Indoor Farming Market: Global Industry Analysis and Forecast (2024-2030) by Growing System, Facility Type, and Region

Indoor Farming Market Definition:

Indoor farming is the process of producing vegetables in a closed and regulated environment, layered one on top of the other. Using vertically stacked growing shelves minimises the amount of ground space necessary to develop plants significantly when compared to traditional farming methods. By minimising the distance traversed in the supply chain, indoor farming boosts crop output while lowering farming's environmental effect.

 

By using vertically placed growing shelves, it minimises the amount of land space necessary to cultivate plants when compared to traditional farming methods. Indoor agriculture is a type of modern agriculture that involves growing crops in a controlled environment. The indoor farming market is growing, fuelled by the world's growing population and the resulting desire for more secure and reliable food sources. Agriculture in the traditional sense is restricted to locations with sufficient land and water.

 

 

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Indoor Farming Market Dynamics:

The usage of herbicides and pesticides in crop and plant production is being reduced, which is boosting the market forward:

 

Pesticides manage weeds, insects, nematodes, and plant infections, resulting in higher yields and better product quality. Herbicides also lower the cost of mechanical weed control by reducing the quantity of personnel, machinery, and fuel consumed. Pests are essentially non-existent in indoor vertical farms since they are entirely shut off from the outside world. As a result, insecticides and herbicides are almost unnecessary. Food grown is healthier, safer, and certified organic, which appeals to consumers even more.

 

Because certain plants can be grown in smaller spaces, indoor farming tackles the issue of restricted space. In vertical farming, for example, each facility built reduces the demand for land use by a factor of a hundred. When compared to traditional farming, there is less water waste. When compared to outside farming, indoor farms recirculate and reuse water, requiring 95% less water to cultivate the same crops which is another major factor for driving the growth of the indoor farming market.

 

The market's expansion is being hampered by high initial investments in indoor farming:

 

It`s a new agricultural technology that has piqued the interest of major corporations and investors all over the world. Indoor farming, as part of the impact investment ecosphere, is not profitable but secures food security for future generations. Lighting a farm scraper and controlling ambient temperatures are both costly and time-consuming activities. For the best indoor farm, regulatory the atmosphere within buildings in terms of illumination, temperature, pollination, and plant arrangement is dangerous. For the gadgets and equipment used in indoor farming, farmers must make a significant initial investment. One of the key bottlenecks in the indoor farming technology business is being hampered by this reason.

 

Pharmaceutical Plant Production Using Indoor Farming and the Integration of New Technology:  

 

A multiple of farming and pharmacy is the process of using genetic engineering to insert genes that code for beneficial pharmaceuticals into host animals or plants that would not normally express those genes, resulting in a genetically modified organism (GMO). To reduce the carbon footprint of indoor farming, new technologies must be created. Growers are more interested in investing in technologies that will reduce their personnel expenditures, which are necessary on large-scale farms for monitoring, maintenance, nutrient supply, and harvesting. As a result, completely automated urban farms based on vertical farming and controlled environment agriculture may be developed in the future.

 

Farmers have limited awareness of the crop's suitability for selective crop production Prohibited is giving a significant commercial challenge:

 

Temperature and humidity, airflow, the duration of the growth day, and other variables are among them. Grower’s capacity to regulate nearly every aspect of the growth recipe means that it can truly ensure that every plant reaches its full potential. Thus this lack of awareness of this variability gives a major challenge for the indoor farming market.

 

Indoor Farming Market Segment Analysis:

By Growing System, the market is segmented as Aeroponics, Hydroponics, Aquaponics, Soil-based, and Hybrid. The Aeroponics segment dominated the market with a 45.1% share in 2023. Aeroponics is a technique of developing flowers in a misty environment without using conventional media like soil. Instead of dirt, the plant roots are positioned in packing containers containing plant nutrients. These packing containers are best for oxygenation and wetness, and they beautify the plant`s absorption of nutrients, bearing in mind quicker increase and cultivation. The seeds are sown on a stressed mesh, and the plant pots are stacked on pinnacle of 1 another, making it light-weight and portable.

 

However, the Hydroponics segment is expected to grow at a CAGR of 9.6% through the forecast period. The term hydroponics refers to the practice of growing plants without the use of soil. At the root zone, plants require light, water, carbon dioxide, and oxygen. Plants are grown in hydroponics in an inert substrate, such as pebbles or coco coir fibre, and are fed a solution with a precise combination of primary, secondary, and micronutrients. These elements are a major factor for fuelling the growth of this segment in the indoor farming market.

 

 

By Facility Type, the market is segmented as Glass or Poly Greenhouses, Indoor Vertical Farms, Container Farms, and Others. The Indoor Vertical Farms segment dominated the indoor farming market with a 52.3% share in 2023. Indoor vertical farms are enclosed, opaque chambers with artificial lighting and vertical growth methods including hydroponics, aeroponics, and aquaponics. Vertical farms are modular and adaptable to any structure. Indoor vertical farms are mostly used to raise lettuce, kale, spinach, strawberries, and herbs. Crops are grown in vertically stacked layers such as skyscrapers, old warehouses, or shipping containers in indoor vertical farming. Using artificial lights, environmental control systems, irrigation, and fertigation systems, all environmental conditions within the enclosed structure may be regulated.

 

Indoor Farming Market Regional Insights:

The North American region dominated the indoor farming market with a 39.6% share in 2023. With the use of high-efficiency LED lighting and enhanced indoor management practices, growers in the United States have been able to adopt large-scale indoor farming. These methods are predicted to cut energy lighting expenses by half, lowering the carbon footprint of controlled environment agriculture. The average production of standard lettuce farming doubled when cultivated vertically, according to the US Department of Agriculture (USDA). The greenhouse crop production sector currently dominates the indoor farming industry in the United States.

 

However, the Asia Pacific region is expected to grow at a CAGR of 7.8% through the forecast period. From a traditional agricultural practise system, the farming business in the Asia Pacific area has been changing toward modern and innovative ways. These fluctuations have resulted in the advancement of crop management methods to upsurge crop premium value. In China, Japan, Singapore, Taiwan, and other technologically advanced countries, indoor farms abound. China is predicted to hold the largest share of the Asia Pacific indoor farming technology market, due to increased R&D investments from numerous multinational firms and the usage of greenhouse farming for the production of specific crops. The high initial cost of setting up these systems is a faltering block in the Asia Pacific market.

 

The objective of the report is to present a comprehensive analysis of the Global Indoor Farming market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Indoor Farming market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the global market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Indoor Farming market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Indoor Farming market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the global m

.arket.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Global Indoor Farming market. The report also analyses if the Global Indoor Farming market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few Players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Indoor Farming market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Indoor Farming market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Indoor Farming market is aided by legal factors.

 

Indoor Farming Market Scope:

Indoor Farming Market
Market Size in 2023	USD 43.44 Bn.
Market Size in 2030	USD 91.34 Bn.
CAGR (2024-2030)	11.2%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Growing System Aeroponics Hydroponics Aquaponics Soil-based Hybrid
	By Facility Type Glass or Poly Greenhouses Indoor Vertical Farms Container Farms Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Indoor Farming Market Key Players:

• Signify Holding (Netherlands)
• Everlight Electronics (China)
• Argus Control Systems (Canada)
• LumiGrow (US)
• Netafim (Israel)
• Logiqs (Netherlands)
• Illumitex (US)
• Hydrodynamics International (US)
• American Hydroponics (US)
• Richel Group (France)
• Vertical Farm Systems (Australia)
• General Hydroponics (US)
• Agrilution (Germany)
• Heliospectra AB (Sweden)
• Scotts Miracle Gro (US)
• Hydroponics System International (Spain)
• Advanced Nutrients (US)
• Emerald Harvest (US)
• VitaLink (UK)
• Grobo (US)