Indoor Farming Market

Indoor Farming Market generated a revenue of USD 13180 million in 2019 and is forecast to witness a strong CAGR of 9.1% during forecast period (2020-2027), due to the growing prominence of vertical farming and the growing need to improve crop productivity in order to cater the growing food demand.

Key Drivers

The indoor farming market is likely to experience a high growth in the upcoming years owing to the rising adoption of indoor farming across several economies as a result of its several advantages over the traditional methods of farming, such as improves efficiency and provides the ability to enable farming in a limited space. In addition to this, several technological advancements and research & development activities in the indoor farming such as the implementation of IoT, is leading to an optimization in the food production, which will further encourage the farmers to opt for this farming method. A reduction in the arable land and the increasing incidences of floods, draughts, and other natural disasters have increased the food security concerns has encouraged farmers to adopt new solutions to produce fresh food, driving the market growth. For example, as per the World Bank Group, the overall arable land per capita has reduced from 0.197 hectares in 2013 to 0.192 hectares in 2016.

The increasing population growth rate and rising urbanization are leading to a growth in the demand for food, which in turn, is surging the demand for the market. The indoor farming market eliminates the effects of severe climatic changes to the yields and provides ample water to the crops. Simultaneously, the increasing initiatives by the governments to provide subsidies and support programs for the adoption of indoor farming to reduce the use of water and enhance the efficiency in production is further bolstering the growth of the global indoor farming market. For instance, USDA and the Department of Energy held a stakeholder workshop aiming to support the adoption of vertical agriculture and to identify the needs, challenges, and opportunities for vertical farming. The factors that are responsible for restraining the growth of the global indoor farming market include the high requirement of initial investments and lack of skilled personnel

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Growing System Segment Analysis

Based on growing system, the hydroponics segment is expected to increase at a higher CAGR during the forecast period owing to the high adoption of this system of growing implementing indoor farming driven by its several advantages including more efficient use of water as compared to the traditional methods, reduced use of insecticide, & herbicides, enhanced growth rate, efficient use of nutrients and ability to perform at places where soil and weather conditions are not favorable.

Crop Type Segment Analysis

Fruits, vegetables, and herbs segment is predicted to witness a healthy CAGR over the forecast period, due to the growing production of tomatoes, lettuce, cucumbers, and chili peppers. Moreover, the inflating prices of fruits and vegetables and the growing demand for natural and pest-free fruits and vegetables has augmented the demand for indoor farming at home. The flowers and ornamentals segment will witness a promising CAGR over the upcoming years, due to their growing deployment for decorative and aesthetic purposes.

Facility Type Segment Analysis

Based on the facility type, the indoor vertical farms segment is anticipated to grow at a higher compound annual growth rate over the forecast period due to the increasing implementation of vertical farms for indoor farming across various countries because of their ability to optimize the energy consumption, use of no pesticides or herbicides and the offering of reliable harvests along with enhanced crop yield. Furthermore, the continuous technological advancements and inclination of consumers towards organic food will further energize the growth of the segment in the market. Increasing adoption of environment-friendly practices to produce fruits and vegetables will boost the market growth. Additionally, the growing demand for organic food due to the changing food purchasing behavior of consumers will further strengthen the market growth.

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Based on growing system, the hydroponics segment is expected to increase at a higher CAGR during the forecast period owing to the high adoption of this system of growing implementing indoor farming driven by its several advantages including more efficient use of water as compared to the traditional methods, reduced use of insecticide, & herbicides, enhanced growth rate, efficient use of nutrients and ability to perform at places where soil and weather conditions are not favorable.

Based on the facility type, the indoor vertical farms segment is anticipated to grow at a higher compound annual growth rate over the forecast period due to the increasing implementation of vertical farms for indoor farming across various countries because of their ability to optimize the energy consumption, use of no pesticides or herbicides and the offering of reliable harvests along with enhanced crop yield. Furthermore, the continuous technological advancements and inclination of consumers towards organic food will further energize the growth of the segment in the market.

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Regional Analysis

Based on the region, the Asia-Pacific region is anticipated to dominate the market during the forecast period owing to the increasing adoption of indoor farming across several countries such as Japan and China, to meet the challenge of varying climatic conditions. In addition, the accelerating population rate is leading to growth in the demand of food and diminishing of arable land and the increasing adoption of advanced technologies across Japan, China, and other countries having plenty of indoor vertical farms are some other factors

bolstering the growth of the indoor farming market in this region.
Europe is predicted to witness a faster CAGR over the upcoming years, due to the growing emphasis on adopting technologies for indoor farms, such as active heat systems and LEDs, to improve the yield. Strategic initiatives by the regional government to establish indoor farms to handle challenges like changing climatic condition, food production, and growing population, climate change, and food production in an environmentally -unfriendly way.

Various notable players operating in the market include Everlight Electronics Co., Ltd., Signify Holding, Netafim, Argus Control Systems Limited, Logiqs B.V., LumiGrow, Vertical Farm Systems, Illumitex, General Hydroponics, and Hydrodynamics International, among others.

Key Developments:

• • In 2022, Cambridge HOK developed the latest modular vertical farming facility concept to provide investors and retailers with the fully automated indoor farming facilities.
  • In 2020, Cambridge HOK entered into a strategic partnership with Fabrgro Ltd., under which the company will offer climate, energy and lighting solutions to customers of Fargro.
  • In 2020, Signify Holding expanded its collaboration with Planet Farms, which is a European operator of vertical farms based in Italy. In this collaboration, the company is to provide Philips Greenpower LED production module managed with the Philips GrowWise Control System for the vertical farm to enhance the quality and yield of the crops.
  • In 2019, Argus Control Systems Limited entered into a strategic partnership with Hydrofarm Holdings Group, Inc., an independent wholesaler, and manufacturer of hydroponics equipment and commercial horticultural products. Through this partnership, the companies planned to offer advanced environmental systems and services for horticulture in the US. Argus offers complete control solutions for a full range of horticulture facilities by joining an understanding of greenhouse and indoor growing environments.

The global indoor farming market has been segmented on the basis of growing system, facility type, component, crop type, and region. Based on the growing system, the market is segmented hydroponics, aeroponics, soil-based, aquaponics, and hybrid. Based on the facility type, the market is segmented into indoor vertical farms, glass or poly greenhouses, indoor deep water culture (DWC) systems, and container farms. Based on the component, the market is segmented into hardware and software & services. The hardware segment is further categorized into lighting systems, climate control systems, sensors, communication systems, irrigation systems, system controls, and others. Based on the crop type, the market is segmented into herbs & microgreens, fruits & vegetables, flowers & ornamentals, and others. The herbs & microgreens segment is further categorized into herbs, basil, wheatgrass, and tarragon. The fruits & vegetables segment is further categorized into the tomato, leafy greens, eggplant, strawberry, and others. The leafy greens segment is further categorized into kale, lettuce, spinach, and others. The flowers & ornamentals segment is further categorized into annuals, perennials, and ornamentals.

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Key questions answered in this research report:

• • At what pace is the global indoor farming market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in the global indoor farming market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global indoor farming market?
  • Which growing system generated maximum revenues in 2019 and identify the most promising growing system during the forecast period?
  • What are the various components of indoor farming, and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Indoor Farming Market by Growing System

• • Hydroponics
  • Aeroponics
  • Soil-Based
  • Aquaponics
  • Hybrid

Global Indoor Farming Market by Facility Type

• • Indoor Vertical Farms
  • Glass or Poly Greenhouses
  • Indoor Deep Water Culture (DWC) Systems
  • Container Farms

Global Indoor Farming Market by Component

• • Hardware
    • Lighting Systems
    • Climate Control Systems
    • Sensors
    • Communication Systems
    • Irrigation Systems
    • System Controls
    • Others
  • Software & Services

Global Indoor Farming Market by Crop Type

• • Herbs & Microgreens
    • Herbs
    • Basil
    • Wheatgrass
    • Tarragon
  • Fruits & Vegetables
    • Tomato
    • Leafy Greens
      • Kale
      • Lettuce
      • Spinach
      • Others
    • Eggplant
    • Strawberry
    • Others
  • Flowers & Ornamentals
    • Annuals
    • Perennials
    • Ornamentals
  • Others

Global Indoor Farming Market by Region

• • North America Indoor Farming Market (Option 1: As a part of the free 25% customization)

• • • North America Market by Growing System
    • North America Market by Facility Type
    • North America Market by Component
    • North America Market by Crop Type
    • US Market All-Up
    • Canada Market All-Up

• • Europe Indoor Farming Market (Option 2: As a part of the free 25% Customization)

• • • Europe Market by Growing System
    • Europe Market by Facility Type
    • Europe Market by Component
    • Europe Market by Crop Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

• • Asia-Pacific Indoor Farming Market (Option 3: As a part of the free 25% Customization)

• • • Asia-Pacific Market by Growing System
    • Asia-Pacific Market by Facility Type
    • Asia-Pacific Market by Component
    • Asia-Pacific Market by Crop Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

• • RoW Indoor Farming Market (Option 4: As a part of the free 25% Customization)

• • • RoW Market by Growing System
    • RoW Market by Facility Type
    • RoW Market by Component
    • RoW Market by Crop Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Indoor Farming Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Everlight Electronics Co., Ltd.
  • Signify Holding
  • Netafim
  • Argus Control Systems Limited
  • Logiqs B.V.
  • LumiGrow
  • Vertical Farm Systems
  • Illumitex
  • General Hydroponics
  • Hydrodynamics International