Global Indoor Farming Technology Market Insights Forecasts to 2033

• The Global Indoor Farming Technology Market Size was Valued at USD 20.41 Billion in 2023
• The Market Size is Growing at a CAGR of 10.1% from 2023 to 2033
• The Worldwide Indoor Farming Technology Market Size is Expected to Reach USD 53.41 Billion by 2033
• North America is Expected to Grow the fastest during the forecast period

The Global Indoor Farming Technology Market Size is Anticipated to Exceed USD 53.41 Billion by 2033, Growing at a CAGR of 10.1% from 2023 to 2033.

Market Overview

Indoor farming is a method of cultivating plants within controlled indoor environments, shielding them from external conditions. This farming approach often utilizes techniques like hydroponics, where plants grow without soil, relying instead on nutrient-rich water solutions. Artificial lighting replaces sunlight, providing the essential energy for plant growth. Common crops grown indoors include fruits, herbs, and vegetables, which can thrive in these carefully managed settings. Indoor farms vary in scale, from large commercial operations to compact setups in small spaces or basements. Some indoor farms, particularly those in greenhouses, blend natural sunlight with artificial light to optimize growing conditions. A significant advantage of indoor farming is the elimination of pesticides and fungicides, resulting in healthier and safer produce. By controlling environmental factors such as light, temperature, and humidity, indoor farming ensures consistent crop quality and yields, regardless of outdoor weather conditions. This innovative approach not only enhances food security but also promotes sustainable agricultural practices by reducing the need for chemical inputs and conserving water. Indoor farming is increasingly seen as a viable solution to meet the rising demand for fresh produce, especially in urban areas with limited arable land.

Report Coverage

This research report categorizes the market for the global indoor farming technology market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global indoor farming technology market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global indoor farming technology market.

Driving Factors

Increasing demand for fresh foods with higher nutritional value

Indoor farming is the cultivation of crops or plants of varying sizes. Indoor farming is used on a large scale to supplement local food sources and provide consumers with nutritious, fresh produce. This farming method manages plant-fertilizing nutrients, so the food produced with this technology is extremely nutritious. Indoor farming enables the cultivation of a diverse range of crops, including leafy vegetables, herbs, vegetables, fruits, microgreens, and flowers. Indoor vertical farming methods yield organic food free of agrochemical contamination. As a result, rising consumer demand for pesticide and herbicide-free food, as well as a growing need to reduce the carbon footprint of traditional agricultural practices, are driving forces behind indoor vertical farming.

Restraining Factors

There are limitations on the types of crops that can be cultivated.

Indoor farming is not an attractive option for some farmers due to its limitation in the variety of crops it can grow. Additionally, controlled-environment farming can only produce a limited range of fruits and vegetables, and there are specific restrictions on the types of plants that can be cultivated indoors.

Market Segmentation

The global indoor farming technology market share is classified into facility type, crop type, and product type.

• The greenhouse farming segment is expected to hold the largest share of the global indoor farming technology market during the forecast period.   

Based on the facility type, the global indoor farming technology market is categorized into greenhouses and indoor vertical farms. Among these, the greenhouse farming segment is expected to hold the largest share of the global indoor farming technology market during the forecast period. The growth of the greenhouse segment is significantly driven by the rising number of greenhouses being established in various countries, as well as the practicality and efficiency they offer in cultivating a wider variety of plants and crops. Greenhouses provide a controlled environment that can optimize growing conditions, allowing for the production of a diverse range of crops regardless of external weather conditions. This controlled setting ensures better management of temperature, humidity, and light, which are critical factors for plant growth. Also, the use of advanced technologies in greenhouses, such as automated irrigation systems and climate control, further enhances their productivity and efficiency.

• The fruits and vegetables segment is expected to grow at the fastest CAGR during the forecast period.   

Based on the crop type, the global indoor farming technology market is categorized into fruits and vegetables, herbs and microgreens, flowers and ornamentals, and medicinal crops. Among these, the fruits and vegetables segment is expected to grow at the fastest CAGR during the forecast period. The rising trend towards the consumption of fresh, pesticide-free produce as part of a healthy lifestyle. With consumers becoming more health-conscious and aware of the benefits of eating fresh, organic fruits and vegetables, there is a growing demand for these products. In response, many growers have started cultivating a variety of fruits, including lemons, oranges, figs, grapefruits, cherries, and strawberries, to meet this demand. This shift towards healthier eating habits has led to an increased emphasis on sustainable and pesticide-free farming practices, which not only cater to consumer preferences but also promote environmental sustainability.

• The hardware system segment is expected to grow at the fastest CAGR during the forecast period. 

Based on the product type, the global indoor farming technology market is categorized into hardware systems and software. Among these, the hardware system segment is expected to grow at the fastest CAGR during the forecast period. The use of hardware systems like sensors, controllers, lighting, and irrigation systems is becoming more prevalent in indoor farming operations. This trend is further boosted by the rising adoption of intelligent hardware components integrated with sensors and computer vision, which enhance the efficiency and effectiveness of indoor farming. These advanced technologies help monitor and control various environmental factors, ensuring optimal growth conditions for plants. As a result, the indoor farming technology market is expected to see significant growth globally, driven by these innovations and their benefits in improving crop yield and quality.

Regional Segment Analysis of the Global Indoor Farming Technology Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is projected to hold the largest share of the global indoor farming technology market over the forecast period.

Asia Pacific is projected to hold the largest share of the global indoor farming technology market over the forecast period. The agricultural sector in the Asia Pacific region is experiencing a shift from traditional practices to more technological and innovative methods, largely due to increased investment by overseas business lines aimed at meeting crop growers' demands for export-quality crops. This transformation is driving the adoption of advanced crop management techniques, enhancing the premium value of crops. These changes are not only improving efficiency but also boosting the region's competitiveness in the global market by ensuring higher-quality produce. As a result, the farming business in this region is evolving, embracing modern solutions to meet international standards and demands.

North America is expected to grow at the fastest CAGR growth of the global indoor farming technology market during the forecast period. North America, particularly the U.S. and Canada, is a leading market for indoor farming technology due to the rapid growth of greenhouses and vertical farms. This shift towards advanced farming methods, supported by government initiatives, has been embraced by cultivators across the region. Hydroponic gardening techniques are gaining traction in urban areas, providing grocery stores with a steady supply of fresh vegetables and driving further adoption of indoor farming technologies.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global indoor farming technology market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Scotts Company LLC
• Signify Holding
• EVERLIGHT ELECTRONICS CO., LTD
• NETAFIM
• Heliospectra AB
• Argus Control Systems Limited
• Lumigrow, Inc
• Weisstechnik
• Priva
• LOGIQS.B.V.
• Hydrodynamics International 
• AmHydro
• Richel Group
• Vertical Farm Systems
• General Hydroponics
• Others

Key Market Developments

• In January 2023, Priva collaborated with Aranet to meet the growing demand for more, and new greenhouse sensors to generate data are the primary driving force behind the partnership. This collaboration will bridge the gap between wireless sensor platforms and other data sources in greenhouses.

• In May 2022, Signify Holding acquired the competence to provide indoor farming lighting solutions, which helps Signify's position in the appealing North American horticulture lighting market, as well as Pierlite, which strengthens Signity's position in the Australian and New Zealand lighting markets.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global indoor farming technology market based on the below-mentioned segments: 

Global Indoor Farming Technology Market, By Facility Type

• Greenhouses
• Indoor Vertical Farms

Global Indoor Farming Technology Market, By Crop Type

• Fruits and Vegetables
• Herbs and Microgreens
• Flowers and Ornamentals
• Medicinal Crops

Global Indoor Farming Technology Market, By Product Type

• Hardware System
• Software

Global Indoor Farming Technology Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa