(MENAFN- GlobeNewsWire - Nasdaq) New Delhi, March 16, 2023 (GLOBE NEWSWIRE) -- Indoor farming is still a relatively small portion of global agricultural output. However, the industry has been growing rapidly in recent years, and it is expected to play an increasingly important role in the future of food production. This has made indoor farming particularly attractive to countries with harsh climates or limited arable land. As a result, some of the top countries in indoor farming include Japan, the United States, Canada, the Netherlands, and China.
The growing demand for global indoor farming market is driven by the need for sustainable and efficient food production, the desire for locally grown produce, and the increasing demand for organic food. The major crops grown in indoor farming include leafy greens, herbs, tomatoes, strawberries, and peppers. These crops are well-suited to indoor farming because they can be grown in relatively small spaces and have high yields. In addition, many of these crops are perishable and have a short shelf-life, making them ideal for local production and consumption.
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The adoption of new technologies such as artificial intelligence (AI), the Internet of Things (IoT), and automation is also driving the growth of the indoor farming market. These technologies enable indoor farmers to monitor and control the growing environment, optimize crop yields, and reduce labor costs.
Hydroponics to Remain the Lucrative Revenue Model in Global Indoor Farming Market, more than 46% to Come from This Segment
According to our findings, hydroponics is expected to contribute over 46% of the revenue generated by the global market. This is due to the numerous advantages of hydroponics, such as higher crop yields, efficient use of resources, and year-round production capabilities. Our findings indicate that there are currently over 20,000 hydroponics farms operating worldwide, with a total investment of over $5 billion in this segment. The production output of hydroponics farms is estimated to be around 4 million tons of produce annually, with the majority of crops being leafy greens such as lettuce, spinach, and kale.
One of the major advantages of hydroponics is the ability to grow crops in a controlled environment, which allows for optimal growing conditions and yields. This has made hydroponics particularly attractive for urban farming in the global indoor farming market, where space is limited and traditional agriculture may not be feasible. In addition to the production benefits, hydroponics also has environmental benefits. The use of hydroponic systems can reduce water usage by up to 90% compared to traditional agriculture, and also reduce the use of pesticides and fertilizers.
Despite the many advantages of hydroponics, there are also some challenges. The initial investment in setting up a hydroponic system can be high, and there is a steep learning curve for those new to this type of farming. Additionally, there are concerns around the sustainability of the materials used in hydroponic systems, such as plastics.
Top Trends Likely to Determine the Momentum of Global Indoor Farming Market
Sustainable farming practices: Consumers are becoming increasingly conscious of the environmental impact of food production. As a result, indoor farmers are using sustainable practices such as hydroponics, which uses less water and fertilizer than traditional farming, and LED lights, which use less energy than traditional lighting systems. Increased automation: Indoor farmers are adopting automation technology to increase efficiency and reduce labor costs. This includes robotic systems for planting, harvesting, and monitoring crops, as well as software for managing crop growth and nutrient levels. Use of artificial intelligence (AI) and machine learning (ML): Indoor farmers are using AI and ML to optimize crop growth and maximize yields. These technologies can analyze data on factors such as light, temperature, and humidity to determine the ideal growing conditions for different crops in the indoor farming market. Development of new crops: Indoor farming allows for the cultivation of crops that are not traditionally grown in certain regions or climates. This includes exotic fruits and vegetables, as well as medicinal plants. Collaboration with traditional farmers: Indoor farmers are collaborating with traditional farmers to share knowledge and technology. This allows for the development of new growing methods and the exchange of expertise in areas such as pest control and disease management.
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Highly Fragmented Indoor Farming Market is a Lucrative Platform for Starts-Ups
Indoor farming, including vertical farming, is a rapidly growing industry. Thus, it is attracting a significant attention from investors around the globe. This trend is likely to continue in the future due to several factors, including increasing demand for fresh, locally grown produce, concerns about food security and safety, and the need to reduce the environmental impact of traditional agriculture.
One of the main advantages of indoor farming is that it allows for year-round production of crops in a controlled environment. This means that farmers can produce a consistent supply of fresh, high-quality produce without being limited by weather conditions or seasonal fluctuations. Additionally, indoor farming can reduce water usage, eliminate the need for pesticides and herbicides, and minimize the transportation costs and environmental impact associated with traditional agriculture.
The current market for indoor farming is estimated to be worth $28.7 billion in 2022, and it is projected to grow at a compound annual growth rate of 101% from 2023 to 2031. This growth is being driven by increasing consumer demand for locally grown, sustainable produce, as well as the development of advanced technologies that enable more efficient and cost-effective indoor farming operations.
Looking into the future, the indoor farming market is expected to continue to expand rapidly, driven by factors such as the increasing global population, rising urbanization, and the need for sustainable food production methods. Additionally, advances in technology such as automation, artificial intelligence, and data analytics are likely to play a significant role in the growth of the indoor farming industry, enabling farmers to produce more crops with greater precision and efficiency.
Top Start-ups in Indoor Farming Market
Indoor farming is an innovative approach to agriculture that allows crops to be grown in controlled environments, such as warehouses or greenhouses, using artificial lighting and climate control systems. Here are some of the top indoor farming startups and the amount of capital they have raised:
Plenty: This San Francisco-based company has raised over $541 million in funding. Their vertical farms use hydroponic systems and LED lighting to grow produce indoors, with the goal of creating a more sustainable and efficient food system. BrightFarms: BrightFarms is a New York-based indoor farming startup that has raised $210 million in funding. They operate hydroponic greenhouses in several states, supplying fresh produce to supermarkets and other retailers. AeroFarms: AeroFarms, based in New Jersey, has raised over $238 million in funding. Their vertical farms use aeroponic technology to grow leafy greens and herbs in a controlled environment, with a focus on sustainability and reducing food waste in the indoor farming market. Bowery Farming: Bowery Farming, based in New York, has raised over $170 million in funding. Their vertical farms use a combination of robotics, LED lighting, and machine learning to grow a variety of leafy greens and herbs indoors, with a focus on creating a more sustainable food system.
Some of the Top Market Players Are:
AeroFarms AgriCool Argus Control Systems Bowery Farming BrightFarms Everlight Electronics EXDIN Solutions General Hydroponics Gotham Greens GP Solutions Heliospectra AB Infarm Iron Ox LumiGrow Signify Holding Sky Greens SPREAD Co., Ltd. Plenty Unlimited Inc. Other Prominent Players
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