Global Indoor Farming Market by Component (Hardware, Software), by Facility Type (Vertical Farms, Greenhouses) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global indoor farming market was valued at USD 32.3 Billion in 2020. It is projected to grow at a compound annual rate of 10.9% between 2021 and 2028. The growth is expected to be driven by increasing consumer awareness about the benefits of fresh, high-quality foods. The increasing population, particularly in emerging countries like India and China, has also led to an increase of food demand which is driving market growth. The changing climate can lead to environmental problems such as soil degradation, groundwater depletion and other issues that affect food production and agriculture. In order to address this problem, governments encourage the construction of indoor farms. This will in turn stimulate market growth.

Organic foods are considered healthier, more nutritious, safer and more sustainable than conventional food. The food buying behavior of consumers is a key factor in determining the demand for organic foods. This is crucial for policymakers and producers to develop successful marketing strategies.

According to The World Bank Group in 2016, the total arable land per person has decreased from 0.197 hectares to 0.192 hectares. Farmers have had to find new ways to produce fresh food due to the lack of arable land. Indoor farm owners will be able to grow crops indoors using vertical agriculture techniques. This trend is expected to become a major one by 2028.

The stacked layers of potted seed seeds used in indoor farms can increase the yield per area. This is expected to be a driving force for the market. Indoor farming refers to the practice of growing crops or plants indoors on both a small and large scale. Indoor farming uses methods like aquaponics or hydroponics, and makes use of artificial lighting to provide adequate light and nutrients. The market will be constrained by the high initial investment and limited crop variety.

Europe held the largest market share for 2020 due to the adoption technologies related to greenhouses or vertical farms. The U.K., Germany, the U.S. and Canada are among the early adopters of new farming technologies. Emerging economies like India, China and Mexico are seeing a significant increase in the use of technology integrated into indoor farming. This is due to the growing demand for fresh crops. Indoor farming is expected to grow due to rising disposable income and growing urban populations in emerging economies.

Insights on Facility Types

The vertical farm segment is expected to exhibit the fastest CAGR of around 19% from 2021 to 2028, owing to the growing adoption of environmentally-friendly production of fruits and vegetables. The changing purchasing habits of consumers, which result in a growing demand for organic foods, is also expected to drive this demand. Indoor farming protects crops against extreme weather conditions by using techniques such as controlled environment agriculture technology. This technology uses artificial environmental monitoring and control of light to ensure that plants are fertigated.

To meet rising food demand, farmers are turning to new techniques such as vertical farming and greenhouses to grow their crops. In 2018, the greenhouses type was dominant with a market share exceeding 80%. A greenhouse, also known as a hothouse, is a closed structure that is made of transparent material. It is used for growing plants, crops, or flowers. To increase the quality and quantity of produce, greenhouses can be controlled by controlling the climatic conditions. The greenhouses can also produce higher yields than traditional farming methods.

Component Insights

With a market share of over 70%, the hardware segment dominated indoor farming components in 2020. It is expected to continue its dominance between 2021-2028 as hardware plays an important role in maintaining indoor farms' environments. This segment can be further divided into lighting systems, climate control systems and sensors, as well as irrigation systems. These systems allow indoor-grown crops to be grown. The fastest-growing segment is the climate control system, which creates a favorable environment for plant growth. The indoor climate control system includes chillers, heaters and humidifiers.

The software segment will, however, experience a CAGR of more than 10% between 2021-2028 due to the new trends in technology and farming practices. Software traces fruit and vegetable back to the grower, crop batch/patch and area of land/field. It also provides details about suppliers. This segment was further divided into cloud-based and web-based software. Cloud-based software is expected to grow significantly in the coming years. It collects millions upon millions of data points, which can then be analyzed with machine learning techniques to determine changes in environmental parameters that impact the yield and flavor of final produce.

Insights on the Crop Category

With a CAGR rate of 11.5%, the indoor farming market will be dominated by fruits, vegetables and herbs between 2021-2028. This segment is growing due to the increasing production of common fruits, vegetables, herbs, and herbs like tomato, lettuce and leafy greens, cucumbers, bell peppers, and chili peppers. These crops can be grown on large scales and bring maximum profits to the farmers. Tomato is the most widely cultivated crop due to its high cultivation rate. It held the largest market share for 2020.

Market growth is expected to be influenced by the flowers and ornamentals sector. In 2020, the segment represented more than 28% market share. Growth is expected to be driven by the increasing use of ornamentals and flowers for aesthetic and decorative purposes. This segment can be further divided into ornamentals, annuals, perennials. Due to growing sales, the ornamentals flower segment held the largest market share for 2020.

Regional Insights

Europe held 32.2% of the global market in 2020, and it is expected to continue its dominance during the forecast period. Rising adoption of technologies, such as Controlled Environment-Agriculture (CEA) that control the environmental factor is responsible for regional growth. The market is growing because of the increased focus on technologies such as Active Heat Systems and LEDs to increase the yield. Several initiatives by the regional governments for building indoor farms in order to overcome challenges, such as growing population, climate change, food production in an environmentally-unfriendly way. Farm owners have been investing in technology such as crop monitoring sensors and LED lighting, which will lower labor costs.

Asia Pacific will see the highest CAGR of more than 12% between 2021 and 2028. Due to the large number of indoor farms, countries such as Japan and China will see significant growth over the next few years. Due to the growing population, there is a rising demand for organic foods. This has led to the construction of vertical and greenhouse farms to grow crops. Regional demand will be further fueled by the growing awareness of the importance of alternative farming due to a lack of fertile land.

Market Share Insights & Key Companies

To expand their market share, the key market players are involved in strategies like partnerships, business expansions, product development, and contracts. To meet market requirements, the companies concentrate on building greenhouses and expanding indoor farm farms. Richel Group, for example, announced the creation of a multi-span greenhouse that will be used in Mexico. This greenhouse was designed to satisfy the growing needs of growers who require larger structures. It is well-suited for optimal light transmission, better air circulation, improved climate control, and ease of movement. The following are some of the major players in the global indoor agriculture market:

• Argus Control System Ltd.

• Certhon

• General Hydroponics

• Hydrodynamics International

• Illumitex

• Lumigrow

Up Market Research published a new report titled “Indoor Farming Market research report which is segmented by Component (Hardware, Software), by Facility Type (Vertical Farms, Greenhouses), By Players/Companies Certhon, General Hydroponics, Argus Control Systems Ltd, Lumigrow, Illumitex, Hydrodynamics International”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Indoor Farming Market Report Segments:

The market is segmented by Component (Hardware, Software), by Facility Type (Vertical Farms, Greenhouses).

Some of the companies that are profiled in this report are:

1. Certhon
2. General Hydroponics
3. Argus Control Systems Ltd
4. Lumigrow
5. Illumitex
6. Hydrodynamics International

Indoor Farming Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Indoor Farming Market

Overview of the regional outlook of the Indoor Farming Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Indoor Farming Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Indoor Farming Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Hardware

                2. Software

                1. Vertical Farms

                2. Greenhouses

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Indoor Farming Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Indoor Farming Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.