Japan Indoor Farming Market Expected to Reach USD 2,951.6 Million by 2033 - IMARC Group

January 10, 2025 | Agriculture

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Japan Indoor Farming Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan indoor farming market size was valued at USD 1,336.7 Million in 2024, and it is expected to reach USD 2,951.6 Million by 2033, exhibiting a growth rate (CAGR) of 9.2% from 2025 to 2033.

Japan Indoor Farming Market

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Increasing urbanization and the need for more sustainable agricultural practices for increased food production are driving the indoor farming market in Japan. According to Worldometers, in 2024, 92.9% of the population of Japan lives in urban areas. In a country where limited arable land exists with often unpredictable weather, indoor farming offers the opportunity to farm through the whole year with indoor environments that control crop development. New technologies enable large-yield production and resource efficiency. Some of these include hydroponics, aeroponics, and vertical farming. Increased consumer demand for fresh, pesticide-free, and locally grown produce supports the market, as indoor farming ensures quality and traceability. Government initiatives and subsidies promoting innovative agricultural techniques are also encouraging investments in indoor farming systems, mainly in urban areas where land scarcity is a critical issue.

Among other technological advancements, AI-driven monitoring systems, LED grow lights, and automated irrigation are enhancing the efficiency of operations in indoor farming in Japan, driving market expansion. These innovations allow the optimization of growth conditions, reduce labor costs, and increase production rates. Moreover, the growing interest in smart agriculture and sustainable practices aligns with the efforts of Japan to reduce its environmental footprint. As per the IMARC Group, the Japan smart agriculture market size reached USD 1,209.1 Million in 2024 and is projected to reach USD 4,122.3 Million by 2023, exhibiting a CAGR of 14.6% during 2025-2033. Increased partnering of high-tech companies and agricultural business also drives advanced indoor farming solutions. The indoor farming market in Japan also enjoys widespread private and public support, catering to the pressing issues of food security and sustainability.

Japan Indoor Farming Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kinki Region, Central/Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Kanto Indoor Farming Market Trends:

The high levels of urbanization, scarce arable land in the region, and ever-increasing demand for local pesticide-free produce are leading drivers in the Kanto indoor farming market. Advanced technologies include vertical farming, hydroponics, and AI-driven systems, providing an opportunity for efficient growing in controlled environments. Government policies, consumer demand for fresh food, and infrastructure for advanced technology further catalyze the adoption of indoor farming practices.

Kinki Indoor Farming Market Trends:

The indoor farming market in the Kinki region is driven by increasing urbanization, limited agricultural land, and the need for fresh, high-quality produce. Advanced techniques of hydroponics and vertical farming are supported by AI, as well as LED lighting, promoting productivity. Government incentives, consumer preference for sustainable practices, and the focus by the region on innovative agriculture strengthen the indoor farming market.

Central/Chubu Indoor Farming Market Trends:

The indoor farming market in the Central/Chubu region is driven by innovations, limited arable lands, and the need to produce crops throughout the year. These innovations involve advanced technologies, such as hydroponics, vertical farming, and AI-powered systems, for efficient cultivation. Demand for fresh pesticide-free products, along with the support given by the government and an industrial and technological base in this region, further stimulates the market.

Kyushu-Okinawa Indoor Farming Market Trends:

The market for indoor farming in the Kyushu-Okinawa region is driven by its subtropical climate, encouraging controlled farming systems to achieve stable crop production. Technologies such as hydroponics and vertical farming offer a good output with resource efficiency. A growing demand for pesticide-free produce, support from the government for agricultural innovation, and the focus of the region on food security and sustainability increase market growth.

Tohoku Indoor Farming Market Trends:

The demand for indoor farming in the Tohoku region is driven by the need to overcome certain disadvantages brought about by harsh winter seasons and scarce arable areas. Technologies such as vertical farming, hydroponics, and LED lighting have made round-the-year cultivation possible. Growing demand for fresh farm products locally contributes to the widespread use of indoor farming across the region.

Chugoku Indoor Farming Market Trends:

The Chugoku region is propelled by the increasing level of urbanization, limited arable lands, and the high demand for pesticide-free produce that is sustainable. Hydroponics, vertical farming, and other technologies allow plants to be grown more efficiently by optimizing crop yield in a controlled environment. Government incentives toward agricultural innovation and sustainable practices promote the integration of indoor farming systems in Chugoku.

Hokkaido Indoor Farming Market Trends:

The cold climate in the Hokkaido region has restrained traditional farming, and hence, year-round indoor cultivation is essential. Advanced technologies such as hydroponics, vertical farming, and LED lighting ensure that crops are produced efficiently. Government support for innovative agricultural practices and the focus on food security, along with the growing demand for fresh, pesticide-free produce, further propel the indoor farming market in Hokkaido.

Shikoku Indoor Farming Market Trends:

The limited arable land in the Shikoku region, growing demand for fresh pesticide-free produce, and adoption of the advanced technology of hydroponics and vertical farming drive the indoor farming market. The focus on sustainable agriculture by the government and increased support for innovative farming methods, along with a trend toward year-round crop production, increases the adoption of indoor farming systems in Shikoku.

Top Companies Leading in the Japan Indoor Farming Industry

The report has also provided a comprehensive analysis of the competitive landscape in the Japan indoor farming market. The leading companies in the Japan indoor farming industry are leveraging technologies like advanced climate control, aeroponics and hydroponics to promote localized food production, and improve productivity and sustainability.

Japan Indoor Farming Market Segmentation Coverage

On the basis of the facility type, the market has been categorized into greenhouse, indoor vertical farms, container farms, indoor deep water culture, and others. Greenhouses have a majority share in this market due to cost efficiency and scalability. Indoor vertical farms are also gaining popularity as they maximize space in urban areas. Container farms have portability and modular designs, while indoor deep water culture ensures efficient water usage with high yields. Other innovative facilities cater to niche markets and specialty crop production.
Based on the crop type, the market is classified into fruits, vegetables, and herbs (lettuce, spinach, kale, tomato, herbs, bell and chilli peppers, strawberry, cucumber, and others), flowers and ornamentals (annuals, perennials, ornamentals, and others), and others. Fruits, vegetables, and herbs are a dominant segment in the market due to the high demand for fresh, pesticide-free produce. Flowers and ornamentals cater to decorative and gifting needs. The others segment includes niche crops such as medicinal plants and specialty ingredients, supporting diverse consumer and industrial requirements.
On the basis of the component, the market has been divided into hardware (structure, LED lights, HVAC, climate control systems, irrigation systems, and others) and software (web-based and cloud-based). Hardware is a leading segment in the market due to its essential systems, such as LED grow lights, irrigation systems, and climate control equipment for efficient crop production. Software, which includes AI-driven monitoring and automation tools, is also gaining popularity for optimizing operations, enhancing resource efficiency, and ensuring consistent yields, thereby supporting the growing adoption of smart farming practices.
Based on the growing system, the market is segregated into aeroponics, hydroponics, aquaponics, soil-based, and hybrid. Aeroponics is popular as it provides accurate delivery of nutrients and faster growth. Hydroponics is also a dominant segment as water is used efficiently and high yields are achieved. Aquaponics involves fish farming for sustainability, while soil-based systems appeal to traditional growers. Hybrid systems combine techniques that provide diverse crops and use resources for the most efficient outcome.

Report Features	Details
Market Size in 2024	USD 1,336.7 Million
Market Forecast in 2033	USD 2,951.6 Million
Market Growth Rate 2025-2033	9.2%
Units	Million USD
Scope of the Report	Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment: Facility Type Crop Type Component Growing System Region
Facility Types Covered	Greenhouse, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture, Others
Crop Types Covered	Fruits, Vegetables and Herbs: Lettuce, Spinach, Kale, Tomato, Herbs, Bell and Chilli Peppers, Strawberry, Cucumber, Others Flowers and Ornamentals: Annuals, Perennials, Ornamentals, Others Others
Components Covered	Hardware: Structure, LED Lights, HVAC, Climate Control Systems, Irrigation Systems, Others Software: Web-based, Cloud-based
Growing Systems Covered	Aeroponics, Hydroponics, Aquaponics, Soil-based, Hybrid
Regions Covered	Kanto Region, Kinki Region, Central/ Chubu Region, Kyushu/Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region
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)

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Japan Indoor Farming Market Expected to Reach USD 2,951.6 Million by 2033 - IMARC Group

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