Report Overview

GCC Indoor Farming Market – Industry Trends & Forecast Report, 2029

GCC indoor farming market size was estimated at USD 602.73 million in 2022. During the forecast period between 2023 and 2029, the size of GCC indoor farming market is projected to grow at a CAGR of 13.1% reaching a value of USD 1,426.79 million by 2029. GCC indoor farming market is influenced by several driving factors. The region's arid climate and water scarcity issues are pushing for sustainable agriculture solutions, making indoor farming an attractive option. Also, the growing awareness of food security concerns is driving investments in local food production. Advancements in technology, such as vertical farming and hydroponics, are improving the feasibility and efficiency of indoor farming in the GCC. Further, government initiatives, subsidies, and favorable policies to promote agricultural diversification contribute to market growth. Overall, the GCC indoor farming market is driven by the need for sustainable, local food production and technological innovations. 

GCC Indoor Farming Market - Overview

Indoor farming, also known as vertical farming or controlled environment agriculture, is a modern agricultural method that cultivates crops indoors, typically in stacked layers or controlled environments like greenhouses. It utilizes advanced technologies, such as hydroponics, aeroponics, and LED lighting to optimize growing conditions, allowing year-round cultivation regardless of external climate. Indoor farming minimizes water usage, reduces pesticide requirements, and decreases transportation distances, making it more sustainable and efficient. This innovative approach holds promise for increasing food production, improving crop yields, and addressing challenges posed by population growth, climate change, and urbanization while also reducing the environmental footprint of traditional agriculture.

Growth Drivers

Renewable Energy Integration

GCC indoor farming market is experiencing a unique growth driver in the form of renewable energy integration. As the Gulf Cooperation Council (GCC) nations intensify their focus on sustainability and reduce their reliance on fossil fuels, indoor farming has gained traction. By incorporating solar and wind power, these farms can operate efficiently year-round, overcoming the region's harsh climatic conditions. This sustainable approach not only ensures a consistent supply of fresh produce but also aligns with the GCC's green initiatives, making indoor farming a promising sector for economic and environmental growth in the region.

Restraints

Climate Control Challenges

GCC indoor farming market faces a unique growth restraint in the form of climate control challenges. The region's extreme temperatures, ranging from scorching summers to chilly winters, pose a significant obstacle to maintaining optimal growing conditions within indoor farms. Balancing temperature, humidity, and light levels year-round requires sophisticated and energy-intensive systems. Also, the scarcity of water resources in the Gulf region amplifies the complexity of managing indoor farming environments. As the demand for locally grown produce grows, finding sustainable and cost-effective solutions to these climate control challenges becomes crucial for the expansion and success of the GCC indoor farming sector.

Impact of COVID-19 on GCC Indoor Farming Market

GCC indoor farming market experienced significant COVID-19 impacts. Lockdowns disrupted supply chains and labor availability, causing supply shortages and increased operational costs. However, the pandemic also accelerated interest in indoor farming due to its resilience to external factors. Consumers sought locally grown, safe produce, boosting demand. Also, government initiatives promoting food security and sustainability further fueled growth. Innovations in technology and automation were embraced to enhance productivity and reduce reliance on manual labor. Despite initial challenges, the GCC indoor farming market adapted and expanded, with the pandemic catalyzing the industry's development and long-term potential.

GCC Indoor Farming Market

Segmental Coverage

GCC Indoor Farming Market – By Facility Type

Based on facility type, GCC indoor farming market is bifurcated into Greenhouses and Vertical Farms segments. Greenhouses are traditionally designed structures that provide controlled environments for plant growth, utilizing natural sunlight. In contrast, vertical farms are innovative vertical stacking systems that optimize space and use artificial lighting to cultivate crops in a controlled, stacked arrangement. While both segments contribute to the growth of indoor farming in the GCC region, Vertical Farms represent a more modern and space-efficient approach, catering to the increasing demand for sustainable and resource-efficient agriculture in urban areas.

GCC Indoor Farming Market – By Component

By component, GCC indoor farming market is divided into Hardware, Software, and Services segments. The largest and most significant is often the Hardware segment, which includes physical equipment and infrastructure required for indoor farming, such as grow lights, climate control systems, and hydroponics setups. Hardware forms the foundation of indoor farming operations and is essential for facilitating efficient and successful cultivation, making it a key focal point in the GCC indoor farming market.

GCC Indoor Farming Market – By Growing Mechanism

By growing mechanism, GCC indoor farming market is divided into Aeroponics, Hydroponics, and Aquaponics segments. Aeroponics has a significant presence, offering innovative cultivation techniques. Hydroponics, another prominent segment, involves soil-less cultivation, while aquaponics combines aquaculture and hydroponics for sustainable farming. These segments collectively shape the growing landscape of indoor farming in the Gulf Cooperation Council (GCC) region, catering to the increasing demand for year-round, efficient, and resource-conscious agricultural practices.

GCC Indoor Farming Market – By Crop Category

By crop Category, GCC indoor farming market is split into Fruits, Vegetables, and Herbs, and Flowers & Ornamentals segments. The fruits, vegetables, and herbs segment is the most significant crop category. The segment includes the cultivation of a wide range of produce, such as fruits like tomatoes and strawberries, various vegetables, and herbs like basil and mint. The demand for fresh and locally grown fruits and vegetables has been on the rise, driven by health-conscious consumers and the desire for sustainable food sources. Therefore, this segment dominates the GCC indoor farming market, reflecting the growing importance of controlled environment agriculture in the region.

Competitive Landscape

Major players in the GCC indoor farming market include Argus Control Systems Ltd, Certhon, Richel Group, Netafim, General Hydroponics, Hydrodynamics International, Illumitex, Lumigrow, Signify Holding, and Bowery Inc. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Facility Type

• Greenhouses

• Vertical Farms

By Component

• Hardware

• Software

• Services

By Growing Mechanism

• Aeroponics

• Hydroponics

• Aquaponics

By Crop Category

• Fruits, Vegetables, and Herbs

• Flowers & Ornamentals

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. GCC Indoor Farming Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increase in year-round crop production
         2. Reduced pesticide use
      2. Restraints
         1. High initial investment
      3. Opportunities
         1. Advancement in technology
      4. Challenges
         1. Limited crop variety
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. GCC Indoor Farming Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Facility Type
         1. Greenhouses
         2. Vertical Farms
         3. Others
      2. By Component
         1. Hardware
         2. Software
         3. Services
      3. By Growing Mechanism
         1. Aeroponics
         2. Hydroponics
         3. Aquaponics
      4. By Crop Category
         1. Fruits, Vegetables, and Herbs
         2. Flowers & Ornamentals
         3. Others
5. Competitive Landscape
   1. List of Key Players and Their Products
   2. GCC Indoor Farming Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of COVID-19 on GCC Indoor Farming Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Argus Control Systems Ltd
   2. Certhon
   3. Richel Group
   4. Netafim
   5. General Hydroponics
   6. Hydrodynamics International
   7. Illumitex
   8. Lumigrow
   9. Signify Holding
   10. Bowery Inc.
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.       Qualitative Research
      1.   Primary & Secondary Research
   2.       Quantitative Research
   3.       Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
   4.       Breakdown of Primary Research Respondents, By Country
   5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       GCC Indoor Farming Segmentation    

Figure 2       GCC Indoor Farming Market Value Chain Analysis  

Figure 3       Company Market Share Analysis, 2022

Figure 4       GCC Indoor Farming Market Size, By Value (USD Million), 2019–2029 

Figure 5       GCC Indoor Farming Market Share, By Facility Type,  By Value, 2019–2029  

Figure 6       GCC Indoor Farming Market Share, By Component, By Value, 2019–2029     

Figure 7       GCC Indoor Farming Market Share, By Growing Mechanism, By Value, 2019–2029         

Figure 8       GCC Indoor Farming Market Share, By Crop Category, By Value, 2019–2029 

List of Tables

Table 1        GCC Indoor Farming Market Size, By Value (USD Million), 2019–2029 

Table 2        GCC Indoor Farming Market Size, By Facility Type,  By Value, 2019–2029     

Table 3        GCC Indoor Farming Market Size, By Component, By Value, 2019–2029       

Table 4        GCC Indoor Farming Market Size, By Growing Mechanism, By Value, 2019–2029         

Table 5        GCC Indoor Farming Market Size, By Crop Category, By Value, 2019–2029   

Table 6        Argus Control Systems Ltd Company Overview

Table 7        Argus Control Systems Ltd Financial Overview

Table 8        Certhon Company Overview

Table 9        Certhon Financial Overview

Table 10      Richel Group Company Overview

Table 11      Richel Group Financial Overview

Table 12      Netafim Company Overview

Table 13      Netafim Financial Overview

Table 14      General Hydroponics Company Overview

Table 15      General Hydroponics Financial Overview

Table 16      Hydrodynamics International Company Overview

Table 17      Hydrodynamics International Financial Overview

Table 18      Illumitex Company Overview

Table 19      Illumitex Financial Overview

Table 20      Lumigrow Company Overview

Table 21      Lumigrow Financial Overview

Table 22      Signify Holding Company Overview

Table 23      Signify Holding Financial Overview

Table 24      Bowery Inc. Company Overview

Table 25      Bowery Inc. Financial Overview