The global indoor farming market size was valued at USD 22.3 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 47.2 Billion by 2033, exhibiting a CAGR of 8.6% from 2025-2033. North America currently dominates the market, holding a market share of over 36.9% in 2024. The North American region is experiencing steady growth because of rising preferences for sustainable and locally sourced food options, continuous technological advancements in indoor farming practices, and the widespread adoption of automation systems, including robotic arms and conveyor belts.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024
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USD 22.3 Billion |
Market Forecast in 2033
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USD 47.2 Billion |
Market Growth Rate 2025-2033 | 8.6% |
Technological advancements and the necessity for sustainable food production are contributing to the growth of the market. As arable land is decreasing and environmental issues like soil degradation and water scarcity are worsening, indoor farming is gaining traction as it provides a controlled setting for efficient food production, serving as a feasible answer to increased demands. Improvements in hydroponics, aeroponics, and aquaponics is also stimulating the market growth since these technologies support soilless crop cultivation, decrease water consumption, and facilitate continuous year-round production despite external weather conditions. Furthermore, incorporating artificial intelligence (AI), Internet of Things (IoT), and automation in indoor farming is enhancing efficiency, cutting labor expenses, and optimizing resource usage. This, along with government initiatives and financial backing in sustainable farming, is facilitating the market expansion. In numerous areas, policies that promote urban farming and provide incentives for sustainable technology adoption are promoting indoor farming operations.
The United States has emerged as a key regional market for indoor farming because of technological advancements, sustainability goals, and a shift in preferences towards locally produced, high-quality, and pesticide-free food. The market in the country is expanding because of the rising demand for locally grown, fresh produce. People are encouraged to look for locally grown food as they are becoming more conscious about the negative impact of long-distance shipping on the environment and the advantages of cutting down on food miles. This demand can be met by indoor farming operations located close to metropolitan areas, which provide fresh, high-quality vegetables with a lower carbon footprint. Additionally, the industry is expanding due to preferences for organic, pesticide-free, and non-genetically modified organism (GMO) goods, as indoor farming technologies allow production in controlled, chemical-free environments. As per the predictions of the IMARC Group, the United States organic food market is expected to reach US$ 158.2 Billion by 2032.
Increasing Demand for Sustainable and Local Food Production
There is presently a rise in the demand for sustainable and locally sourced food items. This represents a major trend fueling the market growth. Growing food indoors reduces the environmental impact of food production. A recent global study carried out by the Economist Intelligence Unit (EIU), on behalf of WWF, shows a significant 71% increase in searches for sustainable products in the last five years. Conventional farming mainly includes transporting products over long distances, using excessive amounts of water, pesticides and herbicides. In addition, the growing emphasis on indoor farms located nearby to decrease the requirement for extended transportation distances and lower carbon emissions linked to food distribution is providing a positive market prospect. Furthermore, indoor farming allows for the continuous production of crops throughout the year despite harsh weather conditions. This continual provision of fresh fruits and vegetables tackles the difficulties generated by changes in seasons and lack of food. Areas with challenging weather conditions or minimal farmable land like the Middle East can reduce their dependence on import of food by putting resources into indoor agriculture. Additionally, in PwC's 2024 Voice of the Consumer Survey, individuals are willing to spend more on sustainability despite facing continuous cost-of-living challenges. Typically, they are willing to pay an extra 9.7% for products that are sustainably made or obtained. This tendency is impacted by the fact that close to 85% of consumers have directly felt the disruptive impacts of climate change in their everyday experiences.
Technological Advancements
Technological advancements taking place in indoor farming practices are improving their efficiency and promoting crop yield. The increasing adoption of automation systems, including robotic arms and conveyor belts is reducing labor costs and making indoor farming more economically viable. The latest USDA Farm Labor Survey reports a 7% increase in gross farm wages last year. Robots can perform tasks, such as planting, harvesting, and sorting. In addition, the rising utilization of sensors and cameras to collect real-time data on crop health, environmental conditions, and nutrient levels is strengthening the growth of the market. Machine learning (ML) algorithms analyze this data to optimize growing parameters, resulting in higher yields and quality. In line with this, the increasing popularity of vertical farming, facilitated by automated vertical racks for maximum space utilization is creating a positive outlook for the market. This innovation allows for the cultivation of crops in layers, further increasing production efficiency. In addition, several researchers and growers are experimenting with light recipes tailored to specific crops.
Investment and Expansion
Continuous investments and expansion efforts from various stakeholders, including startups, established agriculture companies, and governments, are influencing the market positively. According to the May 2023 Pitchbook report, VC investments in indoor farms plummeted by over 90% year-over-year. Startup companies are hubs of innovation, driving the development of cutting-edge indoor farming technologies. They receive substantial venture capital funding to support their research and commercialization efforts. Along with this, several well-funded startups are expanding rapidly, setting up indoor farms in urban areas to supply fresh produce to local markets, which is contributing to the increased adoption of indoor farming. Furthermore, established agricultural companies are entering the indoor farming market through acquisitions or partnerships with startups. This trend leverages their existing expertise and resources to scale indoor farming operations. Apart from this, governing authorities of several countries are offering financial incentives, tax breaks, and grants to encourage indoor farming for promoting local food production, creating jobs, and promoting sustainability. They are also providing funds for research initiatives to improve indoor farming techniques, making them more accessible and cost-effective. Moreover, they are developing regulatory frameworks to ensure the safety and quality of indoor-farmed products.
IMARC Group provides an analysis of the key trends in each segment of the global indoor farming market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on facility type, crop type, component, and growing system.
Analysis by Facility Type:
Greenhouse stands as the largest component in 2024, holding 47.0% of the market share. Greenhouses are controlled-environment structures that allow for year-round cultivation. They utilize natural sunlight while maintaining a controlled climate. Greenhouses are versatile, accommodating various crops and extending growing seasons. They are known for energy efficiency and sustainability due to reduced pesticide use and water conservation. Indoor vertical farms are innovative facilities that stack crops in vertical layers, utilizing artificial lighting and controlled environments. They maximize space efficiency and minimize water usage. Vertical farms are suitable for leafy greens, herbs, and some fruits, offering consistent yields and minimizing transportation costs. Container farms are compact and mobile units housed in shipping containers. They are easily deployable and ideal for urban farming. Container farms can grow a variety of crops and provide local, fresh produce. They are popular for their modular design and scalability. Indoor deep-water culture involves suspending plant roots in nutrient-rich water. This method is highly efficient and commonly used for growing lettuce, herbs, and leafy greens.
Analysis by Crop Type:
Fruits, vegetables, and herbs (lettuce, spinach, kale, tomato, herbs, bell and chilli peppers, strawberry, cucumber, and others) lead the market with 96.5% of the market share in 2024. Indoor farming allows for the cultivation of fruits like strawberries and tomatoes in controlled environments, ensuring year-round availability of fresh produce. Leafy greens, such as spinach and kale, along with cucumbers and bell peppers, thrive in indoor farms due to controlled conditions and efficient space utilization. Indoor cultivation is ideal for herbs like basil, cilantro, and oregano, which require precise environmental control for optimal flavor and growth. Chilli peppers are also increasingly grown indoors for their controlled heat levels. Indoor farming extends the growing season for annual flowers like petunias and marigolds. Controlled conditions result in vibrant and healthy blooms, catering to the floral industry. In addition, perennial ornamentals like roses and lavender benefit from year-round cultivation, ensuring a constant supply for the landscaping and decorative plant market. Furthermore, the ornamental category includes various decorative plants used in landscaping, interior decoration, and gardening, which can thrive in indoor farming setups.
Analysis by Component:
Hardware (structure, LED lights, HVAC, climate control system, irrigation systems, and others) leads the market with 89.2% of the market share in 2024. The physical infrastructure includes greenhouse structures, vertical farming racks, and grow rooms. These provide the foundation for indoor farming, ensuring optimal environmental control and space utilization. LED lighting systems aid in providing the necessary light spectrum for plant growth. They are energy-efficient and customizable, mimicking natural sunlight for photosynthesis. Heating, ventilation, and air conditioning (HVAC) systems regulate temperature, humidity, and air circulation within indoor farming facilities. They are essential for maintaining optimal growing conditions year-round. This encompasses sensors, controllers, and automation technologies that fine-tune environmental parameters, including temperature, CO2 levels, and humidity, ensuring ideal growing conditions. Irrigation systems deliver water and nutrients to plants.
Analysis by Growing System:
Soil-based leads the market with 41.6% of the market share in 2024. Traditional soil-based indoor farming employs natural soil as the growing medium. This method is favored for crops with deep roots and is often used for root vegetables like carrots and potatoes. While it requires more space and water compared to soil-less systems, it retains the familiarity of conventional agriculture practices. One of the main advantages of traditional soil-based indoor farming is its ability to produce high-quality crops without relying on synthetic nutrient solutions. Soil serves as a natural reservoir of essential nutrients and beneficial microorganisms, creating a more organic growing environment compared to soilless methods. This is particularly appealing to growers who aim to meet the increasing consumer demand for organic and chemical-free produce. Soil-based systems also offer a lower barrier to entry since they do not require complex infrastructure or advanced technology, making them an accessible option for individuals and businesses with limited budgets.
Regional Analysis:
In 2024, North America accounted for the largest market share of 36.9%. North America is witnessing substantial growth in indoor farming. The United States is a major player, with a focus on salad greens, herbs, and microgreens. Moreover, the increasing adoption of controlled environment agriculture, especially in urban centers, is contributing to the market growth. In line with this, Canada, with its harsh climate, is also embracing indoor farming for year-round crop production. Sustainability is a central theme driving the indoor farming market in the United States. The agricultural sector faces mounting pressure to address issues such as water scarcity, land degradation, and greenhouse gas emissions. Indoor farming systems address these challenges by using less water than traditional farming methods and minimizing the need for arable land. Additionally, advancements in energy-efficient light emitting diode (LED) lighting and renewable energy integration are assisting to mitigate the environmental impact of indoor farming operations. As per the IMARC Group’s predictions, the North America LED lighting market is expected to reach US$ 43.2 Billion by 2032. This will further enhance the usage of LED lighting in indoor farming.
In 2024, the United States accounted for 92.8% of the total North America indoor farming market. The growth in the US is driven by rising investments and favorable policies. Moreover, the U.S. District Court for Northern California ruled in March that hydroponic farming qualifies under the National Organic Program (NOP), enhancing its market potential. The growing focus on adopting a healthy lifestyle post-pandemic is significantly gaining momentum. A key aspect of this shift is the increased consumption of fresh and high-quality food, which is expected to drive market growth. According to USDA, between 2007 and 2021, the percent of US fresh fruit and vegetable availability supplied by imports grew from 50 to 60 percent for fresh fruit and from 20 to 38 percent for fresh vegetables (excluding potatoes, sweet potatoes, and mushrooms). In 2022, Mexico and Canada supplied 51 percent and 2 percent, respectively, of US fresh fruit imports, and 69 percent and 20 percent, respectively, of US fresh vegetable imports in terms of value.
Europe has emerged as a hub for investment in emerging technologies, driven by a strong financial ecosystem, favorable government policies, and a commitment to sustainability and innovation. Venture capital firms, angel investors, and public funding initiatives are channeling investments into groundbreaking sectors such as artificial intelligence, blockchain, renewable energy, and sustainable agriculture. The indoor farming industry in Europe is in a dynamic phase marked by technological advancements and robust investment activity. For instance, Avisomo secured $2.5 million for its development, while Skytree raised $6 million to enhance its direct air capture technology for climate change mitigation. In line with these trends, the European Union announced plans in April 2023 to invest approximately $200 million in breakthrough digital technologies. Furthermore, according to Le Monde, over 50% of seed investments in the region are directed toward companies contributing to the UN’s Sustainable Development Goals, underscoring Europe’s focus on sustainability. Such investments have been a contributing factor for the growth of indoor farming in the region and are expected to continue the trend in the forecasted years.
The Asia-Pacific is witnessing significant growth. The rise of vertical agriculture in densely populated regions like Singapore is a key driver for indoor farming growth in the Asia-Pacific. With over 90% of its food imported, Singapore has embraced innovative solutions, such as rooftop farms and vertical farming, to enhance food security and reduce dependency on imports. Sky Greens, Singapore's largest vertical farm, produces about 1 metric ton of vegetables daily—10 times more than traditional farming—using advanced techniques like 9-meter-high A-shaped towers. These methods not only save 95% of the water required for field planting but also reduce transportation costs by growing produce directly in urban areas, ensuring a stable and sustainable food supply. Apart from this, Korean startups such as N.Thing, NEXTON, and Farm 8 are emerging as leaders in South Korea's vertical farming sector. Their goal is to supply fresh, sustainable, and locally produced food throughout the year. For instance, NEXTON has transformed an abandoned highway tunnel into a high-tech vertical farm, utilizing LED lighting and hydroponic systems to cultivate a variety of crops. These innovations are contributing to the growth of the indoor farming market in the region, addressing challenges such as limited arable land and the need for sustainable food production.
The growth of indoor farming in Latin America is primarily driven by the increasing need to enhance food security and reduce dependency on imported produce. Moreover, climate variability and extreme weather events have made traditional farming less reliable, encouraging the adoption of controlled-environment agriculture. In particular, countries like Brazil and Mexico are investing in advanced hydroponics and vertical farming technologies to address urbanization challenges and the rising demand for fresh, high-quality produce. Additionally, government initiatives and private sector partnerships are fostering innovation, with urban farming solutions becoming critical in densely populated cities. Furthermore, the region's increasing focus on sustainability and resource efficiency, including water conservation, aligns with the principles of indoor farming, making it an attractive growth avenue. For instance, the World Economic Forum (2024) identifies Latin America as a critical player in tackling global food scarcity, emphasizing its control over 15% of the world’s land area, a geopolitically neutral stance, and a large labor force exceeding 300 million. These attributes position the region as an agro-industrial superpower for exporting fruits and vegetables globally. However, despite its potential, Latin America continues to struggle with food security for its population.
Indoor farming in the Middle East and Africa is being propelled by the region’s arid climate, limited arable land, and reliance on food imports. For instance, governments in countries such as the UAE and Saudi Arabia are heavily investing in vertical farming and hydroponic systems to ensure food security and reduce their dependence on imports. These efforts are further supported by initiatives like the UAE’s Food Security Strategy 2051 and Saudi Arabia’s Vision 2030. For instance, the Saudi government has invested in vertical farming to address its limited arable land and water resources. A significant project in Jazan received a $10 million investment, and the country is also developing its largest vertical farm in Riyadh, which is expected to become operational soon. Meanwhile, in Africa, increasing urbanization and the urgent need to combat malnutrition are spurring interest in indoor farming solutions. In addition, the growing expatriate population in the UAE is a key driver for indoor farming, as it generates a significant demand for fresh produce to cater to diverse global cuisines. Additionally, the high-income demographic of expatriates prefers premium, high-quality products, further boosting the need for sustainable and efficient food production methods. For instance, in 2021, the UAE consumed 22.9 thousand tons of greens, valued at $49.1 million, a figure projected to grow due to urban population expansion and the influx of expatriates. This increasing demand highlights the critical role of indoor farming in meeting the needs of this key target audience while ensuring food security in the region.
Key market players are implementing a range of strategic initiatives to enhance their competitiveness, expand their market presence, and improve operational efficiency. These strategies include adopting advanced technologies, forming strategic partnerships, scaling up production capabilities, and diversifying their product offerings to meet evolving consumer demands. The increasing pressure to address food security, sustainability, and efficiency is driving innovation and shaping the activities of major players in the indoor farming market. One of the most prominent strategies is the integration of advanced technologies, such as AI, IoT, robotics, and automation. Leading companies are leveraging AI-driven analytics to monitor plant health, optimize resource utilization, and improve crop yields. IoT-enabled sensors are being used to collect real-time data on environmental conditions like temperature, humidity, and light, which allows for precise control of the indoor farming environment. Automation, including robotic systems for planting, harvesting, and packaging, is reducing labor costs and improving scalability. In September 2024, world’s first AI-powered vertical berry farm opened in Richmond, Virginia, United States. The Plenty Richmond Farm is the world's first indoor, vertically farmed berries facility at a scale where they are harvested and preserved.
The report provides a comprehensive analysis of the competitive landscape in the indoor farming market with detailed profiles of all major companies, including:
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Facility Types Covered | Greenhouse, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture, Others |
Crop Types Covered |
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Components Covered |
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Growing Systems Covered | Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid |
Regions Covered | Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered | United States, Canada, Netherlands, Germany, United Kingdom, France, Italy, China, Japan, Singapore, South Korea, Brazil, Mexico |
Companies Covered | AeroFarms, Agricool, Agrilution Systems GmbH, AutoGrow Systems Ltd., Bowery Farming, Bright Farms Inc. (Cox Enterprises, Inc.)., Freight Farms, FreshBox Farms, Garden Fresh Farms, Green Sense Farms Holdings, Inc., Logiqs B.V., Plenty Unlimited, Inc., SananBio, Sky Greens, SPREAD Co., Ltd., Urban Crop Solutions, Voeks Inc., etc. |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
Indoor farming refers to the practice of cultivating crops within controlled environments such as greenhouses, vertical farms, or container farms. This method utilizes technologies like hydroponics, aeroponics, and climate control systems to optimize growing conditions, enabling year-round production with minimal water and land usage.
The global indoor farming market was valued at USD 22.3 Billion in 2024.
IMARC estimates the global indoor farming market to exhibit a CAGR of 8.6% during 2025-2033.
The global indoor farming market is driven by technological advancements such as AI and IoT integration, increasing demand for sustainable and locally sourced food, rising environmental challenges like water scarcity, and supportive government initiatives promoting sustainable agricultural practices.
Fruits, vegetables, and herbs lead the market by crop type, owing to their high demand, year-round cultivation capabilities, and suitability for controlled environments, including leafy greens and strawberries.
Fruits, vegetables, and herbs lead the market by crop type, owing to their high demand, year-round cultivation capabilities, and suitability for controlled environments, including leafy greens and strawberries.
The hardware segment is the leading category by component, driven by the dominance of structures, LED lights, and HVAC systems, which form the foundation of indoor farming facilities.
The soil-based growing system is the leading segment by growing method, driven by its familiarity with traditional farming practices and suitability for organic and chemical-free crop production.
On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, wherein North America currently dominates the global market.
Some of the major players in the global indoor farming market include AeroFarms, Agricool, Agrilution Systems GmbH, AutoGrow Systems Ltd., Bowery Farming, Bright Farms Inc. (Cox Enterprises, Inc.)., Freight Farms, FreshBox Farms, Garden Fresh Farms, Green Sense Farms Holdings, Inc., Logiqs B.V., Plenty Unlimited, Inc., SananBio, Sky Greens, SPREAD Co., Ltd., Urban Crop Solutions, Voeks Inc., etc.