Middle East & Africa Indoor Farming Market Outlook, 2027

The Middle East and Africa were important sites of early settled agriculture and are the origin and diversity centers for several major cereal and legume crops. On the total land of the Middle East & Africa region, only one-third is agricultural land while only 5% is arable. The rest of the land is either urban or dry desert. In addition to that, for countries like the UAE, which depends on imports for more than four-fifths of its food supply, indoor farming can offer unprecedented benefits. Indoor farms offer the prospect of growing more produce locally and making better use of the region’s limited water resources. Generally, plants in indoor farming facilities are grown in cells stacked for space, savings, and efficiency. Further, the higher requirements for large production of food crops due to lack of arable land due to geographical factors are some of the major driving forces for the indoor farming market. Many major market players are adopting this efficient crop production technique to fuel the market's growth. For instance, Pure Harvest in Abu Dhabi has ambitious plans to become a regional powerhouse across the Middle East and Africa with fruits and vegetables grown in a controlled indoor environment, as the Emirates seeks to reduce reliance on food imports. According to the report titled "Middle East & Africa Indoor Farming Market Outlook, 2027", published by Bonafide Research, the indoor farming market was valued at more than USD 3700 million in 2021. In the Middle East and Africa, there are certainly enough opportunities for indoor agriculture compared to other parts of the world. As indoor farming facilities are still emerging across the region, it creates higher demand for the research and development sector to expand the industry at a higher pace. The Middle East & Africa indoor farming market is segmented into three prominent countries, including the UAE, South Africa, and Saudi Arabia. Among these countries, South Africa is dominating the market by holding the highest revenue generation in the indoor farming market.

In South Africa, agricultural land is very limited, so indoor farming is gaining more traction in the country. In addition to that, South Africa has a vibrant agricultural sector and a very competitive retail sector to distribute and sell the food grown. Furthermore, following the success of indoor farming across the country, Pick n Pay and CAN-Agri have launched their own indoor farms as a way of showcasing and educating shoppers about this approach to farming. In addition to that, Future Farms South Africa is a prominent company present in the country which focuses on the design, provision and management of all controlled agriculture, including agri-tunnels and greenhouses, both indoor and outdoor hydroponic systems, and modern irrigation methods. Some of the projects on which the company is working include Ndabeni indoor farm, Johannesburg Rooftop Farm, Anglo America-Hydroponic Farm in Kathu, Johannesburg Indoor R & D Hydroponic Farm, NSA seedling farm, and Knowledge Pele Community Farm. According to the report, Middle East & Africa indoor farming market is segmented into five growth mechanisms, including hydroponics, aeroponics, aquaponics, soil-based and hybrid. Among these, the hydroponics segment dominated the market in 2021 and is expected to grow further. However, increasing technology developments across the region direct towards the aeroponics growth mechanism, which is the fastest growing segment. Further, the market is segmented into three facility types, including vertical farms, indoor greenhouses, and others (DWC & ETC). Among these types, the indoor greenhouse segment is projected to occupy the largest market share during the forecast period owing to higher adoption across the region. In terms of components, the hardware segment is anticipated to occupy more than 65% of the market share by 2027. However, the software and services segment are said to be the fastest growing. The lighting segment also plays an important role in fueling the market's growth.

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Manmayi Raval

Research Consultant

Covid-19 Impact: In the Middle East & Africa (MEA) region, where energy and water are premium resources due to the extreme climate, there is an incredible demand for local food sources. This became apparent during the COVID-19 pandemic when import supply chains were severely disrupted. Also, major production units were at a halt, which resulted in a major drop in revenue generation. However, imposed lockdown situations and social distancing norms have heavily impacted the market. Staying at home has diverted the consumer preference towards organic food consumption, which is anticipated to fuel the market's growth by the forecast period. Major Companies present in the market: Netafim, Everlight Electronics Co., Ltd., GP Solutions, Inc., Signify Holding, OSRAM GmbH., Crop One Holdings, Urban Crop Solutions, zipgrow Inc. Considered in this report • Geography: Middle East & Africa • Historic Year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027

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Aspects covered in this report • Middle East & Africa 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 • UAE • Saudi Arabia • South Africa Based on type of growth mechanism in the report: • Hydroponics • Aeroponics • Aquaponics • Soil-based • Hybrid Based on facility type of indoor farming in the report: • Vertical Farms • Indoor Greenhouses • Others Based on component type of indoor farming in the report: • Hardware (Lighting, Climate control, Sensors & Others) • Software & Services Based on Crop type in the report: • Fruits, vegetable & herbs • Flowers & ornamentals • Others 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, analyzing 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 agriculture industry, food & beverage industry, nutrition 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.