Market Overview

The Indoor Farming Market size was valued at around 27.67 billion in 2023 and is expected to reach a value of USD 64.18 billion by 2032, at a CAGR of 9.8% over the forecast period (2024–2032).

Rising consumer knowledge about the benefits of eating fresh and superior quality food is likely to grow the market. Growth in the population all over the world, particularly in developing economies like China and India, has boosted demand for food, hence likely to grow the indoor farming market in the coming years.

But the climatic changes add to the existing environmental issues, including soil erosion and groundwater depletion, impacting the food and agriculture production systems. Governments promote the construction of indoor farms along with other measures to combat this issue, which in turn is likely to drive the market growth. Organic foods are seen as healthier, nutritious, safer, and more environmentally friendly. One of the most important factors that drive the demand for organic food is the consumers' food purchasing behaviour, which is crucial for producers, policymakers, and suppliers to develop effective marketing strategies.

The World Bank Group indicates that the total arable land per capita decreased from 0.197 hectares in 2013 to 0.192 hectares in 2016. The lack of arable land due to land degradation has pushed the farmers towards using new measures to grow new food. The use of vertical farming methods is anticipated to allow indoor farm owners to cultivate crops indoors stacked in layers on racks, in a multi-story building, or a warehouse. It is foreseen that this will become a major trend in the market through 2030.

Indoor farms assist in cultivating the overall crop yield per unit area using the stacked potted seeds, thus propelling the market. Indoor farming is the cultivation of plants or crops indoors on both small and large scales. Indoor farming employs practices like aquaponics and hydroponics and makes use of artificial lighting to provide sufficient light levels and nutrients. But the high initial cost of constructing indoor farms and constraints on the growing range of crops is likely to slow down the market growth.

Europe had the highest market share in 2023, due to the use of technologies for greenhouses and vertical farms. Developed nations like the U.K., Germany, the U.S., and Canada are the early and fast adopters of farming technologies. But there is a rapid growth in the uptake of technology-integrated indoor farms in emerging economies like India, China, Mexico, and Singapore, driven by increased demand for fresh produce. There has been an increase in the disposable income and urban population in the emerging economies, which has raised consumption and demand for fresh, healthy, and nutritious foods, which is likely to propel the indoor farming market.

Market Drivers

Growing Demand for Food Security

• The world's fast-growing population, estimated to exceed 9 billion by 2050, is placing increased pressures on safe and sustainable food supplies. Urban populations are increasing at a quicker rate, with more than half of the world's population residing in cities more than ever before in human history, squeezing available land for cultivation and the need for intensive farming solutions. Traditional agriculture cannot meet heightened food demands through climate change, soil loss, and water scarcity. Indoor farming offers a sustainable solution by optimizing available space, using reduced water, and offering year-round production regardless of the weather. By integrating state-of-the-art technology like hydroponics, aeroponics, and LED light, indoor farming enhances food security, reduces transportation cost, and gives urban regions access to fresh, locally grown, pesticide-free fruit and vegetables, addressing major global agricultural challenges.

Climate Change & Unpredictable Weather

• Extreme climate conditions, including hurricanes, floods, and wildfires, triggered by global warming become more frequent, devastating traditional farming. Drought and irregular rainfall reduce soil moisture content, shortening crop yields and increasing food insecurity. Rising global temperature further facilitates infestation by pests and soil erosion, which is another risk to agricultural productivity. All these renders conventional agriculture more unpredictable, triggering climate-resilient substitutes such as indoor agriculture. Operating within controlled environments, indoor farms are not reliant on external climatic conditions, with constant crop production all year round. Hydroponics, aeroponics, and climate-controlled greenhouses facilitate water-saving efficiency, minimize crop wastage, and guarantee maximum sustainability. With increasing climate uncertainty, indoor agriculture presents a safe, future-proofed approach to global food production.

Market Opportunity

Increasing Investments & Startups

• Venture capital investment and aggrotech startups are transforming innovation and scalability in indoor agriculture. Startups employ advanced technologies such as AI-based automation, IoT-based monitoring, and precision agriculture to enhance efficiency, reduce costs, and optimize yields. With substantial funding from venture capital organizations, they develop innovative technologies such as vertical farming systems, smart irrigation, and energy-efficient LED lighting, thereby making indoor farming feasible on a mass scale. Startups also experiment with new crop types and sustainable methods of growing crops to increase profitability and environmental efficiency. As more money accumulates, the technologies are made less expensive, making indoor farming possible for more countries. This is helping to revolutionize agriculture by increasing food production efficiency, robustness, and sustainability.

Sustainability & Water Conservation

• Indoor agriculture significantly reduces water consumption compared to conventional farming, an appealing proposition for green investors. Conventional agricultural methods consume a massive amount of water for irrigation, much of which is lost by evaporation, runoff, and inefficient use. Indoor farming practices such as hydroponics, aeroponics, and aquaponics utilize as much as 90% less water by recirculating and reusing water in closed-loop systems. These methods ensure that crops only get the amount of water they need, avoiding wastage and soil depletion. With water scarcity emerging as a major global issue, companies, investors, and policymakers are increasingly advocating for indoor farming as a sustainable option. Its capacity to save water while ensuring high yields enhances its position in future food production.

Market Restraining Factors

Supply Chain & Market Penetration Challenges

• Limited consumer education and distribution issues can slow the development of the indoor farming market. Consumers lack knowledge about the advantages of produce grown indoors, including lower pesticide use, greater freshness, and availability throughout the year. Absent broad-based education and promotion, demand can be limited to specialty markets. Indoor farming distribution channels also remain nascent, and this prevents farmers from scaling up their businesses and providing mainstream retailers. High transport cost, limited supply chain infrastructure, and partnerships with grocery stores or restaurants also prevent market expansion. Effective branding, retail strategic partnerships, and improved logistics are required to bypass such challenges. As awareness improves and distribution networks become established, indoor farming also can attain greater market acceptance and scalability.

Segmentation Analysis

The market scope is segmented because of by Farm Type, by Facility Type, by Component, by Crop Type.

By Farm Type

Based on the Farm Type of the market is segmented into Vertical Farming, Greenhouse Farming, Hydroponics, Aeroponics, and Aquaponics Farming.

Vertical farming owns the market share of indoor farming because of space efficiency and yielding high products within urban surroundings. It implies plant growth using layers stacked on top of one another, normally contained within controlled weather warehouses or diverted buildings. The systems involved may be hydroponic, aeroponic, or aquaponic systems and LED illumination used to advance growth in the plant. One company is AeroFarms, the top U.S. vertical farm company which manufactures leafy greens through aeroponics.

Greenhouse agriculture is the second big sector, employing transparent structures to control temperature, humidity, and light. Greenhouses may be small enterprises or industrial operations. Greenhouses may also utilize hydroponic or soil-based systems to maximize production. For example, AppHarvest in Kentucky uses large greenhouses that utilize AI and robots to produce tomatoes in a sustainable way.

Hydroponics, aeroponics, and aquaponics are soilless cultivation methods that are very water efficient. Hydroponics cultivates plants in a nutrient solution of water, like Plenty's vertical farms. Aeroponics hangs plants in the air, spraying the roots with nutrients, a technique employed by NASA for space-grown crops. Aquaponics is a combination of hydroponics and fish farming, where fish waste is used to feed plants. A good instance is Superior Fresh in the U.S., which produces leafy greens and aquacultures salmon.

By Facility Type

Based on the Facility Type of the market is segmented into Greenhouses, Indoor Vertical Farms, Container Farms, Warehouse Farms.

Greenhouses predominate in indoor farming markets due to their long existence since ancient days, scalability, and ability to provide control environments for a variety of crops. Greenhouses are plastic or glass structures that admit light but control heat, water vapor, and airflow. Greenhouses are anything from a family-scale farm to huge commercial structures. The example is AppHarvest, whose advanced greenhouses in America make use of artificial intelligence, robots, and water recapture recycling technology to grow tomatoes.

Vertical indoor farms stack the crops in layers inside warehouses or other indoor structures, with LED lighting and hydroponic, aeroponic, or aquaponic systems. They maximize the use of the space and can produce crops throughout the year. AeroFarms, which is one of the largest vertical farming businesses, grows leafy greens in a climate-controlled environment with no soil or sunlight and 95% less water than farming.

Container farms convert shipping containers into standalone farms with hydroponics, LED grow lights, and climate control. They are very versatile to operate in the city or out in the countryside. Freight Farms, for example, offers container farms in modular units to grow fresh produce like fruits and vegetables in cities that have limited agricultural land.

Warehouse farms are working in giant industrial parks, converting vacant buildings into high-output farming centres. Plenty, an American company, cultivates pesticide-free greens within repurposed warehouses with optimum space and efficiency.

Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. Europe has the maximum market share of 31.71% in 2023 and is predicted to lead throughout the forecast period. Increased usage of technology for indoor farms, for instance, Controlled Environment-Agriculture (CEA), a mechanism that moderates the environmental component, contributes to regional development. More attention being paid toward using technologies like active heat systems and LEDs to maximize yield is growing the market. Several projects are executed by the local government for developing indoor farms to surpass challenges, like increasing population, global warming, and food cultivation in an ecologically unsound manner. Owners of the farms are at the forefront in investing in tools, like LED lighting and sensors for crop monitoring, which will reduce labour expenses.

Asia Pacific is projected to experience the highest CAGR during 2024-2030. China and Japan are projected to experience significant growth during the coming years due to the abundance of indoor farms. Moreover, the steadily growing population in the region has led to a subsequent surge in demand for organic food, which has prompted the construction of greenhouses and vertical farms to grow crops. The increasing concern regarding the importance of alternative cultivation techniques because of the availability of less productive farmland is anticipated to further propel regional demand.

The market for indoor farming in the U.K. is likely to hold a high revenue share among the Europe indoor farming market. The UK experiences challenges with limited arable land and unpredictable climate patterns, making outdoor farming less dependable. Indoor farming facilitates year-round production under controlled conditions, eliminating seasonality constraints as well as ensuring efficient land utilization.

Germany indoor farming market is likely to have a high revenue share in the Europe indoor farming market. Germany Indoor Farming has witnessed constant growth over recent years, fuelled by a range of factors including rising consumer interest in locally sourced, sustainable fresh produce and development in agricultural technology.

The French indoor farming market is anticipated to hold a considerable revenue share in the Europe indoor farming market. the UK indoor farming industry is set to grow and develop further, with technological innovation, shifting consumer tastes, and the demand for environmentally friendly food production systems in the context of environmental pressures.

The Chinese indoor farming market is projected to contribute a considerable revenue share in the Asia Pacific indoor farming market. There has been accelerating urbanization in China, putting more pressure on cultivatable land, which in turn is rendering conventional outdoor farming less desirable. Indoor farming facilitates farming within the city limits by using vertical space and transforming empty buildings for cultivation.

The Indian indoor farming market is likely to hold a major revenue share in the Asia Pacific indoor farming industry. Food safety and security concerns have led consumers in India to demand locally produced, pesticide-free food. Indoor farming allows for the growth of crops under controlled conditions without using harmful chemicals, minimizing the risk of contamination and providing food security.

The Japan indoor farming market is poised to hold a substantial revenue share in the Asia Pacific indoor farming market. The Japanese government has been aware of the role that indoor farming can play in strengthening food security, mitigating the environment, and providing employment. Government policies and initiatives favouring sustainable agriculture, innovation, and the development of technology have led to investment in the indoor farming industry.

The Brazilian indoor farming market is likely to hold a considerable revenue share in the Latin America indoor farming market. As incomes increase and lifestyles change, Brazil consumers are increasingly looking for fresh, high-quality produce throughout the year. Indoor farming makes it possible to grow a variety of crops irrespective of seasonality, addressing the increasing demand for locally grown, healthy food.

The Middle East & Africa indoor farming market is predicted to experience significant growth in the future. Middle East & Africa is plagued by environmental issues including air and water pollution, climate change, and soil degradation. Indoor farming is a more environmentally friendly option than conventional agriculture since it reduces chemical inputs, uses less water, and has less carbon emission.

List of Companies Profiled

• Argus Control Systems Ltd.
• Certhon
• Richel Group
• Netafim
• General Hydroponics
• Hydrodynamics International
• Illumitex
• Lumigrow
• Signify Holding
• Bowery Farming Inc.

Key Industry Developments

In January 2023, Priva made the announcement of the strategic alliance with Aranet. The alliance was to meet the increasing need for additional, and new greenhouse sensors to produce data. The alliance will fill the gap between wireless sensor platforms and other sources of data in greenhouses.

In May 2022, Signify Holding announced the acquisition of Fluence. Signify's acquisition will facilitate indoor farming lighting solutions that will assist Signify's stance in North American horticulture lighting.

In December 2021, Hawthorne disclosed the acquisition of RIV Capital Inc. RIV Capital Inc. was an expert in cannabis with a group of 13 companies that spanned different segments of the cannabis value chain. This provides Hawthorne an advantage in terms of increasing its product portfolio in the cannabis industry.

In May 2020, Certhon Group reported its partnership with DENSO Corporation to form DENSO AgriTech Solutions, Inc. The newly formed firm is a sales company that deals with providing an innovative horticulture solution.

In April 2020, DENSO Corporation reported to invest in Certhon to develop and offer solutions for greenhouse jointly. The investment will be to leverage the knowledge of both the firms to create modern horticulture solutions.

Report Coverage

The report will cover the qualitative and quantitative data on the global Indoor Farming Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Indoor Farming Market Regional Analysis

North America accounted for the highest Indoor Farming Market% market share in terms of revenue in the Indoor Farming Market and is expected to expand at a CAGR of Indoor Farming Market% during the forecast period. This growth can be attributed to the growing adoption of Indoor Farming Market. The market in APAC is expected to witness significant growth and is expected to register a CAGR of Indoor Farming Market% over upcoming years, because of the presence of key Indoor Farming Market companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Indoor Farming Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Indoor Farming Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions

• How much the global Indoor Farming Market valued?
• Which region has the largest share in 2024 for the global Indoor Farming Market ?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Indoor Farming Market

• Historic year: 2019- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million

Indoor Farming Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: