PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485757
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485757
Indoor Farming Technology Market size was valued at USD 20,230.25 Million in 2023, expanding at a CAGR of 9.91% from 2024 to 2032.
Indoor farming technology encompasses various techniques and technologies used to grow crops or produce food indoors, often in controlled environments like warehouses, greenhouses, or vertical farms. These methods are designed to optimize growing conditions such as light, temperature, humidity, and nutrient levels to maximize yields and efficiency. However, some crops may not be suitable for indoor cultivation due to space constraints or specific environmental requirements, limiting the range of produce that can be grown profitably. Furthermore, innovations in indoor farming technologies, such as vertical farming, hydroponics, and aeroponics, are driving efficiency improvements and cost reductions.
Indoor Farming Technology Market- Market Dynamics
Increasing need for sustainable and local food production
Indoor farming allows for precise control over environmental factors like light, water, and nutrients. This level of control maximizes resource efficiency, reducing water usage by up to 90% compared to traditional farming methods. By using layers that are stacked vertically, indoor farming is a year-round crop production technique that maximizes available area. The estimated value of the worldwide indoor farming market as of 2022 was 40 billion dollars. By 2032, this value is predicted to have increased by more than 10 percent, to a little over 96.7 billion US dollars. A farm subsidy, or agricultural incentive program is also helping to fund farming and other agricultural enterprises.
Indoor Farming Technology Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 9.91% over the forecast period (2024-2032)
Based on component segmentation, hardware was predicted to show maximum market share in the year 2023
Based on growing system segmentation, hydroponics was the leading type in 2023
Based on facility type segmentation, indoor vertical farms was the leading type in 2023
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Indoor Farming Technology Market is segmented on the basis of Crop Type, Component, Growing System, Facility Type, and Region.
The market is divided into two categories based on component: Environmental Control Systems include HVAC (heating, ventilation, and air conditioning) systems, humidifiers, dehumidifiers, and fans to maintain optimal temperature, humidity, and air circulation. Hydroponic systems allow plants to grow without soil, using nutrient-rich water solutions.
The market is divided into five categories based on growing system: Hydroponic indoor farming allows cultivation in urban areas where traditional farming isn't feasible. It maximizes the use of limited space by stacking crops vertically, making it ideal for cities where land availability is scarce. Indoor hydroponic systems provide controlled environments, enabling farmers to grow crops year-round regardless of external weather conditions
Indoor Farming Technology Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
The farming industry in the Asia Pacific region has been shifting away from traditional agricultural practices and towards more contemporary and inventive methods. The development of crop management techniques to increase crop premium value is a result of these fluctuations. Indoor farms are common in highly technologically advanced nations like China, Japan, Singapore, Taiwan, and others. China is expected to dominate the Asia Pacific indoor farming technology market because of the country's use of greenhouse farming to produce particular crops and the country's growing R&D investments from several international corporations.
The market for indoor farming is fragmented. Startups and smaller-scale farms compete with well-established businesses such as Signify Holding, Argus Control Systems, Hydrodynamics International, Richel Group, Vertical Farm Systems, etc. To stand out, new players in the market emphasize diversity. Market participants in indoor farming are starting to worry more and more about sustainable farming. The participants also aim to utilize fewer resources, particularly water. The market's participants are varied, ranging from giants powered by technology to small-scale farmers. For instance, in January 2024, LettUs Grow, in partnership with Fotenix, Rothamsted Research, and Vertically Urban, is leading an innovative project that has the potential to completely transform the UK's Total Controlled Environment Agriculture (TCEA) industry.
In March 2024, Bayer and Trinity partner to advance regenerative agriculture monitoring, and two precision farm startups secure fresh funding.
In January 2023, Siemens and 80 Acres Farms, a pioneer in indoor farming, are launching their partnership. The goal of 80 Acres Farms is to grow the food of the future, which will be produced in environmentally friendly indoor farms nearer to consumers' tables.
GLOBAL INDOOR FARMING TECHNOLOGY MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Signify Holding
EVERLIGHT ELECTRONICS CO., LTD
Argus Control Systems
LumiGrow
NETAFIM
LOGIQS B.V.
Hydrodynamics International
AmHydro
Richel Group
Vertical Farm Systems
General Hydroponics
Agrilution
Heliospectra
Others