Top Factor Driving Indoor Farming Market Growth in 2025: Growth In Organic Food Demand Driving Indoor Agriculture Expansion

What market dynamics are playing a key role in accelerating the growth of the indoor farming market?
With the escalating demand for organic food, it is predicted that the indoor farming sector will experience growth. Organic food entails products that are produced and processed devoid of synthetic chemicals, pesticides, fertilizers, GMOs, or artificial additives. The preference for organic foods can be attributed to increased consumer consciousness around health benefits, environmental sustainability, and a preference for natural products free from chemicals. Indoor farming supports the production of organic food by providing a regulated environment where crops can grow without the application of synthetic pesticides, fertilizers, and GMOs. This system of farming helps adhere to organic standards while also maximizing plant health and productivity. For instance, in February 2023, The Organic Research Centre, a non-profit organization based in the UK, reported that the sale of organic food and beverages significantly increased from £3.05 billion ($3.88 billion) in 2021 to £3.11 billion ($3.95 billion) in 2022. This surge in demand for organic food is indeed stimulating the growth of indoor farming.

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How will the growth rate of the indoor farming market shape industry trends by 2034?
There has been a swift expansion in the indoor farming market size in the past few years. This market is set to increase from $29.76 billion in 2024 to $33.15 billion in 2025, reflecting a compound annual growth rate (CAGR) of 11.4%. The augmentation during the historic period is a result of various factors such as increased urbanization, growing investment in agri-tech, heightened worries around food security, more research and development in crop genetics, and a surge in disposable incomes.

Swift expansion is predicted for the indoor farming market in the upcoming years, with projections indicating a growth to $50.69 billion by 2029, fueled by a compound annual growth rate (CAGR) of 11.2%. This projected growth during the forecast period is anchored on rising demands for organic food, a shift towards environmentally-friendly fruit and vegetable production, growing preference for locally sourced nutritious food, an increased appetite for fresh crops, and escalating demands for vegan vegetables. Other dominant trends predicted to shape the market during the forecast period include advancements in technology, a shift towards pesticide-free produce, the adoption of sustainable farming practices, precision farming, and the development of advanced nutrient delivery systems.

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What trends are poised to drive the future success of the indoor farming market?
Major players in the indoor farming sector are concentrating their efforts on creating innovative solutions, such as vertical hydroponic farms. These designs aim to improve efficiency and sustainability in agricultural activities. Vertical hydroponic farms are indoor agricultural systems that cultivate plants in vertically arranged layers or towers using a hydroponic growing technique. For example, FarmBox Foods LLC, an American manufacturer of container farming solutions, unveiled the Hydroponic Fodder Farm in September 2022. This vertical hydroponic system is specifically engineered to produce livestock feed effectively. The system uses sophisticated hydroponic technology to directly supply a water solution rich in nutrients to the plant roots, guaranteeing quick and uniform growth. The indoor-controlled environment permits continuous production, regardless of external weather fluctuations and decreases water consumption in comparison to conventional farming techniques. It incorporates automation and observation systems to control the growing conditions and ensures high-standard feed production.

Which primary segments of the indoor farming market are driving growth and industry transformations?
The indoor farmingmarket covered in this report is segmented -

1) By Component: Hardware, Software, Services
2) By Crop Category: Fruits, Vegetables And Herbs, Flowers And Ornamentals, Other Crop Category
3) By Growing System: Aeroponics, Hydroponics, Aquaponics, Soil-Based, Hybrid
4) By Facility Type: Glass Or Poly Greenhouses, Indoor Vertical Farms, Container Farms, Indoor Deep Water Culture Systems, Other Facility Types

Subsegments:
1) By Hardware: Lighting Systems, Climate Control Systems (HVAC), Hydroponic Systems, Aquaponic Systems, Sensors And Monitoring Devices, Irrigation Systems, Growing Media And Containers
2) By Software: Farm Management Software (FMS), Environmental Control Software, Data Analytics And IoT Solutions, Automation Software, Artificial Intelligence (AI) For Farming, Crop Management Software
3) By Services: Consulting And Design Services, Installation And Maintenance Services, Crop Production And Yield Optimization Services, Technical Support And Training, Financing And Leasing Services

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Which geographical regions are pioneering growth in the indoor farming market?
North America was the largest region in the indoor farming market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor farming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the indoor farming market landscape?
Major companies operating in the indoor farming market are Signify Holding B.V., The Scotts Miracle-Gro Company, Priva BV, Bowery Farming Inc., Plenty Unlimited Inc., Agritecture Consulting LLC, AeroFarms LLC, Certhon, Argus Control Systems Ltd., Fluence Bioengineering Inc., UrbanKisaan, BrightFarms Inc., Iron Ox Inc., Superior Fresh LLC, FreshBox Farms, Hydrodynamics International Inc., Metropolis Farms Inc., Innovation Agritech Group Ltd., Gotham Greens Holdings LLC, Crop One Holdings Inc., Farmshelf, Illumitex Inc., ZipGrow Inc., LumiGrow Inc., GrowUp Farms Ltd

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What Is Covered In The Indoor Farming Global Market Report?

•Market Size Forecast: Examine the indoor farming market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the indoor farming market for a structured understanding.
•Key Players Overview: Analyze major players in the indoor farming market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the indoor farming market.
•Segment Contributions: Evaluate how different segments drive overall growth in the indoor farming market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the indoor farming market.
•Industry Challenges: Identify potential risks and obstacles affecting the indoor farming market.
•Competitive Landscape: Review strategic developments in the indoor farming market, including expansions, agreements, and new product launches.

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