Indoor Farming Technology Market - A Global and Regional Analysis: Focus on Indoor Farming Technology Product and Application, Supply Chain Analysis, and Country Analysis - Analysis and Forecast, 2022-2027

Report Highlights

Global Indoor Farming Technology Market to Reach $17.12 Billion by 2027.

Market Segmentation:

Segmentation 1: by Growing System

• Hydroponics
• Aeroponics
• Aquaponics
• Soil-Based
• Hybrid

The global indoor farming technology market in the growing system segment is expected to be dominated by hydroponic growing system. The growth in the hydroponic segment is expected to be driven by a rise in demand for organic fruits and vegetables from the end consumers.

Segmentation 2: by Facility Type

• Greenhouses
• Indoor Vertical Farms

The greenhouse farming segment is anticipated to dominate the indoor farming technology market with a significant share during the period 2022 to 2027. The increasing number of greenhouses in several countries and the feasibility of growing more plants and crops in greenhouses are the major drivers for this segment’s growth.

Segmentation 3: by Crop Type

• Fruits and Vegetables
• Herbs and Microgreens
• Flowers and Ornamentals
• Medicinal Crops

Among all the four crop types, the fruit and vegetables segment is expected to dominate the indoor farming technology market with a significant share of $8,179.3 million by 2027. The growth in the fruit and vegetables segment is expected to be driven by the increasing popularity of the consumption of fresh, pesticide-free fruits for healthy living; many growers have initiated the cultivation of fruits, such as lemons, oranges, figs, grapefruits, cherries, and strawberries.

Segmentation 4: by Product Type

• Hardware System
• Software

The hardware segment is estimated to capture highest market share during the period 2022 to 2027. The hardware systems such as sensors, controllers, lighting systems, irrigation systems, and others are increasingly used in the various indoor farming operations. In addition, the increasing adoption of intelligent hardware components integrated with sensors and computer vision is expected to drive the growth of the indoor farming technology market worldwide.

Segmentation 5: by Region

• North America - U.S., Canada, and Mexico
• Europe - Germany, France, Netherlands, Belgium, Greece, Ukraine, Turkey, and Switzerland
• China
• U.K.
• Asia-Pacific - India, Japan, Australia and New Zealand, Singapore, and Rest-of-Asia-Pacific
• Rest-of-the-World - Brazil, South Africa, U.A.E., Saudi Arabia and Countries in Rest-of-the-World

The North America region is expected to dominate the indoor farming technology market, which can beattributed to the high technological advancement and the presence of leading indoor farming technology solution providers in the region. The growth in the market is further driven by the increasing research and development activities and large-scale adoption of digital technologies in countries such as the U.S., Canada, and Mexico.

Recent Developments in Global Indoor Farming Technology Market

• In September 2022, iFarm, based in Switzerland, partnered with Yasai AG and LOGIQS B.V. and announced long-term cooperation. Yasai AG announced the signing of a strategic agreement with the equipment and tech suppliers with the launch of the first vertical farm project based in Zurich. The company involved are LOGIQS B.V. and iFarm as the technology partners responsible for constructing a pilot facility, with about 673 sq. m of growing area and a design capacity of around 20 tons of fresh herbs per year.
• In April 2022, Lumileds Holding B.V. has launched LUXEON SunPlus HPE, a high-power, deep red (660nm) LED in the U.S. market. This product is designed specifically for the horticulture lighting industry.
• In September 2021, IUNU acquired Artemis, a U.S.-based company that provides software solutions for indoor farming activities. Nowadays, Artemis works as a subsidiary of IUNU.
• In May 2021, Freight Farms launched Greenery S, which is the latest model of Freight’s vertical container farm system. This is known as the tenth generation of the Greenery, which again includes “a fresh suite of features.” In addition, in January 2020, Everlight Electronics Co., Ltd. announced new horticultural LEDs in spectrums tailored to enhance the red pigment of strawberries.

Demand – Drivers and Limitations

Following are the demand drivers for the Indoor Farming Technology Market:

• Land Degradation and Decrease in Arable Land
• Need for Climate-Smart Agriculture

Increased Government Support and Initiatives

The market is expected to face some following challenges:

• High Initial Investment and Operational Costs
• Suitable for the Production of Selective Crops
• Limited Awareness Among Farmers

How can this report add value to end users?

Product/Innovation Strategy: The product segment helps the reader understand the different types of hardware systems and software available in the indoor farming applications. Moreover, the study provides the reader a detailed understanding of the different product types by applications (growing systems, crop types and facility types). Hardware systems such as lighting system, climate control system, irrigation system, and container farms are most widely used hardware systems indoor farming practices. Therefore, the indoor farming technology market is a moderate investment and high revenue generating technology in the coming years owing to the rise in investment towards climate smart agriculture practices across the globe.

Growth/Marketing Strategy: The global indoor farming technology market has seen major development by key players operating in the market, such as product launch, partnership, joint venture, collaboration, and merger & acquisitions. The favoured strategy for the companies has been product launch to strengthen their positions in the indoor farming technology market.

For instance, in February 2022, Netafim USA, a subsidiary of Netafim, launched a new AlphaDisc filter for precision irrigation solutions in the U.S. This product launched helps the company increase its market presence in the U.S. market.

Competitive Strategy:Key players in the global indoor farming technology market analysed and profiled in the study involve integrated hardware systems and software manufacturers that are engaged in providing advanced indoor farming solutions to farmers and other agriculture service companies. Moreover, a detailed competitive benchmarking of the players operating in the global indoor farming technology market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, joint ventures, acquisitions, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Impact

• Indoor farming can be defined as the practice of growing produce stacked on top of each other in an enclosed and controlled environment. By using vertically mounted grow racks, the area required to grow plants is significantly reduced compared to traditional growing methods. This type of cultivation is often associated with city and urban farming due to its ability to thrive in limited spaces. It helps in reducing the usage of water, labour costs, occupational hazards, and chemical or pesticides.
• The robust development in the indoor farming technology market is increasingly changing the customers’ perception of its utilization. Due to factors such as inappropriate supervision systems, automated farming tools, and strong support from government bodies, a large number of players are entering the indoor farming technology market.

Impact of COVID-19

Due to COVID-19, the production of fruits and vegetables, microgreens, ornamentals, and others under indoor farming was hindered up to a level that led to low revenue generation. This has further hampered the growth of the indoor farming technology market in 2020. However, the improved COVID-19 situation is expected to grow in the studied market during the forecast period. COVID-19 has also increased the demand for rapid pharmaceutical development, and vertical indoor farming can provide high-quality monoclonal antibodies, bioinks, vaccines, and other proteins efficiently and quickly. For instance, in March 2020, a start-up, iBio, announced that it was developing SARS-CoV-2 vaccine candidates by utilizing vertical indoor farming. This is further increasing the market size even further.