Indoor Farming Market anticipated reaching US$ 118.17 billion by 2033

Demand for indoor farming solutions is projected to reach a market value of US$ 118.17 billion by the end of 2033.- Photo: Canva
Demand for indoor farming solutions is projected to reach a market value of US$ 118.17 billion by the end of 2033.- Photo: Canva

The global Indoor Farming Market stands at a valuation of US$ 40.51 billion in 2023 and is forecasted to expand at a CAGR of 11.3% during the forecast period (2023 to 2033), according to a research study conducted by Fact.MR, a market research and competitive intelligence provider.

The worldwide indoor farming business is booming because of increased demand for sustainable agriculture solutions, year-round production, and the need to minimize the effects of climate change. Indoor farming is a cutting-edge solution to classic agriculture problems, giving an environmentally friendly, space-efficient, and economical way to cultivate crops. The growth of the market is driven by environmental sustainability and year-round manufacturing. When compared to traditional agriculture, indoor farming considerably reduces water usage and land needs.

Keysegments of Indoor Farming Industry research report

Rise of urbanization has fueled the adoption of indoor farming practices, providing city dwellers with fresh, locally farmed produce. Hydroponics, vertical farming, and controlled environment agriculture are pushing the frontiers of what can be cultivated indoors and diminishing dependency on soil. The COVID-19 pandemic has also highlighted the importance of resilient local food systems, making indoor farming an appealing food security solution.

Consumers are looking for sustainable and locally sourced solutions as they become more aware of the environmental impact of food production. Indoor farming meets these requirements. Integration of IoT, AI, and modern LED lighting has increased crop output and operating efficiency dramatically.

Key takeaways from market study

  • The global indoor farming market is projected to expand at a CAGR of 11.3% through 2033.
  • Asia Pacific accounted for 32.1% share of the global market in 2022.
  • The software segment is forecasted to expand at a CAGR of 14.3% from 2023 to 2033.
  • Demand for indoor farming solutions is projected to reach a market value of US$ 118.17 billion by the end of 2033.
  • The flowers and ornamentals segment accounted for a market share of 28.9% in 2022.
  • The hydroponics segment accounted for 49.9% share of the market in 2022 and is projected to rise at a CAGR of 6.5% over the next ten years.
  • The hardware segment is set to advance at a CAGR of 7.6% through the forecast period (2023 to 2033).
  • The glass or poly greenhouses segment held 49.2% market share in 2022 and is projected to expand at 6.5% CAGR through 2033.
  • North America accounted for 24.8% of the global market share in 2022.

Need for crop diversification

Seasonal variations, unexpected weather patterns, and severe climatic conditions frequently interrupt harvests in traditional outdoor agriculture. Indoor farming provides a creative solution to this dilemma by offering regulated environments in which crops can flourish year-round, regardless of external conditions.

Stable year-round output ensures a consistent and continuous supply of fresh, locally grown vegetables, reducing reliance on changing seasons and the need to import food from distant locations. This not only solves concerns about food security but also minimizes the carbon footprint associated with long-distance shipping.

Indoor farms can change environmental elements such as temperature, humidity, and light to meet the needs of a wide variety of crops. This adaptability enables the production of seasonal crops outside of their regular seasons. It also allows growers to experiment with exotic or high-value crops that may not be feasible in their local climate, thus broadening the offerings of the market and economic possibilities. Indoor farms are consistent with the larger drive to reduce food waste, as they eliminate the need to dump unsold or rotten produce due to their limited shelf life.

Ed Asscheman Online editor Future Farming