Indoor farming has emerged as a sustainable solution to the challenges posed by traditional agriculture. With advancements in technology and a growing demand for locally sourced produce, the indoor farming industry is experiencing significant growth. In this blog post, we will explore the latest statistics and trends shaping the indoor farming sector. From vertical farming to hydroponics, we will delve into the data to understand the current landscape and future prospects of indoor farming.
The Latest Indoor Farming Industry Statistics Explained
By 2026, the global indoor farming market is expected to reach approximately $30.8 billion.
The statistic indicates that the global indoor farming market is projected to grow significantly, reaching an estimated value of around $30.8 billion by the year 2026. This growth suggests a rising demand for indoor agriculture practices, which involve growing crops in controlled environments such as warehouses, greenhouses, or hydroponic systems. The increasing adoption of indoor farming methods can be attributed to various factors such as the need for sustainable food production, limited arable land availability, and the desire for year-round crop cultivation. The substantial market size forecast by 2026 implies lucrative opportunities for investors, technology developers, and agricultural stakeholders aiming to capitalize on the trend towards indoor farming globally.
The Compound Annual Growth Rate (CAGR) of the indoor farming industry is predicted to be 9.4% from 2021 to 2026.
The Compound Annual Growth Rate (CAGR) of 9.4% for the indoor farming industry from 2021 to 2026 signifies the average annual growth rate over this five-year period, assuming steady and exponential growth throughout. This statistic is an important measure of the industry’s performance, providing an indication of how much the industry is expected to grow year over year during this timeframe. A CAGR of 9.4% indicates a healthy and consistent growth trajectory for the industry, which could be driven by factors such as increasing demand for locally grown produce, advancements in technology, and sustainability concerns in traditional agriculture. This prediction suggests potential opportunities for investors, businesses, and stakeholders within the indoor farming sector.
In 2018, the United States held the highest share of 36% in the North American indoor farming technology market.
The statistic suggests that in 2018, the United States accounted for the largest proportion, 36%, of the indoor farming technology market within North America. This indicates that the indoor farming technology sector in the U.S. was the most significant compared to other countries in North America. The high market share could indicate a strong presence of indoor farming technology companies, research and development activities, adoption of indoor farming practices, or favorable market conditions for indoor farming technology in the United States. The data suggests that the United States was a key player and leader in driving the growth and development of indoor farming technology within the region during that year.
By 2025, Asia-Pacific indoor farming technology market is predicted to record the highest CAGR of 24.2%.
The statistic suggests that the Asia-Pacific indoor farming technology market is expected to experience a significant growth trajectory, as indicated by a projected Compound Annual Growth Rate (CAGR) of 24.2% by the year 2025. This prediction highlights the increasing adoption and investment in indoor farming technology within the Asia-Pacific region, driven by factors such as the need for sustainable agricultural practices, limited arable land availability, growing population, and rising demand for high-quality and locally grown produce. The high CAGR signifies a strong potential for market expansion and innovation in indoor farming technologies, making it a key area of opportunity for businesses and investors within the agriculture sector in the coming years.
About 41% of indoor farming facilities globally are based in Europe.
The statistic “About 41% of indoor farming facilities globally are based in Europe” indicates that a significant portion of indoor farming operations worldwide are located in Europe. This suggests that Europe has a strong presence in the indoor farming industry, possibly due to factors such as government support, technological advancements, or market demand. The high concentration of indoor farming facilities in Europe could have implications for food production, sustainability, and economic development in the region, as indoor farming offers benefits such as increased crop yields, reduced water usage, and protection from adverse weather conditions. Furthermore, the statistic implies that Europe is leading the way in adopting innovative agricultural practices to address challenges such as food security and climate change.
The Netherlands is the largest indoor farming country in the world, and 80% of all indoor grown produce comes from there.
The statistic that The Netherlands is the largest indoor farming country in the world, and that 80% of all indoor-grown produce comes from there, suggests that The Netherlands has significantly invested in and successfully implemented indoor farming technologies and practices. This achievement could be attributed to factors such as the country’s expertise in agriculture, favorable climate conditions for indoor farming, and its commitment to sustainability and innovation in food production. The high production output indicates a strong market demand for indoor-grown produce as consumers increasingly value locally grown, fresh, and sustainably sourced food. The Netherlands’ leadership in indoor farming not only highlights its economic importance in the global agricultural industry but also showcases its potential to lead the way in addressing food security and sustainability challenges.
The global vertical farming market size was valued at USD 2.51 billion in 2018.
The statistic indicates that the global vertical farming market had a total value of USD 2.51 billion in the year 2018. Vertical farming refers to the practice of growing plants in vertically stacked layers, often in controlled indoor environments. The market size value suggests the overall economic activity generated within the vertical farming industry, including the production, distribution, and sales of vertical farming systems, equipment, and produce. This statistic highlights the significant and growing interest in vertical farming as a sustainable and efficient method of agricultural production, driven by factors such as urbanization, climate change, and increasing demand for locally grown, fresh produce.
Hydroponics system in indoor farming was the leading segment with 50.0% share of total revenue in 2018.
The statistic indicates that in 2018, the hydroponics system within the indoor farming industry generated the highest revenue contribution, accounting for 50.0% of the total revenue in the sector. This suggests that hydroponics, a method of growing plants without soil by using mineral nutrient solutions in a water solvent, was the most prominent and profitable technique employed in indoor farming practices during that period. The significant share of revenue attributed to hydroponics underscores its popularity and effectiveness in producing crops indoors, highlighting its role as a leading contributor to the overall financial success of the indoor farming industry in 2018.
55% of indoor farmers identified lack of skilled workforce as their biggest challenge.
The statistic indicates that 55% of indoor farmers cited the lack of a skilled workforce as the primary challenge they face in their operations. This suggests that finding and retaining employees with the necessary skills and experience to successfully operate indoor farming operations is a significant obstacle for a majority of indoor farmers. The high percentage highlights the critical need for addressing workforce development and training issues within the indoor farming industry to help alleviate this challenge and support the growth and sustainability of indoor farming operations.
75% of indoor farmers cited high operational costs as a pain point.
The statistic indicates that 75% of indoor farmers identified high operational costs as a significant issue or challenge they face. This implies that a majority of indoor farmers are concerned about the financial burden associated with running their operations. High operational costs could include expenses related to electricity, water, equipment, labor, and maintenance. This statistic underscores the financial strain that indoor farmers contend with, highlighting the need for strategies to reduce costs, increase efficiency, and improve profitability in indoor farming ventures.
In 2019, the global smart indoor gardening market amounted to around USD 2.22 billion.
The statistic indicates that the global smart indoor gardening market reached a value of approximately USD 2.22 billion in 2019. This figure represents the total revenue generated from the sales of smart indoor gardening products and services worldwide during that year. Smart indoor gardening involves the use of technology such as sensors, automated systems, and mobile apps to monitor and control the indoor growing environment for plants. The market size of USD 2.22 billion demonstrates the growing popularity and demand for smart indoor gardening solutions among consumers and businesses seeking convenient and efficient ways to grow plants indoors. This statistic provides insight into the significant market opportunity and potential growth within the smart indoor gardening industry.
The average profitability of indoor farms is projected to be 27%.
The statistic stating that the average profitability of indoor farms is projected to be 27% suggests that indoor farming operations are expected to generate a return on investment of 27% on average. This means that for every dollar invested in an indoor farm, it is anticipated to yield a profit of 27 cents. Such a high projected profitability indicates that indoor farming is a lucrative and potentially rewarding industry for investors and entrepreneurs. It reflects the efficiency, productivity, and profitability of indoor farming methods compared to traditional outdoor agriculture, making it an attractive option for those looking to invest in sustainable and innovative agricultural practices.
The LED market in vertical farming was valued at USD 992 Million in 2020.
The statistic, “The LED market in vertical farming was valued at USD 992 Million in 2020,” indicates the total worth of Light Emitting Diode (LED) technology specifically used within the vertical farming industry during the year 2020. This value represents the amount of money spent on LED lighting products and solutions tailored for vertical farming, a method of growing crops in vertically stacked layers or inclined surfaces. The significant market valuation of USD 992 Million highlights the growing importance and adoption of LED technology in agriculture, particularly in the context of sustainable and efficient practices such as vertical farming.
In 2020, Global Indoor Farming Technology market is projected to reach USD 130.68 billion by 2027.
The statistic suggests that the Global Indoor Farming Technology market is expected to experience significant growth in the coming years, with a projected market value of USD 130.68 billion by 2027. This increase indicates a growing interest and investment in indoor farming technologies, which include methods such as vertical farming, hydroponics, and aquaponics. The rising demand for sustainable agricultural practices, the need to produce food efficiently in urban areas, and the advancements in technology are likely driving this market expansion. Overall, the projected value reflects a positive outlook for the indoor farming industry and its potential to revolutionize the way we grow food in the future.
In 2019, LEDs contributed around 72% to the overall vertical farming growth lighting market.
In 2019, LEDs accounted for approximately 72% of the total market share in the vertical farming growth lighting industry. This statistic suggests that light-emitting diodes (LEDs) were the dominant technology used for providing artificial lighting in vertical farming systems, surpassing other competing technologies such as fluorescent or high-pressure sodium lamps. The significant market share held by LEDs highlights their widespread adoption and acceptance within the vertical farming sector due to their energy efficiency, long lifespan, and ability to provide specific light spectrums tailored to different plant growth stages. As a result, LED technology has played a crucial role in driving the growth and development of vertical farming practices, reflecting the industry’s emphasis on sustainable and efficient lighting solutions.
Conclusion
Indoor farming is a rapidly growing industry with promising statistics indicating increased demand for fresh produce, year-round cultivation, and sustainable agricultural practices. As technology continues to advance, the indoor farming sector is poised for further expansion and is set to play a significant role in the future of food production.
References
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7. – https://www.www.producegrower.com
8. – https://www.www.indoor.ag
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