Global Indoor Farming Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented By Technology (Hardware, Software & Services, Integrated System), Installation (Greenhouse, Indoor Vertical Farm, Container Farms), Cultivation Method (Hydroponics, Aeroponics, Aquaponics, Soil-Based and Hybrid), Product (Vegetables, Fruits, Microgreens and Herbs, Medicinal Crop, and Others), (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 9281
Pages: 180

Global Indoor Farming Market Size (2024 to 2029)

The global indoor farming market size is expected to reach USD 144.90 billion in 2024 and reach USD 194.83 billion by 2029, growing at a CAGR of 6.1% from 2024 to 2029.

Indoor farming is a type of modern agriculture for growing crops or plants in a closed and protected environment. Domestic agriculture is exploited on a small and large scale. It protects the farm from the vagaries of bad weather, which generally acts as an obstacle to the production of conventional crops. Indoor farming is widely practiced in urban areas due to the limited space for agriculture.


The shortage of arable land is promoting the growth of the global indoor farming market.

Several countries have been facing a shortage of arable land mainly due to land degradation, land transformation for infrastructure and human settlements, and various social and climatic factors. The concept of indoor farming has brought about a paradigm shift in food production with the minimization of land use. Due to the new growth mechanisms in indoor agriculture such as hydroponics, aeroponics, aquaponics, soil-based, and hybrids, it is estimated that the market will multiply during the forecast period. According to the World Bank database, the total area of arable land per capita decreased from 0.199 hectares in 2010 to 0.192 hectares in 2016. The Food and Agriculture Organization of the United Nations has reported that degradation of land is the main factor driving the reduction of global arable land. Singapore has set an example by optimizing its use of agricultural land through vertical farming as part of its Food Security Roadmap, which is the result of the 43rd Commission on World Food Security held in 2016. The Different benefits of greenhouse and vertical indoor agriculture, such as limited land use, year-round cultivation, and longer lifespan, stimulate the global indoor farming market, especially in belts from Asia-Pacific and Africa.

The growing need to reduce the use of herbicides and pesticides in crop and plant production is expected to gain popularity in the indoor agriculture market.

Indoor farming seems to be more attractive because of its ability to produce more agricultural products with fewer human resources. The growing concern for food security around the world is one of the main trends that should stimulate the global indoor farming market. Growing awareness of the benefits of indoor farming among end-users compared to conventional agriculture has triggered market growth. The scarcity of land for agriculture favors the indoor agriculture market in the world.

Furthermore, the increasing demand for food supply, the growing human population in urban areas, the cost-effective method of farming, protection from weather variations, the reduction of terrestrial insects as well as the problems of herbicides and pesticides in agricultural production are propelling the indoor farming market growth. Collaboration with suppliers of agricultural products and investments in R&D should create significant opportunities for indoor farming market growth in the coming years.

The indoor farming market is gaining popularity due to rising consumer awareness about the benefits of high-quality and freshly produced food. Also, the demand for food has increased because of the growing population worldwide and in emerging nations like China and India. Hence, the market is predicted to propel in the upcoming years.

Another driving factor for the indoor farming market is the current environmental issues. This includes worsening soil erosion and groundwater depletion with changing climates. So, it has an impact on the systems producing food and agriculture. In addition, government support for the development is aimed at resolving this issue which is fueling the market expansion. Moreover, people’s perception that organic food is safer, has more nutrients, is healthier and environmentally beneficial is pushing the market forward.

In addition, private investment in indoor farming has reached over $1.6 billion in the US alone in recent years, indicating the industry's growth.


The main constraints of the global indoor farming market are high initial investments and limitations on crop varieties. According to regional indoor farming regulators, the controversy over organic certification is likely to be a problematic factor in the expansion of the global indoor farming business. 

The indoor farming market growth is derailing due to energy costs, limited crop focus, regulatory hurdles and operation efficiency. These are some of the prominent factors which continue to affect the customers.

In 2022, vertical farming in Europe faced difficulties due to the exorbitant expense of maintaining LED lights and climate control systems. Furthermore, Agricool of France, which had raised thirty million euros, filed for bankruptcy. It has operations in the UK, France, Germany, the Netherlands and Denmark.  Infarm, which was formerly the largest vertical farming company in Europe, raised over 600 million US dollars in venture capital. However, in late 2022, the company laid off 500 employees due to factors such as supply chain disruptions, power costs and the overall state of the economy. Also, Infarm has cut ties with European supermarket chains as of June and intended to pull out of the continent completely in favour of other areas, most likely the Middle East.

Expensive plants with short production cycles and little to no competition are the ideal candidates for vertical farming. High-income cities with thriving hotel, catering, and restaurant (HoReCa) industries are home to numerous prosperous vertical farms. Profitable vertical farms are frequently affiliated with HoReCa organisations that they collaborate with. 




Market Size Available

2023 to 2029

Base Year


Forecast Period

2024 to 2029



Segments Covered

By Technology, Type of installation, Cultivation Methods, Type of Product, and Region.

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, RoW

Market Leaders Profiled

Richel Group (France), Netafim (Israel), LumiGrow (United States), Illumitex (United States), Hydrodynamics International (United States), Agrilution (Germany), and Argus Control System Limited (Canada), among Others.



Global Indoor Farming Market Analysis By Technology

The hardware systems segment dominated the global indoor farming market in 2023 and is likely to maintain its dominance throughout the forecast period.

Global Indoor Farming Market Analysis By Type of Installation

The greenhouse segment dominated the global indoor farming business in 2023 and is estimated to maintain its dominance throughout the forecast period.

Global Indoor Farming Market Analysis By Cultivation Methods

The hydroponics segment dominated the global business in 2023 and is foreseen to maintain its dominance throughout the forecast period.

Global Indoor Farming Market Analysis By Type of Product

The vegetable segment dominated the global indoor farming industry in 2023 and is presumed to maintain its dominance throughout the forecast period.


Of these, the North American indoor farming market held the most substantial portion of the global business in the previous years. The USA indoor farming business provided the most need push for the development of this regional market, followed by the contribution from Canada. North America represented the largest market share in 2023. The United States is a significant contributor to participation in the region, followed by Canada and Mexico. The indoor farming market is very fragmented, with the leading players accounting for a smaller share and other small businesses taking over most of the market.


Richel Group (France), Netafim (Israel), LumiGrow (United States), Illumitex (United States), Hydrodynamics International (United States), Agrilution (Germany), Argus Control System Limited (Canada), among others. These are some of the market players dominating the global indoor farming market. These companies had a significant market share in 2023. The other important players are Signify Holding (Netherlands), Osram GmbH (Germany), and EVERLIGHT Electronics (Taiwan). The presence of many industry players should contribute to intense competition in the international marketplace.


  • Bowery, a start-up company in indoor farming, has recently converted Franklin Square Drive's industrial warehouse into a modern farm in Baltimore. This is registered as the largest farm so far for this company, which is based in New York.
  • CRISPR Technology implemented indoor vertical farming methods for various fruits like strawberries, raspberries, grapes, kiwi fruit, and so on. They are envisioned to bring crops like chocolate, mango, and almonds to indoor cultivation soon.


This research report on the global indoor farming market is segmented and sub-segmented based on technology, type of installation, cultivation method, type of product and region.

By Technology

  • Hardware Systems
  • Software and Services
  • Integrated Systems

By Type of Installation

  • Greenhouses
  • Vertical Indoor Farms
  • Container Farms
  • Others

By Cultivation Methods

  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil-based and hybrid

By Type of Product

  • Vegetables
  • Fruits
  • Microgreens and Herbs
  • Medicinal Crops
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

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