DUBLIN--(BUSINESS WIRE)--The "Global Indoor Farming Technology Market - A Global and Regional Analysis: Focus on Key Technologies, Patents, Drivers, Opportunities, Challenges, and Applications" report has been added to ResearchAndMarkets.com's offering.
The global indoor farming technology market is expected to reach $12,767.3 million by 2026, with a CAGR of 14.80% during the forecast period 2021-2026.
The growth in the global indoor farming technology market is expected to be driven by increasing demand for food products, fresh and organic produce, and the requirement for an alternative growing method for sustainable agriculture.
Indoor Farming Technology
Indoor farming is an alternative growing method where crops are grown in a controlled environment. It is employed to produce several vegetables and fruits, microgreens and herbs, and ornamentals on vertically inclined surfaces or under greenhouses and container farms. In the case of indoor farming, vegetables and other fruits are grown on a single level, such as in a field or a greenhouse.
Indoor farming technology involves the integration of numerous technologies such as big data analytics, robotics, artificial intelligence (AI), and the internet of things (IoT) so that crops can be produced perfectly without any agronomic constraint. Aquaponics, aeroponics, and hydroponics are alternate farming techniques under indoor farming in which plants are grown in a non-traditional way.
The key advantage of using indoor farming technologies is that it increases crop yield with a smaller unit area of land. In the earlier systems, wastewater from a fish tank was used to irrigate crops such as cucumbers and tomatoes in a grow-bed filled with sand. With the advancement of technology, equipment such as heating, ventilation, and air conditioning (HVAC), LED grow light, aeration system, and irrigation system, sensors, monitors, and others are being utilized for efficient crop growth through indoor farming.
Impact of COVID-19 on Indoor Farming Technology
The supply chain of most of the industries across the globe got impacted due to the COVID-19 pandemic, including the indoor farming industry. Even though produces are grown in a controlled environment in indoor farming, due to supply chain disruption, farms could not deliver the products to the market in the first stage of COVID-19.
However, vaccines are available in almost all countries, and lockdown restriction has been evoked. Distribution channels are getting normalized; hence indoor farming companies are able to market their products, also gaining profits, and the market is growing.
Global Indoor Farming Technology Market by Technology
The indoor farming technology market by technology category is dominated by the hardware system segment. These hardware systems are known as the complete substitute of the natural conditions for traditional farming. The hardware systems play a key role in regulating these factors manually. Hence, sensors, controllers, climate control devices, lighting systems, irrigation systems, and other devices play a major role in this case.
Global Indoor Farming Technology Market by Facility
The global indoor farming technology market by facility category is dominated by the greenhouse segment. Greenhouses are inflated structures that are covered with transparent material for growing crops in a controlled environment. With the practice of controlled environment agriculture (CEA), the greenhouses employ climate control systems, such as fans, ventilators, and coolers.
Global Indoor Farming Technology Market by Growing Method
The global indoor farming technology market by growing methods category is dominated by the hydroponic segment. Hydroponics is an age-old method of cultivating crops without soil. Instead, a water or nutrient solution is employed. In hydroponics, only the roots of the crops are exposed to nutrient or water solution for optimum growth, while the grower needs to regulate the composition of nutrients and the frequency at which the solution is supplied to the crops.
Global Indoor Farming Technology Market by Region
North America generated the highest revenue of $1,877.1 million in 2020, which is attributed to the technological advancements in this region. It is also one of the biggest agricultural hubs in the world. The region is expected to witness high growth of CAGR 15.80% during the forecast period.
How This Report Can Add Value
Product/Innovation Strategy: The product segment helps the reader in understanding the different types of technology such as hardware system, software and services, and integrated system used in indoor farming and their market potential globally.
Moreover, the study provides the reader a detailed understanding of different growing methods (i.e., aquaponics, hydroponics, aeroponics, hybrid, and soil-based). Also, this section gives an understanding of the facilities used in indoor farming, such as vertical farms, greenhouses, and container farms, and their application with benefits.
Additionally, comprehensive coverage of different equipment required for a successful indoor farm set-up (i.e., lighting systems, climate control systems, irrigation systems, sensors, and monitoring systems) for various applications has also been added in the study.
Key Market Players and Competition Synopsis
The companies that are profiled in the report have been selected based on the selective pool of players, primarily Tier-1 (which holds 50-60% of the market) and mid-segment players (comprise of 30-40% share), and small and emerging companies (holds the balance 10-20% share), based on various factors such as product portfolio, annual revenues, market penetration, research, and development initiatives, along with a domestic and international presence in the indoor farming technology industry.
Market Report Coverage - Indoor Farming Technology
- Growing Method: Hydroponics, Aeroponics, Aquaponics, Soil-Based, Hybrid
- Facility: Greenhouses, Indoor Vertical Farms, Container Farms
- Technology: Hardware System, Software and Services, Integrated System
- North America: U.S., Canada, and Mexico
- Europe: France, Netherlands, Italy, Spain, Russia, and Rest-of-Europe
- Asia-Pacific: India, Japan, Singapore, Australia and New Zealand, and Rest-of-Asia-Pacific
- Rest-of-the-World: Brazil, South Africa, U.A.E., Saudi Arabia
Market Growth Drivers
- Increasing Demand for Global Food Security Owing to Population Growth and Urbanization
- Growth in Adoption of Technology in Farming
- Land Degradation and Decrease in Arable Land
- Increased Government Support and Initiatives
- High Initial Investment and Operational Costs
- Suitable for Production of Selective Crops
- Limited Awareness Among Farmers
- Pharmaceutical Plant Production Through Indoor Farming
- Integration of Different Emerging Technology
- Scope of Expansion in Developing Countries
- American Hydroponics (AmHydro)
- Argus Control System Limited
- Current Lighting Solutions, LLC
- Everlight Electronics Co., Ltd
- Freight Farms, Inc.
- GE Lighting
- General Hydroponics Inc.
- Logiqs B.V.
- OSRM GmbH
- Priva Holdings B.V.
- Richel Group
- Smart Cannabis Corp.
- Signify N.V.
- Tevatronic Ltd.
- Vertical Farm System Pty Ltd.
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