Indoor Farming Market Overview, Cost Structure Analysis and Forecast to 2030

Posted on 2022-07-18 by researchinsights in Agriculture // 0 Comments

San Francisco, California , USA, July 18, 2022 — /EPR Network/ —

Indoor Farming Industry Overview

The global indoor farming market size is estimated to reach USD 122.3 billion by 2030, exhibiting a CAGR of 13.5% from 2022 to 2030, according to the new report conducted by Grand View Research, Inc. The increasing demand for food owing to the rising population is expected to drive the growth. Factors such as declining water supply, urbanization, and climate change have contributed to the loss of arable land. This, in turn, is driving demand for indoor farms to produce food. In addition, challenges, such as rising global temperature and extreme weather conditions, act as a barrier to the traditional farming technique. The European Environment Agency (EEA) has carried out several initiatives to build vertical farms to overcome these challenges and produce food in an eco-friendly way.

Indoor farming increases the crop yield and reduces the farming impact on the environment by reducing the distance traveled in the supply chain. It reduces the need for the land space required to grow plants compared to traditional farming methods by using growing shelves mounted vertically. Rising consumer awareness regarding the consumption of healthy and fresh food is anticipated to positively influence the market for indoor farming during the forecast period. Furthermore, the use of technology, such as LED indoor farming, to create nature-like conditions will help farmers meet the expected demand for food supply in the near future.

Indoor Farming Market Segmentation

Grand View Research has segmented the global indoor farming market based on facility type, component, crop category, and region:

Based on the Facility Type Insights, the market is segmented into Greenhouses, Vertical Farms, and Others.

The vertical farm segment is expected to exhibit the fastest CAGR of around 22.9% from 2022 to 2030, owing to the growing adoption of eco-friendly production of fruits and vegetables. Besides, the changing food purchasing behavior of consumers resulting in an increasing demand for organic food is expected to drive the demand.
The greenhouses facility type held the dominant market share of over 83.28% in 2021. A greenhouse also called a hothouse, is a closed structure made up of transparent material and used to grow plants, crops, and flowers. In greenhouses, climatic conditions are controlled to enhance the quality and quantity of produce. Greenhouses also facilitate higher yield production than traditional farming techniques.

Based on the Component Insights, the market is segmented into Hardware, and Software.

The hardware segment dominated the indoor farming market in 2021 with a revenue share of more than 70.23% and is expected to remain dominant between 2022 and 2030, as hardware plays a significant role in maintaining the environment of indoor farms.
The software segment is expected to exhibit a CAGR exceeding 16.3% between 2022 and 2030, owing to the upcoming trends in technologies and farming practices. The software traces the fruit and vegetables back to a grower, crop batch/patch, area of land/field, and supplier details.
The cloud-based software segment is estimated to register significant growth in the forthcoming years, as it collects millions of data points in real-time, which can be examined with machine learning techniques to determine the changes in particular environmental parameters that affect the yield and taste of the final product.

Based on the Crop Category Insights, the market is segmented into Fruits, Vegetables, & Herbs, Flowers & Ornamentals, and Others.

The fruits, vegetables, and herbs segment are expected to dominate the market for indoor farming between 2022 and 2030 with a CAGR of 14.1%. The increasing production of commonly grown fruits, vegetables, and herbs such as tomatoes, lettuce, leafy greens, cucumbers, bell peppers, and chili peppers, is driving the segment growth.
The flowers and ornamentals segment is expected to contribute significantly to market growth during the forecast period. The segment accounted for more than 28.32% of the market share in 2021. The increasing use of flowers and ornamentals for decorative and aesthetic purposes is expected to drive market growth.

Indoor Farming Regional Outlook

North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The key market players engage in the strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. The companies focus on building greenhouses and expanding indoor farms to meet the end-market requirements.

Argus Control Systems Ltd.
Certhon
Richel Group
Netafim
General Hydroponics
Hydrodynamics International
Illumitex
Lumigrow

Order a free sample PDF of the Indoor Farming Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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