Indoor Farming Market

Global Indoor Farming Market Size, Trends & Growth Opportunity, By Facility Type (Greenhouse, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture, Others), By Crop Type (Fruits, Vegetables and Herbs, Flowers and Ornamentals, Others), By Component (Hardware, Software), by Growing System (Aeroponics, Hydroponics, Aquaponics, Soil-based, Hybrid) By Region and Forecast till 2027.





Global Indoor Farming Market

The global Indoor Farming market was valued at USD 14.3 billion in 2020 which expected to reach USD 24.9 billion by 2027 at a CAGR 10.9% from 2020-2027.

Indoor farming is used to supplement the local food supply and provide nutritious, fresh veggies to consumers. This method of farming produces very nutritious food because it manages plant-fertilizing nutrients. Indoor farming enables the development of a diverse range of crops, including leafy vegetables, herbs, vegetables, fruits, microgreens, and flowers. Indoor vertical farming systems produce organic food that is agrochemical-free. These are the key driving factors for indoor vertical farming, together with the growing customer desire for pesticide and herbicide-free vegetables.

Market Drivers

One of the key causes driving the expansion of indoor farming is a global lack of farmland. Farmers are opening indoor facilities closer to urban areas to create a local, stable, and sustainable year-round food supply as the world population continues to increase and urbanize. Furthermore, the growing occurrences of droughts, floods, and other natural disasters around the world have prompted concerns about food security.

As a result, indoor agriculture has grown in popularity in these countries. Furthermore, high-tech, fully regulated, and semi-automated greenhouse facilities in rural areas, and also ecologically friendly farming practices, have driven the market demand for indoor farming. According to USDA data, the average output of greenhouse hydroponic tomatoes in 2016 was 10.59 pounds per square foot, whereas standard grown tomatoes yielded 1.85 pounds per square foot.

Market Restraints

The major restraining factor for Indoor Farming market is High initial investments, due to the initial cost of creating indoor farming is more than the investment necessary for traditional farming. The cost of urban land, which is higher than agriculture, is one of the key reasons for the large investment. Furthermore, energy accounts for a larger portion of both vertical farms and greenhouses' running costs. For example, lights in vertical farming operations operate for 16 hours per day, whereas light is applied to plants in greenhouses for 9 hours per day during the winter.

Impact of COVID-19

The covid-19 pandemic has an influence on most businesses, including agriculture farming, due to a variety of issues like as supply problems, supply chain disruption, and contract terminations to limit expenses. In most countries, some effects were immediate, such as business failure. Investors are drawn to the industry because the farms provide organic fruits and vegetables while using less water and land per unit region than agricultural production.

Market Segmentation

The Global Indoor Farming Market is segmented into Facility Type, Crop Type, Component and Growing System. By Facility Type such as Greenhouse, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture, Others. Further, market is segmented into By Crop Type such as Fruits, Vegetables and Herbs, Flowers and Ornamentals, Others. By Component such as Hardware, Software. By Growing System such as Aeroponics, Hydroponics, Aquaponics, Soil-based, Hybrid.

Regional Analysis

Global Indoor Farming Market is segmented into five regions such as North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Europe has the largest market share and is expected to dominate the market during the forecast period. Regional development has been driven by the increasing adoption of technology that manage the environment, such as Controlled Environment-Agriculture (CEA). The market is being driven by an increased emphasis on adopting technologies such as Active heat systems and LEDs to boost production.

Key Players

Various key players are listed in this report such as AeroFarms, Agricool, Agrilution Systems GmbH, AutoGrow Systems Ltd., Bowery Farming, 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, and Voeks Inc

Market Taxonomy

By Facility Type

• Greenhouse
• Indoor Vertical Farms
• Container Farms
• Indoor Deep Water Culture
• Others

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

By Component

• Hardware
• Structure
• LED Lights
• HVAC
• Climate Control System
• Irrigation Systems
• Others
• Software
• Web-based
• Cloud-based

By Growing System

• Aeroponics
• Hydroponics
• Aquaponics
• Soil-based
• Hybrid

By Region

• North America
• Latin America
• Europe
• China
• Asia Pacific
• Middle East & Africa

Key Questions Addressed by the Report

• What are the Key Opportunities in Global Indoor Farming Market?
• What will be the growth rate from 2020 to 2027?
• Which segment/region will have highest growth?
• What are the factors that will impact/drive the Market?
• What is the competitive Landscape in the Industry?
• What is the role of key players in the value chain?