Indoor Farming Market Overview, 2029

Indoor farming is a technique of growing crops/plants on both large and small scales, in-home or commercially entirely indoor. It is also known as indoor gardening. Indoor farming, on the other hand, is particularly popular in major cities because plots of land of any size are scarce for growing and farming. The majority of indoor farming employs a combination of hydroponics and artificial lighting to supply plants with the nutrients and light that they would receive if cultivated outside.

Some indoor farming systems, such as those used in greenhouses, can, however, combine natural and artificial resources. So indoor farming provides protected areas for growing crops like greenhouses, vertical farms either in a building or in a shipping container and deep water culture. So in order to fight water scarcity and loss of arable land, this is one of the great techniques.

According to the research report, “Global Indoor Farming Market Outlook, 2029”, the market is expected to cross USD 49.01 Billion market size by 2029, with 16.23 % CAGR by 2024-29. Indoor farming includes vertical farms, greenhouses and other indoor farming facilities. This controlled environment facilities are totally under observation all the time to produce more crops. For optimum plant growth, greenhouse environmental control involves controlling and modifying day and night temperatures, relative humidity, and CO2 levels. During the winter and summer, extremes in temperature and humidity are common.

A well-designed production facility will tend to maintain a temperature range of 55 to 85, with humidity levels high enough to prevent water stress but low enough to prevent disease and fungus outbreaks in the crop. Asia-Pacific is one of the most lucrative markets for vertical farming compared to other regions. There has been a significant rise in new manufacturers and start-ups offering new innovative products across the region. In addition to that, higher adoption of advanced technologies such as artificial intelligence (AI), enhanced sensors, robotics, and smart monitoring is boosting the market growth.

In growth mechanism, the indoor farming market includes hydroponics, aeroponics, aquaponics, soil-based and hybrid facility systems. Hydroponics is used in vertical farm, deep water culture method as well as in some greenhouses. Similarly, aeroponics & aquaponics are also used in both the facility type. The soil-based mechanism will dominate the market in 2023. A hybrid crop is the result of two different varieties of plants that are cross-pollinated to create an offspring of hybrid that contains the best traits of each of the parents. In all aspects of life, hybridization can be immensely helpful.

Farmers use hybridization to produce better crops for their farms, but botanists cross-breed flower seeds to create a variety of beautiful, brightly coloured plants, manufacturers use hybridization to produce beans that can resist certain common diseases, and scientists have developed grains that contain more nutrition for those living in famine-stricken areas. According to the Agriculture Alliance, first-generation hybrid plants yield up to 25% more, develop quicker, and are far more resistant to a variety of diseases and illnesses, including viruses, bacteria, fungi, and nematode infestation.

Indoor farming is maintained by hardware and software components. The software & service segment will grow with the highest CAGR in the forecast period. The hardware components like lighting, climate-controlling systems, sensors and other components for irrigation & fertigation system. These are the major component for better-produced output. They maintain the temperature, humidity, moisture content and proper air-circulation. The lighting segment is dominating the market share of the hardware segment in terms of value.

Some of the major players are LumiGrow, Heliospectra AB, Kessil lighting, SANlight and OSRAM SYLVANIA Inc. provides the best agrisolution. By crop category, the major segments are fruits, vegetables & herbs and flowers & ornamentals. Fruits and vegetables would capture around 60% of the market share in crop type. The report includes leafy greens, lettuce, tomatoes, cucumber, strawberry, bell & chili pepper, herbs, microgreens, flowers and ornamentals.

In the global indoor farming market, the crop type segment is diverse, including tomatoes, bell and chili peppers, lettuce, herbs, leafy greens (excluding lettuce), strawberries, and other fruits and vegetables such as cucumbers. Tomatoes are expected to become the largest segment in the upcoming future due to their high demand and adaptability to indoor farming systems. The growing consumer preference for fresh, locally sourced produce and the consistent year-round supply achievable through indoor farming are driving this trend. Tomatoes are particularly well-suited for indoor farming environments that offer precise control over lighting, temperature, and nutrients, resulting in optimized yields.

Additionally, crops like lettuce, herbs, and other leafy greens are growing rapidly within this segment, driven by their shorter growing cycles and increasing demand for fresh, pesticide-free produce. Leafy greens, such as spinach and kale, are particularly appealing to health-conscious consumers, and indoor farming’s ability to maintain high quality and safety standards makes it an ideal method for cultivating these crops. Strawberries are also gaining attention due to advancements in technology that allow them to thrive in controlled environments, making them a more viable crop for indoor farming systems.

COVID-19 Impacts

In order to deliver safe goods and services, stop disease outbreaks, and lower the chance of downtime, vital enterprises and organisations depend on pest control. When the coronavirus lockdown limitations are relaxed, the restoration of a building to normal usage will be delayed by pest infestations. Utilizing pest control services at this time will enable you to keep an eye on infestations, deal with them immediately, and drastically save expenditures.

Considered In the Report

• Geography: Global
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Aspects covered in this report

• Global Indoor Farming Market with its value and forecast along with its segments
• Region & country wise Indoor farming market analysis
• Application wise vertical farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & 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)

Based on crop type

• Leafy greens (including lettuce)
• Tomatoes
• Cucumber
• Strawberry
• Bell & Chilli pepper
• Herbs & Microgreens
• Ornamentals
• Annuals
• Perennials
• 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, analyzing 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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