Global Indoor Agriculture Market Size By Type (Hydroponics, Aeroponics), By Application (Vegetable Cultivation, Fruit Planting), By Region, And Segment Forecasts, 2023 to 2032

The Global Indoor Agriculture Market is set to grow significantly, driven by the need for sustainable agricultural practices, space limitations in urban areas, and advancements in climate control and hydroponic technology. Valued at USD 25.6 billion in 2023, the market is projected to reach USD 58.3 billion by 2031, achieving a compound annual growth rate (CAGR) of 10.9% during the forecast period from 2023 to 2031. Indoor agriculture enables crop production in controlled environments, reducing water and land usage and improving crop yields, making it essential to modern, sustainable farming practices.

Drivers

Growing Demand for Sustainable Farming: Increasing urbanization and the demand for sustainable food production methods are encouraging the adoption of indoor agriculture.

Technological Advancements in Climate Control and LED Lighting: Innovations in LED lighting and climate control systems have made it possible to grow a wide range of crops indoors efficiently.

Food Security Concerns: Rising global population and food security concerns are prompting countries to invest in indoor farming to ensure local food availability.

Restraints

High Initial Investment: The setup costs for indoor farming technologies such as hydroponics and aquaponics are high, which can be a barrier for smaller players.

Energy Consumption: Indoor agriculture facilities require significant energy, particularly for climate control and lighting, which can increase operational costs and environmental impact.

Opportunity

Expansion into Emerging Markets: Developing countries are beginning to adopt indoor agriculture solutions to address local food demands, presenting lucrative opportunities for market players.

Integration of AI and IoT: The use of artificial intelligence and the Internet of Things (IoT) in indoor agriculture enhances operational efficiency, crop yield prediction, and resource management, creating avenues for market expansion.

Market by System Type Insights

The Hydroponics segment led the market in 2023 and is expected to continue as the largest segment. Hydroponics offers a soilless farming method ideal for indoor spaces, providing high yield with reduced water usage. This segment’s growth is propelled by the need for efficient and sustainable crop production methods suited for urban settings.

Market by End-use Insights

Commercial Growers emerged as the largest segment in 2023, with over 60% of the market share. As more businesses invest in indoor agriculture, commercial growers benefit from high-quality and consistent crop production, making this segment a leader due to its robust demand for efficient food production in controlled environments.

Market by Regional Insights

North America held the largest market share in 2023, thanks to advancements in technology and strong consumer demand for locally grown produce. However, Asia-Pacific is anticipated to experience the highest growth rate during the forecast period, driven by rapid urbanization and growing interest in sustainable agriculture in countries such as China, Japan, and Singapore.

Competitive Scenario

Key players in the Global Indoor Agriculture Market include AeroFarms, Bowery Farming, Plenty, Inc., Gotham Greens, and Freight Farms. These companies focus on strategic partnerships, technological innovations, and expanding global presence to strengthen their market position. For example:

In 2023, AeroFarms announced a new partnership with a major grocery chain to supply indoor-grown leafy greens across North America.

Plenty, Inc. opened its largest vertical farm in 2024, focusing on integrating advanced AI systems to optimize crop yield and quality.

Scope of Work – Global Indoor Agriculture Market

Key Market Developments

2023: AeroFarms partnered with a North American grocery chain to expand its market reach and supply fresh produce.

2024: Plenty, Inc. launched a new facility in California, equipped with advanced AI systems to maximize crop yields.

2025: Bowery Farming secured a significant investment to scale its urban farming operations in key metropolitan areas.

FAQs

What is the current market size of the Global Indoor Agriculture Market?

The Global Indoor Agriculture Market was valued at USD 25.6 billion in 2023.

What is the major growth driver of the Global Indoor Agriculture Market?

Key drivers include the demand for sustainable farming and advancements in LED lighting and climate control technologies.

Which is the largest region during the forecast period in the Global Indoor Agriculture Market?

North America is expected to remain the largest region, with Asia-Pacific projected to have the highest growth rate.

Which segment accounted for the largest market share in the Global Indoor Agriculture Market?

The Hydroponics segment held the largest market share by system type in 2023.

Who are the key market players in the Global Indoor Agriculture Market?

Key players include AeroFarms, Bowery Farming, Plenty, Inc., Gotham Greens, and Freight Farms.

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