Plant Factory Global Market Report 2024

Agricultural production systems known as plant factories are designed to revolutionize crop production through the incorporation of bioinformatics and industrial automation. These systems achieve optimal yield, harvesting density, and financial impact by manipulating the plant growth environment artificially. Plant factories employ controlled artificial conditions such as light, moisture, temperature, and carbon dioxide concentrations to foster the growth of plants and vegetables.

Plant factories encompass various facility types, including greenhouses, indoor farms, and others. Indoor farms involve the large-scale cultivation of plants and crops within enclosed spaces. This method is employed for growing plants, cultivating crops, and efficiently recycling water. Light sources utilized in plant factories encompass both natural sunlight and full artificial light, catering to the cultivation of diverse crops such as fruits, vegetables, flowers, and ornamentals.

The plant factory market research report is one of a series of new reports that provides plant factory market statistics, including plant factory industry global market size, regional shares, competitors with a plant factory market share, detailed plant factory market segments, market trends, and opportunities, and any further data you may need to thrive in the plant factory industry. This plant factory market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The plant factory market size has grown strongly in recent years. It will grow from $122.06 billion in 2023 to $131.6 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth witnessed in the historical period can be ascribed to a heightened demand for locally sourced and fresh produce, constraints on available arable land due to urbanization, a growing emphasis on food security and supply chain resilience, advancements in controlled environment agriculture (CEA) technologies, the necessity for year-round crop production to mitigate seasonal variability, and a focus on sustainable and resource-efficient agricultural practices.

The plant factory market size is expected to see strong growth in the next few years. It will grow to $175.37 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%.
The anticipated growth in the forecast period can be linked to the increasing adoption of hydroponic and aeroponic growing methods, the proliferation of urban farming and rooftop greenhouse projects, ongoing research and development in plant factory automation and robotics, the demand for pesticide-free and non-GMO crop production, and a focus on high-yield and high-density crop cultivation. Noteworthy trends expected in the forecast period encompass the integration of artificial intelligence (AI) and machine learning, the implementation of modular and stackable growing systems, the utilization of advanced LED grow lights with spectral tuning, the development of hybrid systems combining natural and artificial light, and the incorporation of blockchain technology for traceability in urban agriculture.

The growth of the plant factory market is significantly influenced by the increasing demand for food due to a rising global population and the challenges posed by climate change. As the world population expands, coupled with losses in crop yields due to factors like soil infertility, demographic shifts, climate change, and pest outbreaks, there is a notable uptick in the adoption of innovative plant factory methods for crop cultivation. An International Institute for Applied Systems Analysis (IIASA) study in July 2021 predicted a 56% increase in food demand between 2010 and 2050. Additionally, the United Kingdom's population is expected to grow by 3.2% to reach 69.2 million by 2030, contributing to the escalating demand for food and driving the plant factory market.

The plant factory market is also expected to benefit from the ongoing trend of urbanization. Urbanization, driven by economic development and industrialization, leads to the transformation of rural areas into urban centers. Plant factories play a crucial role in urban areas by enabling the local production of fresh crops, reducing transportation costs, and addressing food security concerns. As of April 2023, more than half of the global population resides in urban regions, a number projected to increase to 6 billion by 2045, reflecting a 1.5 times increase. This surge in urbanization is a key driver for the growth of the plant factory market.

Major players in the plant factory market are responding to the increasing demand for a consistent, year-round supply of fresh produce by establishing new indoor farms. Companies like Plenty are investing in state-of-the-art facilities utilizing 3D vertical architecture to achieve high yields. For example, in May 2023, Plenty opened a new indoor vertical farm in Compton, California, with the capacity to produce 4.5 million pounds of leafy greens annually. This innovative technology allows for significantly higher yields compared to traditional farming, with automation streamlining the entire growth process.

The plant factory market is witnessing advancements with companies developing autonomous climate control technology. This technology involves self-regulating systems that maintain optimal environmental conditions, such as temperature and humidity, without human intervention. In June 2023, IUNU launched Intelligent Setpoint Control for LUNA AI, an autonomous climate control technology that utilizes computer vision and compares real-time data with experiments conducted on actual plants and virtual simulations. This technology places the plant in control of its environment, contributing to more efficient and sustainable crop cultivation.

In March 2022, Plantas Group, a Danish company, made a strategic move by acquiring Euroflora for an undisclosed amount. This acquisition, the largest corporate acquisition to date, followed a series of strategic moves by Plantas Group, including the opening of a subsidiary in Germany and expansion in Poland. EuroFlora, an Italy-based plant factory, became part of Plantas Group, further consolidating the company's presence in the plant factory market.

Major companies operating in the plant factory market include AeroFarms LLC, BrightFarms Inc., Gotham Greens Holdings LLC, Bowery Farming Inc., AppHarvest Inc., Lufa Farms, Beijing IEDA Protected Horticulture Co. Ltd., Green Sense Farms Holdings Inc., Plenty Unlimited Inc., Mirai Co. Ltd., Farminova Plant Factory, Urban Crops Solutions, Sky Greens, Kalera Inc., Smallhold, Sky Vegetables, TruLeaf Sustainable Agriculture, Wulian, Crop One Holdings Inc., Vertical Harvest Farms, Growing Greener Ltd., Heliospectra AB, Infarm GmbH, Intelligent Growth Solutions, LettuceGrow, Light Science Technologies, MechaFarm, Novartis AG, Phytoponics, Plug and Play Tech Center, Radiant Food Company, SmartFarm Systems, Vertical Greens

Western Europe was the largest region in the plant factory market in 2023. The regions covered in the plant factory market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the plant factory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The plant factory market includes revenues earned by entities providing services such as hydroponics aquaponics, aeroponics, and vertical planting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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