Global Indoor Farming Market Set to Reach USD 47.2 Billion by 2033, North America Led with 36.9% Market Share in 2024 - IMARC Group

Global Indoor Farming Market Statistics, Outlook and Regional Analysis 2025-2033

The global indoor farming market size was valued at USD 22.3 Billion in 2024, and it is expected to reach USD 47.2 Billion by 2033, exhibiting a growth rate (CAGR) of 8.63% from 2025 to 2033.

The indoor farming market is experiencing significant growth due to the increasing demand for locally grown, fresh produce and the need for sustainable farming practices. Urbanization and the growing global population have led to a higher demand for food, particularly in densely populated cities where arable land is limited. According to the Worldometers, the global population is increasing at a rate of 0.87% annually in 2024, which is approximately 71 Million individuals per year. Indoor farming offers a solution by utilizing vertical farming, hydroponics, and aeroponics to grow crops in controlled environments. Such a system for growing crops in controlled conditions minimizes reliance on traditional farm production on large scales. It produces food year-round and minimizes the carbon footprint related to the transport of food from far areas. Increasing number of individuals are now becoming health-conscious, driving the demand for fresh, pesticide-free organic produce.

Technological advancements and innovations are strongly driving the indoor farming market. Automation, artificial intelligence (AI), and Internet of Things (IoT) technologies make for efficient resource utilization, including water, nutrients, and lighting. As per a report published by the IMARC Group, the global Internet of Things (IoT) market size is expected to reach US$ 3,174.2 Billion by 2032, exhibiting a CAGR of 15.21% during 2024-2032. These technologies facilitate more precision and productivity in indoor farms with reduced waste and lower energy consumption. In addition, governments and private investors continue to invest in indoor farming programs by offering grants and other funding support to start-ups as they realize the significance it will have in addressing issues surrounding food security and environmental sustainability. With technology evolving continually, investment costs to establish indoor farming continue to go down, making the sector accessible to more investors and, therefore, facilitating industry expansion.

Global Indoor Farming Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia-Pacific (China, Japan, Singapore, South Korea, and others); Europe (Netherlands, Germany, the United Kingdom, France, Italy, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share on account of the increasing demand for locally grown produce, advancements in technology and automation for efficient farming, rising awareness about sustainability and environmental concerns, and supportive government policies and incentives for indoor agriculture.

North America Indoor Farming Market Trends:

The growth of the North American indoor farming market is influenced by the increasing demand for locally grown, fresh produce that has low transportation costs and is in constant supply. Investment in indoor agriculture is increasing as urbanization expands further and a greater need for food security arises in cities. Based on the estimates provided by Worldometers, 82.2% of the total population in North America lives in urban areas. Improvements in the usage of farming technologies have made indoor farming ever more efficient and scalable. Some of these are hydroponics, aeroponics, and automation, among others. In addition to that, a growing environmental awareness and the need to provide food sustainably makes indoor farming the answer. Incentives and grants have also been given by the government to facilitate growth in the industry.

Asia-Pacific Indoor Farming Market Trends:

The Asia Pacific market for indoor farming is driven by rapid urbanization, limited arable lands, and increasing demand for food that is produced sustainably. With developments in hydroponics and vertical farming, the productivity in this line of business is improving. Government support and interest in food security also facilitate overall industry expansion.

Europe Indoor Farming Market Trends:

Factors driving the Europe indoor farming market include an urban population with a rapid growth rate, an increase in sustainable agriculture, and higher demand for locally grown produce. Efficiency improvements in vertical farming and hydroponic production along with rising government incentives and more environmental concerns help the growth of the industry.

Latin America Indoor Farming Market Trends:

Urbanization, sustainable food production, and climate issues affecting traditional farming in Latin America are the leading drivers for the indoor farming market in this region. Innovation in hydroponics and vertical farming continues to improve efficiency and boost the market. Support from governments and increasing demand by consumers for fresh and locally produced produce further augment market growth.

Middle East and Africa Indoor Farming Market Trends:

The indoor farming market in the Middle East and Africa region is primarily driven by water scarcity, increased urbanization, and the demand for sustainable food production. Technological advancements in vertical farming technologies and hydroponics are also resolving environmental issues. Government support toward food security and sustainable agriculture practices is further driving the growth of the market in the region.

Top Companies Leading in the Indoor Farming Industry

Some of the leading indoor farming market companies include AeroFarms, Agricool, Agrilution Systems GmbH, Autogrow Systems Ltd., Bowery Farming Inc., Bright Farms Inc. (Cox Enterprises, Inc.), Freight Farms, FreshBox Farms, Garden Fresh Farms, Green Sense Farms Holdings Inc., Logiqs B. V., Plenty Unlimited Inc., SananBio, Sky Greens, SPREAD Co. Ltd., Urban Crop Solutions, and Voeks Inc., among many others.

• 4 October 2024: Bright Farms Inc., the leading grower of indoor leafy greens, announced the opening of its latest indoor farm in Hendersonville, NC. This 6-acre greenhouse will produce 2 million pounds of lettuce per year for the Southeast region, enough to feed millions of new consumers, doubling down on the mission of the company to make higher quality, safer produce available to people across the country.

Global Indoor Farming Market Segmentation Coverage

• On the basis of the facility type, the market has been categorized into greenhouse, indoor vertical farms, container farms, indoor deep water culture, and others, wherein greenhouse represent the leading segment. Greenhouses are leading the indoor farming market due to the controlled environment they provide, allowing for maximum optimization of plant growth. They make efficient use of natural light while controlling temperature and humidity levels, which protects the crop from adverse external conditions, hence increasing yields with the saving of energy.
• Based on the crop type, the market is classified into fruits, vegetables, and herbs (lettuce, spinach, kale, tomato, herbs, bell and chili peppers, strawberry, cucumber, and others), flowers and ornamentals (annuals, perennials, ornamentals, and others), and others, amongst which fruits, vegetables, and herbs dominate the market. Fruits, vegetables, and herbs comprise the largest share in the market due to consumer preference for fresh produce and homegrown products. Such crops are known to thrive in controlled environments. Indoor farming offers a sustainable yet highly efficient means of delivering these crops to consumers year-round, meeting the demand for fresh, healthy pesticide-free food.
• On the basis of the component, the market has been divided into hardware (structure, LED lights, HVAC, climate control system, irrigation systems, and others) and software (web-based and cloud-based). Among these, hardware accounts for the majority of the market share. Hardware leads the indoor farming industry as it encompasses necessary equipment which includes lighting systems, HVAC units, sensors, and even irrigation systems that ensure optimal development of plants. These technologies ensure careful control over environmental factors including temperature, humidity, and light. With increasing needs for efficient and scalable farming practices, investments in advanced hardware are essential in the growth of indoor farming
• Based on the growing system, the market is segregated into aeroponics, hydroponics, aquaponics, soil-based, and hybrid, wherein soil-based accounts for the leading market segment. These systems are simple and inexpensive to maintain, and their operations mimic traditional farming. Such systems offer a natural growing medium where plants obtain essential nutrients and support. Soil-based farming also supports a wide range of crops and is preferred by growers seeking an efficient, low-tech solution for urban and indoor agriculture.
   

Browse IMARC Related Reports on Indoor Farming Market :

• Japan Indoor Farming Market Report
   
• Europe Indoor Farming Market Report 
   
• United States Indoor Farming Market Report 
   
• GCC Indoor Farming Market Report
   
• India Indoor Farming Market Report