Dublin, May 15, 2023 (GLOBE NEWSWIRE) -- The "Plant Factory Market by Growing System (Non-soil-based, Soil-based, Hybrid), Crop Type (Fruits, Vegetables, Flowers & Ornamentals, Other Crop Types), Facility Type (Greenhouses, Indoor Farms), Light Type and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The plant factory market is projected to grow from USD 138 Million in 2023 to USD 196 Million by 2028, at a CAGR of 7.3% during the forecast period. Climate change is causing more frequent and severe weather events, damaging crops and disrupting traditional farming methods. Plant factory systems offer a way to produce crops in a controlled environment, which is less vulnerable to weather-related disruptions.
The greenhouse segment is expected to account for the largest share in 2023.
Based on facility type, the greenhouse segment is projected to lead the plant factory market during the forecast period. As consumers become more interested in locally grown and sustainably produced food, the demand for indoor-grown produce is increasing. Advanced greenhouse facilities can meet this demand by producing high-quality crops year-round in a controlled environment, and plant factory systems can complement these facilities by providing a source of seedlings or young plants for transplanting into the greenhouse.
The Vegetables Segment is projected to dominate the market share in the crop type segment during the forecast period.
Based on the crop-type segment, the vegetables segment is projected to dominate the market share during the forecast period. Plant factories can also help improve the sustainability and efficiency of vegetable production. By using hydroponic or aeroponic systems, growers can reduce water usage, minimize fertilizer runoff, and optimize energy use. Additionally, plant factories can be located close to urban centers, reducing transportation costs and carbon emissions associated with long-distance food transport.
Europe is expected to account for the largest market share in 2023.
The Plant Factory market industry has been studied in North America, Europe, Asia Pacific, South America and Rest of the World. Europe accounted for the largest market share in 2023. According to the World Bank 2020, the EU's percentage of arable land has been consistently dropping since 1960. Today, less than 25% of the region's land area is arable. With less than 15 percent of their land being arable, countries like Croatia, Estonia, and Slovenia are particularly affected by this problem. Companies and cities are turning to CEA in response to the problem of a lack of available space and land suitable for crop cultivation.
As the amount of arable land in Europe decreases, it becomes more difficult to produce enough fresh, high-quality produce to meet local demand. Plant factories can help fill this gap by producing fresh, locally grown produce in urban areas, which can then be distributed to nearby communities. This can help to ensure a reliable supply of fresh produce even as the amount of arable land in Europe declines.
Market Dynamics
Drivers
- Higher Yield Compared to Traditional Agricultural Practices
- Low Impact on External Weather Conditions
Restraints
- High Capital Investments
- Requirement of High-Precision Environment
Opportunities
- Increased Adoption of Plant Factories by Restaurants and Grocery Stores Amid COVID-19 Pandemic
- Rising Demand for Floriculture and Ornamental Horticulture
Challenges
- Tapping into Organic Food Market
- Risk of Equipment Failure and Delay in Learning Curve Among Growers
- Spread of Waterborne Diseases and Algae in Closed Systems
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 285 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $138 Million |
| Forecasted Market Value (USD) by 2028 | $196 Million |
| Compound Annual Growth Rate | 7.3% |
| Regions Covered | Global |
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Industry Trends
7 Plant Factory Market, by Growing System
7.1 Introduction
7.2 Non-Soil-based
7.2.1 Better Yield and Necessity to Grow Crops in Smaller Spaces to Drive Market
7.2.2 Hydroponics
7.2.3 Aeroponics
7.2.4 Aquaponics
7.3 Soil-based
7.3.1 Climate Change and Insufficient Crop Productivity to Drive Demand for Soil-based Agriculture
7.4 Hybrid
7.4.1 Hybrid Systems to Offer Dual Advantage for Optimum Production
8 Plant Factory Market, by Crop Type
8.1 Introduction
8.2 Fruits
8.2.1 Year-Round Harvest, Reduced Water Usage, and Minimal Damage Possibilities to Drive Market
8.2.2 Berries
8.2.2.1 Growing Popularity of Berries as Healthy and Delicious Food to Fuel Production in Plant Factories
8.2.3 Other Fruits
8.3 Vegetables
8.3.1 Consistent Nutrient Levels, Reduced Pesticide Use, and Longer Shelf Life to Drive Demand
8.3.2 Tomato
8.3.2.1 Enhanced Nutritive Value and Reduced Negative Environmental Impact to Drive Demand
8.3.3 Leafy Greens
8.3.3.1 Enhanced Shelf-Life, Increased Food Safety, and Security of Supply to Grow Demand for Leafy Greens
8.3.3.1.1 Lettuce
8.3.3.1.2 Kale
8.3.3.1.3 Spinach
8.3.3.1.4 Other Leafy Greens
8.3.4 Eggplant
8.3.4.1 High Sensitivity to External Conditions to Augment Production of Eggplants in Plant Factories
8.3.5 Herbs & Microgreens
8.3.5.1 Need to Retain Peak Flavor Intensity of Microgreens to Drive Production in Plant Factories
8.3.5.1.1 Basil
8.3.5.1.2 Herbs
8.3.5.1.3 Tarragon
8.3.5.1.4 Wheatgrass
8.3.6 Other Vegetables
8.4 Flowers & Ornamentals
8.4.1 Requirement for Complete Control Over Nutritional Flow and Monitor Ph Levels to Drive Market
8.4.2 Perennials
8.4.2.1 Ease of Production to Drive Market for Perennials Produced in Plant Factories
8.4.3 Annuals
8.4.3.1 Wider Cultivation of Ornamental Annuals in Indoor Farms and Greenhouses to Boost Market
8.4.4 Biennial
8.4.4.1 Longer Growth Periods of Biennials Supplemented by Secure Environments to Propel Market
8.5 Other Crop Types
9 Plant Factory Market, by Facility Type
9.1 Introduction
9.2 Greenhouses
9.2.1 Need to Produce Wider Crop Varieties and Provide Higher Profitability and Growth Prospects to Boost Market
9.3 Indoor Farms
9.3.1 Need to Facilitate More Than Three-Fold Yield Than Traditional Farming to Boost Demand
9.4 Other Facility Types
10 Plant Factory Market, by Light Type
10.1 Introduction
10.2 Full Artificial Light
10.2.1 Need for Precise Control of Growing Conditions and Year-Round Production of Crops to Drive Market
10.3 Sunlight
10.3.1 Need to Reduce Energy Consumption, Decrease Production Costs, and Improve Crop Quality to Propel Market
11 Plant Factory Market, by Region
12 Competitive Landscape
13 Companies Profile
14 Adjacent & Related Markets
15 Appendix
Companies Mentioned
- Aerofarms
- Agricool
- Appharvest
- Badia Farms
- Bowery Farming Inc.
- Brightfarms
- Crop One
- Dream Harvest
- Farm.One Inc.
- Farminova Plant Factory
- Gotham Greens
- Iron Ox, Inc.
- Kalera Inc.
- Mirai
- Oishii
- Plenty Unlimited Inc.
- Sky Greens
- Smallhold
- Taikisha Ltd.
- Vertical Harvest
For more information about this report visit https://www.researchandmarkets.com/r/fn8s7u
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