How Has the Indoor Farming Market Evolved Historically and What is its Current Size?
The indoor farming market has seen considerable growth due to a variety of factors.
• The scale of the indoor farming market has expanded significantly in the past several years. It is projected to increase from $29.76 billion in 2024 to $33.15 billion in 2025, growing at a compound annual growth rate (CAGR) of 11.4%.
The historical growth of this market is largely due to factors such as surging urbanization, more investment in agricultural technology, heightened concerns about food security, escalating research and development in crop genetics, and a rise in disposable incomes.
What Is The Projected Growth Of The Indoor Farming Template Market?
The indoor farming market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated to experience a swift expansion in the coming few years, the indoor farming market is estimated to inflate to a solid $50.69 billion in 2029, growing at a compound annual growth rate (CAGR) of 11.2%.
The surge during the projection timeframe can be ascribed to the escalating demand for organic edibles, increasing trend towards environmentally friendly harvesting of fruits and vegetables, heightened demand for regionally produced nutritious food, augmented demand for fresh crops, and the rising urge for vegan veggies. Prominent trends for the projected term encompass technological progress, production without using pesticides, sustainable agricultural methodologies, meticulous farming, and advanced systems for nutrient delivery.
What Are The Key Drivers Fueling Growth In The Indoor Farming Market?
The surge in organic food requirement is anticipated to accelerate the indoor farming market's expansion. Organic food, characterized by its growth and processing absent of synthetic chemicals, pesticides, fertilizers, GMO's, or artificial components, is being increasingly sought after. This stems from consumers becoming more conscious of health benefits, environmental conservation, and a preference for products devoid of chemicals. Indoor farming facilitates organic food production by offering a regulated atmosphere where crops are reared without synthetic pesticides, fertilizers, or GMO's. This ensures organic standards are upheld while maximizing crop health and productivity. For example, as reported by The Organic Research Centre in the UK, a non-profit organization, the revenue from organic food and beverages in the United Kingdom rose from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022 in February 2023. Consequently, the mushrooming demand for organic food is steering indoor farming's growth.
What Are The Principal Market Segments In The Global Indoor Farming Industry?
The indoor farmingmarket covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Crop Category: Fruits, Vegetables And Herbs, Flowers And Ornamentals, Other Crop Category
3) By Growing System: Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid
4) By Facility Type: Glass Or Poly Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture Systems, Other Facility Types
Subsegments:
1) By Hardware: Lighting Systems, Climate Control Systems (HVAC), Hydroponic Systems, Aquaponic Systems, Sensors And Monitoring Devices, Irrigation Systems, Growing Media And Containers
2) By Software: Farm Management Software (FMS), Environmental Control Software, Data Analytics And IoT Solutions, Automation Software, Artificial Intelligence (AI) For Farming, Crop Management Software
3) By Services: Consulting And Design Services, Installation And Maintenance Services, Crop Production And Yield Optimization Services, Technical Support And Training, Financing And Leasing Services
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What Trends Are Reshaping The Future Of The Indoor Farming Market?
In the indoor farming market, key players are concentrating on introducing unique facilities such as vertical hydroponic farms, with the aim of improving both productivity and sustainability in agriculture. Vertical hydroponic farms are indoor plant cultivation systems where crops are grown in vertically layered stacks or towers, utilizing a hydroponic farming approach. For instance, in September 2022, a US-based container farming solutions provider, FarmBox Foods LLC, introduced the Hydroponic Fodder Farm, an innovative vertical hydroponic system designed for efficient livestock feed cultivation. This system relies on advanced hydroponic technology to directly supply plants with a nutrient-rich water mix, ensuring fast and even growth. The indoor system's controlled environment allows continual production throughout the year, regardless of external weather variations, and reduces water consumption in comparison to conventional farming techniques. The setup includes automated and monitoring systems to perfect growing conditions and guarantee top-quality livestock feed output.
Who Are the Key Players In The Indoor Farming Market?
Major companies operating in the indoor farming market are:
• Signify Holding B.V.
• The Scotts Miracle-Gro Company
• Priva BV
• Bowery Farming Inc.
• Plenty Unlimited Inc.
• Agritecture Consulting LLC
• AeroFarms LLC
• Certhon
• Argus Control Systems Ltd.
• Fluence Bioengineering Inc.
• UrbanKisaan
• BrightFarms Inc.
• Iron Ox Inc.
• Superior Fresh LLC
• FreshBox Farms
• Hydrodynamics International Inc.
• Metropolis Farms Inc.
• Innovation Agritech Group Ltd.
• Gotham Greens Holdings LLC
• Crop One Holdings Inc.
• Farmshelf
• Illumitex Inc.
• ZipGrow Inc.
• LumiGrow Inc.
• GrowUp Farms Ltd
What Are The Regional Insights Into The Indoor Farming Market?
North America was the largest region in the indoor farming market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor farming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
