How Has The Plant Factory Market Size Evolved Historically?
The plant factory market has seen considerable growth due to a variety of factors.
• The scale of the plant factory market has seen substantial growth in the recent past. It is projected to increase from $130.6 billion in 2024 to $140.43 billion in 2025, registering a compound annual growth rate (CAGR) of 7.5%.
The historical growth is the result of a surge in demand for fresh, locally grown products, constraints in arable land availability and growing urban populations, increasing concerns around food security and supply chain robustness, advances in controlled environment agriculture (cea) technologies, the necessity for crops to be produced all year round and reduced seasonal variation, as well as the emphasis on sustainable and resource-efficient agricultural practices.
What Will Be The Plant Factory Market Size In The Future?
The plant factory market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions suggest a robust increase in the plant factory market size over the subsequent years, estimated to rise to $188.23 billion by 2029, with a compound annual growth rate (CAGR) of 7.6%.
The projected growth for the period is attributable to factors such as the adoption of hydroponic and aeroponic cultivation techniques, the rise of urban farming and rooftop greenhouses, advancements in plant factory automation and robotics, increased demand for pesticide-free and non-GMO crops, and a focus on high-yield and high-density plant production. Key trends for the period encompass the incorporation of AI and machine learning, stackable and modular growth systems, enhanced LED grow lights and spectral tuning, hybrid systems merging natural and artificial light, and the application of blockchain technology for traceability in urban farming.
What Key Factors and Trends are Driving the Growth of the Plant Factory Market?
The growth of the plant factory market is significantly fostered by the increase in food demand in response to the growing population and the difficulties imposed by climate change. The escalating world populace and the surge in food requirements, coupled with declines in yield gains caused by soil infertility, demographic shifts, climate evolution, and pest infestations, are all aiding the adoption of novel plant factory methods for crop cultivation. For instance, data from the U.S. Department of Agriculture, a United States federal entity, revealed that in 2022, the convenience food market in Canada escalated to 11.65 billion CAD, a significant rise from the 10.39 billion CAD of 2021. Concurrently, the convenience food market in Europe amplified to 2.09 billion EUR from 2 billion EUR. Hence, the swelling food demand triggered by the expanding population and the hurdles presented by climate change are fueling the expansion of the plant factory market.
What are the Market Segments in the Plant Factory Market?
The plant factory market covered in this report is segmented –
1) By Facility Type: Greenhouse, Indoor Farms, Other Facility Types
2) By Light Type: Sunlight, Full Artificial Light
3) By Growing System: Non-Soil-Based, Soil-Based, Hybrid
4) By Crop type: Fruits, Vegetables, Flower And Ornamental, Other Crop Types
Subsegments:
1) By Greenhouse: Hydroponic Greenhouses, Aeroponic Greenhouses, Soil-Based Greenhouses
2) By Indoor Farms: Vertical Farms, Container Farms, Controlled Environment Agriculture (CEA) Systems
3) By Other Facility Types: Rooftop Farms, Ship-Integrated Farms, Community Gardens
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What Trends are Shaping the Plant Factory Market?
Leading enterprises in the plant factory market like Plenty indoor farm are establishing new indoor farming facilities to cater to the growing need for fresh produce all year round. The indoor vertical farm run by Plenty is furnished with cutting-edge technology and uses 3D vertical design to cultivate around 4.5 million pounds of green leafy vegetables every year. For example, in May 2023, Plenty, a vertical farming firm based in the US, inaugurated a new indoor vertical farm at Compton, California. Using 3D vertical design, the farm has the ability to generate 4.5 million pounds of green leafy vegetables every year. This technique allows the farm to yield up to 350 times per acre compared to conventional farming methods while saving water. The complete growth process is automated in the farm where the produce is grown on vertical towers that are two stories high.
Who Are the Key Players in the Plant Factory Market?
Major companies operating in the plant factory market include:
• AeroFarms LLC
• BrightFarms Inc.
• Gotham Greens Holdings LLC
• Bowery Farming Inc.
• AppHarvest Inc.
• Lufa Farms
• Beijing IEDA Protected Horticulture Co. Ltd.
• Green Sense Farms Holdings Inc.
• Plenty Unlimited Inc.
• Mirai Co. Ltd.
• Farminova Plant Factory
• Urban Crops Solutions
• Sky Greens
• Kalera Inc.
• Smallhold
• Sky Vegetables
• TruLeaf Sustainable Agriculture
• Wulian
• Crop One Holdings Inc.
• Vertical Harvest Farms
• Growing Greener Ltd.
• Heliospectra AB
• Infarm GmbH
• Intelligent Growth Solutions
• LettuceGrow
• Light Science Technologies
• MechaFarm
• Phytoponics
• Plug and Play Tech Center
• Radiant Food Company
• SmartFarm Systems
• Vertical Greens
What are the Regional Insights into the Plant Factory Market?
Western Europe was the largest region in the plant factory market in 2024. The regions covered in the plant factory market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
