United States Plant Factory Market By Facility Type (Greenhouses, Indoor Farms, Others), By Light (Artificial Light and Sunlight), By Growing System (Soil-Based, Non-Soil-Based, Hybrid), By Type (Fruits & Vegetables, Ornamental Plants & Flowers, Others {Plantation Crops, Forage Crops, etc.}), By Region, Competition, Forecast & Opportunities, 2019-2029F
Published Date: January - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Agriculture | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationUnited States Plant Factory Market By Facility Type (Greenhouses, Indoor Farms, Others), By Light (Artificial Light and Sunlight), By Growing System (Soil-Based, Non-Soil-Based, Hybrid), By Type (Fruits & Vegetables, Ornamental Plants & Flowers, Others {Plantation Crops, Forage Crops, etc.}), By Region, Competition, Forecast & Opportunities, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 1,423.04 Million |
| Market Size (2029) | USD 2,559.23 Million |
| CAGR (2024-2029) | 10.42% |
| Fastest Growing Segment | Indoor Farms |
| Largest Market | West |
Market Overview
United States Plant Factory Market w
The Plant Factory market in the United States is a rapidly growing sector within the agricultural industry. Driven by the increasing demand for locally sourced, fresh produce, along with the need for efficient use of urban spaces, the vertical farming industry is experiencing significant investment and innovation. The concerns about climate change and the desire for reducing agricultural water usage are fueling adoption of these technologies. This market encompasses a wide range of operations, from small urban farms in city centers to large-scale commercial facilities producing a wide variety of crops year-round. Despite being a relatively new industry, the Plant Factory market demonstrates promising potential for the future of sustainable and efficient agriculture in the United States.
Key Market Drivers
Growing Demand for Locally Sourced & Fresh Produce
One of the primary drivers of the United States plant factory market is the increasing demand for locally sourced and fresh produce. Consumers are becoming more conscious of the origin and freshness of their food, leading to a preference for fruits, vegetables, and herbs that are grown closer to home. Plant factories, also known as vertical farms or indoor farms, provide a solution to meet this demand by enabling year-round cultivation in controlled environments. Overall produce sales in the United States saw a modest increase of 1.5% in 2023, driven primarily by higher prices (+1.6%) rather than volume, which saw a slight decline of -0.1%. Growth in both fruit (+1.7%) and vegetables (+1.2%) was comparable. According to Circana's household panel data, this trend is reflected in consumer purchasing behavior in 2023. While the percentage of households purchasing fruits and vegetables remained steady, there was a slight increase in both the number of shopping trips and the amount spent per trip (<1%).
Increasing Population & Urbanization
The growing population and ongoing urbanization are significant drivers for the plant factory market in the United States. As urban areas expand, the availability of arable land for traditional farming diminishes. Plant factories provide a viable solution to the challenges posed by limited space, enabling efficient cultivation in urban environments. According to the World Health Organization, the current population of the United States is 343,477,335 as of 2023, with a projected growth of 11%, reaching 380,846,910 by 2050.
Vertical farming, a key component of plant factories, allows for the stacking of crops in vertical layers, optimizing space utilization. This vertical approach is particularly valuable in densely populated urban areas where space is at a premium. The ability to establish plant factories in or near urban centers enhances food security by reducing the dependence on distant agricultural regions. Driven by the demographic shift towards urban living, the plant factory market is positioned to play a crucial role in sustaining food production and supply in the face of increasing urbanization in the United States.
Advancements in Technology & Automation
Technological advancements and the integration of automation are driving forces behind the growth of the plant factory market in the United States. These facilities leverage cutting-edge technologies to create optimal growing conditions, utilizing controlled environments where factors such as light, temperature, and nutrient levels can be precisely managed. PFALs are advanced multi-layer indoor farming systems that utilize environmentally sustainable crop cultivation methods. These systems incorporate vertical farming, optimized lighting strategies, energy-efficient technologies, and intelligent control systems, allowing for horticultural production irrespective of climatic or geographic constraints.
Climate Change & Extreme Weather Events
Climate change and the increasing frequency of extreme weather events contribute to the demand for resilient and climate-controlled cultivation systems, making plant factories a crucial driver in the agricultural sector of the United States. Traditional outdoor farming is susceptible to the impacts of climate change, including unpredictable weather patterns, temperature fluctuations, and water scarcity.
Plant factories provide a controlled environment that mitigates the risks associated with adverse weather conditions. The ability to regulate factors such as temperature, humidity, and light intensity ensures consistent crop yields year-round, unaffected by external climate variations. This resilience to climate challenges positions plant factories as a key solution for achieving food security and stability in the face of a changing climate. As the impacts of climate change become more pronounced, the demand for climate-resilient agricultural practices, such as those offered by plant factories, is likely to drive market growth in the United States.
Key Market Challenges
High Initial Capital Investment
One of the significant challenges facing the United States plant factory market is the high initial capital investment required for establishing and operating these advanced indoor farming facilities. Plant factories utilize cutting-edge technologies such as vertical farming systems, hydroponics, and automated control systems, which involve substantial upfront costs. The expenses include infrastructure setup, climate control systems, specialized lighting, automation equipment, and other technology-intensive components.
High Operational Costs & Energy Consumption
While plant factories offer controlled environments that enhance crop productivity, they also incur ongoing operational costs, particularly related to energy consumption. The need for artificial lighting, heating, ventilation, and other climate control systems contributes significantly to the energy requirements of plant factories. The operational costs associated with electricity and resource-intensive technologies can pose challenges to achieving long-term profitability for plant factory operators.
Key Market Trends
Increasing Collaboration & Partnerships in the Industry
Collaborations and partnerships between technology providers, agricultural experts, and investors have become increasingly common and pivotal in the U.S. plant factory market. These strategic alliances are formed to harness the collective expertise in technology, agriculture, and finance, with the aim of driving innovation, addressing critical challenges, and scaling up operations to new heights. Through fostering collaborative efforts, these partnerships facilitate the seamless exchange of knowledge, resources, and capital, nurturing a more robust, dynamic, and sustainable plant factory industry in the United States. Within this collaborative ecosystem, a multitude of stakeholders, including researchers, engineers, and entrepreneurs, come together to revolutionize the way crops are cultivated. By leveraging cutting-edge technologies, such as artificial intelligence, robotics, and data analytics, these collaborative endeavors are poised to transform traditional farming practices. This transformation not only ensures food security but also promotes a greener and more resilient agricultural landscape for future generations.
Segmental Insights
Facility Type Insights
Based on the Facility Type, in the United States Plant Factory Market, Indoor Farms are currently growing in the agricultural landscape. This innovative method of cultivation provides a meticulously controlled environment for plant growth, ensuring optimal conditions for year-round production regardless of external climatic fluctuations. By leveraging advanced techniques like hydroponics and aeroponics, indoor farming maximizes resource efficiency and minimizes environmental impact, making it particularly appealing in densely populated urban regions with limited space. As the demand for locally grown, fresh produce continues to rise, the popularity of indoor farming is expected to grow exponentially, revolutionizing the way we cultivate crops and ensuring a sustainable food future.
Light Insights
Based on the Light, in the rapidly growing industry of plant factories in the United States, artificial light has emerged as the frontrunner, surpassing sunlight in terms of dominance and innovation. These technologically advanced indoor farms rely heavily on cutting-edge LED lighting systems to meticulously control and optimize growth conditions, allowing for consistent and high-yield production throughout the year, regardless of external weather factors. The remarkable ability to precisely manipulate light wavelengths for specific plant growth stages gives artificial lighting a distinct advantage over its natural counterpart, further solidifying its position as the preferred choice in this dynamic market.
Regional Insights
Currently, the West region, comprising states such as California, Washington, and Oregon, is undeniably at the forefront of the United States Plant Factory Market. This can be attributed to a myriad of factors that have propelled its growth and success. First and foremost, the West region has showcased remarkable technological advancements in agricultural practices. From state-of-the-art hydroponic systems to automated climate control, innovative solutions have revolutionized the way plants are cultivated. These advancements not only boost efficiency but also ensure optimal conditions for plant growth, resulting in higher yields and superior quality produce. Likewise, the West region benefits from a supportive regulatory environment that fosters innovation in the agricultural sector. Policies and incentives are in place to encourage the exploration and implementation of cutting-edge farming techniques. This enables growers to experiment with new methods, such as vertical farming or aquaponics, and stay ahead of the curve in terms of sustainability and resource management.
Recent Developments
- In May 2023, YASKAWA Electric Corporation announced a capital and business alliance with Oishii Farm Corporation. Based in New Jersey, USA, Oishii is a start-up that produces and sells strawberries. The company has pioneered the world's first stable mass production of strawberries, renowned for their long cultivation cycle, through natural bee pollination. Additionally, Oishii integrates nature with technology, replicating essential elements such as rain, air, heat, sunlight, and nutrients in optimal conditions for plant growth, ensuring year-round delivery of fresh strawberries to consumers. Looking ahead, Oishii aims to achieve fully automated strawberry production.
- In November 2024, Cox Farms, a subsidiary of the telecommunications conglomerate Cox Enterprises, announced that it has become the largest indoor farming operator in North America following its recent acquisition of a greenhouse facility in Canada. This purchase expands Cox Farms' total greenhouse space to over 700 acres across its two brands. In addition to Mucci Farms, Cox Farms also owns BrightFarms, a grower of leafy greens.
- In January 2023, Siemens announced its partnership with 80 Acres Farms, a leader in the indoor farming sector. With five production farms in southwestern Ohio, a new facility in Florence, Kentucky, a planned farm in Covington, Georgia, and R&D centers in Arkansas and the Netherlands, 80 Acres Farms specializes in producing the next generation of food—grown sustainably in eco-friendly indoor farms close to consumers. Supported by an initial investment from Siemens Financial Services, the collaboration aims to integrate innovative technologies into agriculture, promoting sustainable, healthy, traceable, and more efficient farming practices. By leveraging Siemens' comprehensive suite of software and hardware solutions, including intelligent facility and energy management systems and advanced industrial automation, 80 Acres Farms is positioned to optimize and standardize its operations, with the overarching goal of contributing to global food security.
Key Market Players
- Gotham Greens Farms LLC
- Bowery Farming Inc.
- Freight Farms
- Plenty Unlimited Inc.
- AeroFarms, LLC
- BrightFarms Inc.
- Iron Ox, Inc.
- AppHarvest, Inc.
- Vertical Harvest Farms
- Dream Harvesting Farming Company LLC
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