Indoor Farming Market Report 2024

This Indoor Farming market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The indoor farming market size has grown rapidly in recent years. It will grow from $26.79 billion in 2023 to $29.76 billion in 2024 at a compound annual growth rate (CAGR) of 11.1%. The growth during the historic period can be attributed to factors such as rising urbanization, increased investment in agricultural technology, heightened concerns about food security, advancements in crop genetics through research and development, and an increase in disposable incomes.

The indoor farming market size is expected to see rapid growth in the next few years. It will grow to $45.53 billion in 2028 at a compound annual growth rate (CAGR) of 11.3%. The anticipated growth during the forecast period can be attributed to rising demand for organic food, increasing adoption of eco-friendly fruit and vegetable production methods, growing preference for locally sourced, nutritious food, a surge in demand for fresh crops, and a rise in the demand for vegan vegetables. Key trends expected to shape the forecast period include technological advancements, the production of pesticide-free produce, sustainable farming practices, precision farming, and advanced nutrient delivery systems.

The growing demand for organic food is expected to drive the expansion of the indoor farming market in the future. Organic food is defined as products cultivated and processed without synthetic chemicals, pesticides, fertilizers, genetically modified organisms (GMOs), or artificial additives. This demand arises from increased consumer awareness of health benefits, environmental sustainability, and a preference for natural, chemical-free products. Indoor farming supports organic food production by offering a controlled environment where crops can be grown without synthetic pesticides, fertilizers, or GMOs, thus meeting organic standards while optimizing plant health and productivity. For example, The Organic Research Centre, a UK-based non-profit, reported that sales of organic food and beverages in the UK increased from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022. Consequently, the rising demand for organic food is fueling the growth of indoor farming.

Leading companies in the indoor farming market are focusing on developing innovative solutions such as vertical hydroponic farms to improve efficiency and sustainability in agriculture. Vertical hydroponic farms use vertically stacked layers or towers to grow plants using hydroponic methods. For example, in September 2022, FarmBox Foods LLC, a US-based provider of container farming solutions, introduced the Hydroponic Fodder Farm. This vertical hydroponic system is designed to efficiently grow livestock feed using advanced hydroponic technology to deliver nutrient-rich water directly to plant roots, ensuring rapid and uniform growth. The controlled indoor environment enables year-round production, independent of external weather, and reduces water usage compared to traditional farming methods. It also incorporates automation and monitoring systems to optimize growing conditions and ensure high-quality feed production.

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.

North America was the largest region in the indoor farming market in 2023. 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, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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.

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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