The global indoor farming market size was estimated at USD 42.08 billion in 2024 and is projected to reach USD 88.48 billion by 2030, growing at a CAGR of 13.5% from 2025 to 2030. The increasing consumer awareness about the benefits of consuming fresh, pesticide-free, and high-quality food products is a major factor driving the market’s expansion. Indoor farming offers a sustainable and controlled method of food production, ensuring consistent quality and year-round supply, which aligns with the growing demand for healthier and more reliable food sources.

The continuous rise in the global population, particularly in rapidly developing countries such as China and India, has significantly increased the overall demand for food. This escalating need for food security and self-sufficiency is expected to further propel the growth of the indoor farming market in the coming years. Indoor farming technologies allow for higher crop yields within limited spaces, helping nations meet rising food demands despite urbanization and land scarcity challenges.

Moreover, changing climatic conditions have intensified environmental concerns such as soil degradation, water scarcity, and groundwater depletion, all of which negatively impact traditional agricultural practices. To address these challenges, governments worldwide are promoting the development of indoor farms through various initiatives and policy supports. These efforts aim to enhance food sustainability and resilience against climate change, which, in turn, is boosting market growth.

Additionally, the growing preference for organic food products has become a major trend influencing the market. Organic foods are widely perceived as healthier, more nutritious, safer, and environmentally friendly compared to conventionally produced foods. Consumer purchasing behavior plays a vital role in shaping this demand, emphasizing the importance for producers, policymakers, and suppliers to understand consumer preferences and adopt effective marketing strategies. This rising inclination toward sustainable and organic produce is expected to further accelerate the expansion of the indoor farming industry over the forecast period.

Key Market Trends & Insights:

• Europe accounted for the largest share of the global indoor farming industry, holding over 31.0% of the total market in 2024. The region’s dominance can be attributed to the strong adoption of advanced agricultural technologies, increasing focus on sustainable food production, and supportive government policies promoting innovative farming methods. European countries have been at the forefront of implementing precision farming, automation, and controlled environment agriculture (CEA) practices, which have significantly enhanced productivity and resource efficiency.

• Within the region, the U.K. is expected to register the highest CAGR from 2024 to 2030. This growth is driven by the growing need for locally produced fresh food, coupled with a strong emphasis on reducing dependence on food imports. Additionally, the U.K.’s initiatives to achieve food security and reduce the environmental impact of traditional agriculture are contributing to the rapid adoption of indoor farming technologies. Increased investments by private players and the development of urban vertical farms are further strengthening the country’s market growth.

• Based on components, the hardware segment accounted for the largest market share of over 60.0% in 2024. This segment includes essential systems such as lighting, climate control, sensors, irrigation, and hydroponic equipment, which form the backbone of indoor farming operations. The growing demand for efficient and automated hardware solutions that enhance crop yield and reduce resource consumption has driven the dominance of this segment. Continuous technological innovations, such as energy-efficient LED lighting and advanced environmental monitoring systems, are further boosting its growth.

• By facility type, the greenhouses segment dominated the market and held a revenue share of over 71.0% in 2024. Greenhouses remain the most widely used facility type due to their cost-effectiveness, scalability, and ability to support a wide variety of crops under controlled conditions. The segment’s strong performance is also attributed to advancements in greenhouse materials, automation, and climate regulation technologies, which have improved crop productivity and sustainability. As demand for year-round cultivation and local food production increases, the greenhouse segment is expected to maintain its leading position throughout the forecast period.

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Market Size & Forecast:

• 2024 Market Size: USD 42.08 Billion

• 2030 Projected Market Size: USD USD 88.48 Billion

• CAGR (2025-2030): 13.5%

• Europe: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Some of the prominent players operating in the global indoor farming market include Argus Control Systems Ltd., Certhon, Richel Group, Netafim, General Hydroponics, Hydrodynamics International, Illumitex, Lumigrow, Signify Holding, and Bowery Inc. These companies are actively contributing to the growth of the market through continuous innovation, technological advancements, and strategic expansions aimed at improving farming efficiency and sustainability.

The Richel Group is recognized as a global leader in delivering comprehensive turnkey solutions for greenhouse and agricultural projects. The company specializes in designing, manufacturing, and installing customized greenhouse structures equipped with advanced climate control and irrigation systems. By offering tailored solutions that meet the diverse requirements of growers across different regions, Richel Group has established a strong international presence in the controlled environment agriculture sector.

Netafim is a globally renowned company known for its expertise in precision irrigation technologies. As a pioneer in drip irrigation, the company focuses on helping farmers enhance crop productivity while optimizing water and resource usage. Netafim’s commitment to sustainable agriculture has driven its expansion across more than 110 countries, where it continues to deliver innovative irrigation systems, smart farming technologies, and customized services to support efficient agricultural practices.

Among the emerging players in the indoor farming industry, Plenty Unlimited Inc. and Bowery Farming Inc. stand out as rapidly growing companies driving innovation in vertical farming.

Bowery Farming Inc. specializes in advanced vertical farming techniques, utilizing proprietary technologies, automation, and data-driven insights to cultivate a wide variety of leafy greens and herbs in controlled indoor environments. The company’s approach ensures consistent quality, reduced environmental impact, and year-round production close to urban centers.

Plenty Unlimited Inc. focuses on sustainable vertical farming methods aimed at producing high-quality fruits and vegetables efficiently and responsibly. By leveraging state-of-the-art technologies and controlled environment systems, Plenty addresses key challenges associated with traditional agriculture, such as land limitations, water scarcity, and unpredictable climate conditions. Both companies exemplify the new wave of tech-driven indoor farming enterprises transforming the global agricultural landscape.

Key Players

• Argus Control Systems Ltd.

• Certhon

• Richel Group

• Netafim

• General Hydroponics

• Hydrodynamics International

• Illumitex

• Lumigrow

• Signify Holding

• Bowery Farming Inc.

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Conclusion:

The indoor farming market is poised for strong growth, driven by rising demand for fresh, high-quality food and increasing use of controlled-environment agriculture technologies. Expansion is being supported by trends such as urbanization, land and water scarcity, and consumer desire for sustainable production. Key growth factors include investment in hardware systems, greenhouse and vertical-farm facility types, and regional growth particularly in Europe and Asia-Pacific. Despite the positive outlook, challenges such as high upfront costs, energy requirements, and technology adaptation remain.