Saudi Arabia 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) - Forecasts From 2023 To 2028
- Published : Feb 2023
- Report Code : KSI061614470
- Pages : 85
Indoor framing can be defined as the practice of growing plants in soilless environments, using technologies such as aquaponics, hydroponics, and aeroponics, or can be referred to as 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.
The scarcity of resources such as land and water will spur growth.
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 Saudi Arabia's 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 country's 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 Saudi Arabia has 36 million people in 2021. Saudi land is widely desert with very little rainfall as a result not a lot of lands is available for agricultural practices. This means that the ability to use space as effectively as possible is critical for the country's progress and self-sufficiency. Meanwhile, climate change is having an impact on agricultural productivity by raising temperatures and making rain more erratic. Simultaneously, significant soil erosion, acidification, pollution by chemicals and heavy metals, and extensive pesticide usage have all lowered soil quality during the previous 50 years. As a result, the country is embracing indoor agricultural methods.
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 Saudi Arabian businesses are investing in research and development operations to integrate technology with food systems to increase efficiency and sustainability.
Various government initiatives are also propelling the growth of indoor framing practices in Saudi Arabia during the projection period.
The agriculture sector is one of the economic areas that will be reshaped and upgraded as part of the Saudi Vision 2030. By providing benefits like tax exemptions, subsidies, and other advantages in order to promote the adoption of vertical farming practices, the Saudi government is concentrating on lowering the imports of fruits and vegetables, which is expected to spur the growth of the Saudi Arabian vertical farming market in the coming years.
Moreover, according to official data, Between 2021 and 2025, the Saudi Arabian Agricultural Development Fund expects to spend around SAR 825 million (about US$220 million) on high-tech greenhouses. Saudi Arabia's annual vertical farm output volume was predicted to be 407,000 tonnes, and the country was said to be 60% self-sufficient in this area. The government also predicted that during the following several years, this number will at least double.
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 Saudi Arabia.
Market Key Developments
- In February 2023, a novel vertical farming project, a contemporary urban idea for producing crops in vertically stacked indoor areas, was unveiled by the Saudi Public Investment Fund. Saudi Arabia and other countries in the Middle East and North Africa will have vertical farms built thanks to a joint venture between the sovereign wealth fund of Saudi Arabia and the US company AeroFarms. The Public Investment Fund stated in a news statement that it set a production goal of 1.1 million kilos of crops per year for the venture's first farm in Saudi Arabia.
- In December 2022, a joint venture between the Taiwan-based YesHealth Group and the Saudi agricultural technology company Mowreq was launched with the goal of creating a network of vertical farms across Saudi Arabia. In the capital, Riyadh, a vertical farm will be constructed first. By the fourth quarter of 2023, the Vertical Farms Company initiative hopes to have the farm up and running.
- In November 2022, to build the Saudi Arabian smart farm infrastructure for strawberries, Kolon Global collaborated with the South Korean smart farm startup Ollefarm and the Saudi Arabian food trading enterprise Faidh International Food Company. Ollefarm will offer its smart farm technology and expertise in growing, producing, and distributing South Korean strawberry seeds in Saudi Arabia while Kolon Global will do a market analysis and feasibility reviews. Faidh will assist Kolon Global in a number of ways, such as through procuring locations, finance, and licenses.
- By Growing System
- Soil- based
- By Component
- 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
1.1. Market Overview
1.2. Market Definition
1.3. Scope of Study
1.4. Market Segmentation
1.7. Base and Forecast Year Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force 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. SAUDI ARABIA INDOOR FARMING MARKET ANALYSIS, BY GROWING SYSTEM
6. SAUDI ARABIA INDOOR FARMING MARKET ANALYSIS, BY COMPONENT
7. SAUDI ARABIA INDOOR FARMING MARKET ANALYSIS, BY FACILITY TYPE
7.2. Glass or Poly Greenhouse
7.3. Indoor Vertical Farm
7.4. Container Farm
7.5. Indoor DWC System
8. SAUDI ARABIA INDOOR FARMING MARKET ANALYSIS, BY CROP TYPE
8.2. Fruits and Vegetables
8.3. Herbs and Microgreens
8.4. Flowers and Ornamentals
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.3. Astra Industrial Group
10.5. Red Sea Farms
Astra Industrial Group
Red Sea Farms
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