Plant Factory Market Forecasts to 2028 - Global Analysis By Light Type, Facility Type, Crop Type, Growing System, Cultivation System, Cultivation System, Structure, Category, Type, Application and Geography

According to Stratistics MRC, the Global Plant Factory Market is accounted for $133 billion in 2022 and is expected to reach $225 billion by 2028 growing at a CAGR of 9.2% during the forecast period. A new sector called Plant Factory is working to reinvent crop production via the application of bioinformatics and industrial automation. By manipulating the plant development environment, a plant factory is anticipated to achieve the highest yield, harvesting density, and financial effect. The plant factory idea is receiving more technological and financial investment as experts respond to growing concerns about food security.

According to a study published by International Institute for Applied Systems Analysis (IIASA), the food demand is expected to increase by 56% between 2010 and 2050.In Addition to it, currently, 40% of the landmass is arid, and due to rising temperature and climate change, more will turn into deserts causing a reduction in food production.

Market Dynamics:

Driver:

Increased adoption of plant factories by restaurants and grocery stores

Hydroponic, aquaponic, and greenhouse systems are the ideal substitutes that firms in the food sector might utilise because the pandemic has successfully highlighted the effects that can occur when the supply and distribution chains are compromised. With such circumstances in the food and agricultural industries changing quickly, the market is therefore anticipated to increase. In order to supply fresh food, restaurants and supermarkets are beginning to include plant manufacturing systems like hydroponic systems into their business strategies. Additionally, the price of shipping and packing is decreased.

Restraint:

Risk of equipment failure and delay in the learning curve among growers

Higher chances of equipment failure limit output, which further reduces adoption rates. This is a difficult aspect that inhibits market growth. For instance, if a water pump in the system malfunctions, the effects might include the death of the plants in a matter of hours. Without soil, plants cannot store water or nutrients for later use. Similar to any other grow room, the backup must be prepared in case of a power loss. This might incur additional expenses, which would have an impact on manufacturing costs and profit margins.

Opportunity:

Technological Advancements

One of the key trends gaining traction in the plant factory industry is technological improvement. The major players in the plant factory market are concentrating on offering ongoing innovations to strengthen their market positions by implementing a variety of innovations and technologies like edge computing, artificial intelligence, machine learning, dynamic resource allocation, and LED-grown light to optimise plant growth and raise productivity. An innovative technique that can assist in generating larger yields is required due to growing worries about global food security and dwindling arable land. Accordingly, significant prospects for the expansion of the plant factory market are anticipated to emerge in the next years.

Threat:

High capital investments

Setting up a plant factory requires a sizable investment; the equipment necessary for one is complex and sometimes expensive to purchase and maintain. The main cost components of a plant factory are various types of equipment, such as HVAC systems, fans, ventilation, irrigation systems, control systems, railroads, and lighting. For a basic system that is not completely automated, a 500 square foot factory can cost up to USD 110,000 on average. Depending on the desired level of autonomy, larger, more automated farms might cost upwards of USD 500,000-800,000 per 1,000 square feet. The prices in this case just take into account the costs of setting up the farm; however, when improvements are taken into account, it might lead to a recurrent cost for the farm because the equipment has to be replaced every three to four years to increase the farm's productivity and production.

COVID-19 Impact:

The quick onset and spread of pandemic COVID-19 have brought to light the significance of food safety as well as how supply chain disruptions might result in food shortages. Lockdowns also made it difficult to get workers to work on farms. In addition, farmers were unable to sell their produce since mobility was prohibited. This forced farmers to adopt alternate agricultural methods that rely considerably more on technology and need less labour. Long-term chances for the expansion of cutting-edge agricultural practises as plant factories, vertical farming, etc. have been provided by the COVID-19 pandemic problem. This has caused several new startup businesses to enter the alternative farming techniques industry and has drawn numerous investments, funding, and partnerships from significant market players.

The sunlight segment is expected to be the largest during the forecast period

The sunlight segment is estimated to have a lucrative growth, due to the increased dependency of plant factories on sunshine. The plant factories significantly rely on sunlight, a natural light source that is necessary for plant development and growth. It provides a broad spectrum of light wavelengths that are necessary for photosynthesis and other physiological processes in plants. By using natural light, plant industries may reduce their energy costs and increase their profitability.

The non soil based segment is expected to have the highest CAGR during the forecast period

The non soil based segment is anticipated to witness the fastest CAGR growth during the forecast period, due to rise can be ascribed to the several advantages of these systems, which include more control over growing conditions, shorter growth cycles, and higher yields. Soilless farming reduces the need for water, land, and pesticides, all of which raise the possibility of farm overflow. Soilless growth is almost always the best option in an atmosphere where plants cultivated in controlled circumstances have become the norm.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the government's assistance and the quickly increasing agricultural sector. To assist farmers, guarantee universal adoption of various relief measures, and assist India in achieving food security, government initiatives and incentives are required. Therefore, there is great support for the construction of additional greenhouses since the government wants to have quadrupled the production in horticulture. Additionally, the government supports horticulturists and farmers in growing nutritious food.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to Its urban population is predicted to make up the entirety of Europe's population. One way to address the region's growing urban population's demand for food is thought to be through importation of products. Big changes, including climatic changes, which further weaken the world's food supply chain, constitute a risk in addition to the difficulty in supplying food. Additionally, because of its vulnerability, the food system contributes continuously to environmental deterioration. With the emergence of such problems, urban agriculture emerged as one of the ground-breaking technologies to grow crops with sustainable practises without significantly affecting the environment. There is a need to develop technology that may increase food production in the region without further stressing the environment, since it has been noticed that the agricultural sector is the main environmental stressor in Europe.

Key players in the market:

Some of the key players profiled in the Plant Factory Market include: AppHarvest, Plenty Unlimited Inc., Farminova Plant Factory N.V., Dream Harvest Farming LLC, Flow Magic, Philips, Urban Crop Solutions, AeroFarms, LLC, Taiksha Ltd., Dream Harvest Farming LLC, Bowery Farming, Agricool, Mirai Co. Ltd., and BrightFarms.

Key Developments:

In June 2021, AppHarvest completed the deal with Rabu Agri Finance to expand the high-tech indoor farm network. The company secured a USD 75 million credit facility via flagship Morehead farm mortgage following announcement; it announced hopes to have five farms operating by the end of 2022.

In October 2020, Plenty Unlimited Inc. announced a joint development agreement with Driscoll's (US), using its indoor vertical farming to grow Driscoll's proprietary flavorful strawberries year-round.

In September 2020, Urban Crop Solutions, a Belgium-based developer and manufacturer of indoor vertical farming solutions, launched ModuleX Plant Factory, a vertical indoor farming system, which counters existing challenges in vertical farming operations.

Light Types Covered:

• Full Artificial Light
• Sunlight

Facility Types Covered:

• Indoor Farms
• Greenhouses
• Other Facility Types

Crop Types Covered:

• Flower & ornamental
• Fruits &Vegetables
• Other Crop Types

Growing Systems Covered:

• Hybrid
• Non Soil Based
• Soil Based

Cultivation Systems Covered:

• Cultivation Cabinet
• Hydroponics System

Structures Covered:

• Shipping Container Vertical Farms
• Building Based Vertical Farms

Categories Covered:

• Indoor Plant Factory
• Outdoor Plant Factory

Types Covered:

• Unit House Type
• Automatic Plant Factory
• Artificial Light & Solar Light Combination Type
• High Multistage Plant Factory
• Container Type Plant Factory
• Middle Scale Plant Factory (Multistage Type)

Applications Covered:

• Fruit Planting
• Vegetable Cultivation

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances