Indoor Farming Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 27.52 Billion |
| Market Size (2029) | USD 45.53 Billion |
| CAGR (2024 - 2029) | 10.60 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indoor Farming Market Analysis
The Indoor Farming Market size is estimated at USD 27.52 billion in 2024, and is expected to reach USD 45.53 billion by 2029, growing at a CAGR of 10.60% during the forecast period (2024-2029).
- An increase in health consciousness and consumption of residue-free food has paved the way for the usage of advanced techniques, like indoor farming. People are growing the necessary crops in their own houses on a small scale to have food free from pests, resulting in a higher yield.
- Among the various growing types, soil-based indoor farming dominates the market. Its ability to enhance the harvesting cycle of plants, when compared to traditional farming, is driving its market growth. By facility type, glass or poly greenhouses occupy a larger market share, while the indoor deep-water culture system is anticipated to witness the highest CAGR during the forecast period. There is an increase in the demand for sustainable food production in the Middle East, which is achievable by adopting indoor vertical farming technologies in agriculture.
- North America accounted for the largest market share in 2021. The US is a major contributor to the region's share, followed by Canada and Mexico. One of the primary reasons indoor farming has been gaining significant traction is because of its ability to produce more with fewer resources. For example, as per the US Department of Agriculture (USDA), the average yield of conventional lettuce farming doubled twofold when cultivated through vertical farming. The indoor farming market in the Asia-Pacific region is growing rapidly, with the industry benefiting from government policies.
Indoor Farming Market Trends
This section covers the major market trends shaping the Indoor Farming Market according to our research experts:
Effect of Climate Conditions on Production
According to the European Commission, the amount of land used for agricultural purposes may fall to 172 million ha in 2030 from the current level of 176 million ha in 2017, with a corresponding decline in the level of EU arable land, from 106.5 million hectares in 2017 to 104 million hectares in 2030.
According to the World Bank statistics, South Asia declined the arable land percentage of the total land from 43.2% in 2017 to 43% in 2020. Thus, a reduction in arable land and an increase in pollution in the developing countries of Southern Asia are expected to increase the demand for alternative cultivation, including indoor farming.
Due to the continuous decline in the per capita availability of farmland, the practice of increasing productivity is a way out. Thus, there is a need for high-yielding crops, which can solve the problem of farmland scarcity without compromising production volumes, which can be attained through indoor farming. The decline in agricultural land has been mainly due to diversion for non-agricultural purposes, such as urbanization, roads, industries, and housing, and soil erosion and pollution in various developing countries. In China, there are approximately 334 million acres of arable land, of which around 37 million acres are non-cultivable, and the growing population poses a major threat. The alternative to creating more arable land is to enhance the yield and productivity of cultivated land. These technologies include high-yielding varieties, the management of fertilizers and pesticides, mechanization, irrigation management, and employing new farming techniques, such as indoor farming.
As the cultivable land is decreasing globally, indoor farming may help increase production by using hydroponics and artificial lighting to provide plants with nutrients and light, as they would only receive when grown outdoors. Thus, the demand for equipment for indoor farming may increase during the forecast period.
North America Dominates the Market
North America accounted for the highest global indoor farming market share in 2021. With the help of high-efficiency LED lights and enhanced indoor management practices, US growers have adopted large-scale indoor farming. Such practices are expected to reduce energy lighting costs by about 50%, thus, reducing the carbon footprint of controlled environment agriculture. As per the US Department of Agriculture (USDA), the average yield of conventional lettuce farming doubled twofold when cultivated through vertical farming. Currently, the indoor farming industry in the US is predominantly dominated by greenhouse crop production. The onset of urban population dwellings across cities, such as New York, Chicago, and Milwaukee, has propelled the environment for indoor farming with activities such as revamping derailed vacant warehouses, derelict buildings, and high rises, which has, in turn, led to an increase in the production of fresh grown foods altogether. The demand for greenhouse tomatoes in the United States is driving the market demand for hydroponic operations. Indoor farming is one of the fastest-growing industries in the United States.
According to the UN Food and Agriculture Organization, drylands in Mexico occupy approximately 101.5 million hectares of land, thereby boosting the need for indoor farming practices. Canada has also seen a positive growth trend, contributing significantly to the world exports of hydroponically grown tomatoes. The region's growth of hydroponics and aeroponics systems is driving the overall indoor farming market, mainly due to the increasing focus on adopting innovative and efficient technologies to improve yields. A wide variety of crops, such as leafy vegetables, herbs, fruits, micro greens, and flowers, are grown through indoor farming in the countries of North America. Indoor vertical farming systems have provided organic food, which has become the major driving force for indoor vertical farming along with the increasing demand for pesticide- and herbicide-free food among the consumers of North America.
Indoor Farming Industry Overview
The market for indoor farming is highly fragmented, with the top players accounting for a minor share and the other small companies capturing a major share in the market.
The market is highly fragmented, with major revenue-generating companies, which are Village Farms International Inc., Superior Fresh, Crop One Holdings, Windest Farms, and Bowery Inc, among others, cornering some parts of the market share.
Indoor Farming Market Leaders
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Bowery Inc.
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Crop One Holdings
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Superior Fresh
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Village Farms International Inc.
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Windset Farms
*Disclaimer: Major Players sorted in no particular order
Indoor Farming Market News
April 2021: Aerofarms partnered with Hortifrut SA, a certified B corporation in Chile. The partnership is expected to focus on researching and developing blueberry and cranberry production in fully-controlled vertical farms and indoor environments.
May 2021: BrightFarms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse is expected to produce 2 million pounds of lettuce per year. Similarly, in 2019, Bright Farms expanded its construction unit with three new sustainable greenhouse farms in Massachusetts, New York, and North Carolina.
May 2021: Bowery Farming, a New York City-based vertical farming startup, declared a USD 300 million Series C round of funding. Bowery stated that it would use the funds to continue the expansion of its network of smart indoor farms across the United States.
Indoor Farming Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Growing System
5.1.1 Aeroponics
5.1.2 Hydroponics
5.1.3 Aquaponics
5.1.4 Soil-based
5.1.5 Hybrid
5.2 Facility Type
5.2.1 Glass or Poly Greenhouses
5.2.2 Indoor Vertical Farms
5.2.3 Container Farms
5.2.4 Indoor Deep Water Culture Systems
5.2.5 Other Facility Types
5.3 Crop Type
5.3.1 Fruits and Vegetables
5.3.1.1 Leafy Vegetables
5.3.1.1.1 Lettuce
5.3.1.1.2 Kale
5.3.1.1.3 Spinach
5.3.1.1.4 Other Leafy Vegetables
5.3.1.2 Tomato
5.3.1.3 Strawberry
5.3.1.4 Eggplant
5.3.1.5 Other Fruits and Vegetables
5.3.2 Herbs and Microgreens
5.3.2.1 Basil
5.3.2.2 Herbs
5.3.2.3 Tarragon
5.3.2.4 Wheatgrass
5.3.2.5 Other Herbs and Microgreens
5.3.3 Flowers and Ornamentals
5.3.3.1 Perennials
5.3.3.2 Annuals
5.3.3.3 Ornamentals
5.3.3.4 Other Flowers and Ornamentals
5.3.4 Other Crop Types
5.4 Geography
5.4.1 North America
5.4.1.1 US
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 UK
5.4.2.3 France
5.4.2.4 Russia
5.4.2.5 Spain
5.4.2.6 Italy
5.4.2.7 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 Singapore
5.4.3.6 South Korea
5.4.3.7 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Africa
5.4.5.1 South Africa
5.4.5.2 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 AeroFarms
6.3.2 Bright Farms Inc.
6.3.3 Bowery Inc.
6.3.4 Crop One Holdings
6.3.5 Metropolis Farms Inc.
6.3.6 Garden Fresh Farms
6.3.7 Village Farms International Inc.
6.3.8 Green Sense Farms LLC
6.3.9 Sky Greens (Sky Urban Solutions)
6.3.10 Superior Fresh Farms
6.3.11 Windset Farms
6.3.12 Gotham Greens
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indoor Farming Industry Segmentation
Indoor farming is a method of growing crops or plants entirely indoors, usually on a large scale.
The indoor farming market is segmented by the growing system (aeroponics, hydroponics, aquaponics, soil-based, and hybrid), facility type (glass or poly greenhouses, indoor vertical farms, container farms, indoor deep water culture systems, and other facility types), crop type (fruits and vegetables, herbs and microgreens, flowers and ornamentals, and other crop types), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts in terms of value in USD million for the abovementioned segments.
| Growing System | |
| Aeroponics | |
| Hydroponics | |
| Aquaponics | |
| Soil-based | |
| Hybrid |
| Facility Type | |
| Glass or Poly Greenhouses | |
| Indoor Vertical Farms | |
| Container Farms | |
| Indoor Deep Water Culture Systems | |
| Other Facility Types |
| Crop Type | ||||||||||||
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| Other Crop Types |
| Geography | |||||||||
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Indoor Farming Market Research FAQs
How big is the Indoor Farming Market?
The Indoor Farming Market size is expected to reach USD 27.52 billion in 2024 and grow at a CAGR of 10.60% to reach USD 45.53 billion by 2029.
What is the current Indoor Farming Market size?
In 2024, the Indoor Farming Market size is expected to reach USD 27.52 billion.
Who are the key players in Indoor Farming Market?
Bowery Inc., Crop One Holdings, Superior Fresh, Village Farms International Inc. and Windset Farms are the major companies operating in the Indoor Farming Market.
Which is the fastest growing region in Indoor Farming Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Indoor Farming Market?
In 2024, the North America accounts for the largest market share in Indoor Farming Market.
What years does this Indoor Farming Market cover, and what was the market size in 2023?
In 2023, the Indoor Farming Market size was estimated at USD 24.88 billion. The report covers the Indoor Farming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indoor Farming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the Indoor Farming Market?
The major factors driving the Indoor Farming Market are a) Rising global population and pressure on land and water resources make indoor farming an attractive solution b) Increased adoption of indoor-grown produce by supermarkets, restaurants, and online grocers creates wider market access
Indoor Farming Industry Report
The global indoor farming market is set to experience substantial growth, driven by heightened awareness of the advantages of fresh, high-quality food and the world's growing population. Diverse technologies like hydroponics, aeroponics, and advanced greenhouse systems are leading the charge towards eco-friendly and efficient food production methods. With Europe and North America leading due to early technology adoption, emerging economies are swiftly catching up, spurred by increasing urbanization and incomes. Essential market segments, including vertical farms and hydroponics, are anticipated for significant growth, addressing challenges such as high initial costs and crop variety limitations. The shift towards organic foods and sustainable farming solutions underscores indoor farming's potential to tackle future food production dilemmas while reducing environmental impacts. Get insights from Mordor Intelligenceā¢ Industry Reports analysis, forecasting the landscape, available as a free report PDF download for a comprehensive industry overview.
Indoor Farming Market Report Snapshots
