Indoor Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The report on the Indoor Farming Market offers a detailed analysis of the market size, trends, drivers and restraints, industry attractiveness, competitiveness, and long-term forecast to 2025. The report 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), and crop type (fruits and vegetables, herbs and microgreens, flowers and ornamentals, and other crop types). The market also includes a geography-based segmentation analysis, covering over 16 countries across the world.

Market Snapshot

feed palatability enhancers market
Study Period:

2016 - 2026

Base Year:


Fastest Growing Market:


Largest Market:

North America


2.5 %

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Market Overview

The indoor farming market was valued at USD 112.63 billion in 2019, and it is projected to reach USD 131.22 million by 2025, registering a CAGR of 2.5% during the forecast period.

  • In 2019, soil-based indoor farming accounted for a revenue of USD 54.43 billion, which was the highest among the various growing types in the market. Its ability to enhance the harvesting cycle of the plants, when compared to traditional farming is driving its market growth.
  • By facility type, indoor vertical farms may witness the highest CAGR of 4.9% during the forecast period. There is an increase in the demand for sustainable food production in the Middle East, where achieving this is possible by adopting indoor vertical farming technologies in agriculture.
  • North America accounted for the largest market share in 2019. The US is a major contributor to the share in the region, followed by Canada and Mexico.
  • The market for indoor farming is highly fragmented, with the top players accounting for a minor share and the other small companies capturing the lion's share in the market. Some of the notable players in the market are AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Metropolis Farms Inc., Garden Fresh Farms, and Village Farms International Inc.

Scope of the Report

The market for indoor farming is experiencing rapid growth, owing to the limited land use, water efficiency, and the benefits of controlled farming devoid of any climate change. The advent of indoor farming has also spurred concerns over the environmental impact of conventional farming practices, globally. The report on the indoor farming market is segmented on the basis of the current growing systems, facility type, and various crop types. The report also includes a segmentation analysis based on geography, covering all the major countries across the world.

Growing System
Facility Type
Glass or Poly Greenhouses
Indoor Vertical Farms
Container Farms
Indoor Deep Water Culture Systems
Other Facility Types
Crop Type
Fruits & Vegetables
Leafy Vegetables
Other Leafy Vegetables
Other Fruits & Vegetables
Herbs and Microgreens
Other Herbs and Microgreens
Flowers and Ornamentals
Other Flowers and Ornamentals
Other Crop Types
North America
Rest of North America
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
South Africa
Rest of Africa

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Key Market Trends

Increasing Need for Maximizing Crop Yield

One of the main reasons for the diminishing yield is that the cultivable land has been shrinking over the years. The other reasons for lower yield are unfavorable weather conditions, like droughts, floods, soil erosion, and heavy utilization of pesticides, which is decreasing the fertility of the soil, globally.​ The main reasons for maximizing crop yields are to feed the increasing population and meet the demand for food. In small regions, high yield with good quality can be achieved using advanced farming techniques, like indoor farming. An increase in health consciousness and consumption of residue-free food has paved the way for the usage of advanced techniques, like indoor farming. People are growing the necessary crops in their own houses on a small scale, in order to have food that is free from pests, and this has resulted in a higher yield.​ Therefore, the increasing need for maximizing crop yields is expected to drive the indoor farming market in the future. ​

Indoor farming market1

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North America Dominates by Being the Largest Market for Indoor Farming

North America accounted for the largest share in the global indoor farming industry in 2018. With the help of high-efficiency LED lights and enhanced indoor management practices, the US growers have been able to adopt large-scale indoor farming. Such practices are expected to reduce energy lighting costs by 50%, thus, reducing the carbon footprint of controlled environment agriculture. As per the US Department of Agriculture (USDA), the average yield of conventional lettuce farming doubled by two folds, when cultivated through vertical farming. According to the UN Food and Agriculture Organization, drylands in Mexico occupy approximately 101.5 million hectares of land, thereby, thrusting the need for indoor farming practices. Canada has also seen a positive growth trend, contributing significantly to the world exports of hydroponically grown tomatoes. The growth of hydroponics and aeroponics systems in the region is further driving the overall indoor farming market, majorly due to the increasing focus on adopting innovative and efficient technologies to improve the yields.

Indoor farming market2

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Competitive Landscape

The market for indoor farming is highly fragmented, with the top players accounting for a minor share and the other small companies capturing the major share in the market. Some of the notable players in the market are AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Metropolis Farms Inc., Garden Fresh Farms, and Village Farms International Inc. The most adopted strategies by these companies have been mergers, acquisitions, and incurring investments for setting up farms, globally. For instance, AeroFarms, the aeroponics giant based in the US, included IKEA Group and Momofuku Group for investments worth USD 40 million for its global expansion in 2017.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

    4. 4.4 Market Restraints

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry


    1. 5.1 Growing System

      1. 5.1.1 Aeroponics

      2. 5.1.2 Hydroponics

      3. 5.1.3 Aquaponics

      4. 5.1.4 Soil-based

      5. 5.1.5 Hybrid

    2. 5.2 Facility Type

      1. 5.2.1 Glass or Poly Greenhouses

      2. 5.2.2 Indoor Vertical Farms

      3. 5.2.3 Container Farms

      4. 5.2.4 Indoor Deep Water Culture Systems

      5. 5.2.5 Other Facility Types

    3. 5.3 Crop Type

      1. 5.3.1 Fruits & Vegetables

        1. Leafy Vegetables

          1. Lettuce

          2. Kale

          3. Spinach

          4. Other Leafy Vegetables

        2. Tomato

        3. Strawberry

        4. Eggplant

        5. Other Fruits & Vegetables

      2. 5.3.2 Herbs and Microgreens

        1. Basil

        2. Herbs

        3. Tarragon

        4. Wheatgrass

        5. Other Herbs and Microgreens

      3. 5.3.3 Flowers and Ornamentals

        1. Perennials

        2. Annuals

        3. Ornamentals

        4. Other Flowers and Ornamentals

      4. 5.3.4 Other Crop Types

    4. 5.4 Geography

      1. 5.4.1 North America

        1. US

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. UK

        3. France

        4. Russia

        5. Spain

        6. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Singapore

        6. South Korea

        7. Rest of Asia-Pacific

      4. 5.4.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.4.5 Africa

        1. South Africa

        2. Rest of Africa


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 AeroFarms

      2. 6.3.2 Bright Farms Inc.

      3. 6.3.3 Bowery Inc.

      4. 6.3.4 FreshBox Farms

      5. 6.3.5 Metropolis Farms Inc.

      6. 6.3.6 Garden Fresh Farms

      7. 6.3.7 Village Farms International Inc.

      8. 6.3.8 Green Sense Farms LLC

      9. 6.3.9 Sky Greens (Sky Urban Solutions)


**Subject to Availability

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Frequently Asked Questions

The Indoor Farming Market market is studied from 2016 - 2026.

The Indoor Farming Market is growing at a CAGR of 2.5% over the next 5 years.

Europe is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

  • AeroFarms
  • Bright Farms Inc.
  • Bowery Inc.
  • FreshBox Farms
  • Metropolis Farms Inc.

Are the major companies operating in Indoor Farming Market.

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