Plant Factory Market
PUBLISHED: 2023 ID: SMRC22922
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Plant Factory Market

Plant Factory Market Forecasts to 2028 - Global Analysis By Light Type (Full Artificial Light, Sunlight), Facility Type (Indoor Farms, Greenhouses), Crop Type (Flower & ornamental, Fruits &Vegetables), Growing System (Hybrid, Non Soil Based), Cultivation System (Cultivation Cabinet, Hydroponics System), Cultivation System, Structure, Category, Type, Application and Geography

4.5 (47 reviews)
4.5 (47 reviews)
Published: 2023 ID: SMRC22922

This report covers the impact of COVID-19 on this global market
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Years Covered

2020-2028

Estimated Year Value (2022)

US $133 BN

Projected Year Value (2028)

US $225 BN

CAGR (2022 - 2028)

9.2%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

Europe


According to Stratistics MRC, the Global Plant Factory Market is accounted for $133 billion in 2022 and is expected to reach $225 billion by 2028 growing at a CAGR of 9.2% during the forecast period. A new sector called Plant Factory is working to reinvent crop production via the application of bioinformatics and industrial automation. By manipulating the plant development environment, a plant factory is anticipated to achieve the highest yield, harvesting density, and financial effect. The plant factory idea is receiving more technological and financial investment as experts respond to growing concerns about food security.

According to a study published by International Institute for Applied Systems Analysis (IIASA), the food demand is expected to increase by 56% between 2010 and 2050.In Addition to it, currently, 40% of the landmass is arid, and due to rising temperature and climate change, more will turn into deserts causing a reduction in food production.



Market Dynamics:

Driver:

Increased adoption of plant factories by restaurants and grocery stores

Hydroponic, aquaponic, and greenhouse systems are the ideal substitutes that firms in the food sector might utilise because the pandemic has successfully highlighted the effects that can occur when the supply and distribution chains are compromised. With such circumstances in the food and agricultural industries changing quickly, the market is therefore anticipated to increase. In order to supply fresh food, restaurants and supermarkets are beginning to include plant manufacturing systems like hydroponic systems into their business strategies. Additionally, the price of shipping and packing is decreased.

Restraint:

Risk of equipment failure and delay in the learning curve among growers

Higher chances of equipment failure limit output, which further reduces adoption rates. This is a difficult aspect that inhibits market growth. For instance, if a water pump in the system malfunctions, the effects might include the death of the plants in a matter of hours. Without soil, plants cannot store water or nutrients for later use. Similar to any other grow room, the backup must be prepared in case of a power loss. This might incur additional expenses, which would have an impact on manufacturing costs and profit margins.

Opportunity:

Technological Advancements

One of the key trends gaining traction in the plant factory industry is technological improvement. The major players in the plant factory market are concentrating on offering ongoing innovations to strengthen their market positions by implementing a variety of innovations and technologies like edge computing, artificial intelligence, machine learning, dynamic resource allocation, and LED-grown light to optimise plant growth and raise productivity. An innovative technique that can assist in generating larger yields is required due to growing worries about global food security and dwindling arable land. Accordingly, significant prospects for the expansion of the plant factory market are anticipated to emerge in the next years.

Threat:

High capital investments

Setting up a plant factory requires a sizable investment; the equipment necessary for one is complex and sometimes expensive to purchase and maintain. The main cost components of a plant factory are various types of equipment, such as HVAC systems, fans, ventilation, irrigation systems, control systems, railroads, and lighting. For a basic system that is not completely automated, a 500 square foot factory can cost up to USD 110,000 on average. Depending on the desired level of autonomy, larger, more automated farms might cost upwards of USD 500,000–800,000 per 1,000 square feet. The prices in this case just take into account the costs of setting up the farm; however, when improvements are taken into account, it might lead to a recurrent cost for the farm because the equipment has to be replaced every three to four years to increase the farm's productivity and production.

Covid-19 Impact

The quick onset and spread of pandemic COVID-19 have brought to light the significance of food safety as well as how supply chain disruptions might result in food shortages. Lockdowns also made it difficult to get workers to work on farms. In addition, farmers were unable to sell their produce since mobility was prohibited. This forced farmers to adopt alternate agricultural methods that rely considerably more on technology and need less labour. Long-term chances for the expansion of cutting-edge agricultural practises as plant factories, vertical farming, etc. have been provided by the COVID-19 pandemic problem. This has caused several new startup businesses to enter the alternative farming techniques industry and has drawn numerous investments, funding, and partnerships from significant market players.

The sunlight segment is expected to be the largest during the forecast period

The sunlight segment is estimated to have a lucrative growth, due to the increased dependency of plant factories on sunshine. The plant factories significantly rely on sunlight, a natural light source that is necessary for plant development and growth. It provides a broad spectrum of light wavelengths that are necessary for photosynthesis and other physiological processes in plants. By using natural light, plant industries may reduce their energy costs and increase their profitability.

The non soil based segment is expected to have the highest CAGR during the forecast period

The non soil based segment is anticipated to witness the fastest CAGR growth during the forecast period, due to rise can be ascribed to the several advantages of these systems, which include more control over growing conditions, shorter growth cycles, and higher yields. Soilless farming reduces the need for water, land, and pesticides, all of which raise the possibility of farm overflow. Soilless growth is almost always the best option in an atmosphere where plants cultivated in controlled circumstances have become the norm.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the government's assistance and the quickly increasing agricultural sector. To assist farmers, guarantee universal adoption of various relief measures, and assist India in achieving food security, government initiatives and incentives are required. Therefore, there is great support for the construction of additional greenhouses since the government wants to have quadrupled the production in horticulture. Additionally, the government supports horticulturists and farmers in growing nutritious food.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to Its urban population is predicted to make up the entirety of Europe's population. One way to address the region's growing urban population's demand for food is thought to be through importation of products. Big changes, including climatic changes, which further weaken the world's food supply chain, constitute a risk in addition to the difficulty in supplying food. Additionally, because of its vulnerability, the food system contributes continuously to environmental deterioration. With the emergence of such problems, urban agriculture emerged as one of the ground-breaking technologies to grow crops with sustainable practises without significantly affecting the environment. There is a need to develop technology that may increase food production in the region without further stressing the environment, since it has been noticed that the agricultural sector is the main environmental stressor in Europe.



Key players in the market

Some of the key players profiled in the Plant Factory Market include AppHarvest, Plenty Unlimited Inc., Farminova Plant Factory N.V., Dream Harvest Farming LLC, Flow Magic, Philips, Urban Crop Solutions, AeroFarms, LLC, Taiksha Ltd., Dream Harvest Farming LLC, Bowery Farming, Agricool, Mirai Co. Ltd., and BrightFarms.

Key Developments:

In June 2021, AppHarvest completed the deal with Rabu Agri Finance to expand the high-tech indoor farm network. The company secured a USD 75 million credit facility via flagship Morehead farm mortgage following announcement; it announced hopes to have five farms operating by the end of 2022.

In October 2020, Plenty Unlimited Inc. announced a joint development agreement with Driscoll’s (US), using its indoor vertical farming to grow Driscoll’s proprietary flavorful strawberries year-round.

In September 2020, Urban Crop Solutions, a Belgium-based developer and manufacturer of indoor vertical farming solutions, launched ModuleX Plant Factory, a vertical indoor farming system, which counters existing challenges in vertical farming operations.

Light Types Covered:
• Full Artificial Light
• Sunlight

Facility Types Covered:
• Indoor Farms
• Greenhouses
• Other Facility Types

Crop Types Covered:
• Flower & ornamental
• Fruits &Vegetables
• Other Crop Types

Growing Systems Covered:
• Hybrid
• Non Soil Based
• Soil Based

Cultivation Systems Covered:
• Cultivation Cabinet
• Hydroponics System

Structures Covered:
• Shipping Container Vertical Farms
• Building Based Vertical Farms

Categories Covered:
• Indoor Plant Factory
• Outdoor Plant Factory

Types Covered:
• Unit House Type
• Automatic Plant Factory
• Artificial Light & Solar Light Combination Type
• High Multistage Plant Factory
• Container Type Plant Factory
• Middle Scale Plant Factory (Multistage Type)

Applications Covered:
• Fruit Planting
• Vegetable Cultivation

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Plant Factory Market, By Light Type
5.1 Introduction
5.2 Full Artificial Light
5.3 Sunlight
5.3.1 Full Sunlight
5.3.2 Partial Sunlight

6 Global Plant Factory Market, By Facility Type
6.1 Introduction
6.2 Indoor Farms
6.3 Greenhouses
6.4 Other Facility Types
6.4.1 Water Culture Farms
6.4.2 Container Farms

7 Global Plant Factory Market, By Crop Type
7.1 Introduction
7.2 Flower & ornamental
7.3 Fruits &Vegetables
7.4 Other Crop Types
7.4.1 Forage Crops
7.4.2 Plantation

8 Global Plant Factory Market, By Growing System
8.1 Introduction
8.2 Hybrid
8.3 Non Soil Based
8.4 Soil Based

9 Global Plant Factory Market, By Cultivation System
9.1 Introduction
9.2 Cultivation Cabinet
9.2.1 Automatic System
9.2.2 Flat Stage Type
9.3 Hydroponics System
9.3.1 Aeroponics
9.3.2 Culture Medium
9.3.3 Deep Flow Technique (DFT)
9.3.4 Nutrient Film Technique (NFT)

10 Global Plant Factory Market, By Structure
10.1 Introduction
10.2 Shipping Container Vertical Farms
10.3 Building Based Vertical Farms

11 Global Plant Factory Market, By Category
11.1 Introduction
11.2 Indoor Plant Factory
11.3 Outdoor Plant Factory

12 Global Plant Factory Market, By Type
12.1 Introduction
12.2 Unit House Type
12.3 Automatic Plant Factory
12.4 Artificial Light & Solar Light Combination Type
12.5 High Multistage Plant Factory
12.6 Container Type Plant Factory
12.7 Middle Scale Plant Factory (Multistage Type)

13 Global Plant Factory Market, By Application
13.1 Introduction
13.2 Fruit Planting
13.3 Vegetable Cultivation

14 Global Plant Factory Market, By Geography
14.1 Introduction
14.2 North America
14.2.1 US
14.2.2 Canada
14.2.3 Mexico
14.3 Europe
14.3.1 Germany
14.3.2 UK
14.3.3 Italy
14.3.4 France
14.3.5 Spain
14.3.6 Rest of Europe
14.4 Asia Pacific
14.4.1 Japan
14.4.2 China
14.4.3 India
14.4.4 Australia
14.4.5 New Zealand
14.4.6 South Korea
14.4.7 Rest of Asia Pacific
14.5 South America
14.5.1 Argentina
14.5.2 Brazil
14.5.3 Chile
14.5.4 Rest of South America
14.6 Middle East & Africa
14.6.1 Saudi Arabia
14.6.2 UAE
14.6.3 Qatar
14.6.4 South Africa
14.6.5 Rest of Middle East & Africa

15 Key Developments
15.1 Agreements, Partnerships, Collaborations and Joint Ventures
15.2 Acquisitions & Mergers
15.3 New Product Launch
15.4 Expansions
15.5 Other Key Strategies

16 Company Profiling
16.1 AppHarvest
16.2 Plenty Unlimited Inc.
16.3 Farminova Plant Factory N.V.
16.4 Dream Harvest Farming LLC
16.5 Flow Magic
16.6 Philips
16.7 Urban Crop Solutions
16.8 AeroFarms, LLC
16.9 Taiksha Ltd.
16.10 Dream Harvest Farming LLC
16.11 Bowery Farming
16.12 Agricool
16.13 Mirai Co. Ltd.
16.14 BrightFarms

List of Tables
1 Global Plant Factory Market Outlook, By Region (2020-2028) ($MN)
2 Global Plant Factory Market Outlook, By Light Type (2020-2028) ($MN)
3 Global Plant Factory Market Outlook, By Full Artificial Light (2020-2028) ($MN)
4 Global Plant Factory Market Outlook, By Sunlight (2020-2028) ($MN)
5 Global Plant Factory Market Outlook, By Full Sunlight (2020-2028) ($MN)
6 Global Plant Factory Market Outlook, By Partial Sunlight (2020-2028) ($MN)
7 Global Plant Factory Market Outlook, By Facility Type (2020-2028) ($MN)
8 Global Plant Factory Market Outlook, By Indoor Farms (2020-2028) ($MN)
9 Global Plant Factory Market Outlook, By Greenhouses (2020-2028) ($MN)
10 Global Plant Factory Market Outlook, By Other Facility Types (2020-2028) ($MN)
11 Global Plant Factory Market Outlook, By Water Culture Farms (2020-2028) ($MN)
12 Global Plant Factory Market Outlook, By Container Farms (2020-2028) ($MN)
13 Global Plant Factory Market Outlook, By Crop Type (2020-2028) ($MN)
14 Global Plant Factory Market Outlook, By Flower & ornamental (2020-2028) ($MN)
15 Global Plant Factory Market Outlook, By Fruits &Vegetables (2020-2028) ($MN)
16 Global Plant Factory Market Outlook, By Other Crop Types (2020-2028) ($MN)
17 Global Plant Factory Market Outlook, By Forage Crops (2020-2028) ($MN)
18 Global Plant Factory Market Outlook, By Plantation (2020-2028) ($MN)
19 Global Plant Factory Market Outlook, By Growing System (2020-2028) ($MN)
20 Global Plant Factory Market Outlook, By Hybrid (2020-2028) ($MN)
21 Global Plant Factory Market Outlook, By Non Soil Based (2020-2028) ($MN)
22 Global Plant Factory Market Outlook, By Soil Based (2020-2028) ($MN)
23 Global Plant Factory Market Outlook, By Cultivation System (2020-2028) ($MN)
24 Global Plant Factory Market Outlook, By Cultivation Cabinet (2020-2028) ($MN)
25 Global Plant Factory Market Outlook, By Automatic System (2020-2028) ($MN)
26 Global Plant Factory Market Outlook, By Flat Stage Type (2020-2028) ($MN)
27 Global Plant Factory Market Outlook, By Hydroponics System (2020-2028) ($MN)
28 Global Plant Factory Market Outlook, By Aeroponics (2020-2028) ($MN)
29 Global Plant Factory Market Outlook, By Culture Medium (2020-2028) ($MN)
30 Global Plant Factory Market Outlook, By Deep Flow Technique (DFT) (2020-2028) ($MN)
31 Global Plant Factory Market Outlook, By Nutrient Film Technique (NFT) (2020-2028) ($MN)
32 Global Plant Factory Market Outlook, By Structure (2020-2028) ($MN)
33 Global Plant Factory Market Outlook, By Shipping Container Vertical Farms (2020-2028) ($MN)
34 Global Plant Factory Market Outlook, By Building Based Vertical Farms (2020-2028) ($MN)
35 Global Plant Factory Market Outlook, By Category (2020-2028) ($MN)
36 Global Plant Factory Market Outlook, By Indoor Plant Factory (2020-2028) ($MN)
37 Global Plant Factory Market Outlook, By Outdoor Plant Factory (2020-2028) ($MN)
38 Global Plant Factory Market Outlook, By Type (2020-2028) ($MN)
39 Global Plant Factory Market Outlook, By Unit House Type (2020-2028) ($MN)
40 Global Plant Factory Market Outlook, By Automatic Plant Factory (2020-2028) ($MN)
41 Global Plant Factory Market Outlook, By Artificial Light & Solar Light Combination Type (2020-2028) ($MN)
42 Global Plant Factory Market Outlook, By High Multistage Plant Factory (2020-2028) ($MN)
43 Global Plant Factory Market Outlook, By Container Type Plant Factory (2020-2028) ($MN)
44 Global Plant Factory Market Outlook, By Middle Scale Plant Factory (Multistage Type) (2020-2028) ($MN)
45 Global Plant Factory Market Outlook, By Application (2020-2028) ($MN)
46 Global Plant Factory Market Outlook, By Fruit Planting (2020-2028) ($MN)
47 Global Plant Factory Market Outlook, By Vegetable Cultivation (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
 

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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