The USA indoor farming market is projected to show steady growth during the forecast period.
Using layers of potted seeds coated on top of one another, indoor farms upsurge the overall crop output per unit area, pushing the market. Growing plants or crops indoors on both a small scale and a large scale is known as indoor farming. Aquaponics and hydroponics are used in indoor farming, and artificial lighting is used to provide plants with the necessary nutrients and light levels. The high initial cost of constructing indoor farms and restrictions on the types of crops that can be grown are anticipated to stymie industry expansion.
But when the climate changes, it exacerbates already-existing environmental issues like soil erosion and groundwater depletion, which have an impact on the food and agricultural production systems. Governments support the construction of indoor farms along with other activities to address this issue, which is projected to boost the market's expansion.
Indoor farming techniques, which grow crops in a controlled environment, were made popular by the country's growing urbanization and increased awareness of the benefits of eating healthy food. Additionally, the market for crops grown indoors in the US is expanding due to the growing popularity of organic goods. The market is anticipated to increase as a result of declining agricultural land per person, the quickening development of precision farming technologies, and high productivity in a limited space. While restrictions on the kinds of crops that can be grown and expensive upfront costs may impede market expansion. In North America right now, the United States is home to the most indoor farms.
Hydroponics dominates the market and may upsurge the market expansion
Given the growing popularity of greenhouse horticulture and agriculture in the nation, the United States is one of North America's main markets for hydroponic systems. The development of production methods that are cost-competitive with open-field agriculture will be crucial for the country's hydroponics business to expand in the future. Hydroponic crop cultivation is also seen as a last resort amid severe weather. For instance, supermarket stores have in the past relied on hydroponic growers to satisfy their needs when the weather is bad. It is anticipated that rising demand for greenhouse tomatoes and the legalization of medicinal plants like marijuana would contribute to the market's rapid expansion across the nation. Urban rooftop hydroponic gardens are also assisting the market's expansion.
Growing demand for organic fruits and vegetables
In response to a trend towards synthetic pesticides and fertilizers, there is now a need for and desire for organic fruits and vegetables in the United States. One of the main crops grown in the nation using indoor farming techniques is the tomato. Tomato production, seed germination, and multiplication have all been economically successful applications of hydroponic methods. Since producers in the nation saw this as an opportunity, they increased fruit and vegetable production through indoor farming.
Integrated agricultural production techniques provide the year-round availability of strawberries in addition to vegetables. Many farmers around the nation have begun using hydroponics to grow strawberries to meet market demand. According to the aforementioned causes, indoor farming is anticipated to be essential to the nation's production of fruits and vegetables.
Market Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Growing System, Component, Facility Type, And Crop Type |
| Companies Covered | AeroFarms, LLC, Agrilution Systems GmbH, Bowery Farming Inc., BrightFarms Inc. (Cox Enterprises, Inc.), Freight Farms, Inc., FreshBox Farms (Crop One Holdings Inc.), Garden Fresh Farms, Inc, Green Sense Farms Holdings, Inc |
| Customization Scope | Free report customization with purchase |
Segmentation: