Dublin, July 18, 2023 (GLOBE NEWSWIRE) -- The "Indoor Farming Technology Market by Growing System (Hydroponics, Aeroponics, Aquaponics, Soil-based, Hybrid), Facility Type, Component, Crop Type (Fruits & Vegetables, Herbs & Microgreens, Flowers & Ornamentals) and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The indoor farming technology market is projected to reach USD 32.3 billion by 2028 from USD 20.3 billion by 2023, at a CAGR of 9.7%
The demand for indoor farming technology is driven by the growth in the glass or poly greenhouse industry, which accounts for most of the indoor farming technology market.
Numerous factors influence the growth of glass or poly greenhouses for indoor farming. First, a spike in indoor farming projects has been prompted by the rising demand for locally grown and fresh produce, and greenhouses offer an effective and controlled setting to meet this demand.
By growing systems, Hydroponics is projected to dominate during the forecast period.
Hydroponics has witnessed significant demand and market growth in recent years, driven by the various advantages it offers to meet the evolving needs of consumers and the agricultural industry.
One key advantage is the ability of hydroponic systems to provide a consistent and reliable supply of fresh produce throughout the year, irrespective of seasonal limitations. This year-round production capability aligns with the increasing consumer demand for locally sourced and sustainably grown fruits, vegetables, and herbs.
By facility type, the market for indoor vertical farm is projected in high demand.
Indoor vertical farms have gained popularity due to the increasing demand for fresh, locally-grown produce and the rapid growth of the market for sustainable agricultural practices. These farms offer several advantages that align with evolving consumer preferences and market trends.
Firstly, vertical farms provide a reliable and consistent supply of high-quality products throughout the year, regardless of seasonal limitations. This year-round production capability ensures a steady and consistent supply to meet the demands of consumers and retailers, reducing dependence on imported or out-of-season produce.
By component, the market for lighting systems of indoor farming technology is projected in market share
Lighting systems play a crucial role in indoor vertical farming, and their advantages have contributed to the increasing demand and market growth in the industry.
One key advantage is the ability of lighting systems to provide precise control over the light spectrum, intensity, and photoperiod, mimicking optimal natural conditions for plant growth. This level of control enables growers to optimize crop production, enhance plant development, and increase yields.
By crop type, the market for fruits and vegetable cultivation in indoor farming technology is projected in high demand.
The growth of fruits and vegetables in indoor farming technology has witnessed significant demand and market growth due to various factors. Consumers increasingly seek locally grown, fresh, and pesticide-free produce, which can be efficiently provided by indoor farming systems.
These technologies offer precise control over environmental conditions, including temperature, humidity, lighting, and nutrient levels, creating optimal growing conditions for different crops. The ability to cultivate fruits and vegetables year-round, regardless of seasonal limitations, meets the demand for consistent supply and reduces dependence on imported or out-of-season produce.
Indoor farming also enables the cultivation of a wide range of crops, including leafy greens, herbs, tomatoes, strawberries, and even exotic or rare varieties, catering to the diverse preferences of consumers.
Asia Pacific will significantly contribute towards market growth during the forecast period.
The demand for indoor farming technology is expected to grow at the fastest rate in the Asia Pacific region, where there has been an increase in foreign business lines investing in agricultural operations to solely meet crop growers' demands for crops of export quality.
Additionally, the farming sector in the Asia Pacific area has been moving away from traditional agricultural practices systems and towards technological and creative ones. These changes result in the upgrading of crop management strategies for improved crop premium value. In 2020, the Asia Pacific region's indoor farming technology market held around 30.7% of the global market's value.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 262 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $20.3 Billion |
| Forecasted Market Value (USD) by 2028 | $32.3 Billion |
| Compound Annual Growth Rate | 9.7% |
| Regions Covered | Global |
Premium Insights
- Growth in Trend of Year-Round Crop Production to Drive Market
- Fruits & Vegetables Segment Dominated European Market in 2022
- Hydroponics Segment Dominated Market Across All Regions Between 2023 and 2028
- China to be the Most Lucrative Market for Indoor Farming Technology
Market Dynamics
Drivers
- Rising Demand for Fresh Foods with Higher Nutritive Value
- Need for Higher Yields Using Limited Space and Water
- Lesser Impact of External Weather Conditions
Restraints
- High Initial Investments
- Limitations on Types of Crops Grown
- Lack of Government Incentives and High Prices of Hydroponically Grown Produce Dissuading Market Adoption
Opportunities
- Development of Innovative and Cost-Effective Technologies
- Production of Biopharmaceutical Products
Challenges
- Lack of Adequate Funding
- Shortage in Availability of Skilled Workforce
- Risk of Equipment Failure and Delay in Learning Curve Among Growers
Industry Trends
Value Chain Analysis
- Raw Material Supply
- System Providers
- Technology Providers
- Consulting and Management Service Providers
- End-users
Technology Analysis
- Technological Advancements
- Mobile Applications and Data Tracking for Assessment of Real-Time Information
Case Study Analysis
- Lumigrow's Customers Use Grow Light Sensors to Manage Light
- Signify's Led Lighting Solution for Goodleaf to Increase Perennial Food Production
Company Profiles
Major Players
- Signify Holding
- Everlight Electronics Co., Ltd
- Scotts Company LLC
- Netafim
- Heliospectra Ab
- Argus Control Systems Limited
- Lumigrow
- Weisstechnik
- Priva
- Logiqs B.V.
- Illumitex
- Amhydro
- Richel Group
- Vertical Farm Systems
- Hydroponic System International
- Certhon
- Bluelab
- Barton Breeze
- Green Sense Farms Holdings, Inc
- Greener Crops
Other Players/Startups
- Sensaphone
- Freight Farms
- Climate Control Systems
- Sky Greens
- Sananbio
For more information about this report visit https://www.researchandmarkets.com/r/itwhr5
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