Global Indoor Farming Technology Market Outlook
Revenue, 2024
$40.3B
Forecast, 2034
$146B
CAGR, 2024 - 2034
13.8%
The Indoor Farming Technology industry revenue is expected to be around $45.9 billion in 2025 and expected to showcase growth with 13.8% CAGR between 2025 and 2034. 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 Key Insights
- The Indoor Farming Technology market is projected to grow from $40.3 billion in 2024 to $147 billion in 2034. This represents a CAGR of 13.8%, reflecting rising demand across Precision Agriculture, Seed-to-sale Software and Hydroponics.
- The market leaders in this sector include AeroFarms and AgriCool and American Hydroponics which determine the competitive dynamics of the market.
- U.S. and China are the top markets within the Indoor Farming Technology market and are expected to observe the growth CAGR of 12.4% to 16.6% between 2024 and 2030.
- Emerging markets including UAE, Singapore and Kenya are expected to observe highest growth with CAGR ranging between 9.7% to 14.5%.
- The market for Indoor Farming Technology will experience a $15.6 billion increase in growth through 2030 because of AI and Machine Learning adoption.
- 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
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.
Growth Opportunities in North America and Europe
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.
Market Dynamics and Supply Chain
01
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.
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.
02
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.
03
Opportunity: 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.
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.
04
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
1
Research & Development
Argus Controls
Autogrow
2
Grow Equipment Manufacturing
Logiqs B.V.
Valoya
3
Farming Facility Operations
AeroFarms
Freight Farms
4
Consumption/End Users
Retail Markets
Food Services
and Consumer households
1
Research & Development
Argus Controls
Autogrow
2
Grow Equipment Manufacturing
Logiqs B.V.
Valoya
3
Farming Facility Operations
AeroFarms
Freight Farms
4
Consumption/End Users
Retail Markets
Food Services
and Consumer households
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Indoor Farming Technology in Precision Agriculture, Seed-to-sale Software & Hydroponics
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.
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.
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.
Recent Developments
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.
01
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 This industry transition is expected to add $15.6 billion in the industry revenue between 2024 and 2030.
02
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.