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The indoor farming technologies market share is expected to increase by USD 6.93 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 20.93%.
This indoor farming technologies market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers indoor farming technologies market segmentation by application (greenhouse farming and vertical farming) and geography (Europe, APAC, North America, South America, and Middle East and Africa). The indoor farming technologies market report also offers information on several market vendors, including Advanced Grow lights, Agrowtek Inc., Argus Control Systems Ltd., California LightWorks, Certhon, Dalsem Greenhouse Projects BV, General Electric Co., GreenTech Agro LLC, Growlink, Honeywell International Inc., Industries Harnois Inc., KCC Companies, Koninklijke Philips NV, Link4 Corp., LumiGrow Inc., Motorleaf, Richel Group SAS, Urban Crop Solutions, Vertical Farm Systems Pty Ltd, and ZipGrow Inc. among others.
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The need to improve the yield of crops and reduce crop wastage is notably driving the indoor farming technologies market growth, although factors such as lighting challenges compared with natural lighting may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the indoor farming technologies industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Indoor Farming Technologies Market Driver
One of the key factors driving the global indoor farming technologies market growth is the need to improve the yield of crops and reduce crop wastage. When compared with outdoor (soil-based farms) productions, indoor farms can produce more crops in a small area using various indoor farming technologies. For instance, Sky Green's patented vertical farming systems can intensify land use and result in at least ten times more yield than traditional monolayer farms per unit area of cultivated land. In addition, nutrition and moisture levels, as well as the amount of light needed, can be maintained by farmers using various indoor farming technologies. For instance, LED lighting provides the perfect amount of heat needed for plants to grow. Thus, the need to improve the yield of crops and reduce crop wastage is anticipated to drive the demand prospects for indoor farming technologies during the forecast period.
Key Indoor Farming Technologies Market Trend
Increasing need for food security is one of the key indoor farming technologies market trends that is expected to impact the industry positively in the forecast period. Food security depends on access, availability, utilization, and stability. In major cities, the land is not easily available, therefore, indoor farming is one of the best options considered for such areas. In the past, many cases of hunger, famine, and food crisis have come up across the world. These issues have arisen due to several factors, such as lack of arable land and food security. However, in recent times, people are taking safe and nutritious food that meets their dietary needs and food preferences for maintaining an active and healthy life. For instance, companies such as Urban Crop Solutions, Richel Group, and Harnois Greenhouses offer solutions to meet food security targets. Thus, such factors will further support the market growth in the coming years.
Key Indoor Farming Technologies Market Challenge
One of the key challenges to the global indoor farming technologies market growth is the lighting challenges compared with natural lighting. Indoor farming technologies use LED lighting that does not efficiently deliver the necessary artificial light to keep the surroundings green. Also, this type of lighting requires electrical power to grow plants, which may lead to farmers paying high electricity bills. Plants may waste around 60%-80% of the energy as each plant has a different threshold of wavelength for optimizing photosynthesis. LED lights have limitations in terms of providing as well as optimizing such wavelength, whereas, in the case of sunlight, there are no such limitations. For instance, a sweet potato plant requires 60%-65% of light energy produced by an LED light for optimal photosynthesis. As the light output cannot be adjusted, these plants can waste 35%-40% of the supplied light energy. Such factors may limit the market during the forecast period.
This indoor farming technologies market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global indoor farming technologies market as a part of the global agricultural and farm machinery market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the indoor farming technologies market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the indoor farming technologies market encompasses successful business strategies deployed by the key vendors. The indoor farming technologies market is fragmented and the vendors are deploying growth strategies such as investment in R and D and innovation to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The indoor farming technologies market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the indoor farming technologies market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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34% of the market's growth will originate from Europe during the forecast period. The Netherlands is the key market for indoor farming technologies in Europe. Market growth in this region will be faster than the growth of the market in South America.
The increase in levels of surface pollution, groundwater issues, loss of biodiversity, soil erosion, and risks to human health due to the use of insecticides will facilitate the indoor farming technologies market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the COVID-19 pandemic had a negative impact on the regional indoor farming technologies market. The government of various countries such as Germany, the Netherlands, France, and the UK had imposed nationwide lockdowns and COVID-19-related restrictions to contain the spread of the disease. However, in H2 2020, due to the availability of vaccines, the number of COVID-19 cases in the region declined, which led to the lifting of restrictions. This led to the reopening of manufacturing facilities and warehouses of vendors, which boosted the demand for indoor farming technologies. These factors will ensure the growth of the regional indoor farming technologies market during the forecast period.
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The indoor farming technologies market share growth by the greenhouse farming segment will be significant during the forecast period. Factors such as the non-availability of land for increasing agriculture yield, the growing need to protect crops from diseases, and changing climatic conditions drive the growth of the global indoor farming technologies market in this segment.
This report provides an accurate prediction of the contribution of all the segments to the growth of the indoor farming technologies market size and actionable market insights on post COVID-19 impact on each segment.
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Indoor Farming Technologies Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.93% |
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Market growth 2022-2026 |
$ 6.93 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
20.11 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 34% |
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Key consumer countries |
US, Canada, Japan, China, and The Netherlands |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Advanced Grow lights, Agrowtek Inc., Argus Control Systems Ltd., California LightWorks, Certhon, Dalsem Greenhouse Projects BV, General Electric Co., GreenTech Agro LLC, Growlink, Honeywell International Inc., Industries Harnois Inc., KCC Companies, Koninklijke Philips NV, Link4 Corp., LumiGrow Inc., Motorleaf, Richel Group SAS, Urban Crop Solutions, Vertical Farm Systems Pty Ltd, and ZipGrow Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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