Indoor Farming Technology Market size is estimated to reach $134.51 billion by 2025 and is poised to grow at a CAGR of 2.95% during the forecast period 2020-2025. Indoor farming technology is a way to grow crops or plants in indoors using various techniques. Indoor farming technology can be used commercially and at home on a small and large scale. This technology is being used to grow fruits & vegetables, herbs & microgreens flowers & ornamentals. The glass or poly greenhouses, container farms, indoor vertical farms and indoor deep-water culture (DWC) systems are the facility type of indoor farming technology market. The increase in demand for fresh foods with high nutritive value, need for higher yields using limited space and water has led to the growth of indoor farming technology market. One of the major factors driving the growth of market is the lesser impact of changing weather conditions.
- Geographically, the North America area is poised to see extraordinary development owing to increased focus on implementing innovative and efficient technologies to enhance the yields and is set to continue during the forecast period (2020-2025).
- The global demand for Indoor Farming Technology is increasing significantly owing to increasing demand for fresh foods along with high nutrition value.
- High initial investment requires for indoor farming technology is acting as a challenge in the market.
- Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the indoor farming technology Market report.
By Growing System – Segment Analysis
Based on Growing System, the hydroponics segment registered for the highest revenue in 2019 and is estimated to grow at highest CAGR over the forecast years (2020-2025). The application of hydroponics growth mechanism provides ample fresh produce and helps to mitigate most of the risks of shortage of food production owing to exposure to climatic changes, soil contamination, limited space in urban areas and most importantly, low availability of water.
By Crop Type – Segment Analysis
The global Indoor Farming Technology market based on Mode of Operation, can be further segmented into Fruits & Vegetables, Herbs & Microgreens, Flower & Ornamentals, and others. The Fruits & Vegetables segment registered for highest revenue in 2019 and projected to grow at the highest CAGR during the forecast period 2020-2025 owing to the increasing demand for fresh and green vegetables and fruits produced in city environments with minimum space and less water utilization.
By Geography – Segment Analysis
North America registered for the highest revenue in 2019 and is set to grow at highest CAGR over the forecast period (2020-2025) owing to the increased focus on implementing innovative and efficient technologies to enhance the yields. Besides North America, Europe is estimated to grow its demand during the forecast period 2020-2025 owing to the high adoption of precision farming in the region.
Drivers – Indoor Farming Technology Market
- Rise in Demand
The global demand for Indoor Farming Technology is increasing significantly owing to the rise in demand for food globally and increasing push from government for the adoption of alternative agricultural practices. Besides, Indoor-farming technologies allows farmers to have control over the environment which result in lower loss of crops as compared to that in case of conventional farming, which enhance the growth of indoor farming technology market.
Challenges – Indoor Farming Technology Market
- High initial investment
The high initial investments for setting up the indoor farming technology is acting as a challenge for the growth of the market. The other major restraining factor for the growth of the Indoor Farming Technology market is the limitations on the type of crops.
Indoor Farming Technology Market Industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Indoor Farming Technology Market. Key companies of this market Philips Lighting, Netafim, Argus Controls Systems, EVERLIGHT Electronics, LumiGrow, Logiqs, Illumitex, Vertical Farm Systems, Hydrodynamics International, General Hydroponics, Richel Group, and Agrilution.
- In March 2020, EVERLIGHT Electronics releases its new series of UVC products for the maintenance of life quality and health, using the epitaxial and flip chips on the sapphire substrate to guarantee quality and sterilization.
- In July 2019, LumiGrow launched BarLight Smart LED grow lights for optimal vertical cannabis production at the lowest cost.