Plant Factory Market Report 2026

The plant factory market size has grown strongly in recent years. It will grow from $138.61 billion in 2025 to $148.53 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to urbanization reducing arable land, demand for consistent crop yields, climate variability affecting traditional farming, early adoption of hydroponic systems, need for pesticide-free produce.

The plant factory market size is expected to see strong growth in the next few years. It will grow to $194.72 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to rising global food demand, growth of urban farming initiatives, advancements in controlled environment technologies, increasing focus on food security, investment in sustainable agriculture solutions. Major trends in the forecast period include growing adoption of fully controlled environment agriculture, rising deployment of vertical and indoor farming systems, increased use of artificial lighting for year-round production, expansion of high-density crop cultivation models, focus on resource efficient food production.

The plant factory market is also expected to benefit from the ongoing trend of urbanization. Urbanization, driven by economic development and industrialization, leads to the transformation of rural areas into urban centers. Plant factories play a crucial role in urban areas by enabling the local production of fresh crops, reducing transportation costs, and addressing food security concerns. As of April 2023, more than half of the global population resides in urban regions, a number projected to increase to 6 billion by 2045, reflecting a 1.5 times increase. This surge in urbanization is a key driver for the growth of the plant factory market.

The plant factory market is witnessing advancements with companies developing autonomous climate control technology. This technology involves self-regulating systems that maintain optimal environmental conditions, such as temperature and humidity, without human intervention. In June 2023, IUNU launched Intelligent Setpoint Control for LUNA AI, an autonomous climate control technology that utilizes computer vision and compares real-time data with experiments conducted on actual plants and virtual simulations. This technology places the plant in control of its environment, contributing to more efficient and sustainable crop cultivation.

In August 2023, Harmoniz Ltd, a Netherlands-based technology company, acquired Plantfactory RCA B.V. for an undisclosed amount. Through this acquisition, Harmoniz aims to enhance its presence in the controlled-environment agriculture sector and expand its portfolio of innovative plant cultivation technologies. Plantfactory RCA B.V. is a Netherlands-based company specializing in the development and provision of advanced indoor farming systems and plant growth solutions.

Major companies operating in the plant factory market are AeroFarms LLC, BrightFarms Inc., Gotham Greens Holdings LLC, Bowery Farming Inc., AppHarvest Inc., Lufa Farms, Beijing IEDA Protected Horticulture Co. Ltd., Green Sense Farms Holdings Inc., Plenty Unlimited Inc., Mirai Co. Ltd., Farminova Plant Factory, Urban Crops Solutions, Sky Greens, Kalera Inc., TruLeaf Sustainable Agriculture, Wulian, Crop One Holdings Inc., Vertical Harvest Farms, Heliospectra AB, Infarm GmbH, Intelligent Growth Solutions, LettuceGrow, Light Science Technologies, MechaFarm, Phytoponics, SmartFarm Systems, Vertical Greens.

Western Europe was the largest region in the plant factory market in 2025. The regions covered in the plant factory market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the plant factory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The plant factory market includes revenues earned by entities providing services such as hydroponics aquaponics, aeroponics, and vertical planting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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