Indoor farming is an alternative farming method where crops are produced in a controlled atmosphere. It is suitable for growing a variety of vegetables and fruits, microgreens and herbs, and ornamentals on vertically inclined surfaces or inside greenhouses and container farms.

The main advantage of utilizing indoor farming is that it enhances crop output within a smaller area of land. Previously, wastewater from fish tanks was used to irrigate crops like cucumbers and tomatoes on a sand-filled grow-bed. With the advancement of technology, equipment such as heating, ventilation, and air conditioning (HVAC), light-emitting diode (LED) grow lights, aeration systems, irrigation systems, sensors, monitors, and others are being used for promoting crop growth through indoor farming.

Agriculture is considered one of the most important sectors in the world, and it contributes significantly to the GDP of various countries. Traditional agriculture needs perfect climatic conditions, arable land availability and fertility, and an adequate supply of water.

Indoor farming technology involves the use of specialized equipment, software, and information technology services. Countries in North America, Europe, and Asia-Pacific are increasingly turning toward modern farming technologies, such as vertical farming and container farming, to increase agricultural productivity and meet rising food demand.

According to BIS Research, the global indoor farming technology market is estimated to reach $12,767.3 million by 2026, growing at a CAGR of 14.80 percent between 2021 and 2026.

Increased Adoption of Farming Technology

Technological advancement increases agricultural production and promotes agriculture growth. Developing new technologies can boost the productivity of farming operations. The use of contemporary technologies in agriculture guarantees that farmers generate a large amount of food in a short period. Different technologies can assist enhance agricultural output while reducing water waste, fertilizer waste, and pesticide use, thereby lowering food prices even more.

It minimizes the negative impact on natural ecosystems by limiting chemical discharge into bodies of water such as rivers and groundwater. Farmers and other agricultural organizations utilize science and technology to collect data, monitor growth and quality, assess efficiency, save money, and improve yields.

Farm machinery, crop sensors, monitors, climate control devices, usage of global positioning system (GPS) in fields documentation, and other technologically advanced items or equipment are currently prevalent in agriculture. These technologies have a variety of applications, such as agricultural sensors, which are used for yield and health monitoring.

The need to satisfy labor is one of the issues that crop producers confront today. Labor costs are increasing daily and require a smart technique to ensure lower labor costs.

The evolution of indoor farming technologies is further helping the global indoor farming technology market expansion. Technologies include robots, temperature and moisture sensors, aerial photos, light-emitting diode (LED) lights, and monitors. These updated technologies and robotic systems aid firms in being quicker, more productive, lucrative, safer, and environment friendly.

Vertical and greenhouse farming are innovative ideas that combine indoor farming practices with controlled-environment agriculture (CEA) technology, which allows all environmental conditions to be regulated. These facilities use artificial light management and environmental control, such as temperature, humidity, gases, and fertigation. Farmers, agriculture organizations, and other small and medium companies are adopting different high-valued farming technologies due to increased crop yield demand, which is positively affecting the expansion of the global indoor farming technology market.

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Government’s Role and Support Toward Indoor Farming

In recent years, government support for agriculture has increased over the world. However, the Organization for Economic Co-operation and Development (OECD) claims that it occasionally falls short of its declared goals of improving food security, livelihoods, and environmental sustainability. In this situation, indoor farming might provide a solution to these problems.

Any country's agriculture industry is essential to the nation's overall growth as it feeds its people. Governments from many countries, business groups, and regulatory authorities are all focused on how improving the agriculture industry may help any country's economy. As a result, several government agencies encourage automation and digitalization in the agriculture business to expand their agriculture sector, which in turn drives their nation's economy.

Many nations with large agriculture sectors, such as Australia, the U.S., and India, are focusing on promoting sustainable agriculture, the latest agricultural technologies, and indoor farming. As a result, governments from many countries have begun to subsidize vertical farming, hydroponics, and aquaponics growth technologies.

Governments in developing nations are concentrating heavily on the rising need for sustainable food production systems by allocating a large sum of money to farm management software, thereby focusing on more tech-based farming methods such as vertical farming and greenhouse farming.

Furthermore, the American Research Service (ARS) has engaged with companies to improve the role of farm management software with artificial intelligence in livestock monitoring, harvesting with robots, analyzing irrigation systems, and monitoring crop health with drone technology.

To summarize, it can be stated that indoor farming is primarily concerned with the cultivation of plants in a controlled environment. To meet the growing demand for high quality yields, a variety of growing methods have been adopted.

As the population grows, there would be less fertile land left to cultivate or farm on, and hence, the need for indoor farming would eventually grow. Additionally, it has also aided in expanding local agricultural and fresh produce output in cities, and it will continue to assist in meeting the growing population's food demand.