Plant Factory Market by Facility Type, Light Type, Growing System, Crop Type, End-Use

List of Tables

[190 Pages Report] The Plant Factory Market size was estimated at USD 168.37 billion in 2023 and expected to reach USD 182.31 billion in 2024, at a CAGR 9.40% to reach USD 315.82 billion by 2030.

A plant factory, also known as a vertical farm or indoor farming system, is a form of controlled environment agriculture (CEA) that leverages precise technology to cultivate plants within an enclosed setting. This innovative farming approach seeks to optimize plant growth, productivity, and resource efficiency by closely monitoring and controlling environmental factors such as light, temperature, humidity, carbon dioxide levels, and nutrient delivery to the plants. The proliferation of plant factories can be attributed to the rising demand for fresh, local produce in urban areas, where traditional farming space is limited. This trend is particularly significant as the global population becomes more urbanized, fueling concerns about food security and the environmental impact of traditional agriculture. However, the chance of contamination by pests such as aphids and microorganisms can prevent hurdles to the growth and expansion of plant factories. Furthermore, the need for precise control of environmental parameters also proves cumbersome for new entrants in the field who lack access to advanced technologies. However, efforts by major manufacturers to explore the integration of technological innovations in artificial lighting, such as the extensive use of LED systems, have made plant factories more energy-efficient and productive. Moreover, the use of advanced sensors and the Internet of Things (IoT) in these cultivation systems has fuelled advancements in precision farming. Data-driven agriculture practiced in plant factories ensures optimal resource use and waste reduction, aligning with the sustainability goals that are important to consumers and governments.

KEY MARKET STATISTICS
Base Year [2023]	USD 168.37 billion
Estimated Year [2024]	USD 182.31 billion
Forecast Year [2030]	USD 315.82 billion
CAGR (%)	9.40%

Facility Type: Presence of government incentives and subsidies for greenhouses

A container farm is a fully enclosed system that repurposes shipping containers for agricultural use. These compact, modular units are often equipped with advanced hydroponic or aeroponic systems and utilize artificial lighting to provide controlled environments for plant growth. Greenhouses represent a well-established method for extending the growing season of plants by protecting them from adverse weather conditions. They harness the power of natural sunlight, while the enclosed structure creates a stable environment to grow various crops. Modern greenhouses can be equipped with climate control systems, such as heaters, coolers, and humidifiers, as well as computerized monitoring to optimize growth conditions. Indoor farms are agricultural establishments operating within fully enclosed and climate-controlled environments. Indoor farming is particularly well-suited to leafy greens, herbs, and other small plants and is popular in urban areas where land is scarce. Water culture farms refer to establishments where plants are produced directly in a nutrient-rich water solution without any soil. These methods include deep water culture (DWC), nutrient film technique (NFT), and floating raft systems.

Growing System: Research initiatives to improve performance of non-soil based systems

Light Type: Improvements in fully artificial light types owing to growing number of technological advancements

Fully artificial light makes use of a light source to simulate the unique characteristics of sunlight if sufficient natural sunlight is unavailable or not infeasible. Light-emitting diodes (LEDs), high-intensity discharge (HID) lamps, and fluorescent tubes are prominent types of sources providing artificial light. Among these, LEDs are increasingly prominent due to their energy efficiency, longevity, and the ability to tailor light spectra to plant-specific needs. Sunlight remains the most natural and cost-efficient light source for plant photosynthesis. However, in the context of a plant factory, the reliance on natural sunlight can introduce variability and limitations due to seasonal changes, geographic location, and daily weather conditions.

End-Use: Expanding preference for urban agriculture and demand for nutritionally-dense crop plant from residential users

The residential segment refers to end-users and households that prefer sustainably and locally produced crop plants. Small-scale hydroponic or aeroponic systems designed for limited space are popular in this category, aligning with the emerging trend of homegrown fruits, vegetables, and herbs. Commercial and industrial end-users constitute a significant portion of the plant factory industry, encompassing businesses such as supermarkets, restaurants, and dedicated plant production facilities. This sector is vital for scaling up vertical farming and fully controlled environments that can produce large quantities of high-quality and pesticide-free crops. Research and academic institutions are integral to the growth and innovation within the plant factory market. Academic institutions and research organizations utilize controlled environment agriculture (CEA) for a range of purposes, including scientific research, educational purposes, and the development of new growing techniques. These institutions often pioneer studies on plant physiology, crop yield optimization, resource efficiency, and environmental control.

Regional Insights

The Americas region is characterized by advancements in lighting and automation technology, high investment capital, and the presence of key industry players. The United States leads the demand for plant factories with large-scale commercial farms and numerous startups focusing on technology-driven agriculture. Rising consumer awareness about healthy dietary habits and a preference for locally grown and organic crop produce has stimulated the growth of plant factories in this region. European markets are rapidly adopting plant factory systems as the region has a strong focus on reducing greenhouse gas levels and promoting sustainable agricultural practices. Multiple European nations serve as a hub for research and innovation in vertical farming. Scandinavian countries, with their limited daylight hours and cold climates, are increasingly looking towards indoor agriculture to ensure year-round fresh produce. In addition, countries such as the UK, France, and Germany are investing in research and adopting policies that encourage the development of urban farm facilities. Multiple APAC nations are focusing on advancing plant factory initiatives to cater to the demand for native crop plants and locally produced plant-based food. Japan has a strong focus on plant biotechnology research and has established the Japan Plant Factory Association (JPFA) to advance academic and business improvements in the global industry of plant factory and controlled environment agriculture. China, India, and South Korea are integrating plant factories into their urban and semi-urban areas to address food safety concerns.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Plant Factory 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 Plant Factory 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 Plant Factory Market, highlighting leading vendors and their innovative profiles. These include 4D Bios, Inc., AeroFarms, LLC, AppHarvest, Inc., Avisomo, Babylon Micro-Farms, Badia Farms, Bowery Farming, Inc., BrightFarms, CityCrop, Crop One, CubicFarm Systems Corp., Dream Harvest Farming LLC, Eden Green Technology, FARMINOVA Plant Factory, Gotham Greens Holdings, LLC, iFarm, Iron Ox, Inc., Kalera Inc., Mirai Co. Ltd., Plenty Unlimited Inc., SANANBIO, Sky Greens, Smallhold, Square Roots Urban Growers, Inc., Taiksha Ltd., Urban Crop Solutions, Vertical Harvest Farms, and VerticalField.

Market Segmentation & Coverage

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

Facility Type
- Container Farms
- Greenhouses
- Indoor Farms
- Water Culture Farms

Light Type
- Fully Artificial
- Sunlight

Growing System
- Hybrid
- Non-Soil Based
- Soil-Based

Crop Type
- Flowers & Ornamentals
- Fruits
- Vegetables

End-Use
- Commercial/Industrial
- Research & Academic Institutions
- Residential

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- 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 Plant Factory Market?

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

3. What are the technology trends and regulatory frameworks in the Plant Factory Market?

4. What is the market share of the leading vendors in the Plant Factory Market?

5. Which modes and strategic moves are suitable for entering the Plant Factory Market?

Product Code: MRR-8201ABF21DAD

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. Emphasis on year-round crop production owing to escalating food security concerns
  - 5.1.1.2. Government initiatives promoting greenhouses and vertical farming activities
  - 5.1.1.3. Rising popularity of hydroponic and aeroponic plant factory
- 5.1.2. Restraints
  - 5.1.2.1. Concerns associated with limited crop variety and complex maintenance
- 5.1.3. Opportunities
  - 5.1.3.1. Advancements in lighting, automation, and farming equipment in plant factories
  - 5.1.3.2. Strategic expansion of existing and construction of new plant factories
- 5.1.4. Challenges
  - 5.1.4.1. Risk of equipment failure and delay in the learning curve among growers
5.2. Market Segmentation Analysis
- 5.2.1. Facility Type: Presence of government incentives and subsidies for greenhouses
- 5.2.2. Growing System: Research initiatives to improve performance of non-soil based systems
- 5.2.3. Light Type: Improvements in fully artificial light types owing to growing number of technological advancements
- 5.2.4. End-Use: Expanding preference for urban agriculture and demand for nutritionally-dense crop plant from residential users
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Plant Factory Market, by Facility Type

6.1. Introduction
6.2. Container Farms
6.3. Greenhouses
6.4. Indoor Farms
6.5. Water Culture Farms

7. Plant Factory Market, by Light Type

7.1. Introduction
7.2. Fully Artificial
7.3. Sunlight

8. Plant Factory Market, by Growing System

8.1. Introduction
8.2. Hybrid
8.3. Non-Soil Based
8.4. Soil-Based

9. Plant Factory Market, by Crop Type

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

10. Plant Factory Market, by End-Use

10.1. Introduction
10.2. Commercial/Industrial
10.3. Research & Academic Institutions
10.4. Residential

11. Americas Plant Factory Market

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

12. Asia-Pacific Plant Factory 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 Plant Factory 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. Lactuca Holdings Acquires Vertical Farming Company Kalera
- 14.3.2. Yaskawa Partners with US-Based Start-Up Oishii on Plant Factory Automation
- 14.3.3. Plenty Opens Technologically Advanced Indoor Vertical Farm in Compton
14.4. Strategy Analysis & Recommendation

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio