Global Indoor Farming Market is estimated to witness a rise in revenue from US$ 26.5 Bn in 2021 to US$ 62.0 Bn by 2030. The market is registering a CAGR of 10.1% during the forecast period 2022-2030.
Indoor farming is the practice of growing plants or crops usually on a large scale, entirely indoors often in a specially controlled environment. Vertical farming is an increasingly popular technique of producing crops indoors in a vertical setting. A vertical system involves the cultivation of crops in controlled environments, where every parameter affecting the growth is closely monitored.
Market Dynamics
The major factor responsible for the growth of the Global indoor farming market includes the lesser impact of external weather conditions and rising demand for fresh foods with high nutritive value. Traditional agriculture is highly dependent on natural resources whereas indoor farming has undeniable advantages in this regard. As it reduces water needs, and transportation costs, requires no pesticides or chemicals and reduces agricultural land use. Moreover, the rising demand for organic food further fuels the growth of the market as it is perceived to be healthier, nutritious, safer, and more eco-friendly. This has resulted in qualitative changes in the production, processing, distribution, and marketing of food. However, the initial costs of setting the indoor farming are more compared to the investment required in traditional farming as the cost of urban land is higher than that of farmland. Also, it requires a high initial investment for the devices and equipment which is used in indoor farming. Therefore, high initial investments and limitations on the types of crops that can be grown restrict the market growth.
Report Summary
The study of the Global Indoor Farming Market considers various market determinants, industry value chain analysis, and competitor analysis of the market. The report discusses the analysis of the indoor farming industry for the period 2017-2030, where the base year is 2021 and the forecast period is 2022-2030. The report provides a detailed analysis of the Global Indoor Farming Market across 15 Chapters and 199 pages. The report includes data presentation across 29 tables and 95 statistical figures.
The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein bargaining power of buyers is moderate and competitive rivalry is high.
The subsequent section provides details of the market analysis based on different segments such as growing system, crop type, technology, and region. The report includes a detailed study of the value chain of the industry. It includes raw material providers, production, distributor, and end-users. The report also covers extensively the key competitors in the market for global indoor farming.
Impact of COVID-19 on Global Indoor Farming Market
The COVID-19 pandemic hit the world’s health, economic and social system, as many people were pushed back into poverty. Despite the general slowdown of the economic system and human activities, the pandemic changed the narrative for vertical farming, often considered too futuristic. One of the key benefits of vertical farming, highlighted during the pandemic, is shortening the supply chain. Vertical farming is believed to respond to current global challenges such as growing population, resource scarcity (especially water), and supply chain security.
Moreover, with the pandemic, health and food safety are now even more trending among the populations around the globe as people are more inclined towards home cooking and self-made/homemade meals. After the devastating outbreak of the coronavirus pandemic, the adoption rate of urban indoor farming systems around the world is estimated to rise sharply. Furthermore, urban farming plays a more critical role in the global food system, and the COVID-19 pandemic highlighted its importance.
Key Takeaways from the Global Indoor Farming Market Report
Compatible Crops for Vertical Agriculture
Competitive Landscape
The key players in the Global Indoor Farming Market are AeroFarms, Agricool, Argus Control Systems Limited, Bowery Farming Inc., BrightFarms, Everlight Electronics Co., Ltd., EXDIN Solutions, General Hydroponics, Gotham Greens, and Grow Pod Solutions among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on the emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.
Segmentation Overview
Global Indoor Farming Market is segmented based on growing system, crop type, technology and region. The industry trends in the Global indoor farming market are sub-divided into different categories in order to get a holistic view of the global marketplace.
Following are the different segments of the Global Indoor Farming Market:
By Growing System segment of the Global Indoor Farming Market is sub-segmented into:
By Crop Type segment of the Global Indoor Farming Market is sub-segmented into:
By Technology segment of the Global Indoor Farming Market is sub-segmented into:
By Region segment of the Global Indoor Farming Market is sub-segmented into:
Indoor farming is the practice of growing plants or crops usually on a large scale, entirely indoors often in a specially controlled environment.
Reduce transportation cost, limited land use, water efficiency, environment-friendly, unaffected by adverse weather conditions, and no chemicals or pesticide usage.
By using artificial lights, environmental control systems, irrigation, and fertigation systems, all environmental conditions within the enclosed structure may be regulated.
Global indoor farming market was estimated at US$ 26.5 Billion in 2021 and is expected to reach US$ 62.0 Billion by 2030.
Europe held the major share in terms of revenue, in the global indoor farming market in 2021.
Factors such as the lesser impact of external weather conditions and rising demand for fresh foods with high nutritive value drive the growth in the global indoor farming market over the forecast period.
High initial investments and limitations on the types of crops that can be grown is a restraining factor that inhibits the growth of the market.
The aeroponics segment is expected to project the highest CAGR over the forecast period in the indoor farming market.
China held the major share in the Asia Pacific indoor farming market in 2021.
The production of new biopharmaceuticals continues to expand at a rapid pace, thus providing a lucrative growth opportunity in the market.
Growing system, crop type, and technology are the different segments in the global indoor farming market.
The key players operating in the market include are AeroFarms, Agricool, Argus Control Systems Limited, Bowery Farming Inc., BrightFarms, Everlight Electronics Co., Ltd., Gotham Greens and Grow Pod Solutions among others.
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| Report ID: AA0522235 
