Market Forecast By Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), By Structure (Building-based vertical farm , Shipping container-based vertical farm), By Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material) And Competitive Landscape
Product Code: ETC4444949 | Publication Date: Jul 2023 | Updated Date: Aug 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
Report Name | Indonesia Vertical Farming Market |
Forecast period | 2025-2031 |
CAGR | 5.3% |
Growing Sector | Apparel and Home Textile |
The Indonesia Vertical Farming Market Report thoroughly covers the market by growth mechanism, structure, and component. The Indonesia Vertical Farming Market Outlook report provides an unbiased and detailed analysis of the ongoing Indonesia Vertical Farming Market trends, opportunities/high growth areas, and market drivers. This would help the stakeholders devise and align their market strategies according to the current and future market dynamics.
The Indonesian Vertical Farming Market is witnessing growth as the agriculture sector embraces innovative solutions. The expansion of this market is driven by the need to increase agricultural productivity in limited spaces while also reducing the environmental impact of traditional farming methods. Vertical farming systems offer benefits like higher crop yields, reduced water usage, and the ability to grow crops in urban areas.
According to 6Wresearch, Indonesia Vertical Farming Market size is projected to rise at a CAGR of 6% during 2025-2031. The Indonesia Vertical Farming Market is growing due to increasing population driving higher food demand, limited arable land, and a focus on sustainability. Vertical farming addresses these challenges by offering reduced water usage, pesticide-free cultivation, and efficient technology like IoT sensors for monitoring. Moreover, it provides a controlled environment, reducing occupational hazards for farmers. This sustainable solution meets consumer preferences for healthier, locally sourced produce while overcoming the limitations of traditional agriculture. These factors are stimulating the Indonesia Vertical Farming Market growth.
The development of vertical farming requires significant investments in infrastructure such as building structures, lighting systems, irrigation systems, and climate control technology. However, the lack of adequate infrastructure in Indonesia poses a major challenge for the growth of the vertical farming market. Financing is another major challenge faced by vertical farming companies in Indonesia. With most banks and financial institutions focusing on traditional agriculture, it becomes difficult for vertical farming startups to secure loans and investments.
One of the key players in the Indonesia Vertical Farming Market is SkyFarms, a leading company that specializes in high-tech indoor farming systems. They have successfully implemented their vertical farming technology in various cities across Indonesia, providing fresh produce to local communities. Another significant player is UrbanFarmers, which focuses on developing sustainable and scalable urban farming systems. They have established partnerships with local farmers and communities in Indonesia to promote the adoption of vertical farming methods.
The Indonesian government has launched initiatives like Smart Farming 4.0, incorporating technologies such as Agriculture Drone Sprayer, Drone Surveillance, and Soil and Weather Sensors, to boost the Agritech sector. Digital programs like Agriculture War Room (AWR), Kostratani, Depo Tani, and Telkom Rice Digitization Program aim to enhance agricultural practices in Indonesia.
The Vertical Farming Market in Indonesia is poised for significant growth due to ambitious government initiatives, increased adoption of digital services, and rising investment from foreign investors. Over the last five years, the emergence of startups in the Agritech sector has fueled technological innovation, contributing to a strong presence of AgriTech in Indonesia's agricultural landscape.
According to Ravi Bhandari, Research Head, 6Wresearch, Building-Based Vertical Farms are currently the leading structure segment in the Indonesia Vertical Farming Market. This type of vertical farm is constructed within a building, usually in urban areas where land is limited.
The irrigation systems are currently witnessing significant growth in Indonesia's vertical farming market. This can be attributed to their ability to provide precise and controlled amounts of water to plants, leading to improved growth and yield.
The report provides a detailed analysis of the following market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Indonesia Vertical Farming Market Overview |
3.1 Indonesia Country Macro Economic Indicators |
3.2 Indonesia Vertical Farming Market Revenues & Volume, 2021 & 2031F |
3.3 Indonesia Vertical Farming Market - Industry Life Cycle |
3.4 Indonesia Vertical Farming Market - Porter's Five Forces |
3.5 Indonesia Vertical Farming Market Revenues & Volume Share, By Growth Mechanism , 2021 & 2031F |
3.6 Indonesia Vertical Farming Market Revenues & Volume Share, By Structure , 2021 & 2031F |
3.7 Indonesia Vertical Farming Market Revenues & Volume Share, By Component, 2021 & 2031F |
4 Indonesia Vertical Farming Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.2.1 Increasing urbanization leading to limited arable land for traditional farming |
4.2.2 Growing consumer demand for locally grown, fresh produce |
4.2.3 Government initiatives promoting sustainable agricultural practices |
4.2.4 Technological advancements in vertical farming techniques |
4.2.5 Rising awareness about food security and sustainable farming practices |
4.3 Market Restraints |
4.3.1 High initial investment costs for setting up vertical farming infrastructure |
4.3.2 Technical challenges related to maintaining optimal growing conditions in vertical farms |
4.3.3 Limited availability of skilled labor with expertise in vertical farming |
4.3.4 Market fragmentation and lack of standardized regulations |
4.3.5 Vulnerability to environmental factors like extreme weather conditions and natural disasters |
5 Indonesia Vertical Farming Market Trends |
6 Indonesia Vertical Farming Market, By Types |
6.1 Indonesia Vertical Farming Market, By Growth Mechanism |
6.1.1 Overview and Analysis |
6.1.2 Indonesia Vertical Farming Market Revenues & Volume, By Growth Mechanism , 2021 - 2031F |
6.1.3 Indonesia Vertical Farming Market Revenues & Volume, By Hydroponics, 2021 - 2031F |
6.1.4 Indonesia Vertical Farming Market Revenues & Volume, By Aeroponics, 2021 - 2031F |
6.1.5 Indonesia Vertical Farming Market Revenues & Volume, By Aquaponics, 2021 - 2031F |
6.2 Indonesia Vertical Farming Market, By Structure |
6.2.1 Overview and Analysis |
6.2.2 Indonesia Vertical Farming Market Revenues & Volume, By Building-based vertical farm , 2021 - 2031F |
6.2.3 Indonesia Vertical Farming Market Revenues & Volume, By Shipping container-based vertical farm, 2021 - 2031F |
6.3 Indonesia Vertical Farming Market, By Component |
6.3.1 Overview and Analysis |
6.3.2 Indonesia Vertical Farming Market Revenues & Volume, By Irrigation Component, 2021 - 2031F |
6.3.3 Indonesia Vertical Farming Market Revenues & Volume, By Lighting, 2021 - 2031F |
6.3.4 Indonesia Vertical Farming Market Revenues & Volume, By Sensor, 2021 - 2031F |
6.3.5 Indonesia Vertical Farming Market Revenues & Volume, By Climate Control, 2021 - 2031F |
6.3.6 Indonesia Vertical Farming Market Revenues & Volume, By Building Material, 2021 - 2031F |
7 Indonesia Vertical Farming Market Import-Export Trade Statistics |
7.1 Indonesia Vertical Farming Market Export to Major Countries |
7.2 Indonesia Vertical Farming Market Imports from Major Countries |
8 Indonesia Vertical Farming Market Key Performance Indicators |
8.1 Crop yield per square meter of vertical farming space |
8.2 Energy efficiency metrics such as energy consumption per unit of crop produced |
8.3 Percentage of produce meeting quality standards |
8.4 Rate of adoption of new vertical farming technologies |
8.5 Sustainability indicators like water usage efficiency and waste reduction metrics |
9 Indonesia Vertical Farming Market - Opportunity Assessment |
9.1 Indonesia Vertical Farming Market Opportunity Assessment, By Growth Mechanism , 2021 & 2031F |
9.2 Indonesia Vertical Farming Market Opportunity Assessment, By Structure , 2021 & 2031F |
9.3 Indonesia Vertical Farming Market Opportunity Assessment, By Component, 2021 & 2031F |
10 Indonesia Vertical Farming Market - Competitive Landscape |
10.1 Indonesia Vertical Farming Market Revenue Share, By Companies, 2024 |
10.2 Indonesia Vertical Farming Market Competitive Benchmarking, By Operating and Technical Parameters |
11 Company Profiles |
12 Recommendations |
13 Disclaimer |