Market Overview:

Indoor Farming Market Size Was Valued at USD 25.2 Billion in 2022, and is Projected to Reach USD 52.5 Billion by 2030, Growing at a CAGR of 9.6% From 2023-2030.

With the global population projected to reach 9.8 billion by 2050 and concerns over nutrient depletion in crops due to global warming, the growing interest in indoor farming has become a crucial aspect of the food supply chain. Indoor farming offers an efficient solution to produce more food with limited resources compared to traditional farming methods, as it is not reliant on arable land availability or external climate conditions. While greenhouse technologies have been dominant in the indoor farming industry, the sector is experiencing growth in other branches such as aeroponics and hydroponics, driven by technological innovations and increasing grower interest. The contraction of cultivable land and adverse weather conditions, including droughts, floods, soil erosion, and excessive pesticide use, have contributed to declining crop yields. To address this, maximizing crop yields has become essential to feed the growing population and meet food demand. Advanced farming techniques like indoor farming offer the potential for achieving high-quality, high-yield crop production in compact areas.

Top Key Players Covered In The Indoor Farming Market:

• Philips Lighting (Netherlands)
• Everlight Electronics (Taiwan)
• Argus Controls Systems (Canada)
• Netafim (Israel)
• Lumigrow (US)
• Logiqs (Netherlands)
• Illumitex (US)
• Vertical Farm Systems (Australia)
• Hydrodynamics International (US)
• General Hydroponics (US)
• Richel Group (France)
• American Hydroponics (US)
• Agrilution (Germany) And Other Major Players.

Market Dynamics and Factors:        

The rising consumer demand for fresh, locally grown produce is a significant driver in the indoor farming market. Indoor farming allows for year-round cultivation in urban areas, reducing the distance between farms and consumers and ensuring a steady supply of fresh produce. The scarcity of arable land is a major constraint in traditional farming. Indoor farming offers a solution by utilizing vertical farming techniques and repurposing underutilized spaces, enabling efficient cultivation in urban environments and areas with limited land resources.

The increasing urbanization trend provides a significant opportunity for urban agriculture and vertical farming. By utilizing vertical space in buildings and converting unused urban areas, indoor farming can be integrated into cities, reducing the need for long-distance transportation and ensuring a local and sustainable food supply. Indoor farming offers a controlled environment ideal for cultivating medicinal plants, herbs, and specialty crops. The growing demand for natural remedies, herbal supplements, and plant-based pharmaceuticals presents a lucrative opportunity for indoor farming to cater to this niche market.

The Indoor Farming Market Report Highlight:

• By Growing System, the aeroponics segment is anticipated to lead the growth of the Indoor Farming market in the forecasted timeframe. due to its efficient nutrient delivery, water conservation benefits, faster growth, higher yields, disease and pest control advantages, flexibility, and scalability, as well as its sustainability and environmental benefits.
• By Facility Type, the glass or poly greenhouse segment is expected to have the highest share of the Indoor Farming market over the projected period. due to its optimal light transmission, climate control capabilities, versatility, scalability, extended growing seasons, enhanced pest and disease control, and aesthetic appeal.
• By Crop Type, the fruits and vegetable segment is anticipated to lead the growth of the Indoor Farming market in the forecasted timeframe. due to high consumer demand, suitability of crops for indoor cultivation, quality and flavor advantages, reduced environmental impact, adaptability to urban settings, market responsiveness, and post-harvest benefits.
• The North American region is expected to have the highest share of the Indoor Farming market over the projected period due to technological advancements, strong market presence, consumer demand for local produce, limited arable land, climate variability, government support, and market awareness. These factors have positioned North America as a leader in indoor farming practices.

Key Industry Development:

• In February 2023, Vertical farming leader AeroFarms acquired indoor container farming company Freight Farms, aiming to expand its reach and product offerings in urban agriculture. This merger combined expertise in controlled environment agriculture (CEA) with Freight Farms' unique vertical farming technology.
• In July 2023, Vertical farming giant Plenty acquired Indoor Farms of America (IFA), strengthening its presence in the Midwest and expanding its distribution network. This acquisition focused on scaling up production and reaching new markets.

Indoor Farming Market Segmentation:

By Growing System

• Aeroponics
• Hydroponics
• Aquaponics
• Soil-Based
• Hybrid

By Facility Type

• Glass or Poly Greenhouses
• Indoor Vertical Farms
• Container Farms
• Indoor Deep-Water Culture Systems

By Crop Type

• Fruits and Vegetables
• Herbs and Microgreens
• Flowers and Ornamentals
• Other Crop Types

For this report, Introspective Market Research has segmented the Indoor Farming Market based on region:

Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)

North America

• The U.S.
• Canada
• Mexico

Eastern Europe

• Russia
• Bulgaria
• The Czech Republic
• Hungary
• Poland
• Romania
• Rest of Eastern Europe

Western Europe

• Germany
• UK
• France
• Netherlands
• Italy
• Spain
• Rest of Western Europe

Asia Pacific

• China
• India
• Japan
• Singapore
• Australia
• New-Zealand
• Rest of APAC

Middle East & Africa

• Turkey
• Saudi Arabia
• Qatar
• UAE
• Israel
• South Africa

South America

• Brazil
• Argentina
• Rest of SA