Indoor Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indoor Farming 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.

Market Snapshot

Indoor Farming Market Summary
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 8.1 %
Indoor Farming Market Major Players

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Market Overview

The indoor farming market is projected to register a CAGR of 8.1% during the forecast period 2022-2027. With the force and isolation of the COVID-19 pandemic, many countries have realized that strengthening food production and distribution systems is key to fighting hunger and tackling the double burden of malnutrition, and the development of indoor farming can aid in embracing all dimensions of various food security.

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 to have food that is free from pests, which has resulted in a higher yield.

Among the various growing types, soil-based indoor farming dominates the indoor farming market. Its ability to enhance the harvesting cycle of plants, when compared to traditional farming, is driving its market growth. By facility type, glass or poly greenhouses occupy a larger market share, while the indoor deep-water culture system is anticipated to witness the highest CAGR during the forecast period. There is an increase in the demand for sustainable food production in the Middle-East, which is achievable by adopting indoor vertical farming technologies in agriculture.

North America accounted for the largest market share in 2021. The US is a major contributor to the region’s share, followed by Canada and Mexico. One of the primary reasons indoor farming has been gaining significant traction is because of its ability to produce more with fewer resources. For example, as per the US Department of Agriculture (USDA), the average yield of conventional lettuce farming doubled twofold when cultivated through vertical farming. The indoor farming market in the Asia-Pacific region is growing rapidly, with the industry benefiting from government policies.

The market for indoor farming is highly fragmented, with the top players accounting for a minor share. Some of the notable players in the market are Village Farms International Inc., AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Metropolis Farms Inc., and Garden Fresh Farms.

Scope of the Report

Indoor farming is a method of growing crops or plants, usually on a large scale, entirely indoors. 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 indoor farming 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 in terms of value in USD million for the abovementioned segments.

Growing System
Facility Type
Glass or Poly Greenhouses
Indoor Vertical Farms
Container Farms
Indoor Deep Water Culture Systems
Other Facility Types
Crop Type
Fruits and Vegetables
Leafy Vegetables
Other Leafy Vegetables
Other Fruits and 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

Declining Arable Land is Boosting Indoor Farming Techniques

One of the main reasons for diminishing yields is that cultivable land has been shrinking over the years in addition to unfavorable weather conditions, like droughts, floods, soil erosion, and heavy utilization of pesticides, which is decreasing the fertility of the soil globally. In some developing countries such as China, there are approximately 334 million acres of arable land, of which around 37 million acres are non-cultivable, and with a growing population, this poses a major threat. The alternative to creating more arable land is to enhance the yield and productivity of the land currently being cultivated. These technologies include high-yielding varieties, management of fertilizers and pesticides, mechanization, irrigation management, and employment of new farming techniques such as indoor farming.

World Bank statistics depict that South Asia is using more than 90% of its potential arable land. In contrast, in Sub-Saharan Africa, only about 20% of the potentially arable land is under cultivation. Moreover, rain-fed agriculture is practiced on about 80% of this arable land. Due to such constraints, more production is required from less land, wherein indoor farming helps in attaining a higher yield of different crops.​ Therefore, as arable land is declining, the increasing need for maximizing crop yields is expected to drive the indoor farming market in the future. ​

Indoor Farming Market : Per Capita Arable Land in hectare, Global, 2016-2018

North America is the Largest Market for Indoor Farming

North America accounted for the highest share of the global indoor farming market in 2021. With the help of high-efficiency LED lights and enhanced indoor management practices, US growers have been able to adopt large-scale indoor farming. Such practices are expected to reduce energy lighting costs by about 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 twofold when cultivated through vertical farming. Currently, the indoor farming industry in the US is predominantly dominated by greenhouse crop production. The onset of urban population dwellings across cities, such as New York, Chicago, and Milwaukee, has propelled the environment for indoor farming with activities such as revamping derailed vacant warehouses, derelict buildings, and high rises, which has, in turn, led to an increase in the production of fresh grown foods altogether.​ The demand for greenhouse tomatoes in the US is driving the market demand for hydroponic operations. Indoor farming is one of the fastest-growing industries in the US.

According to the UN Food and Agriculture Organization, drylands in Mexico occupy approximately 101.5 million hectares of land, thereby boosting 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 driving the overall indoor farming market, mainly due to the increasing focus on adopting innovative and efficient technologies to improve yields. A wide variety of crops such as leafy vegetables, herbs, vegetables, fruits, microgreens, and flowers are grown through indoor farming in the countries of North America. Indoor vertical farming systems have provided organic food, which has become the major driving force for indoor vertical farming along with the increasing demand for pesticide- and herbicide-free food among the consumers of North America.

Indoor Farming Market : Market Share in %, Region, 2021

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 a major share in the market.

The market is highly fragmented, with major revenue-generating companies, which are Village Farms International Inc., Aerofarms, Metropolis Farms Inc., Fresh Box Farms Inc., and Bowery Inc, among others, cornering some part of the market share.

Recent Developments

Companies are partnering with other companies to research and develop new production systems. For instance, in April 2021, Aerofarms entered a partnership with Hortifrut SA, a certified B corporation in Chile. The partnership will focus on the research and development of blueberry and cranberry production in fully-controlled vertical farms and indoor environments.

Companies such as Bright Farms were focused on expanding the production base and actively involved in setting up new indoor farming systems during the study period. For instance, in 2021, BrightFarms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse will produce 2 million pounds of lettuce per year. Similarly,​ in 2019, Bright Farms expanded its construction unit with three new sustainable greenhouse farms in Massachusetts, New York, and North Carolina.

In 2021, Bowery Farming, a New York City-based vertical farming startup, declared a USD 300 million Series C round of funding. Bowery stated that it would use the funds to continue the expansion of its network of smart indoor farms across the US.

The most adopted strategies by these companies have been mergers, acquisitions, and increasing 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 Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 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 and Vegetables

        1. Leafy Vegetables

          1. Lettuce

          2. Kale

          3. Spinach

          4. Other Leafy Vegetables

        2. Tomato

        3. Strawberry

        4. Eggplant

        5. Other Fruits and 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. Italy

        7. 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)



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Frequently Asked Questions

The Indoor Farming Market market is studied from 2017 - 2027.

The Indoor Farming Market is growing at a CAGR of 8.1% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

AeroFarms, Bright Farms Inc., Bowery Inc., FreshBox Farms, Metropolis Farms Inc. are the major companies operating in Indoor Farming Market.

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