Indoor Farming Market

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.

CURRENT SCENARIO OF THE GLOBAL INDOOR FARMING MARKET

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 stimulating the global indoor farming market, mainly due to land degradation, land transformation for infrastructure and human settlements, and various social and climatic factors.

North America represented the largest market share in 2018. 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.

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 and especially in belts from Asia-Pacific and Africa.

MARKET DRIVERS AND RESTRAINTS

Reducing the use of herbicides and pesticides in crop and plant production is expected to gain popularity in the indoor agriculture market. Inland 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.

The main drivers of the global indoor farming market are 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. 

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

However, collaboration with suppliers of agricultural products and investments in R&D should create significant opportunities for indoor farming market development in the coming years.

REPORT COVERAGE:

SEGMENTAL ANALYSIS 

Global Indoor Farming Market By Technology:

The hardware systems segment dominated the global indoor farming market in 2018 and is likely to maintain its dominance throughout the forecast period.

Global Indoor Farming Market By Type of Installation:

The greenhouse segment dominated the global indoor farming business in 2018 and is estimated to maintain its dominance throughout the forecast period.

Global Indoor Farming Market By Cultivation Methods:

The hydroponics segment dominated the global business in 2018 and is foreseen to maintain its dominance throughout the forecast period.

Global Indoor Farming Market By Type of Product:

The vegetable segment dominated the global indoor farming industry in 2018 and is presumed to maintain its dominance throughout the forecast period.

REGIONAL ANALYSIS

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.

KEY PLAYERS IN THE INDOOR FARMING 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 2021. The other important players are Signify Holding (Netherlands), Osram GmbH (Germany), and EVERLIGHT Electronics (Taiwan). The presence of a large number of industry players should contribute to intense competition in the international marketplace.

RECENT HAPPENINGS IN THE GLOBAL INDOOR FARMING MARKET:

• 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 strawberry, raspberry, grapes, kiwi fruit, and so on. They are envisioned to bring crops like chocolate, mango, and almonds to indoor cultivation soon.

DETAILED SEGMENTATION OF THE GLOBAL INDOOR FRAMING MARKET INCLUDED IN THIS REPORT

This research report on the global indoor farming market is segmented and sub-segmented into the following categories. Based on by technology, Type of installation, Cultivation method and Type of product.

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