Indoor Farming Technology Market by Component, Growing Media, Facility Type, Crop, End-User

Description

List of Tables

[185 Pages Report] The Indoor Farming Technology Market size was estimated at USD 20.80 billion in 2023 and expected to reach USD 22.73 billion in 2024, at a CAGR 9.49% to reach USD 39.24 billion by 2030.

Indoor farming technology comprises systems and solutions designed to enhance crop yield and quality in a controlled indoor environment, including various technologies such as hydroponics, aeroponics, aquaponics, LED lighting, climate control systems, and automated hardware and software solutions. End-use applications cover commercial and home indoor farming setups that cultivate fruits, vegetables, herbs, and ornamental plants. The market scope encapsulates indoor farming technology systems' design, manufacturing, distribution, and service. It also covers the research and development activities to improve existing technologies, innovate new farming methods, and optimize resource use for higher yields and sustainability. The application of indoor farming technologies extends to vertical, greenhouse, container, and urban agriculture. The end-users of these technologies range from large-scale commercial agricultural operators to small-scale urban farmers and hobbyists looking to produce food sustainably within the confines of urban environments. The demand for indoor farming technology is influenced by several factors, such as rising global population and urbanization leading to limited space for traditional farming, an increase in consumer awareness about the benefits of pesticide-free and locally grown produce, the need for sustainable farming practices amid changing climate conditions, and the upgrade of Internet of Things (IoT) applications in agriculture for monitoring and automation. However, the adoption of indoor farming technology is hindered by various limitations, including high initial investment and operating costs, technical complexities and skilled labor requirements, and problems related to the disposal of waste generated from these systems. Conversely, the advancement of AI-driven analytics for maximizing crop yield and resource management, the integration of machine learning for crop disease detection and prevention, and the substantial investments by governments and private entities in sustainable food production technologies research and development offer promising opportunities for the expansion of the indoor farming technology market.

KEY MARKET STATISTICS
Base Year [2023]	USD 20.80 billion
Estimated Year [2024]	USD 22.73 billion
Forecast Year [2030]	USD 39.24 billion
CAGR (%)	9.49%

Component: Rising potential of software & services to monitor, control, and improve the farming operations continuously

The hardware segment of indoor farming technology is the physical backbone, encompassing equipment, and infrastructure vital to enabling controlled environment agriculture. These hardware components regulate temperature, light, humidity, and nutrients necessary for crop growth. Climate control systems regulate temperature, humidity, and ventilation within the growing space to mimic ideal growth conditions. This category includes HVAC systems, dehumidifiers, and air circulation fans. Communication systems enable effective data transmission and machinery coordination, which is vital for integrating various hardware and software components, ensuring cohesive system operation. Irrigation systems, including hydroponic, aeroponic, and drip irrigation methods, are designed to deliver water and nutrients directly to plant roots, reducing water usage and enhancing nutrient uptake. LED growth lights and other artificial lighting solutions provide the necessary light spectrum for photosynthesis, facilitating plant growth without natural sunlight. A wide array of sensors is employed to monitor environmental parameters such as CO2 levels, pH levels, nutrient concentrations, and soil moisture. These sensors are integral for automating adjustments and ensuring optimal growth conditions. Automated control systems enable the centralized management of indoor farming hardware, allowing for fine-tuning of environment variables and remote monitoring of system performance. Software and services within the indoor farming sector include farm management software, data analytics, cloud solutions, and consulting services. The need for software and services is becoming increasingly important as the precision and optimization of indoor farming practices directly affect yield and profitability. These components provide the ability to monitor, control, and improve farming operations continuously. Comparing hardware to software and services within indoor farming technology involves examining scalability, initial costs, and potential ROI. Hardware forms the base requirements for an indoor farm but has higher upfront costs and is typically less flexible once installed. It is instrumental in the early stages and remains critical throughout the operation. On the contrary, software and services are generally more adaptable and can be scaled or changed with relatively lower costs but require ongoing subscription or service fees. These enable farmers to optimize their existing hardware infrastructure, leading to continuous farm performance improvements.

Growing Media: Expanding significance of aquaponics for educational environments due to its ecological benefits

Aeroponics is a method of growing plants in an air or mist environment without using soil or an aggregate medium. Plants are suspended in a closed or semi-closed environment, and a fine mist of nutrients is sprayed directly onto the roots. It is particularly valued for its efficient water usage, minimal pesticide need, and easy nutrient delivery control. Aquaponics combines aquaculture (raising fish or other aquatic animals) with hydroponics (cultivating plants in water) in a symbiotic environment. The waste produced by the fish or other aquatic creatures supplies nutrients for the plants, purifying the water. Hydroponics is a method of growing plants without soil using nutrient-rich water solutions. Plants may be grown with their roots in the mineral solution only or an inert medium, such as perlite or gravel. Soil-based indoor farming is the traditional method of growing plants using soil as the natural medium, which is often used in indoor farming when there is sufficient space and where growers prefer the simplicity of soil.

Facility Type: Increasing popularity of hydroponics and indoor deep water culture systems for growing leafy greens and herbs with high water content

Container farms are fully enclosed farming systems repurposed from shipping containers. They are known for their portability and compact design, rendering them suitable for urban areas where space is limited. Greenhouses made of glass or polycarbonate materials allow natural sunlight to support plant growth, supplemented by environmental control equipment. Indoor deep-water culture systems, part of the broader category of hydroponics, involve suspending plant roots in a nutrient-rich water solution, promoting rapid growth and efficient nutrient uptake. Indoor vertical farms vertically stack growing trays or shelves to maximize space and yield. These systems use LED lighting and controlled environments to grow crops, including leafy greens, herbs, and fruits.

Crop: Growing usage of indoor farming technology for managing herbs & microgreens to maintain their freshness and concentrated nutrients

Flowers & ornamentals in indoor farming encompass a range of plants typically grown for decorative purposes, such as roses, tulips, and chrysanthemums. This segment caters to commercial markets and hobbyists seeking year-round production and enhanced quality. There is a significant preference for these technologies in regions with unfavorable climate conditions, where traditional outdoor cultivation is challenging. The fruits & vegetables segment of indoor farming employs advanced technologies to ensure high-yield and quality produce, with tomatoes, strawberries, and leafy greens being some of the most commonly cultivated crops. Indoor farming techniques offer control over growing conditions, resulting in year-round production, reduced water usage, and no need for pesticides. This segment appeals particularly to consumers and suppliers seeking non-seasonal fresh produce in urban areas. Herbs & microgreens are popular in indoor farming due to their high value and short growth cycles. These crops are prioritized for their intense flavor and nutritional content, and growers can take advantage of rapid production turnover and efficient space usage. Indoor farming for herbs and microgreens is particularly tailored to chefs, restaurants, and health-conscious consumers who demand fresh, locally-grown produce.

End-User: Incorporation of sophisticated technologies such as AI and robotics in vertical farming for commercial systems maximizes productivity and efficiency

The commercial segment comprises large-scale and medium-scale businesses that produce crops indoors for profit. This category includes vertical farms, greenhouses, and controlled environment agriculture (CEA) operations. Businesses in this segment prioritize technologies that increase yield, reduce resource consumption, and provide consistent crop quality year-round. Commercial operators look for technologies that use less water and energy, such as LED lighting and AI-based climate control systems, to reduce their environmental footprint. Solutions that can be scaled up or down depending on the demand and space are highly valued, so the commercial sector adopts modular setups and automated systems. The residential segment encompasses individuals seeking to grow fresh produce at home, ranging from hobbyists to those wanting to supplement their diet with home-grown food; this segment prioritizes ease of use, compact design, and affordability. For residential purposes, compact systems are designed for growing herbs and small vegetables within a kitchen or other small spaces. Small-scale hydroponic systems are slightly larger, allowing homeowners to harvest a broader range of vegetables and herbs using hydroponic technology.

Regional Insights

In the Americas, particularly in the United States and Canada, consumer awareness about sustainable farming practices and the environmental impact of traditional agriculture is rising. The demand for locally sourced, organic food drives innovation in indoor farming technologies. In both countries, customers are increasingly willing to pay a premium for quality and sustainability, reflected in purchasing behavior. South America's market is burgeoning as countries such as Brazil and Argentina begin to adopt indoor farming methods to counteract the challenges of traditional agriculture, such as erratic weather patterns and limited arable land. The EU has been at the forefront regarding initiatives and regulations to promote sustainable farming. Consumers' need for food safety and freshness is high, influencing companies to adopt indoor farming technologies. Subsidies and funding from the European Commission for research in optimized greenhouse cultivation techniques are notable. The Middle East faces extreme water scarcity and arid climates, challenging traditional agriculture farming practices. Indoor farming presents a solution with significant reductions in water usage. In Africa, the adoption of indoor farming is in the nascent stages, but it can potentially address food security issues. China's indoor farming technology market is rapidly growing due to increased urbanization and the need for pollution-free produce. The government's investment in agricultural technology for food safety and sustainable farming is noticeable. Japan has been utilizing indoor farming technologies effectively due to limited arable land, with companies in the region leading the way in high-tech indoor vertical farms. India, while still an emerging country in indoor farming, presents a significant growth opportunity due to its large population and the need for productivity improvements in agriculture.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Indoor Farming Technology Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Indoor Farming Technology Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Indoor Farming Technology Market, highlighting leading vendors and their innovative profiles. These include 80 Acres Farms, AeroFarms, LLC, Agritecture, LLC, Babylon Micro-Farms, Bluelab Corporation Limited, Bowery Farming Inc., BrightFarms, Inc., CubicFarm Systems Corp., Fotenix Limited, Freight Farms, Inc., Gardin, GP Solutions, Inc., Hydrofarm Holdings Group, Inc., HydroGarden Ltd., infarm - Indoor Urban Farming GmbH, Intelligent Growth Solutions Limited, Just Vertical Incorporated, Kalera Inc., LettUs Grow Ltd., Logiqs B.V., Metropolis Farms Canada, Mirai Group, OCS Overhead Conveyor System Ltd., Plenty Unlimited Inc., Richel Group, Signify N.V., Sky Greens, Spread Co., Ltd., The Scotts Miracle-Gro Company, TruLeaf, Urban Crop Solutions BV, and Voeks Inc..

Market Segmentation & Coverage

This research report categorizes the Indoor Farming Technology Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Hardware
  - Climate Control Systems
  - Communication Systems
  - Irrigation Systems
  - Lighting Systems
  - Sensors
  - System Controls

Services
Software

Growing Media
- Aeroponics
- Aquaponics
- Hydroponics
- Soil-Based

Facility Type
- Container Farms
- Glass/Poly Greenhouses
- Indoor Deep Water Culture Systems
- Indoor Vertical Farms

Crop
- Flowers & Ornamentals
  - Annuals
  - Ornamentals
  - Perennials

Fruits & Vegetables
- Eggplant
- Leafy Greens
- Strawberry
- Tomato

Herbs & Microgreens
- Basil
- Herbs
- Tarragon
- Wheatgrass

End-User
- Commercial
- Residential

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - Arizona
    - California
    - Florida
    - Indiana
    - Maryland
    - Michigan
    - New Jersey
    - New York
    - Ohio
    - Pennsylvania
    - Texas
    - Virginia
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Indoor Farming Technology Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Indoor Farming Technology Market?

3. What are the technology trends and regulatory frameworks in the Indoor Farming Technology Market?

4. What is the market share of the leading vendors in the Indoor Farming Technology Market?

5. Which modes and strategic moves are suitable for entering the Indoor Farming Technology Market?

Product Code: MRR-43539E5D30ED

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Escalating demand for sustainable and secure food production methods
  - 5.1.1.2. Government initiatives encouraging indoor vertical farming and hydroponics
  - 5.1.1.3. Popularity of online indoor farming SaaS platforms
- 5.1.2. Restraints
  - 5.1.2.1. High initial investment required for indoor farming technologies
- 5.1.3. Opportunities
  - 5.1.3.1. Technological advancements in indoor farming technologies with AI & ML
  - 5.1.3.2. New investments in indoor farming facilities and establishments
- 5.1.4. Challenges
  - 5.1.4.1. Technical limitations of indoor farming technologies
5.2. Market Segmentation Analysis
- 5.2.1. Component: Rising potential of software & services to monitor, control, and improve the farming operations continuously
- 5.2.2. Growing Media: Expanding significance of aquaponics for educational environments due to its ecological benefits
- 5.2.3. Facility Type: Increasing popularity of hydroponics and indoor deep water culture systems for growing leafy greens and herbs with high water content
- 5.2.4. Crop: Growing usage of indoor farming technology for managing herbs & microgreens to maintain their freshness and concentrated nutrients
- 5.2.5. End-User: Incorporation of sophisticated technologies such as AI and robotics in vertical farming for commercial systems maximizes productivity and efficiency
5.3. Market Trend Analysis
- 5.3.1. Reinforcing integration of advanced sensing and data analytics technologies in indoor farming and heightened consumer demand for local and organic crop production in Americas
- 5.3.2. Increase in the establishment of indoor farms, integration of robotics and AI in vertical farming, and growing popularity of container farms in the APAC region
- 5.3.3. Favorable indoor farming start-up ecosystem coupled with rising funding for developing indoor farming technologies in EMEA
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Indoor Farming Technology Market, by Component

6.1. Introduction
6.2. Hardware
6.3. Services
6.4. Software

7. Indoor Farming Technology Market, by Growing Media

7.1. Introduction
7.2. Aeroponics
7.3. Aquaponics
7.4. Hydroponics
7.5. Soil-Based

8. Indoor Farming Technology Market, by Facility Type

8.1. Introduction
8.2. Container Farms
8.3. Glass/Poly Greenhouses
8.4. Indoor Deep Water Culture Systems
8.5. Indoor Vertical Farms

9. Indoor Farming Technology Market, by Crop

9.1. Introduction
9.2. Flowers & Ornamentals
9.3. Fruits & Vegetables
9.4. Herbs & Microgreens

10. Indoor Farming Technology Market, by End-User

10.1. Introduction
10.2. Commercial
10.3. Residential

11. Americas Indoor Farming Technology Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Indoor Farming Technology Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Indoor Farming Technology Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Vertical Farm Company Intelligent Growth Solutions Raises GBP 22.5 Million to Support Business Expansion
- 14.3.2. Oishii Adds Ultra-premium Tomatoes to its Vertical Farming Lineup with the Launch of The RubI
- 14.3.3. China Unveils AI-powered Vertical Farm with 20-floors
- 14.3.4. Urban Crop Solutions Delivers Research Indoor Farm to BASF SE to Drive Sustainable Agricultural Practices
- 14.3.5. Eden Green Breaks Ground on USD 40 million Expansion as it Plots a Network of Indoor Farms
- 14.3.6. Leading Indoor Spinach Grower BrightFarms Enters Exclusive Licensing Deal With Partner Element Farms
- 14.3.7. Pure Harvest and Richel Group Ink USD 150 Million Partnership to boost technology-driven agriculture practices
- 14.3.8. Agrinam Acquisition Corporation and Freight Farms, Inc. Announce Binding Letter of Intent for Business Combination
- 14.3.9. Babylon Micro-Farms is First Indoor Farming System Licensed with the Works With WELL Trademark To Promote Health
- 14.3.10. Bluelab Partners with Malaysia-based Indoor Farm
- 14.3.11. CubicFarm Systems Corp. Announces Final Commissioning and Launch of Vertical Acres Farm in Indiana
- 14.3.12. Hydrofarm and CEA Advisors Announce Strategic Alliance
- 14.3.13. Plenty Opens World's Most Technologically Advanced Indoor Vertical Farm in Compton
- 14.3.14. AeroFarms Dedicates New Jersey Facility to R&D to Drive Innovation In Business Offerings
- 14.3.15. Plenty Partners with Walmart, Secures USD 400 Million in Funding for Business Expansion

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio