Chicago, March 08, 2024 (GLOBE NEWSWIRE) -- The Indoor Farming Technology Market Size highlights the market's growth potential, projecting a value of around USD 32.3 billion by 2028, up from USD 20.3 billion in 2023. This trajectory suggests a promising compound annual growth rate (CAGR) of 9.7% from 2023 to 2028.
Indoor Farming Technology Market Report Summary
The indoor farming technology market is witnessing significant growth due to increasing demand for sustainable food production, growing population, and decreasing arable land. Indoor farming, also known as vertical farming or controlled environment agriculture (CEA), utilizes techniques such as hydroponics, aeroponics, and aquaponics to grow crops in indoor environments.
Key Findings:
- Market Size and Growth: The indoor farming technology market is experiencing robust growth, with a CAGR projected to be over 9.7% during the forecast period.
- Factors Driving Growth: Factors such as population growth, urbanization, climate change, and the need for sustainable agriculture are driving the adoption of indoor farming technology.
- Technology Adoption: Hydroponics, aeroponics, and aquaponics are among the most widely adopted indoor farming technologies due to their efficiency in resource utilization and higher yields.
- Market Segmentation: The market can be segmented based on technology type, crop type, and geography.
- Regional Analysis: North America currently dominates the indoor farming technology market, followed by Europe and Asia-Pacific. However, the Asia-Pacific region is expected to witness the fastest growth due to increasing awareness and government initiatives to promote indoor farming.
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Driving Factors of Indoor Farming Technology Market
- Population Growth: Rapidly increasing global population puts pressure on traditional farming methods to meet food demand. Indoor farming technology offers a solution by enabling year-round cultivation in controlled environments, irrespective of outdoor climate conditions.
- Urbanization: Urbanization leads to the conversion of agricultural land into urban areas, shrinking the available arable land for traditional farming. Indoor farming allows cultivation within urban areas, utilizing vertical spaces or repurposed buildings, thus reducing the dependency on rural land.
- Climate Change: Erratic weather patterns and extreme climatic events pose challenges to traditional agriculture. Indoor farming technology provides a climate-controlled environment, shielding crops from adverse weather conditions and ensuring consistent yields throughout the year.
- Sustainability: Growing concerns about environmental degradation and food security drive the adoption of sustainable farming practices. Indoor farming minimizes water usage, reduces reliance on chemical pesticides, and lowers carbon emissions associated with transportation, contributing to a more sustainable food production system.
- Technology Advancements: Continuous advancements in indoor farming technologies, such as automation, artificial intelligence, and LED lighting, enhance efficiency and productivity. These innovations enable precise control over environmental factors like temperature, humidity, and nutrient levels, optimizing crop growth and resource utilization.
- Local Food Production: Consumers increasingly prioritize locally sourced and fresh produce, driving demand for indoor farming technology. By cultivating crops closer to urban centers, indoor farms can supply fresh produce year-round, reducing the carbon footprint associated with long-distance transportation and storage.
- Food Safety and Quality: Indoor farming offers a controlled environment free from contaminants, pests, and diseases, ensuring high-quality and safe food production. This aspect becomes particularly crucial considering food safety concerns associated with traditional farming practices.
Indoor Farming Technology Market Segmentation
By Growing System
- Hydroponics
- Aeroponics
- Aquaponics
- Soil-based
- Hybrid
By Facility Type
- Glass or poly greenhouses
- Indoor vertical farms
- Container farms
- Indoor DWC systems
By Component
- Hardware
- Climate Control Systems
- Lighting Systems
- Communication Systems
- Sensors
- System Controls
- Irrigation Systems
- Other hardware
- Software & Services
By Crop Type
- Fruits & vegetables
- Leafy greens
- Lettuce
- Kale
- Spinach
- Other leafy greens
- Tomatoes
- Strawberries
- Eggplants
- Other fruits & vegetables
- Herbs & microgreens
- Basil
- Herbs
- Tarragon
- Wheatgrass
- Flowers & ornamentals
- Perennials
- Annuals
- Ornamentals
- Other crop types
By Region
- North America
- Europe
- Asia Pacific
- South America
- RoW
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Regional Analysis for Indoor Farming Technology Market
North America is expected to increase its market share in the market for indoor farming technology and is projected to grow at the 2nd highest CAGR from 2023 to 2028. Because of the increasing rise of greenhouses and vertical farms in the United States and Canada, North America is one of the greatest indoor farming technology marketplaces. This agricultural concept, which is supported by the US government, has been promoted by cultivators. Hydroponic gardening techniques and technology are becoming increasingly popular in cities to help grocery stores produce fresh veggies. The years 2021 and 2022 were great for indoor agriculture and vertical farming. Private funding resulted in over USD 1.6 billion in investments in the United States, M&A activity increased, and several indoor farms went public. Following a decline in investments due to the epidemic in 2020, investments have now rebounded to higher levels than before.
Key Market Players
The key players in this include Scotts Company LLC (US), Signify Holding (Netherlands), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), NETAFIM (Israel), Heliospectra AB (Sweden), Argus Control Systems Limited (Canada), Lumigrow, Inc (Canada), weisstechnik (US), Priva (Netherlands), LOGIQS.B.V. (Netherlands). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
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