Indoor Farming Market Key Drivers, Restraints, Opportunities And Challenges | Grand View Research, Inc.

October 12 05:18 2021
Indoor Farming Market Key Drivers, Restraints, Opportunities And Challenges | Grand View Research, Inc.
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According to a new report published by Grand View Research, increasing consumer awareness regarding the advantages of consuming fresh and high-quality food is expected to drive growth rising construction-related activities globally are anticipated to the growth of the market from 2018-2025

The global indoor farming market size is estimated to reach USD 50.3 billion by 2025, exhibiting a CAGR of 9.19% from 2019 to 2025, 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 in 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 environment-friendly way.

Indoor farming increases the crop yield and reduces farming impact on the environment by reducing the distance traveled in the supply chain. It reduces need for the land space required to grow plants compared to traditional farming methods by using growing shelves mounted vertically. Rising consumer awareness regarding consumption of healthy and fresh food is anticipated to positively influence the market for indoor farming over 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 near future.

Europe dominated the indoor farming market in 2018 and is anticipated to remain dominant over the coming years, owing to the continuous adoption of advanced technologies such as LED lighting, controlled environment agriculture. Asia Pacific is expected to exhibit the fastest CAGR from 2019 to 2025, owing to the increasing indoor farms in countries such as China and Japan. Increasing adoption of greenhouses and vertical farms is projected to bode well for the regional growth. In addition, the rising demand for pesticide-free, fresh vegetables and fruits is expected to fuel the regional market growth.

The key players operating in the market include Netafim (Israel), Richel Group (France), PRIVA (Netherlands), and Argus Control System Limited (Canada). Companies across the globe, such as Signify Holding and Osram GmbH, are working on developing innovative lighting systems for indoor farming.

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Indoor Farming Market Report Highlights

• The greenhouses segment dominated the market in terms of revenue in 2018 as these facilities produce higher yields. Greenhouses offer a stable and highly controlled environment for the cultivation of flowers, vegetables, and fruits

• The fruits, vegetables, and herbs segment is estimated to register the fastest CAGR over the forecast period, owing to the increasing food consumption along with growing consumer awareness regarding the importance of healthy eating, especially in regions such as Europe and Asia Pacific

• The climate control systems segment is projected to expand at the highest CAGR during the forecast period, as the crop development can be controlled by adjusting and monitoring the concentration of minerals

• Some of the key players operating in the indoor farming market include LumiGrow (U.S.), Illumitex (U.S.), Hydrodynamics International (U.S.), and Agrilution (Germany)

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Indoor Farming Market Segmentation

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

Indoor Farming Facility Type Outlook (Revenue, USD Million, 2014 – 2025)

    • Greenhouses

    • Vertical Farms

    • Shipping Container

    • Building-based

    • Others

Indoor Farming Component Outlook (Revenue, USD Million, 2014 – 2025)  

    • Hardware

    • Climate Control Systems

    • Lighting Systems

    • Sensors

    • Irrigation Systems

    • Software

    • Web-based

    • Cloud-based

Indoor Farming Crop Category Outlook (Revenue, USD Million, 2014 – 2025)

    • Fruits, Vegetables, & Herbs

    • Tomato

    • Lettuce

    • Bell & Chili Peppers

    • Strawberry

    • Cucumber

    • Leafy Greens (excluding lettuce)

    • Herbs

    • Others

    • Flowers & Ornamentals

    • Perennials

    • Annuals

    • Ornamentals

    • Others

Indoor Farming Regional Outlook (Revenue, USD Million, 2014 – 2025)

     • North America       

        • U.S.

        • Mexico

        • Canada

     • Europe

        • Germany

        • U.K.

        • France

     • Asia Pacific

        • China

        • India

        • Japan

     • South America

        • Brazil

     • Middle East & Africa

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About Grand View Research                                                  

Grand View Research is a market research and consulting company that offers market research reports, syndicated and customized reports. The company is headquartered in San Francisco, California. It offers client engagement for business consulting and market intelligence from various domains. The clientele is based across various countries with queries coming from more than 50 industries worldwide.

Grand View Research helps its clients to make informed decisions by helping them understand current trends and scenarios. Every year Grand View Research accomplishes more than 300 multi-country market studies to optimize consulting for clients. 

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