Middle east & Africa Indoor Farming Market Outlook, 2029

The Middle East and Africa were important sites of early settled agriculture and are the origin and diversity centers for several major cereal and legume crops. On the total land of the Middle East & Africa region, only one-third is agricultural land while only 5% is arable. The rest of the land is either urban or dry desert. In addition to that, for countries like the UAE, which depends on imports for more than four-fifths of its food supply, indoor farming can offer unprecedented benefits. Indoor farms offer the prospect of growing more produce locally and making better use of the region’s limited water resources. Generally, plants in indoor farming facilities are grown in cells stacked for space, savings, and efficiency.

Further, the higher requirements for large production of food crops due to lack of arable land due to geographical factors are some of the major driving forces for the indoor farming market. Many major market players are adopting this efficient crop production technique to fuel the market's growth. For instance, Pure Harvest in Abu Dhabi has ambitious plans to become a regional powerhouse across the Middle East and Africa with fruits and vegetables grown in a controlled indoor environment, as the Emirates seeks to reduce reliance on food imports.In South Africa, agricultural land is very limited, so indoor farming is gaining more traction in the country. In addition to that, South Africa has a vibrant agricultural sector and a very competitive retail sector to distribute and sell the food grown. Furthermore, following the success of indoor farming across the country, Pick n Pay and CAN-Agri have launched their own indoor farms as a way of showcasing and educating shoppers about this approach to farming. In addition to that, Future Farms South Africa is a prominent company present in the country which focuses on the design, provision and management of all controlled agriculture, including agri-tunnels and greenhouses, both indoor and outdoor hydroponic systems, and modern irrigation methods. Some of the projects on which the company is working include Ndabeni indoor farm, Johannesburg Rooftop Farm, Anglo America-Hydroponic Farm in Kathu, Johannesburg Indoor R & D Hydroponic Farm, NSA seedling farm, and Knowledge Pele Community Farm.

According to the research report 'Middle East & Africa Indoor farming Market Overview, 2029,', the Middle East & Africa Indoor farming market was valued at more than USD 2.12 Billion in 2023. In the Middle East and Africa, there are certainly enough opportunities for indoor agriculture compared to other parts of the world.

As indoor farming facilities are still emerging across the region, it creates higher demand for the research and development sector to expand the industry at a higher pace. The Middle East & Africa indoor farming market is segmented into three prominent countries, including the UAE, South Africa, and Saudi Arabia. Among these countries, South Africa is dominating the market by holding the highest revenue generation in the indoor farming market.

The indoor farming market in the Middle East and Africa is characterized by a diverse range of growth mechanisms, with hydroponics leading the way due to its effectiveness in areas with limited water resources and its compatibility with the region's arid climates. Hydroponic systems, which facilitate crop growth in nutrient-rich water without the use of soil, are becoming increasingly popular, especially in the Middle East, where the lack of arable land and fresh water poses significant challenges. This approach optimizes resource utilization, conserves water, and allows for year-round farming, making it particularly suitable for regions where conventional agriculture faces obstacles.

Consequently, hydroponics is witnessing significant growth and is poised to remain the dominant method. Additionally, aeroponics and aquaponics are emerging as noteworthy segments, recognized for their high productivity and sustainable practices. Aeroponics, which enables plant growth in an air or mist environment without soil or water reservoirs, is gaining traction for its efficient use of space, while aquaponics combines fish farming with hydroponic cultivation, creating a sustainable closed-loop system. Although soil-based and hybrid systems are smaller in scale, they continue to play a role in specific crops and markets.

In the indoor farming sector of the Middle East and Africa, greenhouses dominate the facility type segment, holding the largest market share due to their established history and effectiveness in large-scale crop production within controlled environments. These structures allow for year-round cultivation of diverse crops, optimizing water usage and shielding plants from extreme weather, which is particularly beneficial in the arid climates of the Middle East. Greenhouses are extensively utilized for both food crops and premium flowers, significantly contributing to the region's agricultural output and food security.

Meanwhile, vertical farms, although currently a smaller segment, are experiencing rapid growth as urbanization accelerates and cities seek innovative solutions to food scarcity. By stacking crops in vertically arranged layers, vertical farming maximizes space and enables high-density production in urban settings where land is scarce. This approach is gaining popularity in Middle Eastern nations with increasing urban populations, providing a viable answer to the challenges posed by limited agricultural land. Additionally, vertical farms are incorporating advanced technologies such as LED lighting and hydroponic systems to enhance efficiency and crop yields.

The market is primarily led by the hardware segment, which holds the largest share. This segment includes critical components such as LED lighting systems, climate control technologies, irrigation infrastructure, and hydroponic or aeroponic equipment, all of which are essential for creating and maintaining controlled environments for crop production. In areas with difficult climates, particularly in the Middle East, these systems are indispensable for ensuring reliable yields by providing ideal growing conditions despite external environmental challenges. LED lighting is especially vital for vertical farming, as it offers energy-efficient solutions that simulate natural light to foster plant growth.

Although hardware continues to dominate, the software aspect is witnessing substantial growth as technology integration in indoor farming becomes more sophisticated. There is a growing adoption of software solutions to automate and oversee farming operations, from managing climate control systems to monitoring crop health through data analytics. These platforms provide real-time monitoring, precise control, and predictive analytics, allowing farmers to enhance water usage, nutrient delivery, and overall crop management.

The crop type segment in the indoor farming market of the Middle East and Africa is primarily dominated by vegetables and herbs, which account for the largest share due to their significant demand and adaptability to controlled environment agriculture. Crops like leafy greens, tomatoes, and herbs such as basil and mint excel in indoor environments where climate conditions can be finely tuned to optimize growth and yield. The growing consumer inclination towards fresh, locally sourced produce that is free from pesticides has further enhanced the cultivation of these crops in indoor farms, making them essential to the region's agricultural scene.

Additionally, fruits are gaining popularity, with indoor cultivation of strawberries and peppers on the rise to meet increasing market demands. The flowers and ornamentals segment, while smaller, is also growing as urban gardening trends and the need for sustainable floral products gain momentum, particularly in cities where traditional gardening space is scarce. Moreover, the 'Others' category, which includes various niche crops, is expanding as consumer interest in specialty products and herbs for culinary and medicinal purposes increases.

COVID-19 Impact

The impact of COVID-19 on major economies in the Middle East and Africa region was severe. Due to growing infections, the government imposed a lockdown across various regions and the Middle East & Africa was one of them. Social distancing norms and work from home scenarios have resulted in a lower labor force and a drop in the revenue generation for major production plants. The supply chain was also heavily affected across the whole region. However, by the first quarter of 2021, market players regained their manufacturing at a higher pace to remain in the competition. Also, a change in consumer preference and high demand for organic food has fuelled the market growth in the Middle East and Africa.

Considered in this report

• Geography: Middle East & Africa
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Middle East & Africa Indoor Farming Market with its value and forecast along with its segments
• Country wise Indoor Farming market analysis
• Application wise Indoor Farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• UAE
• Saudi Arabia
• South Africa

Based on Growth Mechanism

• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

Based on Facility type

• Vertical Farm
• Greenhouse
• Others

Based on components

• Hardware
• Software

Based on Crop type

• Fruits, Vegetables & Herbs
• Flowers & Ornamentals
• Others (rest crops)

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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