Indoor Farming Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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.

Indoor Farming Market Size

Indoor Farming Market Summary
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Study Period 2018 - 2028
Market Size (2023) USD 24.88 Billion
Market Size (2028) USD 41.17 Billion
CAGR (2023 - 2028) 10.60 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Indoor Farming Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Indoor Farming Market Analysis

The Indoor Farming Market size is expected to grow from USD 24.88 billion in 2023 to USD 41.17 billion by 2028, at a CAGR of 10.60% during the forecast period (2023-2028).

  • 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 free from pests, resulting in a higher yield.
  • Among the various growing types, soil-based indoor farming dominates the 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.

Indoor Farming Market Trends

This section covers the major market trends shaping the Indoor Farming Market according to our research experts:

Effect of Climate Conditions on Production

According to the European Commission, the amount of land used for agricultural purposes may fall to 172 million ha in 2030 from the current level of 176 million ha in 2017, with a corresponding decline in the level of EU arable land, from 106.5 million hectares in 2017 to 104 million hectares in 2030.

According to the World Bank statistics, South Asia declined the arable land percentage of the total land from 43.2% in 2017 to 43% in 2020. Thus, a reduction in arable land and an increase in pollution in the developing countries of Southern Asia are expected to increase the demand for alternative cultivation, including indoor farming.

Due to the continuous decline in the per capita availability of farmland, the practice of increasing productivity is a way out. Thus, there is a need for high-yielding crops, which can solve the problem of farmland scarcity without compromising production volumes, which can be attained through indoor farming. The decline in agricultural land has been mainly due to diversion for non-agricultural purposes, such as urbanization, roads, industries, and housing, and soil erosion and pollution in various developing countries. In China, there are approximately 334 million acres of arable land, of which around 37 million acres are non-cultivable, and the growing population poses a major threat. The alternative to creating more arable land is to enhance the yield and productivity of cultivated land. These technologies include high-yielding varieties, the management of fertilizers and pesticides, mechanization, irrigation management, and employing new farming techniques, such as indoor farming.

As the cultivable land is decreasing globally, indoor farming may help increase production by using hydroponics and artificial lighting to provide plants with nutrients and light, as they would only receive when grown outdoors. Thus, the demand for equipment for indoor farming may increase during the forecast period.

ndoor Farming Market : Per Capita Arable Land in hectare, Global, 2017-2020

North America Dominates the Market

North America accounted for the highest global indoor farming market share in 2021. With the help of high-efficiency LED lights and enhanced indoor management practices, US growers have adopted 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 United States is driving the market demand for hydroponic operations. Indoor farming is one of the fastest-growing industries in the United States.

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 region's growth of hydroponics and aeroponics systems 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, fruits, micro greens, 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 : Growth Rate, in %, Geography, 2021

Indoor Farming Industry Overview

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., Superior Fresh, Crop One Holdings, Windest Farms, and Bowery Inc, among others, cornering some parts of the market share.

Indoor Farming Market Leaders

  1. Bowery Inc.

  2. Crop One Holdings

  3. Superior Fresh

  4. Village Farms International Inc.

  5. Windset Farms

*Disclaimer: Major Players sorted in no particular order

Indoor Farming Market Concentration

Indoor Farming Market News

April 2021: Aerofarms partnered with Hortifrut SA, a certified B corporation in Chile. The partnership is expected to focus on researching and developing blueberry and cranberry production in fully-controlled vertical farms and indoor environments.

May 2021: BrightFarms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse is expected to 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.

May 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 United States.

Indoor Farming Market Report - 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 Crop One Holdings

      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)

      10. 6.3.10 Superior Fresh Farms

      11. 6.3.11 Windset Farms

      12. 6.3.12 Gotham Greens


Indoor Farming Industry Segmentation

Indoor farming is a method of growing crops or plants entirely indoors, usually on a large scale.

The indoor farming market is segmented by the 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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Indoor Farming Market Research FAQs

The Indoor Farming Market size is expected to reach USD 24.88 billion in 2023 and grow at a CAGR of 10.60% to reach USD 41.17 billion by 2028.

In 2023, the Indoor Farming Market size is expected to reach USD 24.88 billion.

Bowery Inc., Crop One Holdings, Superior Fresh, Village Farms International Inc. and Windset Farms are the major companies operating in the Indoor Farming Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in the Indoor Farming Market.

Indoor Farming Industry Report

Statistics for the 2023 Indoor Farming market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indoor Farming analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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