Plant Factory Market to Witness Revolutionary Growth by 2028

The global plant factory market is expected to see significant growth in the coming years, driven by factors such as increasing population, climate change, and the need for more sustainable food production methods. Plant factories use less water, pesticides, and fertilizers than traditional farming, making them an environmentally friendly solution for meeting the growing demand for food.

The plant factory market is estimated at USD 138 million in 2023; it is projected to grow at a CAGR of 7.3% to reach USD 196 million by 2028. The demand for plant factory market has been steadily increasing over the years due to several factors. One of the main drivers is the growing global population and the need to produce more food in a sustainable manner. Plant factories offer a solution by using advanced technology to grow crops in a controlled environment, allowing for year-round production and higher yields. Additionally, plant factories are able to reduce the amount of water and land required for farming, making them an attractive option for countries facing water scarcity and limited arable land. Furthermore, consumers are increasingly demanding locally grown, pesticide-free produce, which can be provided by plant factories. As a result, the plant factory market is expected to continue growing in the coming years as the demand for sustainable, high-quality produce increases.

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Vertical farming, a type of plant factory that stacks multiple layers of plants vertically, is becoming increasingly popular due to its high efficiency and the ability to grow large quantities of food in a small space. Plant factories also provide greater control over plant growth, allowing for year-round production and customization of plant characteristics.

The plant factory market is an emerging industry that is still evolving and growing rapidly. Here are some of the current trends shaping the plant factory market:

  1. Vertical farming: Vertical farming, which involves stacking layers of plants vertically, is becoming increasingly popular in the plant factory market due to its high efficiency and ability to maximize limited space. Vertical farms can produce large quantities of food using fewer resources than traditional farming methods.
  2. Automation: Plant factories rely heavily on automation technology to monitor and control the growth environment. The use of artificial intelligence, sensors, and robotics is increasing in the plant factory market, allowing for greater precision and efficiency in crop production.
  3. LED lighting: LED lighting is an important technology in the plant factory market, as it allows for precise control over light wavelengths and intensity, which can significantly impact plant growth. LED lighting is also energy-efficient, making it an attractive option for plant factories looking to reduce their carbon footprint.
  4. Organic plant factories: As consumers become more interested in organic and sustainable food options, there is a growing trend toward organic plant factories that use natural inputs and methods to grow crops.
  5. Local production: Plant factories are increasingly being used to produce food in urban areas, bringing fresh, locally grown produce to city dwellers who may not have access to traditional farming. This trend is expected to continue as demand for local food options grows.

The key players in this include AeroFarms (US), Gotham Greens (US), BOWERY FARMING INC. (US), Oishii (US), Plenty Unlimited Inc. (US), MIRAI (Japan), Agricool (France), AppHarvest (US), CropOne (UAE) and BrightFarms (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

Full artificial light segment of the plant factory market by light type is projected to witness the highest CAGR during the forecast period.

Based on light type, the full artificial light segment estimated to account for the highest growth rate. Full artificial light, or LED lighting, is a critical component of plant factories, which are indoor farms designed specifically for commercial crop production. LED lighting technology has advanced significantly in recent years, allowing for precise control over the light spectrum and intensity, making it possible to optimize plant growth and increase crop yields. This technology has been a major driver of the plant factory market, as it enables year-round crop production in a controlled indoor environment, independent of weather conditions and seasonal changes.

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Based on crop type, Vegetables segment are anticipated to dominate the market.

Based on crop type, the market is segmented into the vegetables, fruits, flowers & ornamentals, other crop types. By providing an ideal growing environment, plant factories can produce vegetables that are more consistent in size, color, and taste, and are free from pesticides and other contaminants. Additionally, plant factories can use advanced technologies such as hydroponics and aeroponics to deliver nutrients directly to the roots of plants, reducing the need for fertilizers and improving the efficiency of nutrient uptake. The result is produce that is free from harmful chemical residues and other contaminants, promoting healthier and safer food for consumers.