The agriculture industry is considered one of the biggest industries in the world, contributing to several nations' GDP. Traditional agriculture requires ideal climatic conditions, arable land availability and fertility, and sufficient water supply. However, since 2010, there has been an increase in population growth which is presumed to reach 9.72 billion by 2050. Also, there is another issue of decreasing arable land for farming. This eventually creates a requirement for agricultural automation and digitization to cater to the needs of the growing population. The utilization of alternative farming methods such as indoor farming can address all these issues. Vertical or indoor utilizes artificial intelligence (AI), digital technologies, precision algorithms, GPS trackers, and monitors and sensors to ensure optimum utilization of resources to achieve high crop yields and reduce operational costs.
Indoor farming technology comprises specialized equipment, software, and IT services. Henceforth, countries in North America, Europe, and Asia-Pacific, among other regions, are inclining toward adopting advanced farming technologies, such as vertical farming and container farming, to improve the agricultural yield to cater to growing food demand. Apart from the growing demand for food, there are several other microeconomic factors that are anticipated to contribute to the growth of the indoor farming technology market. Some of the factors are reduction of agricultural labor, climate change, urbanization, reduction of agricultural land, and favorable government support.
Global Indoor Farming Technology Market Overview:
The global indoor farming technology market was valued at $5,603.24 million in 2020, which is expected to grow with a CAGR of 14.80% and reach $12,767.26 million by 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. Population growth in developing countries such as China and India is creating more demand for food products farmers are looking for a sustainable way to grow crops. Land degradation, climate change, and other environmental factors also affect agricultural yield. Hence, growers are open to the adoption of innovative technologies related to agriculture. Also, increasing urbanization is further supporting the growth of the indoor farming technology market. Another major factor driving the indoor farming technology market is the increase in government initiatives and support towards agricultural digitization. Government initiatives increase the awareness of several tech-based agricultural methods and the benefits these solutions entail when applied correctly in the agricultural industry.
Major Challenges in the Market:
One of the major challenges in the growth and development of the global indoor farming technology market is the initial investment and operation cost while growing crops indoors. In addition, selective fruits and vegetables can be grown under vertical and greenhouse farms, due to which many farmers do not prefer to go for indoor farming. Uncertainty of getting successful in this business, high energy consumption in indoor farming, and lack of awareness among the farmers can further challenge this market to grow. However, integrating several innovative technologies such as IoT, blockchain, AI, sensors, data management systems, GPS trackers, and others into indoor farming can open new opportunities for this market to grow in the future. Moreover, business expansion in developing countries such as India and China by establishing new distribution channels, setting up new farms, and partnering with any local farms can bring more profit to the market players operating in this market.
Leading Companies of the Market:
Some of the leading companies operating in the global indoor farming technology market are Aerofarms, Agrilyst, American Hydroponics, Argus Control System Ltd., Autogrow Systems Ltd., CannaPro, Certhon, Current by General Electric, Everlight Electronics Co., Ltd., Freight Farms, GE Lighting, General Hydroponics Inc., Illumitex, Logiqs B.V., LumiGrow, Lumileads, Netafim, OSRAM GmbH, Priva Holdings B.V., Richel Group, Signify N.V., Smart Cannabis Corp., Tevatronic Ltd., and Vertical Farm System Pty Ltd.
Global Indoor Farming Technology Market (by Region):
The global indoor farming technology market is expected to grow during the forecast period due to high technology adoption in agriculture and increasing demand for healthier crops and pesticide-free crops. Also, the production of crops can be increased by utilizing vertical farming lighting to light multiple layers of crops, attaining a higher yield with a smaller footprint. The indoor farming technology market thus has a huge presence in the North America and Europe regions. The North America region is expected to dominate the global indoor farming technology market attributed to the high technological advancement and the presence of leading indoor farming technology solution providers in the region.
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.
Key Questions Answered in the Report:
• What is the estimated global indoor farming technology market size in terms of revenue for the forecast period 2021-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2021-2026?
• What are the key trends, market drivers, and opportunities in the market pertaining to indoor farming technology?
• What are the major restraints inhibiting the growth of the global indoor farming technology market?
• What kinds of new strategies are being adopted by the existing market players to expand their market position in the industry?
• What is the competitive strength of the key players in the indoor farming technology market based on an analysis of their recent developments, product offerings, and regional presence?
• How is the competitive benchmarking of the key indoor farming technology companies in the agriculture market based on the analysis of their market coverage and market potential?
• How much revenue is each segment expected to record during the forecast period, along with the growth percentage?
• Which type of players and stakeholders are operating in the market ecosystem of indoor farming technology, and what is their significance in the global market?
• How does the regulatory landscape differ in different regions for indoor farming technology?
Download the free sample of the global indoor farming technology market report:
0
