Global Plant Factory Market
Plant Factory Market size is estimated at USD 164 million in 2024 and is set to exceed USD 458.7 million by the end of 2037, expanding at over 8.29% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of plant factory is assessed at USD 177.5 million.
The plant factory market is driven by the surging need to cultivate high-quality food to cater to the growing population across the globe and a rising preference for fresh and locally sourced produce. As per the Global Report on Food Crises (GRFC) 2023, over 282 million individuals in 59 countries and territories observed high levels of acute hunger, indicating a global increase of 24 million compared to the previous year. Plant factories use cutting-edge technologies such as IoT, robots, data analytics, and others to grow crops in a controlled environment. This enables continuous production and higher yields throughout the year, addressing the food scarcity challenges.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8.29% |
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Base Year Market Size (2024) |
USD 164 million |
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Forecast Year Market Size (2037) |
USD 458.7 million |
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Regional Scope |
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Facility (Greenhouse, Indoor Farms, Others)
Indoor farms segment in the plant factory market is expected to cross USD 264.9 million by the end of 2037, owing to the surging adoption of indoor farming by companies, restaurants, and grocery stores. Indoor farms have gained popularity due to consistency in quality and supply through indoor farms, reachability to urban centers, and sustainability compared to traditional farming. For instance, in January 2022, Walmart, invested in Plenty company to utilize its indoor vertical farming technology to deliver fresh produce to Walmart retail stores. This partnership aims to provide high-quality food to customers throughout the year, regardless of weather conditions.
Light Type (Sunlight, Full Artificial Light)
In plant factory market, full artificial light segment is projected to exceed USD 370.6 million by the end of 2037, owing to rising availability of a range of lighting technologies such as LED, HID, incandescent, and halogen lights. In March 2023, Mitsubishi Chemical Group (MCG Group) announced the launch of a fully artificial light-type plant factory system, AN in Oi-cho, Fukui Prefecture to solve food supply issues, providing high-quality and pest-free vegetables.
In addition, UV lights are also deployed in plant factories as a nonthermal technique for improving the safety and shelf life of various goods, including fruits, vegetables, plant-based milk substitutes, and more. It helps to inactivate an array of microbial agents including bacteria, fungi, yeasts, molds, and viruses affecting the crop health.
Our in-depth analysis of the global plant factory market includes the following segments:
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Facility |
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Light Type |
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APEJ Market Statistics
Asia Pacific excluding Japan plant factory market revenue is anticipated to reach USD 162.3 million by the end of 2037 owing to rising need for high-quality food and large amounts of produce to cater to the rising population and hunger problems in this region. As per UNICEF data, in December 2021 more than 575 million people faced hunger in 2020 APAC.
The plant factory market in China is predicted to have notable growth over the forecast period owing to the rising number of plant factories and rapid advancements in farming technologies. The growing production of LED lighting in the country is further boosting the integration of this technology in agriculture. In August 2023, Signify announced the launch of the opening of its new LED lighting manufacturing units in Jianzi Province, China for manufacturing high-quality branded LED lighting products.
The plant factory market in India is expected to register rapid revenue CAGR during the forecast period due to the surging startups, and financial assistance, and government schemes for vertical farming. For instance, Startup Support Programs in India are focused on providing financial assistance to innovative agricultural startups, including indoor farming.
North America Market Analysis
Plant factory market size for North America region is predicted to reach USD 75.6 million by 2037 due to the growing demand for fresh and locally sourced food among health-conscious people and the rising number of plant factories providing these services to consumers. Leading companies in the region, including FarmFoods, Imperfect Foods, and Farm to People provide year-round access to high-quality produce.
The pant factory market in the U.S. is expected to register significant revenue CAGR between 2025 and 2037 owing to rapid advancements and investments in farming technology and rising concerns about changing climate patterns. For instance, in May 2023, Agrifood veteran David Lee along with some prominent leaders in the market launched a B2B agtech startup, Inevitable Tech. The company has developed a hardware-software grow system that can be used in open fields as well as controlled environment agriculture.
The plant factory market consists of several key players who are focused on adopting various advanced technologies to dominate their presence in the market and enhance their product base. They are shaping the trend of plant factories in the market by raising awareness regarding sustainable agriculture activities. Furthermore, significant investment in R&D has been made by the key players to understand the changing market environment. Some of the major key players include:
Author Credits: Nilanjana Ray
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