Indoor Farming Technology Market Growth, Size, Share, Trends, and Forecast 2032

Indoor Farming Technology Market: Industry Perspective

The global Indoor Farming Technology Market size was worth around USD 40.73 Billion in 2023 and is predicted to grow to around USD 107.62 Billion by 2032 with a compound annual growth rate (CAGR) of roughly 11.40% between 2024 and 2032.

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Indoor farming is an evolving method of growing crops and plant, typically on a large level, totally indoor. Indoor farming often uses growing methods such as aeroponics, hydroponics, and aquaponics to utilize artificial lights and supply plants with the light levels and nutrients required for plant growth. A broad range of plants/crop can be grown indoors; however, herbs, fruits, and vegetables are the mainly accepted crop. Most often indoor farming is referred to as indoor gardening, that can be used on small as well as large scales, at homes and commercially. Moreover, indoor farming has gained popularity in metropolitan cities where plots of land, in several sizes, are not willingly available for growing and farming.

A wide range of innovative techniques, including hydroponics, aquaponics, aeroponics, and vertical farming, are included in indoor farming technology. These techniques allow a wide variety of crops, such as leafy greens, herbs, fruits, and vegetables, to be grown all year round with little reliance on the weather outside and on arable land. Specialized growth systems, cutting-edge lighting options, environmental control systems, automation and monitoring tools, and a focus on sustainable agricultural practices are some of the market's key players.

The Indoor Farming Technology Market holds great promise for addressing global food security challenges, reducing the environmental impact of traditional agriculture, and enhancing the resilience of food supply chains. With ongoing technological advancements and increasing consumer demand for locally grown, fresh produce, this market is poised for substantial growth and is poised to shape the future of agriculture, emphasizing sustainability and efficiency in food production.

Indoor Farming Technology Market Trends

The market for indoor farming technologies is expanding rapidly due to the constantly changing nature of agriculture. The industry's current trends place a strong emphasis on automation, sustainability, and the application of data-driven solutions to transform crop cultivation in regulated indoor environments and meet the growing demand for food production that is economical, resilient to climate change, and sourced locally. These developments offer a more dependable and sustainable method of satisfying the world's food needs, which has the potential to completely transform agriculture in the future.

Global Indoor Farming Technology Market: Growth Factors

The global indoor farming technology market is primarily driven by the rise in demand for fresh food along with the availability of limited space and water in towns. In addition, the limited impact of external weather conditions, increasing demand for higher nutritive value foods and vegetable, rising investment and funding by the government is predicted to favor the growth of indoor farming technology market significantly in the coming years. Rising production of biopharmaceutical products through indoor farming is also estimated to shape the growth of indoor farming technology market in the analysis period. However, restrictions over the type of crops that can be cultivated in the indoor farming technology may hamper the growth of indoor farming technology market in the forecast period. Nonetheless, technological advancement, integration of IoT and Al is expected to offer new alluring opportunities in the indoor farming technology market in the coming years.

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The report provides company market ranking analysis in order to give a broader overview of the key players in the market. In addition, the report also covers key strategic developments of the market including acquisitions & mergers, new product launch, agreements, partnerships, collaborations & joint ventures, research & development, product and regional expansion of major participants involved in the market on a regional basis.  Furthermore, the report studies the major analysis along with the regulatory landscape for the indoor farming technology market.

Indoor Farming Technology Market: Report Scope

Global Indoor Farming Technology Market: Segmentation

The study provides a crucial view of the indoor farming technology by segmenting the market based on the growing system, components, facility type, and other crop types, and region. All the segments of indoor farming technology market have been analyzed based on present and the future trends and the market is estimated from 2018 to 2024. 

The global indoor farming technology market is bifurcated into the growing system, components, facility type, and other crop types. Hydroponics, aquaponics, aeroponics, soil-based, and hybrid are the growing system segment of the market. Aeroponics has emerged as a fastest growing segment of this market.

On the basis of components, the global indoor farming technology market is segmented into hardware, software, and services.

Container farms, indoor vertical farms, glass/poly greenhouses, and indoor DWC systems are the market segment based on facility type.

Furthermore, we also segment indoor farming technology market based on crop type into herbs & microgreens, fruits & vegetables, flowers & ornamentals, and other crop types. Fruits & vegetable crops segment considerably dominated the market in 2023 and accounted for over 69.24% of market share.

Components segment of the global indoor farming technology market is segmented into hardware and software & services. Glass or poly greenhouses, container farms, indoor vertical farms and indoor deep water culture (DWC) systems are the segment based on facility type. Furthermore, based on crop type, the market is segmented into fruits & vegetables, herbs & microgreens, flowers & ornamentals, and others crop type.

Regional Analysis

North America and Europe together held the majority of the market share of the global indoor farming technology market and are set to continue its dominance in the world in the forecast period. The major factors driving the growth of the market are the limited impact of external weather conditions coupled with a rise in demand for fresh foods and vegetables. The presence of significant market players in both the regions also predicts to shape the indoor farming technology market massively. Further, the Asia Pacific region is expected to witness the highest CAGR during the analysis period. China, Taiwan, and Japan would be the key countries contributing to the market growth in the near future.

Some of the major players operating in the Indoor Farming Technology Market are:

The competitive profiling of noticeable players of indoor farming technology market includes company and financial overview, business strategies adopted by them, their recent developments and product offered by them which can help in assessing competition in the market. Noticeable players included in the report are-

• Philips Lighting
• Netafim
• Everlight Electronics
• Certhon
• Logiqs B.V
• Urban Crop Solutions Argus Controls Systems
• Illumitex
• amongst others.

The report segments the global indoor farming technology market as follows:

Global Indoor Farming Technology Market: Growing System Segments

• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

Global Indoor Farming Technology Market: Components Segments

• Hardware
• Software & Services

Global Indoor Farming Technology Market: Facility Type Segments

• Glass or Poly Greenhouses
• Indoor Vertical Farms
• Container Farms
• Indoor Deep Water Culture (DWC) Systems

Global Indoor Farming Technology Market: Crop Type Segments

• Fruits & Vegetables
• Herbs & Microgreens
• Flowers & Ornamentals
• Others

Global Indoor Farming Technology Market: Regional Segments

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• The Middle East and Africa