Global Market for Energy Efficient Indoor Farming Technology Estimated to Grow to $3.3 Billion by 2032
CEA technologies can reduce energy costs and play a key role in the future of sustainable agriculture
A new report from Guidehouse Insights explores controlled environment agriculture (CEA) technologies for smart greenhouses and vertical farms. These include heating, ventilation, air conditioning, and dehumidification (HVACD); supplemental lighting; water distribution; and sensors and controls for automation.
The combination of increased demand for food production to feed the world’s expanding population, a dwindling amount of land available for agricultural production, and the negative effects of climate change will drive investment into indoor farming over the next decade. According to a new report from Guidehouse Insights, the market for energy efficient indoor farming technology is expected to grow from $2.1 billion in revenue in 2023 to $3.3 billion in 2032, at a compound annual growth rate (CAGR) of 5.3%.
“The stage is set for growth of controlled environment agriculture technologies,” says Joe Owens, research analyst with Guidehouse Insights. “If the indoor farming industry can utilize and improve these technologies, energy efficiency will increase, profits will rise, and the future of agriculture will be more sustainable.”
However, the indoor farming market faces significant hurdles in the short term. High energy and labor costs combined with significant price competition from traditional agriculture have made it difficult for indoor farms to profit. This has led to multiple bankruptcies in recent years as investor cash for some indoor farming companies begins to run out. This environment of investor excitement over the future of indoor farming combined with the current profitability challenges that indoor farms are facing will inspire innovation for greenhouses and vertical farms, according to the report.
The report, Energy Efficiency for Indoor Farming, examines market trends, drivers, and barriers for CEA technologies and includes analyses across four technology segments (HVACD, lighting, water distribution, and controls and sensors) for both smart greenhouses and vertical farms. Expected figures include regional segmentation of the world market. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Energy Efficiency for Indoor Farming, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.