Indoor Farming Technology Market: Drivers, Restraints, Opportunities, and Challenges
Indoor farming technology creates an artificial environment inside an enclosed facility using technologies that help plants grow and become more nutritious in a short span of time when compared to traditional farming. The indoor farming technology market is projected to reach USD 40.25 billion by 2022, at a CAGR of 9.65% from 2017.
On the basis of growing system, the aeroponics segment is projected to grow at the highest rate from 2017 to 2022. Aeroponics is considered to be the future of indoor farming technology. This technology facilitates faster plant growth, enabling cultivation of more plants or seeds in lesser time than normal conditions. This system can be controlled externally though 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.
By facility type, the indoor vertical farms segment is projected to grow at a higher rate from 2017 to 2022. Indoor vertical farms consist of growing systems such as hydroponics, aeroponics, and aquaponics. The growth of the segment is driven by the rising need for fresh produce that is grown without pesticide application in a limited space.
Based on component, the hardware segment is projected to grow at a higher rate when compared to the software & services segment. The hardware segment includes climate control, lighting systems, communication systems, sensors, system controls, and irrigation systems. These are essential components for indoor farming to maintain temperature and create an artificial environment for plant growth.
Speak to Analyst: https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=40175861
On the basis of crop type, the herbs & microgreens segment is projected to grow at the highest rate from 2017 to 2022. When grown indoors, herbs provide various benefits such as fragrant foliage, with varying foliage shapes and colors. Microgreens are tiny vegetables that are used both as visual and flavor ingredients in various dishes. This is attributed to the high potential of the use of indoor farming technology for biopharmaceutical production.
Asia Pacific is projected to be the fastest-growing region in the indoor farming technology market from 2017 to 2022. The farming industry in the Asia Pacific region has been shifting toward modern technological and innovative methods from a conventional agricultural practice system. These shifts lead to the modernization of crop management techniques with the use of indoor farming technologies to gain better premium value for the crops.
Many technologies that are being used in indoor farming do not have a long commercially-proven record, and studies are still being carried out to ascertain the impact of these technologies on the shelf life of plants.
Additionally, new technologies need to be developed to decrease the carbon footprint in indoor farming. Growers are more interested in investing in technologies that would lower their costs invested in labor, as they are required on large-scale farms for monitoring, maintaining, supplying the nutrients, and harvesting. Hence, in the future, there is an opportunity to develop fully automated urban farms based on vertical farming and controlled-environment agriculture.