Indoor farms increase the overall crop output per unit area by layering potted seeds on top of one another, driving the market. Indoor farming is the practice of both small- and large-scale plant or crop growth indoors. Aquaponics and hydroponics are used in indoor farming, and artificial lighting is used to provide plants with the nutrients and light levels they need. It is anticipated that constraints on the kinds of crops that can be produced and the high initial cost of building indoor farms would hinder business growth.
However, when the climate changes, it exacerbates already-existing environmental problems like groundwater depletion and soil erosion, which affect the food and agricultural production systems. Governments fund the development of indoor farms as well as other initiatives to address this problem, which is expected to accelerate the market's growth.
Using a true soil-based growing platform embedded in a container, an Israeli ag-tech startup has created a proprietary geophonic vertical farming solution that offers all the advantages of soil-based crops to a closed environment system while growing crops vertically. The farm is set up either in a "40" or "20" container and is placed as close to the consumer as possible (e.g., in a parking lot of a supermarket, on the roof of a restaurant, in the backyard of a hotel, etc.). It grows more than a hundred different types of crops in remote locations under the supervision of an advanced IoT system and offers fresh produce every day of the year.
The farm has a year-round growing season to satisfy consumer demand for products that would otherwise be in short supply, significantly higher yields per square foot, complete control over growing conditions, which reduces the need for a skilled worker, healthier and safer produce, a smaller environmental impact, and the potential for sustainability in urban areas.
The "soil-in-crop-out" mechanism used by the innovative growth platform makes the entire sowing and harvesting procedure simple to operate and eliminates the need for trained operators. It is well known that crops have more vitamins and are more nutrient-dense when they are harvested and consumed more quickly. Meaning that by reducing the amount of time between the actual harvest and the point at which the consumer picked it up at the shop, the consumer receives a crop that is healthier and contains more vitamins.
Hydroponics dominates the market due to technological advances and may upsurge the market expansion
Due to technological developments taking place in the area of alternative farming techniques, the Israel Hydroponics Market is anticipated to have a considerable increase in the years to come. Adoption of agriculture 4.0 solutions, IoT, AI, and automation, among others, in alternative farming practices is expected to create lucrative opportunities for the growth of the hydroponics market in the country.
Food security is a growing concern, which is driving up demand for innovative agriculture techniques like hydroponics. This is attributed to growing urbanization, water scarcity, and population growth. Israel is home to more than two million people, many of whom struggle daily with hunger and food insecurity. Food availability is being challenged by rapid urban and industrialization, which is boosting the market's expansion.
Market Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Growing System, Component, Facility Type, And Crop Type |
| Companies Covered | Green Fields, Fluence’s, REMY, Vertical Field, Evogene |
| Customization Scope | Free report customization with purchase |
Segmentation: