Indoor Farming Market

Indoor Farming Market

Indoor Farming Market Forecasts to 2028 - Global Analysis By Facility Type (Greenhouses, Container Farms and Other Facility Types), Growing System (Hydroponics, Soil-based, Aeroponics, Aquaponics and Hybrid), Component Type (Hardware and Software), Crop Type (Fruits and Vegetables, Herbs and Microgreens, Flowers and Ornamentals and Other Crop Types) and Geography

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4.3 (59 reviews)
Published: 2023 ID: SMRC22231

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $38.7 BN

Projected Year Value (2028)

US $74.8 BN

CAGR (2022 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Asia Pacific

According to Stratistics MRC, the Global Indoor Farming Market is accounted for $38.7 billion in 2022 and is expected to reach $74.8 billion by 2028 growing at a CAGR of 11.6% during the forecast period. Indoor farming is the process of growing crops in a controlled environment indoors. In order to attain the fastest rate of plant development, it commonly employs soilless farming methods like hydroponics, aquaponics, and aeroponics as well as controlled-environment agriculture. The growing global population and the consequent need for securing sustainable food supplies are driving the growth of the indoor farming industry.

According to the European Commission, the amount of land used for agricultural purposes may fall to 172 million by 2030 from the current level of 176 million in 2017, with a corresponding decline in the level of EU arable land, from 106.5 million hectares in 2017 to 104 million hectares in 2030.

Market Dynamics:


Growing Demand for Nutritious Food

Due to innovative system integrations that boost yields, efficiency, and costs, indoor farming is in more demand. Pesticide-free fruit is becoming more and more popular worldwide as people embrace healthy, active lifestyles. As a result of rising technology and health consciousness, customers expect complex claims about the environment, ethics, and health of their food. They are prepared to pay more for food that they believe is healthy. This trend is being observed by millennials worldwide. Furthermore, market expansion is driven by changing consumption habits and an increased willingness to pay for nutritious food.


Fluctuation in Climatic Conditions

Climate change has affected both agricultural land and productivity. Climate change may jeopardize the quality of the food supply and goods produced around the world. CO2 promotes plant growth, but crop nutrition is harmed as a result. Increased CO2 can promote plant development, although changing temperatures, ozone, and water and nutrient shortages may restrict this effects. Crop yields can be impacted by overheating as well as a lack of water and nutrients. Soybean protein and nitrogen levels are decreased by increased CO2. Flood and drought losses can be impacted by environmental changes.


Technological Advancements

Because indoor-grown produce is more locally grown, long-lasting, safe, tasty, and of higher quality than produce from greenhouses or conventional farms, consumers are willing to pay more for it. Indoor farming may not employ irradiation, biosolids, or genetically modified organisms. Top chefs around the world are interested in the products from indoor farming. An indoor farm entitled Grow from Amsterdam produces greens for chefs in a variety of methods and at a rapid rate. This sort of rapid adaptation aids in the sector's expansion.


Large Upfront Investments

The cost of production and the amount of energy needed to grow food have an impact on the cost of indoor farming. Small farms used 12% of their operational budget for energy, but large indoor farms used up to 25%. LED lights have taken the place of sunlight in indoor farming warehouses. Instead of using natural air to regulate temperature, air conditioners and heaters require significant upfront costs. Small indoor farms and beginner farmers are unable to afford the equipment required to control the plumbing, CO2 levels, lighting, and nutrient reservoirs.

Covid-19 Impact:

The COVID pandemic has a significant influence on the market in terms of sales since more than 44% of sales are hindered due to disruptions in manufacturers' transportation operations as a result of strict lockdown regulations and rising safety concerns. Additionally, the indoor farming sector has been damaged by supply chain disruptions, demand destruction, and changes in consumer behaviour spurred on by strict lockdown restrictions worldwide.

The soil-based segment is expected to be the largest during the forecast period

Soil-based segment is anticipated to be the largest during the projection period as more pesticide-free crops are grown by soil-based farming than by conventional farming. On bunks, mobile homes, or cargo containers, this can be mounted. Farmers can increase agricultural yields while minimising their impact on the environment by using this technique. It involves growing leafy greens, root vegetables, tomatoes, ginger, mandarin oranges, onions, leeks, and microgreens. In a soil-based system, worms aerate the soil while a drip system circulates drainage. As it saves money and boosts plant harvests, soil-based farming is widespread.

The greenhouses segment is expected to have the highest CAGR during the forecast period

The category of greenhouses has the highest CAGR throughout the projected period because tomatoes, strawberries, watermelons, beans, green chilies, and capsicums are grown in greenhouses in Italy and Spain. Asia produces half of the world's greenhouse vegetables, with China, Japan, South Korea, and Taiwan having the largest number of greenhouses.

Region with largest share:

North America dominated the market share in 2021 and is anticipated to hold the largest revenue share over the course of the forecast period. The US, Canada, and Mexico all make significant contributions to the region's share. The potential to produce more with limited resources is one of the main reasons indoor farming has been gaining significant traction. For instance, according to the US Department of Agriculture (USDA), the production of conventional lettuce farming doubled when it was grown using vertical farming. Furthermore, customers are opting to produce many essential crops on a small scale in their own residences in order to obtain pest-free food due to changing lifestyles and high awareness levels. As a result, the national market for indoor farming is expanding.

Region with highest CAGR:

Due to the expansion of indoor farming in nations like China and Japan, Asia Pacific is anticipated to have the highest CAGR during the projected period. Furthermore, the growing use of greenhouses and vertical farms is expected to promote regional expansion. Additionally, the regional industry is expected to develop as a result of the growing demand for fresh produce free of pesticides.

Key players in the market

Some of the key players in Indoor Farming market include AeroFarms, Bright Farms Inc, Garden Fresh Farms, Metropolis Farms Inc, Crop One Holdings, Bowery Inc, Village Farms International Inc, Superior Fresh Farms, Gotham Greens, Green Sense Farms LLC, Sky Greens (Sky Urban Solutions) and Windset Farms

Key Developments:

In May 2021, Bowery Farming, a New York City-based vertical farming startup, declared a USD 300 million Series C round of funding. Bowery stated that it would use the funds to continue the expansion of its network of smart indoor farms across the United States.

In May 2021, Bright Farms opened its latest indoor farm in Hendersonville, North Carolina. The 6-acre greenhouse is expected to produce 2 million pounds of lettuce per year. Similarly, in 2019, Bright Farms expanded its construction unit with three new sustainable greenhouse farms in Massachusetts, New York, and North Carolina.

In April 2021, Aero farms partnered with Hortifrut SA, a certified B corporation in Chile. The partnership is expected to focus on researching and developing blueberry and cranberry production in fully-controlled vertical farms and indoor environments.

Facility Types Covered:
• Greenhouses
• Container Farms
• Indoor Vertical Farms
• Indoor Deep Water Culture Systems
• Low Tech Plastic Hoop House

Growing Systems Covered:
• Hydroponics
• Soil-based
• Aeroponics
• Aquaponics
• Hybrid

Component Types Covered:
• Hardware
• Software

Crop Types Covered:
• Fruits and Vegetables
• Herbs and Microgreens
• Flowers and Ornamentals
• Other Crop Types

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Emerging Markets
3.7 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Indoor Farming Market, By Facility Type
5.1 Introduction
5.2 Greenhouses
5.3 Container Farms
5.4 Indoor Vertical Farms
5.4.1 Shipping Container
5.4.2 Building-based
5.5 Indoor Deep Water Culture Systems
5.6 Low Tech Plastic Hoop House

6 Global Indoor Farming Market, By Growing System
6.1 Introduction
6.2 Hydroponics
6.3 Soil-based
6.4 Aeroponics
6.5 Aquaponics
6.6 Hybrid

7 Global Indoor Farming Market, By Component Type
7.1 Introduction
7.2 Hardware
7.2.1 Climate control systems
7.2.2 Sensors
7.2.3 Lighting systems
7.2.4 Irrigation systems
7.3 Software
7.3.1 Cloud-Based
7.3.2 Web-Based

8 Global Indoor Farming Market, By Crop Type
8.1 Introduction
8.2 Fruits and Vegetables
8.2.1 Leafy Vegetables Kale Lettuce Spinach Other Leafy Vegetables
8.2.2 Tomato
8.2.3 Eggplant
8.2.4 Strawberry
8.2.5 Other Fruits and Vegetables
8.3 Herbs and Microgreens
8.3.1 Basil
8.3.2 Tarragon
8.3.3 Herbs
8.3.4 Wheatgrass
8.3.5 Other Herbs and Microgreen
8.4 Flowers and Ornamentals
8.4.1 Perennials
8.4.2 Annuals
8.4.3 Other Flowers and Ornamentals
8.5 Other Crop Types

9 Global Indoor Farming Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa

10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies

11 Company Profiling
11.1 AeroFarms
11.2 Bright Farms Inc
11.3 Garden Fresh Farms
11.4 Metropolis Farms Inc
11.5 Crop One Holdings
11.6 Bowery Inc
11.7 Village Farms International Inc
11.8 Superior Fresh Farms
11.9 Gotham Greens
11.10 Green Sense Farms LLC
11.11 Sky Greens (Sky Urban Solutions)
11.12 Windset Farms

List of Tables
1 Global Indoor Farming Market Outlook, By Region (2020-2028) ($MN)
2 Global Indoor Farming Market Outlook, By Facility Type (2020-2028) ($MN)
3 Global Indoor Farming Market Outlook, By Greenhouses (2020-2028) ($MN)
4 Global Indoor Farming Market Outlook, By Container Farms (2020-2028) ($MN)
5 Global Indoor Farming Market Outlook, By Indoor Vertical Farms (2020-2028) ($MN)
6 Global Indoor Farming Market Outlook, By Shipping Container (2020-2028) ($MN)
7 Global Indoor Farming Market Outlook, By Building-based (2020-2028) ($MN)
8 Global Indoor Farming Market Outlook, By Indoor Deep Water Culture Systems (2020-2028) ($MN)
9 Global Indoor Farming Market Outlook, By Low Tech Plastic Hoop House (2020-2028) ($MN)
10 Global Indoor Farming Market Outlook, By Growing System (2020-2028) ($MN)
11 Global Indoor Farming Market Outlook, By Hydroponics (2020-2028) ($MN)
12 Global Indoor Farming Market Outlook, By Soil-based (2020-2028) ($MN)
13 Global Indoor Farming Market Outlook, By Aeroponics (2020-2028) ($MN)
14 Global Indoor Farming Market Outlook, By Aquaponics (2020-2028) ($MN)
15 Global Indoor Farming Market Outlook, By Hybrid (2020-2028) ($MN)
16 Global Indoor Farming Market Outlook, By Component Type (2020-2028) ($MN)
17 Global Indoor Farming Market Outlook, By Hardware (2020-2028) ($MN)
18 Global Indoor Farming Market Outlook, By Climate control systems (2020-2028) ($MN)
19 Global Indoor Farming Market Outlook, By Sensors (2020-2028) ($MN)
20 Global Indoor Farming Market Outlook, By Lighting systems (2020-2028) ($MN)
21 Global Indoor Farming Market Outlook, By Irrigation systems (2020-2028) ($MN)
22 Global Indoor Farming Market Outlook, By Software (2020-2028) ($MN)
23 Global Indoor Farming Market Outlook, By Cloud-Based (2020-2028) ($MN)
24 Global Indoor Farming Market Outlook, By Web-Based (2020-2028) ($MN)
25 Global Indoor Farming Market Outlook, By Crop Type (2020-2028) ($MN)
26 Global Indoor Farming Market Outlook, By Fruits and Vegetables (2020-2028) ($MN)
27 Global Indoor Farming Market Outlook, By Leafy Vegetables (2020-2028) ($MN)
28 Global Indoor Farming Market Outlook, By Tomato (2020-2028) ($MN)
29 Global Indoor Farming Market Outlook, By Eggplant (2020-2028) ($MN)
30 Global Indoor Farming Market Outlook, By Strawberry (2020-2028) ($MN)
31 Global Indoor Farming Market Outlook, By Other Fruits and Vegetables (2020-2028) ($MN)
32 Global Indoor Farming Market Outlook, By Herbs and Microgreens (2020-2028) ($MN)
33 Global Indoor Farming Market Outlook, By Basil (2020-2028) ($MN)
34 Global Indoor Farming Market Outlook, By Tarragon (2020-2028) ($MN)
35 Global Indoor Farming Market Outlook, By Herbs (2020-2028) ($MN)
36 Global Indoor Farming Market Outlook, By Wheatgrass (2020-2028) ($MN)
37 Global Indoor Farming Market Outlook, By Other Herbs and Microgreen (2020-2028) ($MN)
38 Global Indoor Farming Market Outlook, By Flowers and Ornamentals (2020-2028) ($MN)
39 Global Indoor Farming Market Outlook, By Perennials (2020-2028) ($MN)
40 Global Indoor Farming Market Outlook, By Annuals (2020-2028) ($MN)
41 Global Indoor Farming Market Outlook, By Other Flowers and Ornamentals (2020-2028) ($MN)
42 Global Indoor Farming Market Outlook, By Other Crop Types (2020-2028) ($MN)

Note: Tables for North America, Europe, Asia Pacific, South America and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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