Indoor Farming Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Farming Technique (Hydroponics, Aeroponics, Aquaponics, Soil-Based, Hybrid), By Facility Type (Greenhouse, Indoor Vertical Farm, Container Farm, Others), By Component (Irrigation Component, Lighting, Sensor, Climate Control, Others), By Crop Type (Fruits & Vegetables, Herbs & Greens, Flowers & Ornamentals, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 37.92 Billion
CAGR (2026-2031)	11.99%
Fastest Growing Segment	Indoor Vertical Farm
Largest Market	North America
Market Size (2031)	USD 74.81 Billion

Market Overview

The Global Indoor Farming Market will grow from USD 37.92 Billion in 2025 to USD 74.81 Billion by 2031 at a 11.99% CAGR. Indoor farming is defined as the cultivation of crops within enclosed, controlled environments, utilizing technologies such as hydroponics, aeroponics, and artificial lighting to optimize growth conditions independent of external climate factors. The primary drivers supporting the market's growth include the increasing need for global food security, the necessity for climate-resilient agriculture in response to volatile weather patterns, and the demand for localized food production due to rapid urbanization. According to the Japan Plant Factory Association, in 2024, labor costs constituted the most significant financial burden for vertical farms, accounting for 33 percent of total production expenses.

Despite the sector’s potential, a significant challenge impeding market expansion is the substantial operational cost associated with these facilities. High energy consumption required for lighting and climate control, combined with significant initial capital expenditure, limits profitability and scalability for many operators. This financial barrier restricts widespread adoption, particularly in regions with fluctuating energy prices or limited access to renewable power sources.

Key Market Drivers

Rapid technological advancements in controlled environment agriculture constitute a primary driver for the market, enabling operators to surmount historical efficiency barriers and maximize output per square foot. Innovations such as advanced hydroponic substrates, AI-driven climate control, and automated nutrient delivery systems are now critical for optimizing resource utilization, directly addressing the pressing need for higher yields. According to Indoor Ag-Con, January 2025, in the 'Trend Report 2025', new gel-based substrate technologies showcased by exhibitors can increase crop yields by up to 40 percent compared to traditional methods, illustrating the tangible productivity gains achievable through modern engineering.

Simultaneously, supportive government policies and financial incentives are fundamentally accelerating market growth by offsetting the substantial capital expenditures required for facility infrastructure. As food security becomes a critical national priority, public institutions are actively funding initiatives to establish climate-resilient farming systems in both urban centers and non-arable regions. According to the United States Department of Agriculture (USDA), January 2025, in the 'Urban Agriculture and Innovative Production' announcement, the department allocated $14.4 million in grants and technical assistance to expand domestic indoor and urban food production capabilities. Highlighting the broader investment resilience within the sector, according to iGrow News, July 2025, in the 'Europe Indoor Farming Investment Trends' report, European vertical farming companies raised approximately $123.8 million between 2024 and early 2025, underscoring continued capital flows into controlled environment solutions.

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Key Market Challenges

The high operational costs associated with energy consumption present a substantial barrier impeding the growth of the global indoor farming market. While controlled environments allow for year-round production, the financial burden of maintaining these conditions—specifically through artificial lighting and climate control—creates a high break-even point that limits profitability. This capital intensity restricts the market's scalability, as operators struggle to balance the high price of energy with the competitive pricing required to penetrate mass food markets. Consequently, the sector remains vulnerable to utility price volatility, which can rapidly erode margins and force facility closures in regions lacking access to low-cost renewable power.

This reliance on energy-intensive infrastructure directly hampers widespread adoption by inflating the cost of goods sold. According to the Industrial Engineering and Operations Management Society, in 2024, artificial lighting systems in vertical farming operations were reported to account for up to 70 percent of the total energy consumption. This disproportionate expenditure on electricity diverts critical capital away from expansion and technological innovation, thereby slowing the industry’s ability to achieve the economies of scale necessary for long-term commercial viability.

Key Market Trends

Implementation of autonomous robotics for seeding and harvesting is fundamentally reshaping operational workflows to mitigate the industry's reliance on manual labor. Unlike earlier innovations in environmental control, this current wave of automation targets physical tasks such as transplanting and harvesting, effectively lowering the high variable costs and contamination risks associated with human workers. This technological shift allows facilities to operate with minimal human intervention, ensuring consistent crop handling and operational resilience. Highlighting the capital inflow supporting this transition, according to AgFunderNews, January 2026, in the 'From experimentation to impact: farm robotics’ top fundraises in 2025' article, the sector saw sustained investor interest with farm robotics companies securing approximately $744 million in funding during 2024, driving the deployment of these automated systems across controlled environment agriculture.

Simultaneously, the market is witnessing a strategic diversification of crop portfolios beyond leafy greens into high-value categories such as berries to improve unit economics. Operators are increasingly pivoting toward strawberries and soft fruits that offer higher retail price points, effectively offsetting the significant energy overheads inherent to indoor cultivation. This evolution enables vertical farms to capture a premium market share by guaranteeing year-round availability of typically seasonal crops, moving the industry toward a more profitable production mix. Illustrating this scale of production capability, according to Vertical Farm Daily, September 2024, in the 'US (VA): Plenty opens Richmond Farm' article, a newly inaugurated facility in Virginia is designed to produce more than 4 million pounds of strawberries annually, signaling a major commercial shift toward fruiting crop production.

Segmental Insights

The Indoor Vertical Farm segment is projected to witness the fastest growth within the Global Indoor Farming Market, primarily driven by its capacity to maximize production in limited spaces through stacked layers. This approach effectively mitigates constraints associated with diminishing arable land, a critical issue noted by the Food and Agriculture Organization regarding sustainable food systems. Furthermore, vertical farming utilizes controlled environments to maintain consistent year-round output regardless of external climatic variations. These operational advantages encourage widespread adoption among urban agricultural initiatives seeking to secure local food supply chains and reduce transportation dependencies.

Regional Insights

North America currently maintains the leading position in the global indoor farming market, driven by the widespread adoption of controlled-environment agriculture to ensure food security. The region benefits from substantial investments in vertical farming infrastructure and a strong consumer preference for fresh, locally sourced produce. Additionally, government initiatives play a critical role; for instance, the United States Department of Agriculture (USDA) actively supports the sector through grants and research programs aimed at enhancing urban agriculture. This combination of favorable regulatory frameworks and established technological capabilities secures the region's dominance in the market.

Recent Developments

• In October 2025, AeroFarms published findings from third-party research that validated the superior nutritional profile of its indoor-grown produce. The study confirmed that the company's micro broccoli contained significantly higher nutrient density for specific vitamins and minerals compared to conventional broccoli florets. This breakthrough research highlighted the capability of controlled environment agriculture to optimize plant biology and enhance nutritional value for consumers through precise climate management. The announcement reinforced the company's strategy of using science-backed data to differentiate its products in the retail market, demonstrating the potential of its proprietary aeroponic growing systems to deliver flavorful and nutrient-rich food.
• In August 2025, 80 Acres Farms and Soli Organic announced a strategic merger to form one of the largest and most advanced indoor farming networks in the global market. This collaboration united 80 Acres Farms' technology-centric vertical farming platform with Soli Organic's extensive expertise in soil-based indoor cultivation and established national distribution channels. The combined entity, operating under the 80 Acres Farms brand, projected substantial revenues and aimed to improve supply chain resilience for major grocery retailers. The consolidation was structured to leverage operational efficiencies and offer a diversified portfolio, ranging from leafy greens to herbs, facilitating a broader reach across the United States.
• In September 2024, Plenty Unlimited Inc. inaugurated its first commercial-scale indoor strawberry farm in Richmond, Virginia, designed to produce over four million pounds of berries annually. The facility utilized proprietary vertical growing towers extending thirty feet high to maximize yield within a compact footprint. By maintaining strictly controlled environmental conditions, the farm was established to deliver consistent, pesticide-free produce year-round, regardless of seasonal weather fluctuations. This launch represented a key milestone in the company's collaboration with Driscoll's, combining advanced engineering and vertical farming technology with the distributor's proprietary genetics to supply high-quality strawberries to retailers throughout the Northeastern United States.
• In June 2024, Oishii, a prominent vertical farming operator, officially opened a large-scale production facility in Phillipsburg, New Jersey, to expand its output of premium strawberries. Spanning 237,000 square feet, the new site was named Amatelas Farm and was designed to operate primarily on renewable energy sourced from a nearby solar field. This strategic expansion enabled the company to significantly increase the supply of its Koyo berry variety to meet rising consumer demand along the East Coast. The facility integrated advanced robotics and artificial intelligence to automate harvesting processes and optimize environmental controls, marking a shift toward more efficient industrial-scale indoor agriculture.

Key Market Players

• LumiGrow Inc.
• Signify Holding BV
• Argus Control Systems Ltd.
• Netafim Ltd
• Logiqs BV
• Vertical Farm Systems
• General Hydroponics, Inc.
• Heliospectra AB
• Bright Farms Inc.
• Bowery Farming Inc.

By Farming Technique	By Facility Type	By Component	By Crop Type	By Region
Hydroponics Aeroponics Aquaponics Soil-Based Hybrid	Greenhouse Indoor Vertical Farm Container Farm Others	Irrigation Component Lighting Sensor Climate Control Others	Fruits & Vegetables Herbs & Greens Flowers & Ornamentals Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Indoor Farming Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Indoor Farming Market, By Farming Technique:

• Hydroponics
• Aeroponics
• Aquaponics
• Soil-Based
• Hybrid

• Indoor Farming Market, By Facility Type:

• Greenhouse
• Indoor Vertical Farm
• Container Farm
• Others

• Indoor Farming Market, By Component:

• Irrigation Component
• Lighting
• Sensor
• Climate Control
• Others

• Indoor Farming Market, By Crop Type:

• Fruits & Vegetables
• Herbs & Greens
• Flowers & Ornamentals
• Others

• Indoor Farming Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE