The value of the indoor farming market is anticipated to be USD 42,097.4 million in 2023. The value of the market was USD 38,783.8 million in 2022. The market is expected to grow at a CAGR of 9.8% over the forecast period from 2023 to 2033. The market is predicted to value USD 1,06,963.1 million by 2033.
Indoor Farming Market Analysis and Insights
| Attributes | Details |
|---|---|
| Indoor Farming Market Value in 2023 | USD 42,097.4 million |
| Projected Market Value by 2033 | USD 1,06,963.1 million |
| Value-based CAGR from 2023 to 2033 | 9.8% |
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The indoor farming market was valued at USD 28,719.4 million in 2018. The market is expected to expand at a CAGR of 7.8% from 2018 to 2022.
The population continued to grow at a rapid pace over the historical period, increasing the demand for food. As a result, indoor farming methods were sought by farmers to serve global food needs. The pandemic affected supply chains, restraining the market. However, as the efficiency of supply chains was restored due to the loosening of restrictions, the market got back on track. By the end of the historical period, the market recorded a valuation of USD 38,783.8 million.
| Historical Market Value (2018) | USD 28,719.4 million |
|---|---|
| Historical CAGR (2018 to 2022) | 7.8% |
| Historical Market Valuation (2022) | USD 38,783.8 million |
Long-Term Analysis of the Indoor Farming Market
The indoor farming market is estimated to be worth USD 42,097.4 million in 2023. The market is predicted to expand at a CAGR of 9.8% from 2023 to 2033.
The market's growth over the forecast period is set to drastically outpace the growth during the historical period. The growing need for food is predicted to continue unabated over the forecast period. While outdoor farming will account for the maximum food supply, the share of indoor farming is projected to increase.
The adoption of technologically inclined farming methods is set to develop rapidly, making the process of crop production more efficient. Thus, developments in indoor farming technology are set to help the market make fast progress over the forecast period. By 2033, the value of the market is projected to be worth USD 1,06,963.1 million.
Crops in indoor farming are most likely to be grown in greenhouse facilities. The greenhouse segment holds 45.2% of the market share by facility.
The affordable cost of greenhouses, coupled with the security provided by the facility, makes it the leading facility in indoor farming. The eco-friendly nature of the facility is leading to government investments in greenhouses, driving the market’s growth.
| Attributes | Details |
|---|---|
| Top Facility Type | Greenhouse |
| Market Share in 2023 | 45.2% |
Hydroponics is leading the indoor farming market by growing systems. The hydroponics segment holds 47.4% of the market share.
With increasing soil erosion, farmers are searching for ways to grow crops through other methods. Hydroponics, which predominantly uses water, is one of the ways through which indoor farmers are growing crops.
| Attributes | Details |
|---|---|
| Top Growing System | Hydroponics |
| Market Share in 2023 | 47.4% |
The Asia Pacific region is marked by exceptional growth in the market. The ever-increasing population in the region is multiplying the global food demand. The popularity of modern agricultural practices in the region also paves the way for indoor farming.
Europe and North America are the other regions where the market is growing. Technological developments in the regions are stimulating the adoption of new farming methods, including indoor farming.
| Countries | CAGR |
|---|---|
| Canada | 10.4% |
| Australia | 11.9% |
| Singapore | 10.1% |
| Italy | 9.5% |
| Japan | 11.8% |
Canada is marked by rapid growth in the market. For the 2023 to 2033 period, the market growth for Canada is pegged at 10.4%.
Canada has a limited scope for farmland. The available farmland in the country is further decreasing. Thus, Canadian farmers are resorting to indoor farming.
Australia is predicted to be one of the leading countries in the indoor farming market. The CAGR for the market in Australia is predicted to be 11.9% over the forecast period.
Vertical farming is gaining in popularity across Australia. Australia is home to several vertical farming players, like Stacked Farm, InvertiGro, and Urban Green Sydney, propelling market growth in Australia.
Singapore is one of the fastest-growing countries in Asia for the market. The Singapore market is expected to have an impressive CAGR of 10.1% through 2033.
Novel farming techniques are finding acceptance among Singaporean farmers. Indoor farming is also experiencing increasing adoption in Singapore, with farmers leveraging technologies like LED lights and hydroponics.
Japan is another Asian country with strong potential in the market. The market in Japan is expected to grow at an extraordinary CAGR of 11.8% over the forecast period.
Japan is home to several large-scale indoor farms. For example, Oishii boasts of being the largest indoor vertical strawberry farm in the world. Thus, large-size indoor farms are advancing the cause of the market in Japan.
Italy is one of the leading countries in Europe and is expected to expand at a CAGR of 9.5% through 2033.
Italy has a prominent farming culture. The focus of Italian farms, including indoor farms, is shifting to sustainable growth of food. Future Farming District by Zero, Planet Farms, and Agricola Moderna are three Italian players that have indoor farms focused on sustainability.
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The indoor farming market is fairly fragmented. Well-established players contend with smaller-scale farms and startups for market share. Newcomers in the market focus on diversity to stand out.
Sustainable farming is increasingly becoming a concern for indoor farming market players. Reduction in the use of resources, especially water, is also sought by the players. Players are diverse as the market incorporates small-scale farmers to tech-driven giants.
Recent Developments in the Indoor Farming Market
The indoor farming market is expected to be worth USD 42,097.4 million in 2023.
The indoor farming market is projected to be USD 1,06,963.1 million by 2033.
The CAGR for the market in Australia during the forecast period is estimated to be 11.9%.
The hydroponics segment is leading the market by growing systems.
The indoor farming market is expected to grow at a CAGR of 9.8% through 2033.
| Estimated Size, 2024 | USD 5,961.6 million |
|---|---|
| Projected Size, 2034 | USD 16,034.4 million |
| Value-based CAGR (2024 to 2034) | 10.4% CAGR |
| Market Value (2023) | USD 3,518 Million |
|---|---|
| Market Value (2033) | USD 6,300 Million |
| Market CAGR (2023 to 2033) | 6.0% |
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Indoor Farming Market
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