Indoor Agriculture in the US

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Indoor Agriculture in the US

The US’ 2018 market size for indoor agriculture is close to $47 billion, with an expected growth of 3.4% between 2018 and 2023. The market size and anticipated growth rates for vertical farming, smart greenhouses, and cannabis production can be found below.

INDOOR AGRICULTURE: MARKET SIZE AND PREDICTED GROWTH

  • The global indoor farming market has a value of $106.6 billion, and North America makes up 44% of this market. So, the 2017 market size in North America for indoor agriculture is about $47 billion. Furthermore, the US has the largest market share within North American, so we can assume that this number is close to the US' actual indoor agriculture market size.
  • The global indoor farming market is expected to have a CAGR of 3.4% between 2018 and 2023, and as the North American market counts as 44% of the global market, we can assume that the US will have a similar CAGR.

VERTICAL/ WAREHOUSE FARMS: MARKET SIZE AND PREDICTED GROWTH

SMART/ CONTROLLED GREENHOUSES: MARKET SIZE AND PREDICTED GROWTH

  • The global smart greenhouse market was valued at $1.26 billion in 2018, and North America makes up 45% of the market. So, the value of the North America smart greenhouse market is approximately $567 million.
  • The global smart greenhouse market is expected to grow at a CAGR of 12.6% between 2018 and 2023, and since the North American market makes up 45% of the market, we can assume that the CAGR will be very similar for the US.

CANNABIS PRODUCTION: MARKET SIZE AND PREDICTED GROWTH

  • The US's legal cannabis market was valued at $11.9 billion in 2018.
  • The market is expected to register CAGR of 24.1% from 2019 to 2025.

RESEARCH STRATEGY

Your research team began by searching through websites that publish industry analyses, and in the Research and Markets database, we found either direct answers or relevant data for all the points in the research criteria.
For the total indoor agriculture market size and growth and smart greenhouse market size and growth, we were unable to come up with a direct answer, so we triangulated an answer based on the most recent and accurate data we could find. Before we settled on this triangulation, however, we attempted a variety of other ways to arrive at the answer. First, we searched through several industry research websites, like IBIS World and Greenbook. We were unable to find US-specific data on either of the subjects.
Next, for the indoor agriculture number, we tried to triangulate an answer by summing up the market size of each of the types of farming within this category. These types include the following: aeroponic greenhouses, aguaponic greenhouses, container farms, hydroponic greenhouses, indoor vertical farms, smart greenhouses, and in-home systems. However, we were ultimately unable to determine the market size of several of these types, notably for smart greenhouses.
Next, for both smart greenhouses and the total indoor farming categories, we tried triangulating by identifying the number of farms of this category and multiplying this by the average revenue per farm. While we were able to find some data on average revenue per farm, we were missing too much data to triangulate an answer for either smart greenhouses of the total for indoor farming.
So, we decided that the closest answer that we could get would be to triangulate based on global market data. For indoor farming, we took the total market size and multiplied it by North America's market share: [106.6 billion x 44% = 46.9 billion]. We did the same with the smart greenhouse data: [1.26 billion x 45% = 567 million].
For the five-year growth estimate, we substituted the global anticipated CAGR for the US's CAGR, based on the assumption for both smart greenhouses and the total indoor farming that North America made up the largest market segment. For indoor farming, North America made up 44% of the market, and for smart greenhouses, North America made up 45%. Additionally, for indoor farming, we found further data demonstrating that the US made up the largest segment within North America.
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Sources