Plant Factory Market Global Industry Forecast, 2018-2028: Market Accelerates With Projected CAGR of 6.03% through 2028, Fueled by Sustainability and Urban Agriculture Trends

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Jan 08, 2024, 06:30 ET

DUBLIN, Jan. 8, 2024 /PRNewswire/ -- The "Plant Factory Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F" report has been added to ResearchAndMarkets.com's offering.

The Global Plant Factory Market, a cutting-edge sector within the agricultural industry, is on a steep growth trajectory, expected to maintain a significant CAGR of 6.03% until 2028.

A comprehensive analysis of this emerging field points out that the market value, pegged at USD 5.84 billion in 2022, is set to expand as a response to numerous driving forces. The market is characterized by a shift towards sustainability and the burgeoning of urban agriculture, which translates to a burgeoning interest in technologically advanced vertical farming solutions.

Key Market Drivers:

The Plant Factory Market is experiencing a remarkable upswing due to an increased demand for fresh, locally grown produce. Confronted with the challenges of urban living and climate change, consumers are increasingly selecting food that is both nutritious and sustainably sourced. Vertical farms and controlled-environment agriculture technologies are at the heart of this movement, providing food security and supporting a local food ecosystem.

With the ongoing developments in LED lighting, automation, and controlled environment agriculture, plant factories are revolutionizing the farming industry, leading to optimal resource utilization and a reduced carbon footprint.

Urban Expansion and Population Growth Catalyzing Demand

The mounting global population and urban sprawl have sparked significant interest in Plant Factories. The emerging concerns regarding food security, amplified by predictions of a 10 billion strong global populace by 2050, have brought Plant Factories into the spotlight as a sustainable solution.

The trend towards diminishing arable land, particularly in urban environments, has underscored the need for innovative approaches to agriculture. The efficiency and constancy of Plant Factories in producing crops year-round offer a promising avenue to sustaining a stable food supply for an increasing urbanized world.

Market Challenges:

While the future seems bright for the Plant Factory Market, the path is not without its hurdles. Notably, the significant initial costs connected with the construction of such technologically-advanced facilities may raise barriers to entry, particularly for markets in developing countries. Consumer acceptance also plays a crucial role, as people's predilection for organic and traditionally farmed produce could potentially limit the adoption of food produced in fully controlled environments.

The Forefront of Crop Cultivation: Asia-Pacific

Regionally, the Asia-Pacific market, dominated by China, is emerging as a leader in embracing Plant Factory technology. Elements such as the rapid rate of urbanization and heightened concern about food safety and sustainable practices have led to an expansion of the market within this region. The technological innovations in Controlled Environment Agriculture (CEA) are particularly relevant in Asia-Pacific's race to meet the increasing demand for fresh, sustainable, and safe produce.

Facility Type and Growing System Insights:

The market segmentation analysis uncovers a preference for Greenhouses and artificial light systems, attributing their dominance to cost-effectiveness and the creation of optimal growth conditions. With sub-segments such as Indoor Farms and Non-Soil-Based systems emerging, the market is poised for further diversification and innovation.

Expansive Vertical Farming and Diversification: Trends like the emergence of vertical farming and the diversification of crop varieties signify a promising future for the Plant Factory sector. These practices are crucial in optimizing space, especially in urban areas, and meeting the need for high-yield, resilient crops that adapt to varied climates.
Competitive Landscape: An efficient and sustainable path to food production is not just desired but necessitated in today's world. A thorough assessment of the major companies operating within this space points out ongoing developments, hinting at an era of high competition and innovation-driven growth.

The latest market research reflects growing awareness and adoption of Plant Factory solutions across the globe. With a comprehensive analysis of market drivers, trends, and challenges, the report on the Global Plant Factory Market is an invaluable resource for understanding this rapidly evolving industry.

Report Scope:

In this report, the Global Plant Factory Market has been segmented into the following categories:

Plant Factory Market, By Facility Type:

Greenhouses
Indoor Farms
Others

Plant Factory Market, By Light:

Artificial Light
Sunlight

Plant Factory Market, By Growing System:

Soil-Based
Non-Soil-Based
Hybrid

Plant Factory Market, By Type:

Fruits & Vegetables
Ornamental Plants & Flowers
Others

Competitive Landscape

Detailed analysis of the following major companies:

Gotham Greens Farms
Bowery Farming
Freight Farms
Plenty Unlimited
AeroFarms
BrightFarms
Iron Ox
AppHarvest
Vertical Harvest Farms
Dream Harvesting Farming Company

For more information about this report visit https://www.researchandmarkets.com/r/g9ztw6

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