In 2021, the global indoor farming technology market cultivated an impressive value of US$ 14.1 billion. Looking ahead, projections foretell a thriving market, with an estimated worth of US$ 22.1 billion by 2030. This expansion is propelled by a noteworthy compound annual growth rate (CAGR) of 10.1% during the forecast period spanning from 2022 to 2030.
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Market Dynamics
A variety of technologies contribute to the success of indoor farming. Indoor farming practices encompass soil-based, aeroponic, aquaponic, and hybrid systems that supply crops with nutrients and artificial light. These technologies enable both small-scale and large-scale indoor agriculture.
Factors Influencing the Market
Several factors are sowing the seeds of growth in the indoor farming technology market:
- Declining LED Costs: The gradual reduction in the cost of Light-emitting Diodes (LEDs) is a primary growth driver. As LED technology advances, with a focus on enhancing efficiency and lifespan, it propels the indoor farming technology market.
- Health and Nutrition: The increasing emphasis on health and nutrition, food safety and transparency, and a growing desire for organic food contribute to market growth.
- Urban Sustainability: The concept of urban sustainability encourages the adoption of indoor farming practices to address the environmental challenges associated with traditional agriculture.
- Urban Population Growth: The rising urban population fuels the adoption of indoor farming as a sustainable solution to meet the demand for fresh produce.
Impact of COVID-19
The COVID-19 pandemic had a positive impact on the global indoor farming technology market. Health-conscious consumers increased their demand for organically grown food. This led to a surge in indoor farming practices, which became a prominent solution for growing safe and healthy produce.
Regional Analysis
The Asia-Pacific indoor farming technology market is expected to flourish, boasting the highest growth rate throughout the forecast period. Factors contributing to this growth include the rising contributions of industry players and technological advancements. For example, Sustenir, an agritech manufacturer based in Singapore, opened a 30,000-square-foot vertical hydroponic farm in Hong Kong in November 2019. Given Hong Kong’s population density and limited arable land, indoor farming has emerged as a solution to meet local demands. Additionally, the high populations of China and India further contribute to the market.
Key Market Competitors
Leading companies in the indoor farming technology market include:
- Signify
- Osram (Germany)
- Freight Farms (US)
- AeroFarms (US)
- Sky Greens (Singapore)
- Spread Co., Ltd. (Japan)
- Plenty (US)
- Valoya (Finland)
- Everlight Electronics Co., Ltd. (Taiwan)
- Heliospectra (Sweden)
Market Segmentation
The global indoor farming technology market is segmented based on growing medium, crop type, and region:
- Growing Medium:
- Hydroponics
- Aeroponics
- Aquaponics
- Crop Type:
- Fruits & Vegetables
- Herbs & Microgreens
- Flowers & Ornamentals
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