Indoor Farming Market Report 2026

The indoor farming market size has grown rapidly in recent years. It will grow from $33.15 billion in 2025 to $36.94 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to limited agricultural land availability, early adoption of greenhouse farming, rising demand for fresh produce, initial technological advancements in indoor systems, increasing urban population density.

The indoor farming market size is expected to see rapid growth in the next few years. It will grow to $56.27 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to growing shift toward sustainable food systems, rising investment in vertical farms, increasing energy-efficient indoor farming innovations, expansion of commercial indoor farm operators, growing preference for locally grown produce. Major trends in the forecast period include rising adoption of vertical farming structures, increasing focus on year-round controlled cultivation, higher demand for pesticide-free indoor-grown produce, expansion of urban food production facilities, growing popularity of specialty crop cultivation indoors.

The rising demand for organic food is expected to drive the growth of the indoor farming market going forward. Organic food refers to products grown and processed without synthetic chemicals, pesticides, fertilizers, genetically modified organisms (GMOs), or artificial additives. The demand for organic foods is increasing due to growing consumer awareness of health benefits, environmental sustainability, and the preference for natural, chemical-free products. Indoor farming supports organic food production by providing a controlled environment where crops can be grown without synthetic pesticides, fertilizers, or GMOs, ensuring compliance with organic standards while optimizing conditions for plant health and productivity. For example, in May 2024, according to the Organic Trade Association, a U.S.-based organic industry organization, the U.S. organic market continued its upward trend in 2023, with organic food sales reaching $63.8 billion and organic non-food product sales totaling $5.9 billion. Overall, certified organic product sales in the United States rose to a record $69.7 billion, reflecting a 3.4% increase from the previous year. Therefore, the growing demand for organic food is fueling the expansion of the indoor farming market.

Leading companies operating in the indoor farming market are focusing on developing innovative solutions, such as hydroponic farming systems, to increase crop yield and resource efficiency while reducing dependence on arable land and climate conditions. Hydroponic farming systems are soil-free cultivation methods that use nutrient-rich water solutions to grow plants, helping increase yield, save water, reduce the need for pesticides, optimize space usage, and enable year-round production in controlled indoor environments regardless of climate conditions. For instance, in October 2023, Archisen Pte. Ltd., a Singapore-based hydroponics technology company, launched a turnkey commercial farming solution, an end-to-end system designed to help businesses quickly establish and operate indoor farms with optimized production efficiency. The solution includes modular hydroponic systems, proprietary crop recipes, and intelligent automation software that monitors and regulates key parameters such as lighting, humidity, and nutrient levels. Enhancing crop quality and consistency while significantly reducing labor and operational costs, the system is ideal for urban growers, restaurants, and food retailers seeking local, fresh produce year-round.

In August 2023, Denso Corporation, a Japan-based automotive component manufacturer, acquired Certhon Build B.V. for an undisclosed amount. This acquisition aims to enhance Denso's capabilities in the indoor farming sector by integrating Certhon Build B.V.'s expertise in advanced greenhouse and vertical farming systems, expanding its technology solutions, and strengthening its market presence in agricultural technology. Certhon Build B.V., based in the Netherlands, specializes in designing and constructing advanced indoor farming systems.

Major companies operating in the indoor farming market are Signify Holding B.V., The Scotts Miracle-Gro Company, Priva BV, Bowery Farming Inc., Plenty Unlimited Inc., Agritecture Consulting LLC, AeroFarms LLC, Certhon, Argus Control Systems Ltd., Fluence Bioengineering Inc., UrbanKisaan, BrightFarms Inc., Iron Ox Inc., Superior Fresh LLC, FreshBox Farms, Hydrodynamics International Inc., Metropolis Farms Inc., Innovation Agritech Group Ltd., Gotham Greens Holdings LLC, Crop One Holdings Inc., Farmshelf, Illumitex Inc., ZipGrow Inc., LumiGrow Inc., GrowUp Farms Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on indoor farming equipment, LED lighting systems, climate-control hardware, and advanced sensors have increased import costs, particularly affecting high-tech indoor vertical farms and greenhouse operators in North America, Europe, and Asia-Pacific regions relying on foreign components. These tariffs raise capital expenditure and operational costs but may also stimulate domestic production of indoor farming technologies, supporting regional manufacturing growth and reducing long-term supply-chain dependency.

The indoor farming market research report is one of a series of new reports that provides indoor farming market statistics, including the indoor farming industry global market size, regional shares, competitors with an indoor farming market share, detailed indoor farming market segments, market trends and opportunities, and any further data you may need to thrive in the indoor farming industry. This indoor farming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Indoor farming involves cultivating crops or plants entirely within buildings or enclosed environments, eliminating reliance on natural outdoor conditions. This method enables year-round production regardless of external weather by controlling factors such as temperature, light, humidity, and water. Indoor farming can take place in various setups, including greenhouses, vertical farms, or specially designed indoor facilities.

The primary categories of indoor farming include hardware, software, and services. Hardware encompasses the physical components and machinery used in technologies and systems, such as computers, electronics, and agricultural equipment, which help create optimal growing conditions in a controlled environment. Crop categories include fruits, vegetables and herbs, flowers and ornamentals, and others, while the growing systems used are aeroponics, hydroponics, aquaponics, soil-based, and hybrid systems. Facility types vary and include glass or poly greenhouses, indoor vertical farms, container farms, indoor deep water culture systems, and others.North America was the largest region in the indoor farming market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor farming market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the indoor farming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The indoor farming market consist of revenues earned by entities by providing services such as climate control, nutrient management, vertical farming and monitoring and automation. The market value includes the value of related goods sold by the service provider or included within the service offering. The indoor farming market also includes sales of smart farming technologies, automation systems, climate control equipment, and lighting systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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