PUBLISHER: The Business Research Company | PRODUCT CODE: 1650459
PUBLISHER: The Business Research Company | PRODUCT CODE: 1650459
Indoor farming technology employs innovations to create an artificial environment within a closed facility, accelerating plant growth and nutrient uptake compared to traditional farming methods. It involves the use of controlled growing and nutrition systems, LED illumination, and layering for optimal indoor plant cultivation. This agricultural approach offers advantages such as the ability to produce more food using less land and avoiding the use of chemicals.
The primary types of indoor farming technology focus on cultivating fruits and vegetables, flowers and ornamentals, and herbs and microgreens. Fruits, being the mature ovary of a seed plant, are typically generated from flowers and contain seeds that contribute to the plant's reproductive cycle. Vegetables, on the other hand, are edible plants or parts of plants that may not necessarily play a role in the plant's reproductive cycle. These technologies encompass various components, including hardware, software, services, and integrated systems, with facilities such as glass or poly greenhouses, indoor vertical farms, container farms, and indoor deep water culture systems. Indoor farming utilizes cultivation methods like aeroponics, aquaponics, and hybrid techniques to optimize plant growth.
The indoor farming technology market research report is one of a series of new reports from The Business Research Company that provides indoor farming technology market statistics, including indoor farming technology industry global market size, regional shares, competitors with a indoor farming technology market share, detailed indoor farming technology market segments, market trends and opportunities, and any further data you may need to thrive in the indoor farming technology industry. This indoor farming technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The indoor farming technology market size has grown rapidly in recent years. It will grow from $37.22 billion in 2024 to $42.08 billion in 2025 at a compound annual growth rate (CAGR) of 13.1%. The growth in the historic period can be attributed to increased demand for sustainable agriculture, urbanization, local food movement, increasing population.
The indoor farming technology market size is expected to see rapid growth in the next few years. It will grow to $68.28 billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to climate change, water scarcity, consumer preferences, government support and incentives, global pandemic and food security concerns. Major trends in the forecast period include increased investment, technological innovation, vertical farming, controlled environment agriculture (CEA), led lighting advancements, robotics and automation, ai and data analytics, novel crops and varieties, collaboration and partnerships.
The increasing adoption of vertical farming in agriculture is expected to boost the growth of the indoor farming technology market. Vertical farming offers several key benefits, including optimized crop growth, reduced water consumption, minimal reliance on external weather conditions or temperatures, lower labor costs, and improved energy conservation. According to a forum dedicated to sharing farming experiences, Europe is experiencing significant growth in vertical farming, with many countries vying for dominance in this market, leading to the emergence of numerous new farms. For example, in the UK, Jones Food Company produces approximately 400 tons of vegetables annually, including kale, coriander, and radish, through vertical farming. The company operates around 5,000 square meters of vertical farm space in Europe. Thus, the adoption of vertical farming is driving the expansion of indoor farming technology.
The increasing demand for organic food is anticipated to drive the growth of the indoor farming technology market in the future. Organic food refers to products cultivated using organic farming methods that avoid or significantly reduce the use of synthetic pesticides, herbicides, fertilizers, genetically modified organisms (GMOs), growth hormones, and certain food additives. Indoor farming technology facilitates the production of high-quality, sustainable, and pesticide-free organic food, minimizes environmental impact, and provides precise growing conditions, ensuring consistent quality, flavor, and appearance of organic produce. For example, in May 2023, the Organic Trade Association (OTA), a US-based trade organization, reported that in 2022, organic food sales in the US reached $60 billion for the first time. Consequently, the rising demand for organic food is fueling the growth of the indoor farming technology market.
Strategic partnerships are playing a crucial role in shaping the indoor farming technology market, with companies operating in unified endpoint management actively engaging in such collaborations. For instance, in May 2023, Seasony, a Denmark-based robotics company, partnered with iFarm LLC, a Finland-based indoor farming technology provider. This collaboration allows iFarm's customers to automate transportation and monitoring operations by integrating the Watney mobile robot platform into their agricultural installations. The partnership aims to provide farmers with an effective and sustainable indoor farming option, contributing to a transformative shift in the agricultural sector.
Major companies in the indoor farming technology market are prioritizing the development of innovative technologies, such as Growframe 360, to enhance their market presence. Growframe 360, launched by Innovation Agri-Tech Group (IAG) in September 2022, is an advanced vertical farming technology designed to revolutionize global crop cultivation. This precision aeroponic growth technology is fully automated and controlled through a human-machine interface (HMI) with real-time data monitoring. It utilizes coco peat instead of soil, eliminating the need for herbicides, pesticides, or soil maintenance, and consumes 98% less water than traditional farming techniques.
In March 2024, AGEYE, an agritech company based in Raleigh, North Carolina, acquired HYVE Brand for an undisclosed amount. This acquisition aims to enhance AGEYE's capabilities in controlled environment agriculture (CEA) by integrating HYVE's automated vertical farming systems with AGEYE's advanced AI technology. HYVE Brand is a custom activewear company located in the UK, founded by a group of sports enthusiasts from IIM Ahmedabad and NIFT.
Major companies operating in the indoor farming technology market include Advanced Nutrients Holdings Inc., Agrilution GmbH, American Hydroponics LLC, BrightFarms Inc., General Hydroponics Inc., Hydrodynamics International Inc., Logiqs B. V., Netafim USA, Richel Group SA, Vertical Farm Systems Pty Ltd, AeroFarms LLC, Bowery Farming Inc., Emerald Harvest Inc., Freight Farms Inc., FreshBox Farms LLC, Grobo Inc., Metropolis Farms Inc., The Scotts Miracle-Gro Company, VitaLink Limited, Plenty Unlimited Inc., Crop One Holdings Inc., 80 Acres Farms LLC, Oasis Biotech Limited, AppHarvest Inc., Gotham Greens Holdings LLC, Green Sense Farms Holdings Inc., Lufa Farms Inc., Farm. One Inc., Infarm AG, Square Roots Inc., iFarm Project Ltd., Urban Crop Solutions NV, Local Roots Farms LLC, Kalera Inc., Valoya Oy, Heliospectra AB, Fluence by OSRAM GmbH, AEssenseGrows Inc., Nordic Harvest A/S
North America was the largest region in the indoor farming technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor farming technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the indoor farming technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The indoor farming technology market consists of revenues earned by entities by monitoring, analyzing, and adjusting climate conditions within greenhouses and indoor farms. The market value includes the value of related goods sold by the service provider or included within the service offering. The indoor farming technology market also includes sales of hydroponics, aeroponics, and aquaponics. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Indoor Farming Technology Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on indoor farming technology market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for indoor farming technology ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The indoor farming technology market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.