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The ventilation and air conditioning for indoor agriculture market size is forecast to increase by USD 999.57 million, at a CAGR of 12.03% between 2023 and 2028. The growth rate of the market depends on several factors such as benefits offered by ventilation and air conditioning equipment in indoor agriculture, growing demand for exotic fruits, vegetables, and flowers and availability of funding for startups and farmers for indoor agriculture.
The market report includes a comprehensive outlook on the ventilation and air conditioning for indoor agriculture market offering forecasts for the industry segmented by Product, which comprises air conditioning equipment and ventilation equipment. Additionally, it categorizes Type into new installation and retrofit and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
Ventilation and Air Conditioning for Indoor Agriculture Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Indoor agriculture improves yields and profitability but requires a very high upfront capital investment. The large-scale adoption of indoor agricultural practices depends on the availability of funding. The global indoor agriculture sector has seen a rapid increase in the availability of funding and financial incentives for startups in recent years. Most of the leading indoor agriculture and indoor agriculture companies have been successful in getting funding for increasing the harvest of exotic crops. Governments are also encouraging farmers to embrace the latest agriculture technologies, including indoor agriculture.
For instance, the provincial and local authorities in China subsidize greenhouse development. This push by governments and startups towards indoor agriculture has led to increasing demand for ventilators and air conditioning equipment, thereby driving the ventilation and air conditioning market for indoor agriculture during the forecast period.
Global warming also has the potential to disrupt rainfall patterns, and the water table may decline in several regions. This may lead to a significant impact on the harvest of crops that require large quantities of water. Indoor agriculture usually results in more crops per drop, i.e., more harvest per unit area of land and less water requirement for a given amount of harvest.
In addition, the adoption of indoor agriculture is expected to increase, which will subsequently drive the demand for ventilation and air conditioning equipment by driving the global ventilation and air conditioning market for indoor agriculture during the forecast period.
Indoor farming, such as greenhouse and vertical farming, is not suitable for growing all types of plants and vegetables. Only a few varieties of vegetables and fruits can be produced in a controlled environment in greenhouses and vertical farms. Therefore, farmers can grow only limited varieties of fruits and vegetables through indoor farming. For instance, lettuce, kale, chard, collard greens, chives, tomatoes, lemon, and cinnamon are some of the popular fruits and vegetables that can be grown at vertical farms. This will prompt farmers to adopt traditional farming to increase profitability.
Moreover, calorie-rich foods require high food security. Domesticated grain crops such as wheat, barley, corn, and rice are mainly produced using traditional farming methods. Similarly, calorie-rich root crops can grow well only with outdoor farming methods. Hence, the limitations associated with indoor farming can affect the growth of the global ventilation and air conditioning market for indoor agriculture during the forecast period.
The market share growth by the air conditioning equipment segment will be significant during the forecast period. This is the largest segment of the market, and it includes cooling equipment such as air-cooled or water-cooled chillers, humidification products such as evaporative pads and spray systems, and heating equipment such as oil and electric heaters. The segment also covers dehumidification equipment, such as desiccant dehumidifiers. Multiple crops are grown in a controlled-temperature environment
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The air conditioning equipment segment was the largest and was valued at USD 458.80 million in 2018. Further, The increasing investment in vertical farming is driving the demand for air conditioning equipment for indoor agriculture. Most of the vertical farms grow green leafy vegetables that require high humidity at room temperature. This is made possible by air conditioning equipment. The growth of vertical farming in developed regions of the world is driven by increased funding from various investors. For instance, in January 2022, Walmart Inc. announced that it would invest in indoor vertical farm Plenty Unlimited Inc. as part of a USD400 million Series E funding round. Walmart planned to utilize Plenty's indoor vertical farm to deliver fresh produce to their retail stores. Thus, the growth of vertical farming in these countries is expected to drive the demand for air conditioning equipment in the global ventilation and air conditioning market for indoor agriculture during the forecast period.
Based on the type, the market has been segmented into new installation and retrofit. The new installation ?segment will account for the largest share of this segment.? The new installation segment occupied a significant market share in the global ventilation and air conditioning market for indoor agriculture in 2023. However, farming in urban areas is very expensive, and the yield from conventional farming is not profitable. Thus, vertical farming, a technique wherein crops are grown in vertically stacked layers in a controlled environment, is being adopted as it helps farmers or farming companies increase their yield by at least ten times for a given square foot of land. However, owing to the lack of arable land, the adoption of vertical farming is increasing across the world. This is expected to support the growth of the new installations of ventilation and air conditioning equipment for indoor agriculture, thereby driving the global ventilation and air conditioning market for indoor agriculture during the forecast period.
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North America is estimated to contribute 34% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the ventilation and air conditioning for indoor agriculture market growth analysis during the forecast period. North America is one of the biggest indoor agriculture markets. The availability of capital from private equity (PE) firms, angel investors, and banks in the US keeps the demand for the technologies used in indoor agriculture high. Canada, like the US, is also beginning to see the emergence of startups engaged in indoor agriculture. Along with this, strong support from local, provincial, and federal governments also makes it easy for farmers to invest in indoor agriculture, especially in the US and Canada.
Furthermore, most of the big investments made in indoor agriculture in North America are in vertical farming. The cultivation of leafy vegetables using vertical farming gives higher yields than greenhouse farming or conventional farming. Thus, favourable supply-side factors, such as the availability of technologies and capital, and demand-side factors, such as the growing preference for pesticide-free fruits and vegetables and the legalization of cannabis, are expected to drive the growth of the ventilation and air conditioning market for indoor agriculture in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agrowtek Inc.: The company offers ventilation and air conditioning products for indoor agriculture such as GrowControl GCX cultivation controller, GrowControl GCX Plus cultivation controller.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including American Coolair Corp., Canarm Ltd., Dantherm Group AS, FlaktGroup Holding GmbH, FORBIX SEMICON Technologies Pvt Ltd., Honeywell International Inc., Ingersoll Rand Inc., Kanomax USA Inc., KCC Companies, KE Fibertec AS, Link4 Corp., Multistack LLC, Munters Group AB, Pinnacle Climate Technologies, Resideo Technologies Inc., Systemair AB, VFA Solutions BV, WOLTER VENTILATION Co. Ltd., and ZIEHL ABEGG SE.
Technavio ventilation and air conditioning for indoor agriculture market research report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The ventilation and air conditioning for indoor agriculture market analysis and the market analysis and report forecasts market research and growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Ventilation And Air Conditioning For Indoor Agriculture Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.03% |
Market Growth 2024-2028 |
USD 999.57 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.65 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agrowtek Inc., American Coolair Corp., Canarm Ltd., Dantherm Group AS, FlaktGroup Holding GmbH, FORBIX SEMICON Technologies Pvt Ltd., Honeywell International Inc., Ingersoll Rand Inc., Kanomax USA Inc., KCC Companies, KE Fibertec AS, Link4 Corp., Multistack LLC, Munters Group AB, Pinnacle Climate Technologies, Resideo Technologies Inc., Systemair AB, VFA Solutions BV, WOLTER VENTILATION Co. Ltd., and ZIEHL ABEGG SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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