Indoor Farming Technology Market To Grow To $ 40.25 Billion
17 Dec 2018
The indoor farming technology market is projected to reach $ 40.25 billion by 2022.
The indoor farming technology market was valued at $ 23.75 Billion in 2016, and is projected to reach $ 40.25 billion by 2022, at a compound annual growth rate (CAGR) of 9.65% during the forecast period, according to a report by MarketsandMarkets.
One of the main advantages of indoor farming is its higher yield compared to traditional farming, which makes it a viable option. Enclosed facilities used in indoor farming create optimum growing conditions for farmers to grow a crop from the seed to its harvesting stages in lesser time and obtain higher yields in each cycle with limited land area.
The indoor farming technology market was valued at $ 23.75 Billion in 2016, and is projected to reach $ 40.25 billion by 2022, at a compound annual growth rate (CAGR) of 9.65% during the forecast period.
The indoor farming technology market was valued at $ 23.75 Billion in 2016, and is projected to reach $ 40.25 billion by 2022, at a compound annual growth rate (CAGR) of 9.65% during the forecast period.
Indoor farms help increase overall crop yield
According to the USDA data, in 2016, the average yield of tomatoes grown in greenhouse hydroponics was 10.59 pounds per square foot, and that of traditionally grown tomatoes was 1.85 pounds per square foot. “Therefore, indoor farms can help in increasing the overall crop yield per unit area with the usage of stacked layers of potted seeds,” states the report.
Also read: Colruyt Group develops vertical farm
Market for aeroponics to grow at the highest rate
In aeroponics, the plant roots are inserted in containers filled with plant nutrients, instead of soil, which is ideal for oxygenation and moisture and helps the plant absorb nutrients effectively, thereby aiding faster development and cultivation. This system can be controlled externally through computers or timers for the release of moist air at regular intervals and does not require frequent use of pesticides, weeding, and other maintenance processes as compared to conventional farming. “Thus, with a high adoption rate of this technology, the market for aeroponics is projected to grow at the highest rate during the forecast period,” says MarketsandMarkets.
Indoor farming is used for growing crops or plants suitable for both large- and small-scale farming.
Increasing consumer demand for pesticide- and herbicide-free food
Indoor farming is used for growing crops or plants suitable for both large- and small-scale farming. “On a larger scale, indoor farming is followed to bolster local food supplies and provide nutritious, fresh produce to urban and suburban consumers. This method of farming controls the input of plant-fertilizing nutrients, so the food that is grown using this technique is highly nutritious. Indoor vertical farming systems provide organic food that is not contaminated with the use of agrochemicals. Hence, the driving forces for indoor vertical farming are the increasing consumer demand for pesticide- and herbicide-free food and the growing requirements to reduce the carbon footprint of traditional agricultural practice,” the report states.
Key players in the indoor farming technology market
The key players in the indoor farming technology market include Philips Lighting (Netherlands), Argus Controls Systems (Canada), Netafim (Israel), LumiGrow (US), Illumitex (US), and EVERLIGHT Electronics (Taiwan).
These companies are developing new processes or products to help improve productivity and achieve overall market growth. For instance, Philips Lighting (Netherlands), which provides lighting solutions for indoor farming, has been undertaking R&D operations for providing energy-efficient lighting systems. In January 2018, Philips Lighting introduced GreenPower LED top lighting at IPM Essen, Germany. This new version offers higher light efficacy, longer lifetime of 35,000 burning hours, and high energy efficiency compared to the former top lighting module.
Furthermore, companies are focusing on investments, partnerships, and agreements. For instance, in July 2017, Softbank (Japan) invested USD 200 million in Plenty (US), a Silicon Valley start-up for vertical farm technology. In August 2014, FarmedHere LLC (US) partnered with Illumitex, Inc. (US), a leading lighting solution provider, to cultivate crops using less energy and lighting systems provided by Illumitex, Inc.
Future opportunities for indoor farming technology
According to MarketsandMarkets, the cultivation of crops such as tobacco and cannabis for large-scale production of biopharmaceutical proteins is a recent development in indoor vertical farming. Biopharmaceuticals are proteins or compounds produced by a living organism, used for diagnostic and therapeutic purposes in human or animal health. Conventional methods of manufacturing biopharmaceuticals involve the usage of organisms that are highly expensive.
"The driving forces for indoor vertical farming are the increasing consumer demand for pesticide- and herbicide-free food and the growing requirements to reduce the carbon footprint of traditional agricultural practice,” states the MarketsandMarkets report.
Indoor vertical farms as pharmaceutical facilities
“However, using existing agricultural technologies such as indoor vertical farming to produce biopharmaceuticals in plants is cost-effective, requires less time and efforts, is pollution-free, and easy to produce. Indoor vertical farms are being used not only for food production, but also for aiding in applications that can support human health. For instance, Caliber Biotherapeutics, LLC (US), the world’s largest plant-made pharmaceutical facility that has an 18-story, 150,000-square foot warehouse facility, which contains a 2.2 million tobacco-like plants, stacked 50-feet high. These plants are grown for making new drugs and vaccines. These indoor vertical farms are carefully monitored and controlled by technicians, thus eliminating the chances of possible diseases and external contamination.”
Below you can watch a report by CBS on vertical farming