Global Indoor Farming Technology Market Report 2023: A $17.12 Billion Market by 2027 - Increased Penetration of 5G Services and Information and Communication Technology (ICT)
DUBLIN, April 28, 2023 /PRNewswire/ -- The "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 has been added to ResearchAndMarkets.com's offering.
The global indoor farming technology market was valued at $5.84 billion in 2022 and is expected to reach $17.12 billion in 2027, following a CAGR of 23.99% during 2022-2027.
The growth in the global indoor farming technology market is expected to be driven by increase in demand for food products produced sustainably with higher yields as compared to traditional farming technologies.
The indoor farming technology market is in a growing phase owing to different advanced technologies in the market. As increase in implementation of indoor farming methods such as aquaponics, aeroponics, and hydroponics also utilizes artificial lighting, such as LED lights, for adequate light levels and nutrients are further anticipated to fuel the growth of the market during the forecast period.
Industry Impacts
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, bio-inks, vaccines, and other proteins efficiently and quickly. This is further increasing the market size even further.
How can this report add value to end users?
Product/Innovation Strategy:
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.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
The top segment players who are leading include key public, private, and start-ups which are indoor farming technologies manufacturers in the market and the ones which are engaged in providing advanced lighting solutions across the globe.
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.
Market Segmentation
Growing System
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.
Facility Type
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.
Crop Type
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.
Product Type
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.
Region
The North America region is expected to dominate the indoor farming technology market, which can be attributed 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.
Market Dynamics
Trends: Current and Future
- Rise in Plant Factory Production
- Rise High-Value Crops Cultivation
- Increased Penetration of Information and Communication Technology (ICT) in Agriculture
Ongoing Programs
- Consortiums and Associations
- Government Initiatives and Regulatory Bodies
Business Opportunities
- Pharmaceutical Plant Production Through Indoor Farming
- Internet Infrastructure Upgradation and Launch of 5G Services
- Scope of Expansion in Developing Countries
Business Drivers
- Land Degradation and Decrease in Arable Land
- Need for Climate-Smart Agriculture
- Increased Government Support and Initiatives
Business Challenges
- High Initial Investment and Operational Costs
- Suitable for the Production of Selective Crops
- Limited Awareness Among Farmers
Market Strategies and Development
- Business Strategies
- New Product Launch
Corporate Strategies
- Partnerships, Joint Ventures, Collaborations, and Alliances
- Mergers and Acquisitions
- Snapshot of Corporate Strategies Adopted in the Global Indoor Farming Technology Ecosystem
Case Study
- Frieght Farms, Inc.
- Signify Holding
- Netafim
Key Companies Profiled
Public Companies
- Everlight Electronics Co., Ltd
- Signify Holding
- OSRAM GmbH
Private Companies
- AmHydro
- Argus Control Systems Limited
- California LightWorks
- Current Lighting Solutions, LLC
- Freight Farms, Inc.
- IUNU
- Link4 Corporation
- LOGIQS B.V.
- LumiGrow
- Lumileds Holding B.V.
- Netafim
- Priva
Start-Up Companies
- Growlink, Inc
- Agsmartic Technologies Pvt. Ltd.
- CarbonBook
- Sentera
For more information about this report visit https://www.researchandmarkets.com/r/37tqot
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