North America Indoor Farming Market Research Report, 2027

Growing leafy greens and other plants indoors has emerged in the past twenty years. Indoor vertical farms represent another method of growing fresh crops in stacked layer formation. While the development of indoor farms to grow leafy greens is relatively new, mushrooms have been grown this way for over 100 years. The advent of efficient LED lighting technologies has allowed farmers to save money while providing crops with just the right wavelengths of light to optimize growth. Other advantages include automation and artificial intelligence. Considering these new technologies, 39% of indoor growers are eager to find solutions to manage operations more efficiently. Lowering the cost of production by almost 20% and increasing yields by 19% are the main purposes of the agriculture industry in North America. North America is the largest market for indoor farming technologies as the region has plans to add 500-plus acres over the next 5 years for indoor farms. The region pays high prices for fresh produce. However, key technologies such as lighting (which are cheaper) and the cost of capital are low compared to other regions. There is a strong pipeline of commercial-scale growing facilities that are being developed across the region. In addition to that, current projects are focused on the leafy green market, with a growing investor appetite for indoor farming solutions such as BrightFarms and Little Leaf Farms. According to the report titled "North America Indoor Farming Market Research Report, 2027", published by Actual Market Research, the indoor farming market is projected to grow at a 12.87% CAGR for 2022–2027. The indoor farming industry in the North American region is sustained by the growth in the use of technology such as the internet of things (IoT) in indoor farming, a rapidly expanding populace, and an increase in the annual production of crops. The feasibility of setting up an indoor farm combined with the technological prowess to do so have driven the market growth across the North American region. The North American indoor farming market is segmented into three prominent countries, including the USA, Canada, and Mexico. Among these countries, the USA is estimated to dominate the market during the forecast period. In the USA, controlled environment agriculture is growing at an unprecedented rate. In 2020, the US Department of Agriculture established a new office of Urban Agriculture and Innovation Production. Also, more than USD 3 million in grants was made in the same year. Indoor farming ventures in the USA received USD 929 million in investments. In addition to that, in May 2021, the Urban Agriculture and Innovation Production department announced up to USD 4 million in grants to support the development. Kroger has begun sourcing fresh produce from an Ohio-based indoor farm (80 acres). In the USA, there are more than 41 thousand indoor farms covering over 1.3 billion square feet of growing area. Research into solving the challenges of growing plants in CEA like a spacecraft inspired NASA (National Aeronautics and Space Administration) to build the first indoor farm in the United States. Further, NASA research is expected to spur a new generation of indoor farms across the country. According to the report, North America's indoor farming market is segmented into five growth mechanisms, including hydroponics, aeroponics, aquaponics, soil-based and hybrid. Among these, the hydroponics segment dominated the market in 2021 and is expected to grow further. However, increasing technology developments across the region direct towards the aeroponics growth mechanism, which is the fastest growing segment. Further, the market is segmented into three facility types, including vertical farms, indoor greenhouses, and others (DWC & ETC). Among these types, the indoor greenhouse segment is projected to occupy the largest market share during the forecast period owing to higher adoption across the region. In terms of components, the hardware segment is anticipated to occupy more than 70% of the market share by 2027. However, the software and services segment is said to be the fastest growing. Lighting segment also plays an important role in fueling the market growth. Covid-19 Impact: The COVID-19 outbreak has impacted a major portion of the globe. Due to the increasing infections, many governments imposed a lockdown across various economies. Transportation channels were disrupted as governments responded to the pandemic. This situation makes it difficult for rural farmers to get their fresh products to market. However, indoor farms have a much smaller footprint compared to traditional field farms, which means they can be established inside or closer to urban areas. This facility has boosted the demand for indoor farms across the region. In addition to that, a change in consumer behavior has also fuelled the market's growth by 2027. Major Companies present in the market: Netafim, General Hydroponics Inc., Everlight Electronics Co., Ltd., AeroFarms, American Hydroponics, Sky Greens, Freight Farms, GP Solutions, Inc., Farm.One, Inc., Nelson and Pade, Inc., Signify Holding, Heliospectra AB, Lumigrow, Inc., OSRAM GmbH., Crop One Holdings, Plenty Unlimited Inc., Urban Crop Solutions, Brightfarms, Inc., CEL Group of Companies (Conviron), Zipgrow Inc. Considered in this report • Geography: North America • Historic Year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • North America Indoor Farming Market with its value and forecast along with its segments • Country wise Indoor Farming market analysis • Application wise Indoor Farming distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report • USA • Canada • Mexico Based on type of growth mechanism in the report: • Hydroponics • Aeroponics • Aquaponics • Soil-based • Hybrid Based on facility type of indoor farming in the report: • Vertical Farms • Indoor Greenhouses • Others Based on component type of indoor farming in the report: • Hardware (Lighting, Climate control, Sensors & Others) • Software & Services Based on Crop type in the report: • Fruits, vegetable & herbs • Flowers & ornamentals • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.