Indoor Farming Technology Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030

The global indoor farming technology market is predicted to expand at a compounded annual growth rate (CAGR) of 5.0% during the forecast period of 2022-2030.

Indoor farming technology (IFT) involves growing various crops, including fruits & vegetables, leafy vegetables, herbs, microgreens, flowers, and ornamentals, indoors using multiple techniques. It offers organic food that is not contaminated with agrochemical and manages plant-fertilizing nutrients, so the food grown using this technique comes out as highly nutritious.

Glass or poly greenhouses, container farms, indoor vertical farms, and indoor deep-water culture (DWC) systems are some of the types of facilities of indoor farming technology.

GROWTH DRIVERS:

Factors such as the increasing popularity and awareness regarding the benefits of indoor farming technology systems among people across the globe; the growing pressure on the agriculture industry to meet the soaring demand for food; the burgeoning consumer demand for fresh, pesticide- and herbicide-free foods with high nutritional value among the population; and the surging concerns regarding food security are primarily driving the growth of the global indoor farming technology market.

Additionally, one of the key advantages of adopting indoor farming is the generation of higher yield than conventional farming methods, using limited space and 95% less water. The need to generate higher output using less resources is snowballing due to the increasing food demand among the growing global population and the growing scarcity of arable land and water across the globe. This is resulting in higher adoption of indoor farming technology across regions, thereby fueling the overall growth of the market.

Moreover, the advantages offered by the indoor farming technology systems have compelled governments all across the globe to increase their support and at the same time encourage the adoption of this technology worldwide to fortify local food supplies and provide nutritious, fresh produce to consumers. This increasing push from the governments is expected to boost the indoor farming technology market in the next few years i.e. during the forecast period of 2022-2030.

Furthermore, other factors such as: the escalating technological advancements in indoor farming; the growing production of biopharmaceutical products; and the increasing adoption of growth strategies such and partnerships, collaborations, and mergers & acquisitions by leading players in the market to enhance their product portfolio and their geographic reach are expected to further provide ample growth opportunities for the growth of the global indoor farming technology market during the forecast period.

However, factors such as: the involvement of high initial investment; the limitations on the types of crops that can be grown; the dearth of adequate funding; and the lack of skilled workforce available in the market are anticipated to hamper the growth of the indoor farming technology market to some extent during the forecast period of 2022-2020.

INDOOR FARMING TECHNOLOGY MARKET SEGMENTATION:

By Growing System:

·         Hydroponics

·         Aeroponics

·         Aquaponics

·         Soil-based

·         Hybrid

By Facility Type:

·         Glass or Poly Greenhouse

·         Indoor Vertical Farm

·         Container Farm

·         Indoor DWC System

By Component:

·         Hardware

·         Software & Services

·         Integrated Systems

By Crop Type:

·         Fruits & Vegetables

·         Herbs & Microgreens

·         Flowers & Ornamentals

·         Others

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

Based on growing system, the hydroponics segment held the largest share of the global indoor farming technology market in 2021. The segment is expected to further retain its dominance in the market during the forecast period of 2022-2030. This can be majorly attributed to the growing adoption of hydroponics systems across the globe due to the numerous benefits offered by them. However, the aeroponics segment is predicted to attain the highest CAGR in the market during the forecast period.

Based on facility type, the glass or poly greenhouse segment dominated the global indoor farming technology market in 2021 and is projected to further continue to lead the market during the forecast period. However, the indoor vertical farm segment is anticipated to register the highest growth rate in the market during the forecast period.

Based on component, the hardware segment accounted for the largest share of the global indoor farming technology market in 2021. The segment is not only expected to maintain its position but also achieve the highest growth in the market during the forecast period. On the other hand, the software & services segment is predicted to hold a prominent share in the market during the forecast period owing to the growing worldwide adoption of different available farm management solutions in the farming sector.

Based on crop type, the fruits & vegetables segment accounted for the largest share of the global indoor farming technology market in 2021. The trend is expected to continue over the forecast period further. The rising global demand and consumption of fruits & vegetables is compelling the farmers to produce higher yields, leading to the enhanced adoption of technologies such as the indoor farming technology systems. This increased adoption of the technology is resulting in the overall growth of the market. However, the herbs & microgreens segment is anticipated to witness the highest CAGR in the market during the forecast period.

REGIONAL OUTLOOK:

The European region captured the largest share of the global indoor farming technology market in 2021. The region’s position is likely to remain unchanged over the forecast period owing to the factors such as the surging interest and adoption of indoor farming technologies across major cities in the region; the proliferating demand for food; the rapidly growing urbanization; the increasing number of initiatives and support from the governments and organizations present in the region to tackle challenges pertaining to climate changes & population growth, and the high production and demand of fruits & vegetables in the region. Countries such as Germany, Netherlands, Poland, Spain, Greece, France, and the U.K. are the major contributors to the growth of the market in the region.

The North American region held the second-largest share of the global indoor farming technology market in 2021. The region is forecasted to witness robust growth in the market throughout the forecast period due to factors such as: the soaring popularity of indoor farming technologies to facilitate the supply of fresh vegetables; the rapidly increasing number of greenhouses and vertical farms; the growing promotion of indoor farming technology by the governments & cultivators present in the region; the rising adoption of precision farming, and the surging emphasis on implementing innovative technologies to enhance the yields in the region. The U.S. and Canada stand as the major contributors to the growth of the market in the region.

The Asia Pacific region is poised to emerge as the fastest-growing regional market for indoor farming technology during the forecast period. The growth of the market in the region can be ascribed to the growing shift toward technological and innovative methods from a conventional agricultural practice system; the high number of technologically advanced countries; the proliferating adoption of hydroponics and vertical farming systems; the extensive demand for IFT owing to the rising investment of overseas business lines in agricultural operations; and the escalating R&D activities in the region. India, China, Japan, Taiwan, and Singapore are the major contributors to the growth of the market in the region.

KEY COMPANIES IN INDOOR FARMING TECHNOLOGY MARKET:

·         Hydrodynamics International

·         American Hydroponics

·         Richel Group

·         Vertical Farm Systems

·         General Hydroponics

·         Signify Holding

·         Everlight Electronics

·         Argus Control Systems

·         LumiGrow

·         Netafim

·         Logiqs

·         Illumitex

·         Agrilution

·         Heliospectra AB

·         Scotts Miracle Gro

·         Hydroponics System International

·         Advanced Nutrients

·         Emerald Harvest

·         VitaLink

·         Other Players