Plant Factory Market Size, Share, Growth, Trends, and Global Industry Analysis: By Facility Type (Greenhouses, Indoor farms, Other Facility Types), By Light Type (Sunlight, Full Artificial Light), By Technology (Non-soil-based, Soil-based, Hybrid), By Crop Type (Fruits, Vegetables, Flower & Ornamental and Other Crop Types) and Region  

Plant Factory Market was valued at US$ 143.2 million in 2023 and is poised to grow at a CAGR of 7.8% from 2024 to 2030. A plant factory is also termed as an indoor farm, which is a highly developed form of organized environment agriculture in which plants are cultivated in indoor facilities under artificial light. This indoor farm aims to create stable environment for plant growth, allowing crops to grow faster in a more controlled manner compared to outdated outdoor farming methods. These facilities comprise advanced technologies, such as LED grow lights, aeroponic systems, automated climate control, and accurate nutrient delivery. The demand for the plant factory market is continually increasing for a few years due to several factors. The increase in the global population and the need to produce more food sustainably is the main driver in the plant factory market growth.

A plant factory is expected to achieve maximum yield, harvesting density, and financial impact by artificially controlling the plant growth environment. Plant factories' ability to grow vegetables 24 hours a day, create organic produce, and manage the quality of crops is driving market growth. In Addition, the increased production of larger yields compared to traditional agricultural practices due to expanding harvesting intervals, and the ability to remove the usage of pesticides and synthetic maturation chemicals, leading to significantly better vegetable products are also driving the market growth. Furthermore, Advantages like complete closure, low environmental impact, decreased plant crop management, irrigation, fertilizer conservation, and pesticide-free cultivation which results in reduced industrial effluent to the ecosystem all contribute to the growth during the forecast period. The trend of vertical farming and urban agriculture by incorporating the IoT and AI technologies in plant factory market is gaining momentum in the market.

Plant Factory Market Key Developments:

• In February 2023, Public Investment fund and AeroFarms have entered into a joint venture, to establish a company in Riyadh, to build and operate indoor vertical farms in Saudi Arabia and the wider Middle East and North Africa (MENA) region. This joint venture will help in year-round, sustainable local sourcing of high quality crops cultivated on AeroFarms unique smart agriculture technology platform, which will help in address more general supply chain issues in the sector.
• In February 2023, Realty Income Corporation signed a strategic real estate alliance with Plenty Unlimited Inc. to support in the advancement of plenty’s indoor vertical farms. under the terms of the agreement, Realty income will help in the development by funding for properties that will house plenty’s indoor farms.