San Francisco, 23 April 2024: The Report Indoor Farming Market Size, Share & Trends Analysis Report By Facility Type, By Component (Hardware, Software, and Services), By Growing Mechanism, By Crop Category, By Region, And Segment Forecasts, 2024 - 2030

The global indoor farming market size is estimated to reach USD 88.5 billion by 2030, exhibiting a CAGR of 13.2% from 2024 to 2030, according to the new report conducted by Grand View Research, Inc. The increasing demand for food owing to the rising population is expected to drive the growth. Factors such as declining water supply, urbanization, and climate change have contributed to the loss of arable land. This, in turn, is driving demand for indoor farms to produce food. In addition, challenges, such as rising global temperature and extreme weather conditions, act as a barrier to the traditional farming technique. The European Environment Agency (EEA) has carried out several initiatives to build vertical farms to overcome these challenges and produce food in an eco-friendly way.

Indoor farming increases the crop yield and reduces the farming impact on the environment by reducing the distance traveled in the supply chain. It reduces the need for the land space required to grow plants compared to traditional farming methods by using growing shelves mounted vertically. Rising consumer awareness regarding the consumption of healthy and fresh food is anticipated to positively influence the market for indoor farming during the forecast period. Furthermore, the use of technology, such as LED indoor farming, to create nature-like conditions will help farmers meet the expected demand for food supply in the near future.

Europe dominated the market in 2023 and is anticipated to remain dominant over the forecast period, owing to the continuous adoption of advanced technologies such as LED lighting, and controlled environment agriculture. Asia Pacific is expected to exhibit the fastest CAGR from 2024 to 2030, owing to the increasing indoor farms in countries such as China and Japan. Increasing adoption of greenhouses and vertical farms is expected to support regional growth. In addition, the rising demand for pesticide-free, fresh vegetables and fruits is expected to fuel the regional market growth.

Increasing consumer awareness regarding the advantages of consuming fresh and high-quality food is expected to drive the growth of the market. The rising population across the globe, especially in emerging economies such as China and India, has led to an increase in food demand, which, in turn, is expected to spur the growth of the market for indoor farming in the forthcoming years.

Request sample report of Indoor Farming Market@ https://www.grandviewresearch.com/industry-analysis/indoor-farming-market/request/rs1

However, the changing climatic conditions contribute to existing environmental problems, such as soil degradation and groundwater depletion, affecting the food and agriculture production systems. Governments encourage building indoor farms along with other initiatives to overcome this problem, which, in turn, is expected to fuel the growth of the market. Organic foods are perceived as healthier, nutritious, safer, and more eco-friendly. A critical factor that influences the demand for organic food is the food purchasing behavior of consumers, which is essential for producers, policymakers, and suppliers to implement successful marketing strategies.

Indoor Farming Market Report Highlights

• The greenhouses segment dominated the market in terms of revenue in 2023, as these facilities produce higher yields. Greenhouses offer a stable and highly controlled environment for the cultivation of flowers, vegetables, and fruits
• By growing mechanism, the aeroponics segment is expected to observe considerable growth over the forecast period as the aeroponics facilitate fast growth in plants (under normal conditions)
• The fruits, vegetables, and herbs segment is estimated to register the fastest CAGR over the forecast period, owing to the increasing food consumption along with growing consumer awareness regarding the importance of healthy eating, especially in regions such as Europe and Asia Pacific
• The climate control systems segment is projected to expand at the highest CAGR during the forecast period, as crop development can be controlled by adjusting and monitoring the concentration of minerals

According to The World Bank Group, the overall arable land per capita has declined from 0.197 hectares in 2013 to 0.192 hectares in 2016. The scarcity of arable land owing to land degradation has urged the farmers to adopt new solutions to produce fresh food. The adoption of vertical farming techniques is expected to enable indoor farm owners to grow crops indoors in layers stacked on racks, in a multi-story building, or a warehouse. It is anticipated that this will emerge as a significant trend in the market by 2030.

Indoor farms help grow the total crop yield per unit area by using the stacked layers of potted seeds, thereby driving the market. Indoor farming is the practice of growing plants or crops indoors on a small and large scale. Indoor farming implements methods such as aquaponics and hydroponics and utilizes artificial lighting for adequate light levels and nutrients. However, the high initial investment in the building of indoor farms and limitations on the growing variety of crops is expected to hinder the market growth.

Europe held the largest market share in 2023, owing to the adoption of technologies for greenhouses and vertical farms. Developed countries such as the U.K., Germany, the U.S., and Canada are the rapid and early adopters of farming technologies. However, emerging economies such as India, China, Mexico, and Singapore are observing a substantial growth in the adoption of technologies integrated into indoor farms, owing to the rising demand for fresh crops. The increasing disposable income and urban population in the emerging economies have increased the consumption and demand for healthy, fresh, and nutritious food, which is projected to drive the indoor farming market.

The market growth stage in the indoor farming market is high, and the pace of the market growth is accelerating. In the emerging stage, indoor farming technologies and practices are still relatively novel and gaining traction within the agricultural industry. Startups and early-stage companies are pioneering innovative approaches to indoor cultivation, experimenting with different crops, growing methods, and technology applications. Investment in research and development is high, with a focus on refining techniques, optimizing crop yields, and overcoming technical challenges.

Indoor Farming Market Report Scope

Farming as a service market is also characterized by a high level of merger and acquisition (M&A) activity by the leading players. This is due to several factors, including the desire to gain high market share and the need to consolidate in a rapidly growing market.

While indoor farming offers unique advantages such as controlled environments and year-round production, substitutes such as outdoor farming methods may attract consumers attention for growing crops. Traditional outdoor farming remains a primary method for crop cultivation, especially for large-scale production of commodity crops like grains and oilseeds. Outdoor farming relies on natural sunlight, soil, and traditional irrigation methods.

List of Key Players of the Indoor Farming Market

• Argus Control Systems Ltd.
• Certhon
• Richel Group
• Netafim
• General Hydroponics
• Hydrodynamics International
• Illumitex
• Lumigrow
• Signify Holding
• Bowery Farming Inc.