North America Indoor Farming Technology Market, By Growing System (Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid), Facility Type (Glass or Poly Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture (DWC) Systems), Component (Hardware, Software and Services), Farm Size (Large Farms, Small Farms), Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals, Others) – Industry Trends and Forecast to 2029.
Indoor Farming Technology Market Analysis and Size
Indoor farming is not a new concept. In fact, the first and the prime example of indoor farming can be traced back to Hanging Garden of Babylon built more than 2500 years ago. Worldwide, in 2021, around 16.5 million square feet of indoor farms had been recorded. Factually and scientifically proven, indoor farming is 170X more productive than outdoor farming. There is a greater and faster growth in indoor farming.
The North America indoor farming technology market was valued at USD 1.92 billion in 2021 and is expected to reach USD 6.21 billion by 2029, registering a CAGR of 15.80% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Indoor Farming Technology Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2014 - 2019)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Growing System (Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid), Facility Type (Glass or Poly Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture (DWC) Systems), Component (Hardware, Software and Services), Farm Size (Large Farms, Small Farms), Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals, Others)
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Countries Covered
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U.S., Canada and Mexico
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Market Players Covered
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Sananbio (U.S.), Hawthorne Gardening Co. (U.S.), Freight Farms, Inc. (U.S.), OSRAM SYLVANIA Inc. (U.S.), SUNCORE TILES (Canada), Priva (Netherlands), Surna. (U.S.), ZipGrow. (Canada), LOGIQS B.V. (Netherlands), GE CURRENT (U.S.), Signify Holding. (Netherlands), Argus Control Systems Limited (Canada), LumiGrow. (U.S.), Certhon (Netherlands), iFarm (Finland), Braingrid Corporation. (Canada), Eden Green Technology. (U.S.), NETAFIM (Israel), Urban Crop Solutions (Belgium) among many others.
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Market Opportunities
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Market Definition
From the name itself, it is clear that indoor farming technology is the application of tools and necessary measures to produce plants, crops and food in general in an indoor setting. Indoor farming enjoys a unique set of advantages as the produce is fresh, healthy, free of chemicals and high in nutrition. Indoor farming technology can easily be used for small scale and large scale institutional settings.
Indoor Farming Technology Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- Global awareness regarding multiple factors
The global efforts to minimize the carbon impact are influencing people to adopt greener and safer crop cultivation and food production methods. That said, here is a sharp rise in the awareness among people especially in the developing economies pertaining to the techniques and technologies that can be used for indoor farming purposes. Higher yield results of indoor farming as compared to conventional farming methods is yet again bolstering the growth of the market.
- Increased support by the government
Rising number of government initiatives and supportive policies by the central and state government in regards to promoting the growth of the market especially in APAC region will widen the scope of growth to a great extent. Increasing the number of collaborations between the public and private players to develop and manufacture new, innovative and cost effective technologies is driving the market's growth.
Furthermore, the factors such as rising urbanization, globalization and growing demand and consumption of organic food globally have further contributed to the overall market expansion during the forecast period. Additionally, growing adoption of high-yielding farming techniques such as urban farming and precision farming and rising personal disposable income are anticipated to drive the market's growth rate.
Opportunities
- Benefits of indoor farming
Adopting indoor farming practices can conserve water and save space. Indoor farming creates optimum environment for the crops to grow and reduces water wastage owing to the use of techniques such as drip irrigation. Indoor farms recirculate and reuse the water; therefore, the method consumes 95% less water used in outdoor farming to grow the same crop.
- Increasing internet adoption
Growing access to high speed internet and improving internet infrastructure in the developing economies will yet again propel the market growth rate. Penetration of 4G and 5G internet services will widen the scope of growth and expansion globally. Everything today is available on the internet. Netizens can learn about various techniques and educate themselves for the greater good.
Restraints/Challenges
- High initial investments
The cost of setting up an indoor farming system is comparatively huge than outdoor farming. One of the main reasons for the same is that urban land is costlier than the farm land. Further, energy costs are high that are used in settings such as vertical farming. That said, energy runs for around 16 hours a day in case of vertical farming. Controlling the temperature of the setting is yet another financial burden.
- Lack of adequate funding
Dearth of expert knowledge and technical expertise especially in the developed and developing economies and limited investors in the agricultural business will create hurdles for the market in regards to the smooth growth in the market value. Further, limited and slow funding for such projects will yet again hamper the market growth rate.
This indoor farming technology market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the indoor farming technology market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Indoor Farming Technology Market
The COVID-19 pandemic has benefited the expansion of the market and the post-pandemic period will continue to push forward the market growth rate. The pandemic phase has led to the widespread awareness pertaining to food safety and health. Many have become critical of the safety of outside food and as a result have started cooking self-made/homemade meals. This has resulted in a sharp rise in demand for indoor farming tools and technologies. Lockdown and movement restrictions put restaurant and hotel business in jeopardy. This in turn worked in the favor of indoor farming market.
Recent Developments
- LumiGrow Inc. introduced a new TopLight Hybrid smart fixture in August 2019. Users of the hybrids will be able to take advantage of the expanded white spectrum, which is entirely wireless and can be regulated via the company's SmartPAR software.
- A new raised system was introduced in April 2019 by the Hydroponics System International corporation to support the facilities that needed gutters that weren't at ground level.
- The purchase of WiZ Connected (China), creators of the WiZ Wi-Fi-based connected lighting ecosystem, was announced by Signify Holdings in April 2019. The acquisition would aid the company's entry into the Wi-Fi-based smart lighting sector.
Indoor Farming Technology Market Scope
The indoor farming technology market is segmented on the basis of growing system, facility type, component, farm size and crop type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Growing System
- Aeroponics
- Hydroponics
- Aquaponics
- Soil-Based
- Hybrid
Facility Type
- Glass or Poly Greenhouses
- Indoor Vertical Farms
- Container Farms
- Indoor Deep Water Culture (DWC) Systems
Component
- Hardware
- Climate control systems
- Lighting systems
- Communication systems
- Sensors, system controls
- Irrigation systems
- Others
- Software and Services
- Web-Based
- Cloud-Based
Farm Size
- Large Farms
- Small Farms
Crop Type
- Fruits and Vegetables
- Tomato
- Lettuce
- Bell & Chili Peppers
- Strawberry
- Cucumber
- Leafy Greens
- Lettuce
- Kale
- Spinach
- Others
- Herbs
- Others
- Herbs and Microgreens
- Basil
- Herbs
- Tarragon
- Wheatgrass
- Flowers and Ornamentals
- Perennials
- Annuals
- Ornamentals
- Others
Indoor Farming Technology Market Regional Analysis/Insights
The indoor farming technology market is analyzed and market size insights and trends are provided by country, growing system, facility type, component, farm size and crop type as referenced above.
The countries covered in the indoor farming technology market report are U.S., Canada and Mexico in North America.
U.S. in North America dominates the indoor farming technology market due to the fact that the country is the largest manufacturer and service provider of indoor farming technology. Increased focus on the research and development proficiencies will further widen the scope of growth for this country in North America.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Indoor Farming Technology Market Share Analysis
The indoor farming technology market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to indoor farming technology market.
Some of the major players operating in the indoor farming technology market are
- Sananbio (U.S.)
- Hawthorne Gardening Co. (U.S.)
- Freight Farms, Inc. (U.S.)
- OSRAM SYLVANIA Inc. (U.S.)
- SUNCORE TILES (Canada)
- Priva (Netherlands)
- Surna. (U.S.)
- ZipGrow. (Canada)
- LOGIQS B.V. (Netherlands)
- GE CURRENT (U.S.)
- Signify Holding. (Netherlands)
- Argus Control Systems Limited (Canada)
- LumiGrow. (U.S.)
- Certhon (Netherlands)
- iFarm (Finland)
- Braingrid Corporation. (Canada)
- Eden Green Technology. (U.S.)
- NETAFIM (Israel)
- Urban Crop Solutions (Belgium)
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