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Growth In Organic Food Demand Driving Indoor Agriculture Expansion: A Significant Driver Propelling The Indoor Farming Market In 2025
Indoor Farming Market
What Is the Indoor Farming Market Size and Projected Growth Rate?
The indoor farming market size is forecast to grow from $29.76 billion in 2024 to $33.15 billion in 2025, at a CAGR of 11.4%. Growth is driven by increasing urbanization, investment in agricultural technology, concerns over food security, R&D in crop genetics, and rising disposable incomes.
The indoor farming market size is projected to grow to $50.69 billion in 2029, with a CAGR of 11.2%. Growth will be driven by increased organic food demand, eco-friendly production adoption, locally sourced food preferences, and the rising demand for fresh crops. Trends include technological advancements, pesticide-free produce, sustainable farming practices, and advanced nutrient delivery systems.
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What Are the Major Segments in the Indoor Farming Market?
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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What Are The Driving Indoor Farming Market Evolution?
Increased consumer interest in organic products is contributing to the growth of the indoor farming market. Organic foods are preferred for their health benefits and eco-friendly production methods. Indoor farming supports organic production through controlled environments that reduce the need for synthetic inputs. In February 2023, The Organic Research Centre reported UK organic food and beverage sales rose from £3.05 billion in 2021 to £3.11 billion in 2022. This upward trend is promoting indoor farming.
Which Firms Dominate The Indoor Farming Market Segments?
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
What Trends Are Expected to Dominate the Indoor Farming Market in the Next 5 Years?
Leading companies in the indoor farming market are focusing on creating innovative establishments such as vertical hydroponic farms to boost agricultural efficiency and sustainability. Vertical hydroponic farming involves growing plants in stacked layers or towers using a hydroponic method. For instance, in September 2022, FarmBox Foods LLC, a US-based container farming solutions provider, launched the Hydroponic Fodder Farm, a system designed to efficiently grow livestock feed. The system uses advanced hydroponic technology to provide a nutrient-rich water solution directly to the plant roots, ensuring uniform growth. The controlled environment supports year-round production and reduces water usage compared to traditional farming, with automation and monitoring systems optimizing growing conditions.
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Which Is The Largest Region 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.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Indoor Farming Market?
2. What is the CAGR expected in the Indoor Farming Market?
3. What Are the Key Innovations Transforming the Indoor Farming Industry?
4. Which Region Is Leading the Indoor Farming Market?
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