The global market for indoor farming (excluding cannabis) was valued at $ 114 billion in 2019 and is forecast to reach $ 139 billion in 2025.
With this, the compound annual growth rate would be 3.4%, according to an analysis by Research and Markets.
The demand for indoor farming has been growing at a rapid pace around the world and presents significant opportunities.
According to Agrify Corporation, there are a variety of factors that have created this big shift toward indoor farming, including unpredictable weather conditions, increased urbanization, and pesticide use.
In addition, crops grown indoors generally attract the highest prices on the market, as the ability to control environmental variables tends to lead to higher quality production.
At the same time, technological innovations within the broader agricultural industry are allowing the sector to expand.
According to the MarketsandMarkets Indoor Growing Technology Report, the indoor growing technology market was valued at $ 31 billion in 2019, and is forecast to reach $ 53 billion in 2025, representing a compound annual rate. of 9.65 percent.
Indoor farms grow a wide variety of crops including leafy greens, tomatoes, cannabis, hemp, flowers, herbs, and microgreens.
These attributes help offset the fact that an indoor installation can be expensive to operate.
Even with these dynamics, Agrify Corporation believes that its combination of products and solutions can significantly reduce operating expenses for its customers over time.
One of the biggest advantages of indoor farming is its higher predictability and yield potential compared to conventional farming.
By working with closed and controlled facilities, farmers no longer have to deal with harsh environmental conditions, so they can grow a crop from seed to harvest in less time, obtain higher yields each cycle, and repeat the harvest more times. in a given year.