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.
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.
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.
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 METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
6.1% |
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. |
The hardware systems segment dominated the global indoor farming market in 2018 and is likely to maintain its dominance throughout the forecast period.
The greenhouse segment dominated the global indoor farming business in 2018 and is estimated to maintain its dominance throughout the forecast period.
The hydroponics segment dominated the global business in 2018 and is foreseen 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.
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.
By Technology
By Type of Installation
By Cultivation Methods
By Type of Product
By Region
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