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Indoor Farming Technology Market
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Indoor Farming Technology Market

Author: Debadatta Patel - Senior Consultant, Report ID - DS1904006, Published - December 2024

Segmented in Technology Type (Hydroponic, Aeroponic, Aquaponic, Soil-based), Crop Type (Fruits, Vegetables, Herbs, Flowers), Facility Type, Business Model and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Indoor Farming Technology
Market Outlook

Indoor farming technology is changing the way agriculture operates worldwide by offering solutions to important food and environmental issues. The market, for Indoor farming technology was estimated at $40.3 billion in 2024. It is anticipated to increase to $87.5 billion by 2030 with projections indicating a growth to around $167.1 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 13.8% over the forecast period. Its ability to support crop growth all year regardless of the weather makes it a valuable asset, for farmers everywhere.


Indoor farming technology enables control of temperature, lighting, humidity and gas levels transforming cultivation into a meticulous science. The latest developments involve incorporating AI and IoT to enhance productivity and efficiency. Methods like hydroponics, aeroponics and aquaponics are yielding results, with lower water consumption.


Market Size Forecast & Key Insights

2019
$40.3B2024
2029
$146B2034

Absolute Growth Opportunity = $107B

The Indoor Farming Technology market is projected to grow from $40.3 billion in 2024 to $146 billion in 2034. This represents a CAGR of 13.8%, reflecting rising demand across Precision Agriculture, Seed-to-sale Software and Hydroponics.

The Indoor Farming Technology market is set to add $107 billion between 2024 and 2034, with manufacturer targeting Vegetables & Herbs Crop Type projected to gain a larger market share.

With Increasing popularity of organic food, and Technological advancements and investment, Indoor Farming Technology market to expand 264% between 2024 and 2034.

Opportunities in the Indoor Farming Technology Market

Genomics and Plant Breeding

The vast possibilities within genomics and plant breeding, for farming hold great promise. Exploiting these advancements could result in the creation of plant strains tailored for settings to boost production and quality.

Nutrient Recycling and Robotics and Automation

In the Indoor Farm Technology sector a major potential lies in recycling. As soil health issues continue to rise indoor farms have the chance to use cutting edge technologies to recover and repurpose nutrients from plant waste. This move not helps lessen the environmental footprint of farming but also lowers fertilization expenses introducing a fresh aspect of sustainability, to indoor agriculture.

The use of robotics and automation in agriculture is still at an early stage of development. There is a potential for companies specializing in indoor farming technology to create sophisticated robotic systems for activities such as planting seeds, transplantation, harvest and packaging. This has the potential to result in increases, in productivity and help alleviate labor shortages within the agricultural industry.

Growth Opportunities in North America and Europe

Europe Outlook

The Indoor Farm Technology market in Europe is expanding as people become more conscious of sustainability and food security issues. The market in this region faces competition compared to North America mainly because of stricter regulations. There are chances for advancements, in creating farming technologies that consume energy and contribute to a more sustainable indoor farming landscape.

North America Outlook

The Indoor Farm Technology market in North America has seen technological progress and is now well established. The growth of farming and the growing focus on organic farming are key drivers of this expansion. Competition is fierce among both corporations and start ups competing for market dominance. This competition is driving innovation in the industry. Some exciting prospects, in this sector involve integrating AI and IoT technologies into farming practices.

North America Outlook

The Indoor Farm Technology market in North America has seen technological progress and is now well established. The growth of farming and the growing focus on organic farming are key drivers of this expansion. Competition is fierce among both corporations and start ups competing for market dominance. This competition is driving innovation in the industry. Some exciting prospects, in this sector involve integrating AI and IoT technologies into farming practices.

Europe Outlook

The Indoor Farm Technology market in Europe is expanding as people become more conscious of sustainability and food security issues. The market in this region faces competition compared to North America mainly because of stricter regulations. There are chances for advancements, in creating farming technologies that consume energy and contribute to a more sustainable indoor farming landscape.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, China, Japan, Netherlands, Canada are expected to grow at 12.4% to 16.6% CAGR

2

Emerging Markets : United Arab Emirates, Singapore, Kenya are expected to grow at 9.7% to 14.5% CAGR

Market Analysis Chart

The progress of technology plays a role in the expansion of indoor farming practices as it allows for the implementation of various innovative technologies such as LED lighting systems and advanced climate control techniques to support the growth of a diverse range of crops through methods like hydroponics and nutrient film technique (NTF) indoors This advancement is driving the increasing demand in the market, for farming solutions.

Recent Developments and Technological Advancement

December 2024

AeroFarms latest innovation involves the introduction of a cutting edge monitoring system driven by intelligence to enhance plant growth management accuracy. This technology aims to optimize crop yields while minimizing resource usage.

September 2024

Vertical Field added self indoor farming units to its product lineup. This move has sparked a push, towards decentralization in the indoor farming sector.

May 2024

In a development FarmedHere revealed that they are merging with GrowUp Urban Farms. This strategic move is intended to strengthen their market presence and make advanced technology more accessible, to farmers.

The market for indoor farming technology has seen expansion due to the rising need for fresh and organic produce grown locally. This growth is backed by progress in vertical farming as well, as greenhouse and hydroponics systems. A recent significant advancement is Vertical farming, a method where crops are cultivated in stacked layers vertically.

Impact of Industry Transitions on the Indoor Farming Technology Market

As a core segment of the F&B Technology industry, the Indoor Farming Technology market develops in line with broader industry shifts. Over recent years, transitions such as Adoption of AI and Machine Learning and Rise of Vertical Farming have redefined priorities across the F&B Technology sector, influencing how the Indoor Farming Technology market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Adoption of AI and Machine Learning:

The advancements in intelligence and machine learning have brought about a significant transformation in the Indoor Farming Technology sector by facilitating predictive analysis for crop diseases and pest infestation as well as enhancing resource management efficiency. It also empowers farmers to make informed decisions basedon data driven insights resulting in increased crop yields both, in terms of quantity and quality

2

Rise of Vertical Farming:

The rise of farming techniques represents a significant shift in the market landscape by maximizing indoor space for crop cultivation through vertical layer growth systems—an innovation that has notably boosted crop yields per square foot area. This groundbreaking strategy has bolstered agriculture efforts by fostering local production of nutritious and environmentally friendly food, within city centers.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the F&B Technology industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the F&B Technology industry cascade into the Indoor Farming Technology market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Increasing Popularity of Organic Food, and Rising Demand due to Urbanization and Reduced Arable Land

As the interest in organic and fresh produce increases among consumers indoor farming technology is also becoming more popular. Playing a significant role in its market expansion. This innovative technology allows farmers to cultivate vegetables and fruits throughout the year regardless of weather conditions and without concerns, about pesticides and soil quality.
The fast pace of growth and the shrinking availability of fertile land have also led to an increased need for indoor agriculture technology that uses vertical farming techniques to yield abundant food, in compact city areas.
Technology for farming has also made great strides thanks to also advances in technology itself. Investment in research and development has also led to the development of cost effective solutions like advanced LED lighting and climate control systems. Automated technologies like AI and machine learning have also played a significant role, in increasing crop yield and quality. This progress has also fueled the use of farming technology resulted in market expansion.

Restraint: High Initial Investment and Operational Costs

The high expenses involved in setting up farms and maintaining them can be a major obstacle to the growth of this industry sector, for aspiring businesses and farmers looking to enter the market.

Challenge: Lack of Skilled Labor and Technical Expertise

The advancement in indoor farming technologies requires skilled labor and deep technical expertise for efficient operations. However, the lack of skilled labor and profound knowledge about these sophisticated systems can prove to be a significant market restraint.

Supply Chain Landscape

Research & Development

Argus Controls

Autogrow

Grow Equipment Manufacturing

Logiqs B.V.

Valoya

Farming Facility Operations
AeroFarms / Freight Farms
Consumption/End Users
Retail Markets / Food Services / and Consumer households
Research & Development

Argus Controls

Autogrow

Grow Equipment Manufacturing

Logiqs B.V.

Valoya

Farming Facility Operations

AeroFarms

Freight Farms

Consumption/End Users

Retail Markets

Food Services

and Consumer households

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Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Vertical Farming
Agriculture
AeroFarms
Innovation in aeroponics and light-emitting diodes (LEDs) for maximum crop yield
Hydroponics
Horticulture
Signify (Philips Lighting)
Advanced LED lighting solutions tailored for specific crops' needs
Aquaponics
Aquaculture
Nelson and Pade, Inc.
Complete system integration from fish rearing to natural fertilization of plants
In-Vitro Plants
Biotechnology
CubicFarm
Automated, commercial-scale, controlled-environment system providing optimal growing conditions

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Indoor Farming Technology market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Indoor Farming Technology in Seed-to-sale Software, Hydroponics and Precision Agriculture

Seed-to-sale Software

In the realm of agriculture industry farmers are now embracing seed to sale software to oversee the entire growth process efficiently by tracking seeds monitoring growth stages and forecasting crop yields. This technology saves time provides in depth data insights and offers transparency into farming activities, which proves highly beneficial, for indoor farming businesses.

Hydroponics

Hydroponics is a technique rooted in Indoor Farming Technology that involves growing plants without soil by using water in nutrients instead. Indoor vertical farms employing hydroponics are efficient in saving space and water while producing yields. Although the initial setup cost can be substantial; it helps in preventing soil related diseases and ensuring output. Key companies, in this sector include BrightFarms and Gotham Greens.

Precision Agriculture

Indoor farming technology has brought precision agriculture to the forefront by allowing farmers to have real time control over the growth conditions of their crops using sensors and machine learning algorithms for adjusting variables like humidity levels and temperature according to the specific needs of each crop variety with a focus on resource efficiency and maximizing yields. Some key industry players, in this field are Aerofarms and Plenty.

Indoor Farming Technology vs. Substitutes:
Performance and Positioning Analysis

Indoor Farm Technology distinguishes itself through its controlled environment that enables year round cultivation compared to farming that relies on seasonal and weather conditions for growth cycles to occur naturally This innovative technologys strategic market positioning presents significant opportunities for expansion particularly, in urban regions where available farmland is limited

Indoor Farming Technology
  • Traditional Agriculture /
  • Outdoor Hydroponics /
  • Urban Container Farming
    Efficient use of space, controlled environment agriculture for higher output
    High setup and operational costs, reliance on technology for monitoring and
    High yield, Reduction in water usage
    High setup and operating costs, Dependence on electricity for operation

Indoor Farming Technology vs. Substitutes:
Performance and Positioning Analysis

Indoor Farming Technology

  • Efficient use of space, controlled environment agriculture for higher output
  • High setup and operational costs, reliance on technology for monitoring and

Traditional Agriculture / Outdoor Hydroponics / Urban Container Farming

  • High yield, Reduction in water usage
  • High setup and operating costs, Dependence on electricity for operation

Indoor Farm Technology distinguishes itself through its controlled environment that enables year round cultivation compared to farming that relies on seasonal and weather conditions for growth cycles to occur naturally This innovative technologys strategic market positioning presents significant opportunities for expansion particularly, in urban regions where available farmland is limited

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Research Methodology

This market research methodology defines the Indoor Farming Technology market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the F&B Technology ecosystem, we analyze Indoor Farming Technology across Hydroponic, Aeroponic, and Aquaponic Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:

Food and Agriculture Organization (FAO)

Food Substances - FDA

Prodcom / Census US / Statcan / e-stat Japan / ABS Australia / KOSIS Korea

USA Trade Census

DEFRA UK / Ifastat

Climate.gov

Annual Reports / Industry Magazines / Country Level Ministerial Sources

We benchmark competitors such as AeroFarms, AgriCool, and American Hydroponics by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Research & Development, Grow Equipment Manufacturing, and Farming Facility Operations. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global F&B Technology revenues to estimate the Indoor Farming Technology segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Research & Development (Argus Controls, Autogrow), Grow Equipment Manufacturing (Logiqs B.V., Valoya), and Farming Facility Operations. Our parallel substitute analysis examines Traditional Agriculture, Outdoor Hydroponics, and Urban Container Farming, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as AeroFarms, AgriCool, and American Hydroponics, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Indoor Farming Technology market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Indoor Farming Technology Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 45.9 billion
Revenue Forecast in 2034USD 146 billion
Growth RateCAGR of 13.8% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 202440.3 billion
Growth OpportunityUSD 107 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 202440.3 billion USD
Market Size 202759.4 billion USD
Market Size 202976.9 billion USD
Market Size 203087.5 billion USD
Market Size 2034146 billion USD
Market Size 2035167 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredTechnology Type, Crop Type, Facility Type, Business Model
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledAeroFarms, AgriCool, American Hydroponics, Argus Control Systems Limited, Everlight Electronics Co. Ltd, Freight Farms, Green Sense Farms Holdings Inc, Indoor Farms of America LLC, LumiGrow Inc, Signify Holding, Sky Green and Vertical Farm Systems Ltd
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Indoor Farming Technology Market Size, Opportunities & Strategic Insights, by Technology Type

4.1Hydroponic
4.2Aeroponic
4.3Aquaponic
4.4Soil-based
Chapter 5

Indoor Farming Technology Market Size, Opportunities & Strategic Insights, by Crop Type

5.1Fruits
5.2Vegetables
5.3Herbs
5.4Flowers
Chapter 6

Indoor Farming Technology Market Size, Opportunities & Strategic Insights, by Facility Type

6.1Glass Greenhouses
6.2Indoor Vertical Farms
6.3Container Farms
Chapter 7

Indoor Farming Technology Market Size, Opportunities & Strategic Insights, by Business Model

7.1Tech Providers
7.2Farm Operators
7.3Produce Sellers
Chapter 8

Indoor Farming Technology Market, by Region

8.1North America Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Indoor Farming Technology Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1AeroFarms
9.2.2AgriCool
9.2.3American Hydroponics
9.2.4Argus Control Systems Limited
9.2.5Everlight Electronics Co. Ltd
9.2.6Freight Farms
9.2.7Green Sense Farms Holdings Inc
9.2.8Indoor Farms of America LLC
9.2.9LumiGrow Inc
9.2.10Signify Holding
9.2.11Sky Green
9.2.12Vertical Farm Systems Ltd