Europe Indoor Farming Market End use Estimates and Analysis b y 2028

Europe Indoor Farming Industry Overview

The Europe indoor farming market size was valued at USD 10.38 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 10.4% from 2021 to 2028.

The market growth can be attributed to the changing climatic conditions across Europe. Changes in temperature and weather adversely affect crop yield. These factors are promoting the demand for indoor farming in Europe. Various aggrotech companies are making efforts to curb the challenges imposed by climate changes on crops by adopting indoor farming practices. For instance, in August 2020, Urban Crop Solutions, a vertical farming system provider, announced the launch of its Modulex Plant Factory, a vertical farming system focused on helping businesses achieve profitability. This system enables growers to control the internal conditions to keep the crops unaffected by external weather conditions.

The increasing challenges of limited land and space for growing crops in Europe are encouraging cities and companies to adopt controlled environment agricultural practices. According to the statistics provided by the World Bank in 2018, European arable land has been witnessing a continuous drop since 1960. In 1960, 31% of the European land was arable, whereas, in 2018, it dropped to 25%. This problem is mainly high in central European countries such as Estonia, Croatia, and Slovenia, having less than 15% of arable land. Thus, the decreasing arable land in Europe is expected to drive the demand for indoor farming over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Europe Indoor Farming Market

U.K. indoor farming market size, by facility type, 2018 - 2028 (USD Billion)

Enhanced technologies such as artificial intelligence, the internet of things, and data analytics are increasingly being deployed in indoor farming to improve crop yield. Various companies are investing in research and development for combining technologies with food systems for enhancing productivity and sustainability. For instance, in May 2021, LettUs Grow Ltd, a provider of indoor farming technology, announced its partnership with Harper Adams University. This partnership is aimed toward undertaking the trial of different irrigation systems and technologies within vertical farms and greenhouses. Thus, companies’ increasing investments for technologically enhancing indoor farming are expected to create new opportunities for market growth in the forthcoming years.

Government bodies in Europe are funding aggrotech companies for addressing the issues related to food security, land use efficiency, and carbon emission. For instance, in October 2020, GrowPura, an environmental organization based in the U.K., secured USD 5.28 million from the South East Midlands Local Enterprise Partnership, a government office aimed to help economic growth across South East Midlands. The company used this funding to construct a vertical hydroponics facility, which is expected to be completed by end of 2021. Thus, increasing government funding to promote indoor farming across Europe is expected to propel market growth.

However, the high cost of installation associated with indoor farming compared to conventional outdoor farming is expected to hinder market growth. According to the research published by AgFunderNews in 2019, traditional outdoor farming requires USD 0.65/Ib to grow greens. On the contrary, hydroponic greenhouses, vertical farms, and container farms require approximately USD 2.33/Ib, USD 3.07/Ib, and USD 7.14/Ib, respectively. The cost of growing greens is high in indoor farming as it requires enhanced lighting systems and irrigation systems, among other facilities. Additionally, the retail prices of these indoor farmed greens are also high compared to conventional ones. All these factors are thereby expected to hinder the market growth.

Browse through Grand View Research’s Next Generation Technologies Industry Research Reports.

  • Projection Mapping Market: The global projection mapping market size was valued at USD 3.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.9% from 2022 to 2030.
  • 3D Imaging Market: The global 3D imaging market size was valued at USD 25.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.2% from 2022 to 2030.

Market Share Insights

  • April 2021: Les Nouvelles Fermes, an urban agriculture company, raised USD 2.36 million to construct urban aquaponics farms in Europe.
  • February 2020: Bridge Vertical Farming announced its indoor AG product offering with a modular vertical farming system designed by Urban Crop Solutions, its Belgium partner. This initiative helped the former company in expanding its product offerings.

Key Companies profiled:

Some of the prominent players in the Europe indoor farming market include:

  • Agrilution
  • Bridge Greenhouses Ltd.
  • GrowUp Farms Limited
  • Illumitex
  • LettUs Grow Ltd.
  • Netafim
  • Richel Group
  • Signify Holding
  • V-Farm

Order a free sample PDF of the Europe Indoor Farming Market Intelligence Study, published by Grand View Research.

Comments are closed