According to The FAO and World Bank Group, the overall arable land per capita has also declined as well as the scarcity of arable land owing to land degradation has urged the farmers to adopt new solutions to produce fresh food. The adoption of vertical farming techniques is expected to enable indoor farm owners to grow crops indoors in layers stacked on racks, in a multi-story building, or a warehouse. It is anticipated that this will emerge as a significant trend in the market by 2030.
Indoor farms help grow the total crop yield per unit area by using the stacked layers of potted seeds, thereby driving the market. Indoor farming is the practice of growing plants or crops indoors on a small and large scale. Indoor farming implements methods such as quadraphonic and hydroponics and utilizes artificial lighting for adequate light levels and nutrients. However, the high initial investment in the building of indoor farms and limitations on the growing variety of crops is expected to hinder the market growth.
Europe held the largest market share in 2021, owing to the adoption of technologies for greenhouses and vertical farms. Developed countries such as the U.K., Germany, the U.S., and Canada are the rapid and early adopters of farming technologies. However, emerging economies such as India, China, Mexico, Singapore and UAE are observing a substantial growth in the adoption of technologies integrated into indoor farms, owing to the rising demand for fresh crops. The increasing disposable income and urban population in the emerging economies have increased the consumption and demand for healthy, fresh, and nutritious food, which is projected to drive the indoor farming market within next 10-15 years (2021-2035) and beyond.