Global Indoor Farming Technology Market – Industry Trends and Forecast to 2030

The Indoor Farming Technology market is experiencing robust expansion, with market size projected to increase from 20.3 billion in 2024 to 32.3 billion by 2030, demonstrating a consistent year-over-year growth rate of 9.7%. Indoor Farming Technology Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Hardware, Software & Services), And regions (North America(United States, Canada, Mexico), South America(Brazil, Argentina, Chile, Rest of South America), Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA(Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2030

The indoor farming technology industry comprises various technologies and methods in growing crops in controlled environments indoors. Such agricultural advancement requires meticulous control of temperature, humidity, light, and nutrient levels so that crops can keep producing all year long, irrespective of outside weather conditions. Some of the major factors responsible for the growth of this market are the world getting more urbanized and populated, the ever-increasing demand for fresh produce, and the rising needs for eco-balance techniques. Additionally, various technological advancements, such as LED lighting, hydroponics, and automation, will further fuel this market.

Indoor Farming Technology Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 9.7%
Forecast Value (2030)	USD 32.3 billion
By Product Type	Hardware, Software & Services
Key Market Players	Scotts Company LLC (US) Argus Control ELECTRONICS CO. LTD (Taiwan) EVERLIGHT Heliospectra AB (Sweden) LOGIQS.B.V. (Netherlands) Lumigrow Inc (Canada) NETAFIM (Israel) Priva (Netherlands) Signify Holding (Netherlands) Systems Limited (Canada) weisstechnik (US)
By Region	North America(United States, Canada, Mexico) South America(Brazil, Argentina, Chile, Rest of South America) Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA(Middle East, Africa)

Indoor Farming Technology Market Trends

The indoor farming technology market is anticipated to grow enormously because of the necessity for sustainable food production methods and the optimum use of urban land. Some new terms that enter the arena because of the increased emphasis on indoor farming include vertical farming, hydroponics, and aeroponics. The reason for this popularity is that these processes help in harvesting high yields in controlled environments, using lesser water and space. It helps with the increasing trend towards freshly grown products from the local produce and also helps in round-the-year cultivation by providing maintenance-friendly conditions of crop growth regardless of climatic conditions. It includes so many things that increasing awareness among people for food security and bad effects of traditional agriculture on the environment has boosted investment in indoor farming these days. Those present in the market, who own large commercial production units, as well as small-scale urban farms, are now adapting technology into their farming systems in response to the growing consumer demand for organic, pesticide-free, and fresh produce. Government support in the form of incentives targeting the promotion of sustainable agriculture practices has also gone a long way in further benefiting the market.

Indoor Farming Technology Market Leading Players

The key players profiled in the report are Scotts Company LLC (US), Argus Control, ELECTRONICS CO. LTD (Taiwan), EVERLIGHT, Heliospectra AB (Sweden), LOGIQS.B.V. (Netherlands), Lumigrow Inc (Canada), NETAFIM (Israel), Priva (Netherlands), Signify Holding (Netherlands), Systems Limited (Canada), weisstechnik (US)

Growth Accelerators

Indoor farming technology is becoming more popular due to the increase in demand for locally produced sustainable foods. Due to the overpopulation of cities and the insufficient extent of arable land, indoor farming presents a solution whereby fresh crops can be perpetually grown in these controlled environments all year round. With advancements in hydroponics, aeroponics, and vertical farming technology, these systems require less water, space, and nutrients while tackling some of the greatest problems present in traditional agriculture. Another significant driver is the interest in food security and minimization of supply disruptions. The indoor farm could provide the appropriate way to grow food independent of seasonal and geographical derogations, making it able to cater to a climate-related event such as low rainfall and flooding. The expanding market for organic and chemical-free farm products provides more reasons for supporting the growth of this market. With continuous innovations and investments from both startups and established agricultural firms, the indoor farming technology market is expected to expand at an excellent pace in the coming years.

Indoor Farming Technology Market Segmentation analysis

The Global Indoor Farming Technology is segmented by Type, and Region.
By Type, the market is divided into Distributed Hardware, Software & Services . Geographically, the market is assessed across key Regions like North America(United States, Canada, Mexico), South America(Brazil, Argentina, Chile, Rest of South America), Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA(Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The thriving and competitive environment for the indoor farming technology industry is maturing with different existing entities and emerging start-ups striving for market presence. As of 2023, global valuation stands at nearly $40.51 billion, and projections indicate that it will touch around $118.17 billion by 2033. Competitors in this market are AeroFarms, BrightFarms, Gotham Greens, and LumiGrow, among others, recognized for what they term as "sustainable farming" or "advanced agricultural technologies." These companies have adopted some solutions that are deemed good practices in the industry, such as automation, IoT sensors, and advanced LED lighting systems, which play an important role in crop yield optimization and resource efficiency improvement, thus becoming the leaders in such a domain.

Challenges In Indoor Farming Technology Market

If generally talking about issues faced by the indoor farming technology market, most of them include high initial capital investment and operational costs. Indoor farms require heavy investments in infrastructure from the beginning, such as LED lighting, climate control systems, and hydroponic or aeroponic systems. There is also the effect of energy consumption, which tends to increase the running costs in maintaining optimal conditions in indoor environments and is making it difficult for small-scale operations to be profitable unless they exercise much more economies of scale. The other challenge is technological complexity and a need for specialized expertise. Most of these types of systems are essentially automated, becoming heavily dependent on advanced sensors, highly intelligent computation, and artificial intelligence to monitor and control growth conditions. This would also require that such systems rely on skilled labour and technology know-how. However, with these challenges, increased consumer desire for regularly consumed, relatively locally grown, and sustainable produce will still fuel innovation and continued growth in the sector; these attributes are generating quite the buzz for the industry.

Risks & Prospects in Indoor Farming Technology Market

The sector of indoor farming technology does have a healthy market profile, nurtured by the appetite of people worldwide for fresh vegetables and the patronization of sustainable practices. The market, which amounts to approximately $40.73 billion in 2023 and is projected to grow to approximately $107.62 billion by 2030, has substantial promise. Adopting such technologies as hydroponics, aquaponics, and vertical farming allows growing crops throughout the year, barring weather considerations, virtually independent of land availability. This can, on the one hand, address food security and establish resource-rationing practices to make indoor farming an alternative for high-density urban areas with space and water constraints. Furthermore, these developments comprise the metering of efficiency through various forms of artificial intelligence, automation, and an Internet of Things integration. Such innovations promise to improve the environmental control prowess while converting those improvements into higher yields and productivity with reduced resource consumption. Thus, it joins the support of governments that promote sustainable agriculture to improve the prospects of this market: putting indoor farming in the right place for future demands regarding food production while safeguarding the environment.

Key Target Audience

The prime target audience for the indoor farming technology industry comprises commercial growers, agricultural businesses, and enterprisers who want to perfect the potential of food production in cities. They invest in indoor farming systems; these are massive commercial farms and vertical farms set up to increase yield, minimize the use of water, and help with climate change adaptation. These companies depend on indoor farming technology, allowing the controlled environment to support continuous agriculture throughout the year and reduce agricultural supply chain disruptions caused by seasonal fluctuations.,, Furthermore, the indoor farming market carries new technological developers, investors, and governments working on sustainable development and food security initiatives. Conventional farmland and resources are being reduced, and so these innovations that bring in technological advancement can automate, analyse data, and bring energy efficiencies into the higher value production in indoor farming. Hence, investors believe that indoor farming will effectively meet the global food demands for the future while government bodies extend their support to indifferent indoor farming projects to ensure the security of food and promote green approaches in farming.

Merger and acquisition

Various mergers and acquisitions happening in the indoor farming technology space reflect a very dynamic landscape that is further aimed at working more efficiently and extending market reach. For example, in November 2023, Kalera was reported to have completed the acquisition of &ever from Germany, which owns the vertical farming company, for an enterprise value of €130 million. The deal brings Kalera to a position of a global leader in vertical farming, enabling it to make use of sophisticated technologies and sprawling scale of operations over Europe and the Middle East. According to estimates based on this merger, it should also expand the offering of Kalera's products so that it can produce a much larger diversity of leafy greens with greater efficiency through innovative growing systems. In another interesting deal, iUNU acquired Artemis, an enterprise cultivation management platform, in its efforts to improve its capabilities in controlled environment agriculture (CEA). This merger, which closed late in 2023, is viewed as an avenue to marry iUNU's artificial intelligence-driven technology with Artemis's management software, thus providing cultivators with just everything they would need to optimize production processes. Anticipated outcomes of the combined resources above will be data-driven decision-making and subsequently improved profitability with reduced operational risks for growers.