[300 pages Report] The global indoor farming market size is likely to be valued at US$ 38.7 Billion in 2022. Furthermore, with the growing popularity of vertical farming, expansion of the indoor farming technology market, and increasing need for improving crop yields to meet the ever-increasing food demand, the overall sales in the indoor farming market are projected to increase at a healthy CAGR of 9.6% over the forecast period, totaling around US$ 96.6 Billion by 2032.

Indoor Farming Market Report Scope

Global Indoor Farming Techonology Market is Segmented by Growing System (Aeroponics, Hydroponics, Aquaponics, Soil-based, and Hybrid), Facility Type (Glass or Poly Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture Systems, and Other Facility Types), Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals, and Other Crop Types), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers market size and forecasts for the abovementioned segments in terms of value in USD million.

The global Indoor Farming Market size is expected to reach USD 45.23 Billion in 2032 registering a CAGR of 9.8%. Our report provides a comprehensive overview of the industry, including key players, market share, growth opportunities and more.

The Japan indoor farming market size reached USD 1,336.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,951.6 Million by 2033, exhibiting a growth rate (CAGR) of 9.2% during 2025-2033. The limited availability of fertile land, harsh weather conditions that make traditional farming challenging, and rising interest in sustainability to promote environmental health represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the Japan indoor farming market report, along with forecasts from 2025-2033. Our report has categorized the market based on facility type, crop type, component, and growing system.

The global vertical farming market has been steadily growing over the last years as population size increase and living in urban cities become more popular. In 2022, the vertical farming market reached some 5.6 billion U.S. dollars , but the market value is expected to increase to over 35 billion U.S. dollars by 2032. Being able to use vertical space and reducing the need for additional land and construction activity contributes to the appeal of vertical farming in large cities. Demand for vertical farming is expected to increase largely due to the popularity of organic food.

Farming, how? Vertical farming occurs in a closed environment where plants are grown on shelves to minimize the space required for growth. Crops and medicinal plants can be grown in stacked layers in skyscrapers, warehouses, or shipping containers, among other receptacles. Vertical farming pushes away reliance on weather, skilled labor, and high soil fertility and water consumption. It allows for a more consistent and reliable yield throughout the year and minimizes the chance of negative external effects such as disease or pests. Monitoring technologies are also available to track plant growth and harvesting. However, as many vertical farming technologies are still in their infancy, this could contribute to negative market growth. The vertical farming market is most prominent in the Asia Pacific region and North America.

The United States indoor farming market size reached USD 4.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 10.9 Billion by 2033, exhibiting a growth rate (CAGR) of 9.4% during 2025-2033. The growing demand for high-quality food products that are safe and chemical-free, increasing popularity of consuming fresh food products among individuals, and rising preference for organic and sustainable practices in farming represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the United States indoor farming market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on facility type, crop type, component, and growing system.

Indoor Farming Market size was valued at USD 119.41 Million in 2024 and is projected to reach USD 144.24 USD Million by 2031, growing at a CAGR of 2.39% during the forecast period 2024-2031.

Indoor Farming Market: Definition/ Overview
Indoor farming, also known as controlled environment agriculture, refers to the practice of growing crops in enclosed environments, such as greenhouses or vertical farms, where factors like temperature, light, humidity, and nutrients are precisely controlled to optimize plant growth. This innovative approach allows for year-round production of a variety of crops, including fruits, vegetables, and herbs, independent of external weather conditions and geographical limitations. The future of indoor farming is promising, as advancements in technology, such as hydroponics, aeroponics, and artificial intelligence, are driving efficiencies and sustainability, enabling higher yields with reduced resource consumption. With increasing consumer demand for fresh, locally sourced produce and a growing focus on food security, the indoor farming sector is expected to expand significantly, providing solutions to urban food challenges and contributing to more sustainable agricultural practices.

The US Vertical Farming Market Report is Segmented by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (Building-Based and Shipping Container Vertical Farms), and Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals, and Other Crop Types). The Report Offers the Market Size and Forecasts in Terms of Value (USD) for all the Above Segments.

The US Vertical Farming Market size was valued at USD 3.56 Million in 2023 and is projected to reach USD 7.30 Million by 2032, exhibiting a CAGR of 10.80 % during the forecasts periods. The US vertical farming market is experiencing significant growth due to the increasing demand for sustainable agriculture and fresh, locally grown produce. Vertical farming features innovative growing systems that utilize stacked layers, advanced hydroponics, and LED lighting to optimize space and resources. Key applications include the cultivation of leafy greens, herbs, and microgreens. The market is segmented by type into hydroponics, aeroponics, and aquaponics, with hydroponics being the most prevalent. Cutting-edge technologies such as IoT, AI, and automation enhance productivity and efficiency. The impact of vertical farming includes reduced water usage, minimal land requirement, and decreased transportation emissions. Advantages encompass year-round crop production, higher yield per square foot, and enhanced food security, positioning vertical farming as a critical component of the future agricultural landscape. Recent developments include: August 2023: Plenty Unlimited Inc., a San Francisco-based company, began construction on a vertical indoor farming campus that, when completed, is likely to be the largest such operation in the world. The campus, to be developed in phases totaling USD 300 million, will sit on 120 acres in the Meadowville Technology Park., February 2022: Aero Farms announced a new tomato research partnership with FFAR and the University of Florida to provide vertical farms with a path to growing high-yielding crops that produce flavored tomatoes in environmental conditions., January 2022: Plenty and Walmart announced the long-term investment to bring fresh, peak-flavor produce to shoppers year-round.. Key drivers for this market are: Seed Treatment As A Solution To Enhance Yield, Growing Awareness For Seed Treatment Among The Farmers; Rising Trend Of Organic Farming. Potential restraints include: Limitations Across Farm-Level Seed Treatment, Rising Environmental Concerns. Notable trends are: The Hydroponics Segment Dominates the Market.

Indoor farming is a method of crop production that can yield products year-round and optimizes space through its use of vertically stacked layers. As of 2022, the global market for indoor farming was valued at about 40 billion U.S. dollars. This value is expected to increase by over ten percent by 2032, reaching just about 96.7 billion U.S. dollars.

The India indoor farming market size is projected to exhibit a growth rate (CAGR) of 12.70% during 2025-2033. The surging focus on sustainable farming practices and water efficiency, the rising need for year-round crop availability, the scarcity of arable land, the increasing demand for organic produce, significant technological advancements, and supportive governmental initiatives represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the India indoor farming market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on facility type, crop type, component, and growing system.

Global Vertical Farming Market to hit USD 21.12B by 2029 growing at 21.8% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

According to Cognitive Market Research, the global Vertical Farming Market size will be XX million by 2030, whereas its compound annual growth rate (CAGR) will be XX% from 2024 to 2031.

North America held the largest share of the global Vertical Farming market around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX% from 2024 to 2031.
Europe accounted for a share of over XX% of the global market size of USD XX million.
Asia Pacific held a market share of around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX% from 2024 to 2031.
The Latin American market is around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX% from 2024 to 2031.
Middle East and Africa held the major market of around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX% from 2024 to 2031.

Market Dynamics of the Vertical Farming Market

Key Drivers of the Vertical Farming Market

Vertical farming has advantages over conventional farming

Among the many challenges facing the global agriculture industry are a lack of arable land to supply the projected demand for food and the adverse environmental effects of deforestation, which include desertification and flooding. However, because of its potential advantages, vertical farming is expected to be much more important than conventional farming in meeting the world's increasing food needs while having a smaller environmental impact. A growing method designed to withstand weather and climate is vertical farming. Consistent quality, predictable output, and year-round crop production for human and livestock consumption are the advantages of vertical farming.

Compared to conventional farming, more crops may be grown annually in a considerably smaller area because of vertical farming's rapid growth cycles and harvests. One of the highest-yielding vertical farms grows more than 350 times as much crop per square yard as a traditional farm. Vertical farms create an order-based farm-to-table system in urban environments, greatly lowering food waste, packaging, and fuel usage in food transportation. The industry is expanding because vertical farming is more effective and productive than conventional farming.

The market for vertical farming is greatly increased with the introduction of Light-Emitting Diode (LEDs)

Rising in prominence is vertical farming, which mostly operates without the usage of sunlight, like hydroponics, aquaponics, recirculating aquaculture systems, greenhouses, and living space farming. Smart agriculture and technology advancements are accountable for high-tech farmers using LED lights to cultivate their crops. In vertical farming, where sunlight is not available, a high number of crops are cultivated in small, claustrophobic spaces, and LED lights help to transfer energy to them. Additionally, these LED lights can increase the crops' shelf life.

The advancements in LED technology in recent years have been the main driving force behind the emergence of vertical farming. Indoor grow rooms that required artificial lighting were pricy for over a couple of decades. Farmers used to grow just the most profitable crops, like marijuana, as a result. But these days, LEDs are becoming so cheap and effective that they are completely changing the economics of vertical farming. As a result, improvements in LED technology support market growth.

Restraint of the Vertical Farming Market

Overhead expenses related to operations and maintenance may harm the market

Building a vertical farm is expensive and largely depends on the materials chosen. It makes up a large portion of the initial costs. The initial expenses are dependent upon the crop-growing technique employed, including hydroponic, aeroponics, and aquaponics systems. For example, large-scale commercial hydroponic farming is usually more cost-effective than other medium- and small-scale businesses. Water pipes, shelving units, pumps, lighting, and climate control technology are a few examples of equipment. In addition, plenty of factors, including labor expenses, pollination, reliance on technology, and no defined economics, i...

Indias National Mission for Sustainable Agriculture (NMSA) includes provisions for promoting urban farming through rooftop gardens and vertical farms. These initiatives are aimed at reducing the urban carbon footprint and ensuring food security in densely populated areas. The government also provides grants for urban farming startups to invest in technologies that increase productivity and sustainability. These schemes have supported the expansion of indoor farming in several metropolitan areas in India.

Indoor Farming Market is projected to reach USD 67.0 Bn by 2031, growing at a CAGR of 10.1% over the forecast period 2023-2031.

This statistic displays the revenue share of indoor farming worldwide in 2024, by technology. In that year, hydroponics held about 24 percent share of the global indoor farming market.

The Middle East Vertical Farming Market Report is Segmented by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (Building-Based Vertical Farms and Shipping Container Vertical Farms), Crop Type (Fruits and Vegetables, Herbs and Micro-Greens, Flowers and Ornamentals, and Other Crop Types), and Geography (Saudi Arabia, United Arab Emirates, Egypt, and Rest of the Middle East). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.

Get detailed insights into the current valuation of Indoor Farming market size, including growth analysis, current market status and future market projections.

MarkNtel Advisors predicts that the Indoor Farming Market will experience a Compound Annual Growth Rate (CAGR) of approximately 11.2% from 2023 to 2028.

Snapshot img

Indoor Farming Technologies Market Size 2024-2028

The indoor farming technologies market size is forecast to increase by USD 6.58 billion at a CAGR of 20.1% between 2023 and 2028.

Indoor farming technologies, including aquaponics and Aeroponics, are gaining traction in the US market due to their ability to address critical farming challenges. These innovative farming methods enable the reduction of water usage and chemicals, making them more sustainable and eco-friendly. The increasing focus on urban farming and food security is fueling the growth of this sector.
Moreover, lighting is a significant consideration in indoor farming, with LED lights being a popular choice due to their energy efficiency and ability to mimic natural light. Moreover, indoor farming is driving advancements in pharmaceutical development, with applications in producing monoclonal antibodies, bioinks, and vaccines. The SoilBased and Hybrid farming methods offer further opportunities for yield improvement and crop diversification. As the US market continues to evolve, these trends are expected to shape the indoor farming technologies landscape.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

Indoor farming technologies have emerged as a promising solution to address the growing demand for fresh, nutritious food in the US market. This approach to crop cultivation utilizes controlled environments to grow plants, ensuring consistent high-quality produce year-round. Controlled Environment Agriculture (CEA) is a key aspect of indoor farming, enabling farmers to optimize crop yields and maintain ideal growing conditions. Technologies such as hydroponics, aquaponics, and aeroponics facilitate nutrient delivery directly to the plant roots, eliminating the need for soil. Vertical farming is another popular indoor farming technique that maximizes space utilization by growing crops in vertically stacked layers.
Moreover, this method significantly increases crop yields, making it an attractive option for urban areas with limited arable land. LED illumination plays a crucial role in indoor farming, providing the necessary light spectrum for optimal plant growth. Automated urban farms leverage advanced technologies like artificial intelligence and machine learning to optimize LED lighting, water usage, and temperature control. Indoor farming also contributes to sustainable food production by reducing the carbon footprint associated with traditional farming methods. By eliminating the need for pesticides and herbicides, these technologies offer organic, pesticide-free produce. Pharmaceutical development is another potential application for indoor farming.
Furthermore, controlled environments enable the production of high-value crops for medicinal and therapeutic purposes. Water usage reduction is a significant advantage of indoor farming. Hydroponic systems, for instance, use up to 90% less water compared to conventional farming. This water conservation is essential as groundwater depletion becomes a growing concern. Food purchasing behavior is shifting towards fresher, healthier options. Indoor farming technologies meet this demand by providing consistent, high-quality produce that maintains its nutritive value. In conclusion, indoor farming technologies offer numerous benefits, including higher yields, controlled environments, water conservation, and reduced carbon footprint. These advancements are essential for meeting the increasing demand for fresh, nutritious food in the US market while addressing challenges such as soil degradation and groundwater depletion.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Greenhouse farming
  Vertical farming


Geography

  Europe



  APAC

    China
    Japan


  North America

    Canada
    US


  South America



  Middle East and Africa

By Application Insights

The greenhouse farming segment is estimated to witness significant growth during the forecast period.

Indoor farming, also known as controlled environment agriculture, is a modern farming technique that entails cultivating plants in enclosed structures. These structures are constructed using materials like plastic and glass. The market is witnessing significant expansion due to several factors. These include the scarcity of arable land for increased crop production, the need to safeguard crops from diseases, and the impact of climate change on agricultural output. Indoor farming offers numerous advantages, particularly in terms of producing high-quality food. The demand for organic and healthier food options is on the rise, and indoor farming t