Dublin, March 21, 2024 (GLOBE NEWSWIRE) -- The "Indoor Farming Market Report by Facility Type, Crop Type, Component, Growing System, and Region 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The global indoor farming market reached US$ 19.6 billion in 2023. The market is projected to reach US$ 43.9 billion by 2032, exhibiting a growth rate (CAGR) of 9.36% during 2023-2032. The market is experiencing steady growth driven by rising preferences for sustainable and locally sourced food options, continuous technological advancements in indoor farming practices, and the widespread adoption of automation systems, including robotic arms and conveyor belts. 
Increasing Demand for Sustainable and Local Food Production
The rising preferences of individuals for sustainable and locally sourced food options represent one of the primary factors contributing to the market growth. Indoor farming significantly reduces the environmental footprint of food production. Traditional agriculture often involves long-distance transportation, excessive water usage, and the application of pesticides and herbicides. Along with this, the rising focus on local indoor farms to reduce the need for long transportation routes and minimize carbon emissions associated with food distribution is offering a favorable market outlook. Along with this, indoor farming enables year-round production of crops in extreme weather conditions. This consistent supply of fresh produce addresses the challenges of seasonal variations and food shortages. Regions with harsh climates or limited arable land, such as the Middle East, can reduce their reliance on food imports by investing in indoor farming. In line with this, the increasing focus on improving growing conditions, such as light spectrum and nutrient delivery, is allowing for the customization of crops to meet specific consumer preferences, such as sweeter tomatoes or spicier peppers.
Technological Advancements
Continuous technological advancements in indoor farming practices are improving their efficiency and promoting crop yield. The increasing adoption of automation systems, including robotic arms and conveyor belts is reducing labor costs and making indoor farming more economically viable. Robots can perform tasks, such as planting, harvesting, and sorting. In addition, the rising utilization of sensors and cameras to collect real-time data on crop health, environmental conditions, and nutrient levels is strengthening the growth of the market. Machine learning algorithms analyze this data to optimize growing parameters, resulting in higher yields and quality. In line with this, the increasing popularity of vertical farming, facilitated by automated vertical racks for maximum space utilization is creating a positive outlook for the market. This innovation allows for the cultivation of crops in layers, further increasing production efficiency. In addition, several researchers and growers are experimenting with light recipes tailored to specific crops.
Investment and Expansion
Continuous investments and expansion efforts from various stakeholders, including startups, established agriculture companies, and governments are influencing the market positively. Startup companies are hubs of innovation, driving the development of cutting-edge indoor farming technologies. They receive substantial venture capital funding to support their research and commercialization efforts. Along with this, several well-funded startups are expanding rapidly, setting up indoor farms in urban areas to supply fresh produce to local markets, which is contributing to the increased adoption of indoor farming. Furthermore, established agricultural companies are entering the indoor farming market through acquisitions or partnerships with startups. This trend leverages their existing expertise and resources to scale indoor farming operations. Apart from this, governing authorities of several countries are offering financial incentives, tax breaks, and grants to encourage indoor farming for promoting local food production, creating jobs, and promoting sustainability. They are also providing funds for research initiatives to improve indoor farming techniques, making them more accessible and cost-effective. Moreover, they are developing regulatory frameworks to ensure the safety and quality of indoor-farmed products.
Indoor Farming Industry Segmentation
The report provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. The report has categorized the market based on facility type, crop type, component, and growing system.
Breakup by Facility Type:
- Greenhouse
- Indoor Vertical Farms
- Container Farms
- Indoor Deep Water Culture
- Others
Greenhouse accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the facility type. This includes greenhouse, indoor vertical farms, container farms, indoor deep water culture, and others. According to the report, greenhouse represented the largest segment.
Breakup by Crop Type:
- Fruits, Vegetables and Herbs
- Lettuce
- Spinach
- Kale
- Tomato
- Herbs
- Bell and Chilli Peppers
- Strawberry
- Cucumber
- Others
- Flowers and Ornamentals
- Annuals
- Perennials
- Ornamentals
- Others
- Others
Fruits, vegetables, and herbs hold the largest share in the industry
A detailed breakup and analysis of the market based on the crop type have also been provided in the report. This includes fruits, vegetables, and herbs (lettuce, spinach, kale, tomato, herbs, bell and chilli peppers, strawberry, cucumber, and others), flowers and ornamentals (annuals, perennials, ornamentals, and others) and others. According to the report, fruits, vegetables, and herbs accounted for the largest market share.
Breakup by Component:
- Hardware
- Structure
- LED Lights
- HVAC
- Climate Control System
- Irrigation Systems
- Others
- Software
- Web-based
- Cloud-based
Hardware represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the component. This includes hardware (structure, LED lights, HVAC, climate control system, irrigation systems, and others) and software (web-based and cloud-based). According to the report, hardware represented the largest segment.
Breakup by Growing System:
- Aeroponics
- Hydroponics
- Aquaponics
- Soil-based
- Hybrid
Soil-based accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the growing system. This includes aeroponics, hydroponics, aquaponics, soil-based, and hybrid. According to the report, soil-based dominates the market.
Breakup by Region:
- Asia-Pacific
- North America
- Europe
- Latin America
- Middle East & Africa
North America leads the market, accounting for the largest indoor farming market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include Asia-Pacific (China, Japan, Singapore, South Korea, and others); North America (the United States and Canada); Europe (Netherland, Germany, the United Kingdom, France, Italy, and Others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
Competitive Analysis
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- AeroFarms
- Agricool
- Agrilution Systems GmbH
- Autogrow Systems Ltd.
- Bowery Farming Inc.
- Bright Farms, Inc. (Cox Enterprises, Inc.)
- Freight Farms
- FreshBox Farms
- Garden Fresh Farms
- Green Sense Farms Holdings, Inc.
- Logiqs B.V.
- Plenty Unlimited, Inc.
- SananBio
- Sky Greens
- SPREAD Co. Ltd.
- Urban Crop Solutions
- Voeks Inc.
Key Questions Answered
1. What was the size of the global indoor farming market in 2023?
2. What is the expected growth rate of the global indoor farming market during 2024-2032?
3. What are the key factors driving the global indoor farming market?
4. What has been the impact of COVID-19 on the global indoor farming market?
5. What is the breakup of the global indoor farming market based on the facility type?
6. What is the breakup of the global indoor farming market based on the crop type?
7. What is the breakup of the global indoor farming market based on the component?
8. What is the breakup of the global indoor farming market based on the growing system?
9. What are the key regions in the global indoor farming market?
10. Who are the key players/companies in the global indoor farming market?
Key Attributes
| Report Attribute | Details |
| No. of Pages | 147 |
| Forecast Period | 2023-2032 |
| Estimated Market Value (USD) in 2023 | $19.6 Billion |
| Forecasted Market Value (USD) by 2032 | $43.9 Billion |
| Compound Annual Growth Rate | 9.3% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/5wjrx0
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