in the region.

In order to increase crop productivity, improved technologies like artificial intelligence, the internet of things, and data analytics are being used more frequently in indoor farming. Several Indonesian businesses are investing in research and development operations to integrate technology with food systems to increase efficiency and sustainability driving growth. For instance, Siemens Corp. has established a partnership with 80 Acres Farms, a pioneer in the indoor farming sector. 80 Acres Farms is a company that specializes in growing the next generation of food, which is food produced in eco-friendly indoor farms that are located closer to consumers' tables. It has five production farms in southwest Ohio, a new farm in Florence, Kentucky, a future farm in Covington, Georgia, and R&D facilities in Arkansas and the Netherlands.

However, the high cost associated with indoor farming techniques, lack of knowledge, and skilled manpower are some of the factors that will hinder the growth of the indoor farming market in North America.

Government initiatives and policies are spurring growth for indoor framing practices in North America

In order to tackle rising food demand due to the growing population, scarcity of resources such as land and water, food security, and community sustainability, the government in this region encourages companies to build more indoor farms. They have come up with and implemented various initiatives and economic incentives to boost the adoption of indoor farming practices. For instance, the United States Department of Agriculture will provide subsidies of up to US$400 million annually for foods grown via innovative and sustainable farming practices such as vertical farming. Moreover, in March 2022, The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced an investment of over CA$ 860,000 in six initiatives via the Innovative Solutions Canada programme. To address issues in these agricultural industries, funds will be used to enhance automation and robotic technology. The companies under this project include Exonetic Inc, GWS Vertical Farms Inc, Sinopa Energy Inc, and many more. Such policies and initiatives are spurring the growth of indoor farming techniques during the forecast period.

The United States is anticipated to hold a significant amount of the North American indoor farming market share during the forecast period

The United States of America is anticipated to hold a significant amount of market share in North American indoor farming. The United States is home to approximately 2000 indoor farms. Rising worries about nutrition and food security are predicted to create a variety of brand-new chances for the business in indoor farming to thrive. It is projected that the United States will contribute significantly to supporting the ecology of future foods. Urban population growth in areas like New York, Boston, and Los Angeles have pushed the environment for vertical farming through projects like renovating abandoned warehouses, high rises, and abandoned buildings. This has, in turn, increased the output of fresh cultivated foods overall. New aeroponic systems are being built in a few promising regions of the nation. For instance, Aerofarms is constructing a 69,000-square-foot farm near Newark, and it is anticipated that this farm would produce 2.0 million pounds of leafy greens yearly. Growing investment activities along with the presence of prominent market players such as Aero Farms, Plenty, and Bowery Farming Inc are also spurring growth in the country.

Market Key Developments

• In January 2022, Walmart and Plenty announced their long-term investment to provide customers with seasonal, peak-flavor vegetables. As part of its US$400 million Series E fundraising round, Walmart disclosed an investment in Plenty. The retail giant will purchase leafy greens from Plenty's new 95,000-square-foot flagship farm in Compton, California, which will open early next year, for all of its California locations.
• In December 2022, the Canadian vertical farming business GoodLeaf Farms plans to inaugurate a climate-controlled indoor farm in the Longueuil district of Montréal by 2023. A CAD 7 million loan from the Québec government and many smaller loans from economic development organizations support the new farm. According to GoodLeaf, the 100,000-square-foot vertical farm will have the potential to supply Atlantic Canada with 1.9 million pounds of microgreens and baby greens for grocery shops and the hospitality industry throughout Québec.
• In February 2022, in order to give vertical farms a way to cultivate high-yielding crops that generate flavorful tomatoes in environmental circumstances, Aero Farms announced a new tomato research cooperation with FFAR and the University of Florida.

North America Indoor Farming Market Scope:

Segmentation:

• By Growing System
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil- based
  • Hybrid
• By Component
  • Hardware
  • Software
  • Services
• By Facility Type
  • Grass or Poly Greenhouse
  • Indoor Vertical farms
  • Container Farms
  • Indoor DWC System
• By Crop Type
  • Fruits and Vegetables
  • Herbs and Microgreens
  • Flowers and Ornamentals
  • Others
• By Country
  • USA
  • Canada
  • Mexico