Indoor Farming Market Growth - Segmented by Growing System (Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid), Facility Type, Crop Type, and Geography- Growth, Trends, and Forecast (2018 - 2023)
The global indoor farming market was valued at USD 106.6 billion in 2017 and is expected to register a CAGR of 3.4% during the forecast period (2018 - 2023). North-America is accounting for nearly 44.2% of the global market in 2017. Europe and North-America have developed advanced technologies with respect to indoor farming, while the Asia Pacific region has seen keen investor interest develop the market potential of the region.Countries in Europe such as France, Italy, Germany, Netherland, and the UK are at the forefront in the implementation of indoor farming technologies. Increasing awareness of the benefits and demand for food is expected to drive the establishment of indoor farms in regions such as the Asia-Pacific and South America.
Hydroponics - The Next Generation Growing System
The Global Indoor Farming market for hydroponics valued at USD 24.92 billion in 2017, witnessing a CAGR of 5.9% during the forecast period. Indoor farming is being practiced, both on a small scale as well as on a large scale. The market growth of hydroponics is increasing majorly due to the increasing focus on adopting innovative and efficient technologies to improve the yields. Tomato is one of the primary crops grown through the hydroponic system, globally. According to a USDA/ERS report, the volume of hydroponic tomato imports from countries, such as Canada, Mexico, and the Netherlands, has increased drastically, and the imports now account for a significant share of the total US fresh market tomato imports. Lettuce and leafy vegetables, pepper, cucurbits, and other vegetables, are being increasingly cultivated hydroponically.Growing system helps in avoiding the food loss due to external environmental issues. Hydroponics accounts for the 22% of the indoor farming market in 2017
Increasing Need for Maximizing Yield Driving the Indoor Farming Market
One of the main reasons for the diminishing yield is that the cultivable land is shrinking from year to year. The other reasons for lower yield are unfavorable weather conditions, like droughts, floods, soil erosion, and heavy utilization of pesticides, which is decreasing the fertility of soil, globally. The main reasons for maximizing crop yields are to feed the increasing population and meet the demand for food. High yield of good quality within small regions may be achieved using advanced farming techniques, like indoor farming. Increase in health consciousness and consumption of residue free food have paved the way for the use of advanced techniques, like indoor farming. People are growing the necessary crops in their own houses on a small scale, in order to have food that is free from pests and this has resulted in a higher yield. The yield of crops can be increased using indoor farming as indoor farming helps in maintaining the quality and quantity of food. Crops grown using indoor farming have faster harvest cycles, which increases the yield of the crop. Therefore, the increasing need for maximizing crop yields is expected to drive the indoor farming market in future.
Limitation on Type of Crops That Can Be Grown
Limitation on types of crops grown is one of the major restraints that is restricting the indoor farming marketing. The types of crops grown in indoor farming are fruits and vegetables, herbs and microgreens, flowers and ornamentals, and other crops. Among these, the crops that give maximum profits are grown on a large scale. As indoor farming is costly, in order to operate profitably, farmers have to grow crops that are high revenue generating thereby limiting the varieties of crops produced. This kind of crops includes specialty items, such as flowers or farmers target crops which have quick growth cycles, such as leafy greens. Limited number of crops are grown in indoor farming. A few of the most commonly grown crops are cannabis, greens, tomatoes, and herbs or micro greens. Among these, cannabis, greens, and herbs or microgreens are the most profitable crops. Therefore, the limited varieties of crops produced in indoor farming are expected to restrain the market.
Key Developments in the Market
- Apr 2017 - First commercial indoor vertical farms were built in Europe using led based lighting with 3,000 square meters of growing space.
- Sep 2017 - Indoor farms for lettuce and other leafy greens were built in Siberia.
Major Players - Aerofarms, Bowery Farming, Contain Inc., Freshbox Farms, Garden Fresh Farms, Indoor Farms of America, Metropolis Farms, and Philips Lighting, among others.
Reasons to Purchase the Report
- To have an understanding of the fastest growing regions in the indoor farming and growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently effecting the market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The report covers in-detail insights about the competitors’ overview and company share analysis
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
Customization of Indoor Farming Market Report
- This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.