Indoor vertical farming is the technique of layering vegetables on top of one another in a controlled and enclosed setting.
The global Indoor Farming market is anticipated to increase at a 9.6% CAGR to reach value US$ 96.6 Bn in 2032
Covid-19 Impact & Market Status
As a result of the COVID-19 pandemic, many individuals have formed an unfavorable attitude toward foreign food. People all across the world are turning toward home cooking and self-made/homemade meals as health and food safety take center stage.
As a result, the food and accommodation businesses have been put in jeopardy. The adoption rate of urban indoor farming systems is projected to surge throughout the world following the terrible outbreak of the coronavirus pandemic. The agriculture business had challenges in the early phases of the epidemic.
On the farm, manpower shortages were acute, some farmers missed their seasonal crop harvesting window, agricultural product prices were falling, and logistics were hampered. Many countries realized they were unduly reliant on food imports and began concentrating on local and internal production.
Because of the COVID-19 epidemic, the global Indoor Farming market is expected to be worth US$ million in 2022, with a readjusted size of US$ million by 2028, representing a CAGR of percent throughout the research period. Taking into account the economic impact of the health crisis, Halogen, which accounted for a percent of the global Indoor Farming Lighting market in 2021, is expected to reach a value of US$ million by 2028, rising at a rate of US$ million per year.
By expanding the system,
The aeroponics segment is predicted to develop at the quickest rate in the indoor farming technology industry. Aeroponics is a method of growing plants in a misty atmosphere without the need for traditional media like soil. Instead of dirt, plant roots are placed in containers containing plant nutrients. These containers are perfect for nutrition absorption, oxygenation, and moisture, allowing for quicker development and culture.
According to the type of facility,
In the indoor farming technology market, the indoor vertical farms segment is expected to rise at a faster rate. Indoor vertical farms are totally enclosed, opaque chambers with artificial lighting and vertical growth methods including hydroponics, aeroponics, and aquaponics. Vertical farms are adaptable to any structure since they are modular. Indoor vertical farms are mostly used to raise lettuce, kale, spinach, strawberries, and herbs.
Component by component,
The hardware sector is predicted to have the biggest market share and grow at the quickest rate in the indoor farming technology industry. The hardware segment includes climate control systems, communication systems, lighting systems, sensors, irrigation systems, system controls, and others, such as material handling and transportation systems. They're regarded as critical elements in indoor farming technologies.
In terms of crop type,
The herbs & microgreens sub-segment of the indoor farming technology market is expected to develop at the quickest CAGR by 2026. Herbs can be cultivated inside as perennial houseplants or to preserve delicate herbs such as rosemary and basil throughout the winter. When herbs are cultivated inside, they provide a range of benefits, including aromatic leaves in a variety of shapes and colours.
Region by region
Demand for indoor farming technology has risen as a consequence of more international company lines investing in agricultural operations to exclusively fulfill crop growers' needs for export-quality goods, with the Asia Pacific region expected to develop at the fastest rate. Furthermore, in the Asia Pacific region, farming techniques are shifting away from conventional agricultural practices and toward more contemporary and inventive methods.
When compared to traditional farming methods, using vertically placed growing shelves considerably reduces the amount of ground space required to cultivate plants.
Because of its propensity to survive in compact spaces, this style of farming is often connected with the city and urban farming. Some vertical farms are unique in that they cultivate plants without using dirt. The bulk of them are hydroponic or aeroponic in nature.
Instead of natural sunshine, artificial grow lights are used. As the world's population expands, increased food consumption is expected to fuel growth. Factors including limited water resources, urbanization, and climate change have all contributed to the loss of arable land. As a result, the demand for food produced by indoor farms is growing.
Traditional farming techniques are being hampered by factors such as rising global temperatures and harsh weather situations. The European Environment Agency (EEA) has undertaken a number of projects to develop vertical farms in order to address these issues and produce food in an environmentally responsible manner. By minimizing the distance traveled in the supply chain, indoor farming boosts crop output while lowering farming's environmental effect.
By using vertically placed growing shelves, it minimizes the amount of land space necessary to cultivate plants when compared to traditional farming methods. The growth of the indoor farming market is likely to be influenced favourably by increased consumer awareness about the consumption of nutritious and fresh food throughout the forecast period. Furthermore, using technology to generate nature-like settings, such as LED indoor farming, can assist farmers in meeting the predicted need for food supply in the near future.
Indoor farming combines current agricultural methods such as soil-based, aquaponics, hydroponics, aeroponics, and hybrid farming to provide an innovative technique of growing food on a large scale. This farming technology is transforming the present agricultural environment by providing various advantages over previous farming methods. Enhancing crop productivity, reducing environmental impact, and requiring less land are just a few of the advantages.
Indoor farming is ideal for urban areas since it requires less land and is extensively used to cultivate organically grown vegetables, fruits, and herbs that are free of toxic pesticides and insecticides. Vertical farming, which includes growing crops in vertically stacked layers in a controlled environment, is the most common method of indoor farming. Indoor farming, unlike traditional farming, can be done all year because it is not affected by weather conditions.
Signify Holding (Netherlands), Argus Control Systems (Canada), Everlight Electronics (China), LumiGrow (US), Illumitex (US), Hydrodynamics International (US), Netafim (Israel), Logiqs (Netherlands), American Hydroponics (US), General Hydroponics (US), Agrilution (Germany), Richel Group (France), Scotts Miracle Gro (US), Vertical Farm Systems (Australia), Heliospectra AB (Sweden). Expansions and investments, mergers and acquisitions, partnerships, joint ventures, and agreements are all being used by the key companies in this sector to expand their footprint. These companies have a strong presence in the Asia Pacific, North America, and Europe. They also have production facilities in these areas, as well as significant distribution networks.
Latest Innovations in the Indoor Farming Market: a Snapshot
- In August 2019, LumiGrow Inc. unveiled a new TopLight Hybrid smart fixture. The hybrids will let customers to utilize the company's SmartPAR software to operate the wider white spectrum, which is completely wireless.
- Hydroponics System International launched a new raised system in April 2019 to assist buildings that require gutters that are not at ground level.
- Signify Holdings purchased WiZ Connected (China), the creators of the WiZ Wi-Fi-based connected lighting ecosystem, in April 2019. With the purchase, the firm will be able to access the Wi-Fi-enabled smart lighting market.
Indoor Farming Market Scope
|Revenue forecast in 2032
|US$ 96.6 Bn
|CAGR of 9.6% during 2022-2032
|Facility Type, Growing System, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Argus Control Systems Ltd., Certhon, AeroFarms, Bright Farms Inc., Richel Group, Bowery Inc., FreshBox Farms, Metropolis Farms Inc., General Hydroponics, Hydrodynamics International, Illumitex, Lumigrow, Vertical Farm Systems, Priva, Netafim
Key Segments of the Indoor Farming Market
- Facility Type Outlook
- Vertical Farms
- Shipping Container
- Component Outlook
- Climate control systems
- Lighting systems
- Irrigation systems
- Crop Category Outlook
- Fruits, Vegetables, & Herbs
- Bell & Chili Peppers
- Leafy Greens
- Flowers & Ornamentals
- Regional Outlook
- North America
- Asia Pacific
- South America
- Middle East and Africa (MEA)