Asia Pacific Indoor Farming Market Outlook, 2029

Plant factories utilize soil-less (or minimum soil) farming technology to enhance the overall outcome. Indoor vertical farms are sometimes called "plant factories." Indoor farming technology is still being perfected and there are many variations. In theory, all crops could be grown this way. But leafy vegetables hold the greatest potential, along with some fruits and herbs. On a traditional outdoor farm, environmental factors control the growth of the plants. The game changing factor here is that in a plant factory or indoor farm, producers control the environmental factors as well as the growth of the crops. In the Asia-Pacific region, the indoor farming industry is nurtured by machine learning and artificial intelligence. It also aims to revolutionize the communities across the region. Acknowledging the benefits of indoor farming, Asian countries, particularly in China and Japan, are fast adopting this technology with hundreds of indoor vertical farms. Further, water scarcity and a decline in arable lands across the Asia-Pacific region direct the market towards the increasing adoption of indoor farming. Farmers face a lack of rain, drought, climate change, insufficient irrigation systems, financial challenges, crop failures, increased dependency on chemical fertilizers, and limited crop varieties for years across Asia. However, the emergence of innovative indoor farming technology has paved the way towards higher market growth with sustainability. China is investing significant amounts of effort into developing indoor vertical farming systems to feed its burgeoning urban population. Also, China aims to become a world leader in industrial scale applications for indoor farming. The population of China is estimated to reach 1.5 Billion by the forecast period, with land diminishing at a shocking rate of 300 km2/year. Also, 80% of China's population is projected to live in cities, representing an incredible shift in the last 100 years. For all these reasons, partly-automated indoor farming is an essential feature for the future of China. For instance, there is a new plant factory in the north of China. The entire construction of the farm is 35000 m2,of which 3500 m2 is used for vegetable seedlings, 2500 m2 functions as a vegetable production area, and 3000 m2 is dedicated to Chinese medicinal herbs. The farm can raise more than 600,000 seedlings per batch. Per year, the farm produces 12 batches, thus 64 Million seedlings.

According to the research report "Asia Pacific Indoor Farming Market Overview, 2029," published by Bonafide Research, the Asia Pacific Indoor Farming market is anticipated to grow at more than 18.02% CAGR from 2024 to 2029. With the population of the Asia-Pacific region expected to reach 5 Billion by the upcoming timeframe, the responsibility to supply food to an ever-growing population is becoming difficult. The indoor farming industry is anticipated to be the viable option to overcome these threats. Across the region, the indoor farming sector is expecting a huge boom in investments and interest from manufacturers, suppliers, and retailers. This is largely due to advancements in technology such as sensors and smart energy systems that have improved the efficiency of growing products. Further, the market is segmented into five prominent countries, including China, Japan, Taiwan, Singapore, and South Korea. Among these countries, China is anticipated to lead the market during the forecast period.

The Asia Pacific indoor farming market is witnessing a significant surge, driven by the growing demand for fresh, high-quality produce, especially in urban areas. Among the various growth mechanisms, hydroponics, aeroponics, and aquaponics are gaining traction due to their ability to produce crops in controlled environments with minimal water and land usage. Hydroponics, which involves growing plants in nutrient-rich water solutions, offers efficient water management and higher yields compared to traditional soil-based methods. Aeroponics, a more advanced technique, cultivates plants in mist-filled environments, further reducing water consumption. Aquaponics, on the other hand, combines hydroponics with aquaculture, utilizing the nutrient-rich water from fish tanks to nourish plants. While soil-based farming remains prevalent in the region, hybrid approaches that incorporate elements of hydroponics or aeroponics are also emerging to enhance productivity and sustainability.

Vertical farms, which utilize multi-tiered structures to maximize cultivation space in limited areas, are emerging as a prominent segment. These facilities offer efficient use of land and controlled environments, enabling year-round production of high-quality crops. Additionally, greenhouses are gaining popularity, providing a protected environment for plant growth and allowing for controlled temperature, humidity, and lighting conditions. While vertical farms and greenhouses dominate the market, other facility types such as shipping containers and repurposed warehouses are also being explored to meet the growing demand for indoor-grown produce.

The hardware component segment, encompassing systems such as lighting fixtures, hydroponic systems, and climate control equipment, plays a crucial role in creating optimal growing conditions. These technologies enable precise control over factors like temperature, humidity, and nutrient levels, ensuring high-quality yields. In addition, the software segment, which includes data analytics platforms, monitoring systems, and automation tools, is gaining prominence. These software solutions facilitate efficient management of indoor farming operations, enabling farmers to optimize resource utilization, track crop performance, and make data-driven decisions.



The Asia Pacific indoor farming market is witnessing a diverse range of crop types being cultivated, catering to various consumer preferences and market demands. Vegetables and herbs, including leafy greens, tomatoes, and aromatic herbs, constitute a significant portion of the market, driven by their high nutritional value and popularity among health-conscious consumers. Fruits, such as strawberries and berries, are also gaining traction due to their premium pricing and year-round availability. Flowers and ornamentals, including ornamental plants and cut flowers, are cultivated for their aesthetic appeal and demand in the floriculture industry. Other crops, such as mushrooms and microgreens, are also being explored to meet niche market needs.

Covid-19 Impact:
The pandemic has admittedly upended economic activity in the Asia-Pacific region. The spread of the infections by the virus has made governments impose lockdowns across major countries. Due to social distancing norms and a lack of a labor force, market growth declined to a measure. However, the pandemic appears to have sparked increased interest in developing agricultural technology to improve the efficiency of food systems, from input supplies through farming and processing to delivery and retail. Also, technological developments after the first quarter of 2021 across the region are fuelling the market growth for indoor farming in the Asia-Pacific region.

Considered in this report
• Geography: Asia Pacific
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Asia Pacific Indoor Farming Market with its value and forecast along with its segments
• Country wise Indoor Farming market analysis
• Application wise Indoor Farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• China
• Japan
• Taiwan
• Singapore
• South Korea

Based on Growth Mechanism:
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

Based on Facility type:
• Vertical Farm
• Greenhouse
• Others

Based on components:
• Hardware
• Software

Based on Crop type:
• Fruits, Vegetables & Herbs
• Flowers & Ornamentals
• Others (rest crops)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.