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According to the study undertaken by Astute Analytica the global indoor farming market is anticipated to register a CAGR of 10.1% during the forecast period 2022-2030. The global indoor farming market was valued at US$ 26.5 Billion in 2021 and is forecasted to reach US$ 62.0 Billion by 2030.
Indoor farming is the practice of growing plants or crops usually on a large scale, entirely indoors often in a specially controlled environment. The market is experiencing rapid growth, owing to the undeniable benefits of indoor farming such as reduced transportation cost, limited land use, water efficiency, environment-friendly, unaffected by adverse weather conditions, and no chemicals or pesticide usage. Moreover, indoor farming increases the crop yield and reduces the farming impact on the environment by reducing the need for the land space required to grow plants. Also, it reduces water needs by 95%. By using artificial lights, environmental control systems, irrigation, and fertigation systems, all environmental conditions within the enclosed structure may be regulated.
Factor such as the lesser impact of external weather conditions and rising demand for fresh foods with high nutritive valuedrives the growth in the global indoor farming market over the forecast period. The relative humidity is a very important factor, in a greenhouse relative humidity is 50 percent or higher. Traditional agriculture is highly dependent on natural resources and is planted on an open field with natural sunlight and irrigation. Whereas, indoor farming takes place inside and grows in stacked layers. Moreover, with increasing urbanization, there is rising demand for fresh nutritive food as people became more aware of their dietary patterns and lifestyles. 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. In addition to this, the production of new biopharmaceuticals continues to expand at a rapid pace, thus providing a lucrative growth opportunity in the market.
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.
Global Indoor Farming Market Insights by Growing System
Based on the growing system, the global indoor farming market is segmented into hydroponics, aeroponics, aquaponics, soil-based, and hybrid. The hydroponics segment holds the highest share in the global indoor farming market in 2021. When compared to traditional soil agriculture, a hydroponic system can produce up to four times the harvest yield. Whereas, the aeroponics segment is anticipated to grow at the highest CAGR during the forecast period as it speeds up plant growth, allowing more plants or seeds to be grown in less time than under normal conditions.
Global Indoor Farming Market Insights by Crop Type
Based on crop type, the global indoor farming market is classified into common crops, herbs, and microgreens. The common crops segment dominated the indoor farming market in 2021. Common crops are grown in vertically stacked layers such as skyscrapers, old warehouses, or shipping containers in indoor vertical farming. Moreover, the herbs segment is expected to grow at the highest CAGR during the forecast period as herbs provide various benefits, such as fragrant foliage, with varying foliage shapes and colors, when grown in an indoor setup.
Global Indoor Farming Market Insights by Technology
In terms of technology, the global indoor farming market is segmented into controlled environment agriculture, lighting, air control, and the Internet of Things- IoT. The lighting segment holds the largest market share in 2021 and is anticipated to project the highest CAGR over the forecast period as it is the most crucial part of developing a perfect indoor farming environment. For example- CFLs use 20% to 30% less energy than typical incandescent bulbs, it has the advantage of not emitting excessive heat, therefore, allowing farmers to keep the lights closer to the plants.
Global Indoor Farming Market Insights by Regional Outlook
By region, Europe holds the largest market share in 2021 and is also anticipated to project the highest CAGR over the forecast period owing to the adoption of technologies for greenhouses and vertical farms. Moreover, developed countries like the United Kingdom and Germany are pioneers in farming technology adoption. Also, the farming industry in the Europe region has been shifting towards technological and innovative methods from a conventional agricultural system.
Global Indoor Farming Market is highly competitive in order to increase its presence in the marketplace. Some of the key players operating in the market include 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.
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:
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