U.S. Indoor Farming Market to Reach USD 8.02 Billion by 2030, Growing at 11.9% CAGR

Rising Demand for Sustainable, Pesticide-Free Food Drives Indoor Farming Expansion

The latest analysis by DataM Intelligence reveals that the U.S. Indoor Farming Market, valued at USD 3.99 billion in 2023, is projected to reach USD 8.02 billion by 2030, registering a CAGR of 11.9% from 2024 to 2030. The trend toward healthy living and eco-friendly food production is significantly boosting the adoption of indoor farming technologies across the nation.

Led by growing consumer awareness for organic, fresh, and locally grown produce, indoor farming enables sustainable cultivation practices using less water and space while minimizing pesticide use. Supported by government initiatives promoting food security and technological innovation, the practice is emerging as a cornerstone of U.S. agricultural modernization.

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Key Highlights from the Report

➤ The U.S. Indoor Farming Market is projected to grow at a CAGR of 11.9% from 2024 to 2030.
➤ Increasing consumption of organic and fresh produce is boosting demand for indoor farming systems.
➤ Hydroponics remains the leading growing mechanism, accounting for over 56% share in 2023.
➤ Greenhouse facilities dominate the U.S. market with over 70% revenue share.
➤ The hardware component segment accounted for more than 60% market share in 2023.
➤ Rapid adoption of controlled-environment agriculture and vertical farming drives future growth.

Market Segmentation

The vertical farming segment is expected to experience the fastest CAGR through 2030 due to rising demand for sustainable fruit and vegetable production. The growing consumer preference for organic food and local sourcing is accelerating investment in vertical farming systems that optimize space, energy, and yield through advanced automation and artificial intelligence.

The greenhouse segment dominated in 2023 with over 70% market share, as greenhouses provide controlled microclimates that enhance yield and quality. They enable year-round cultivation and minimized resource wastage, making them ideal for large-scale urban and suburban farming operations.

By Component, hardware systems such as climate controllers, LED lighting, and irrigation systems accounted for nearly 61% of market revenue. Ongoing innovations in indoor climate regulation and lighting solutions enhance crop productivity. The software segment is projected to witness over 15% CAGR, integrating cloud and machine learning platforms for data-driven environmental control and traceability.

By Growing Mechanism, hydroponics led the market and will maintain its dominance, attributed to reduced labor requirements, efficient water utilization, and superior product quality. Aquaponics, leveraging integrated fish and plant cultivation, is expected to expand considerably due to its low water footprint and growing interest in eco-efficient farming systems.

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Regional Insights

The United States remains among the top markets for innovative agricultural technologies. Urban farming hubs in California, New Jersey, and Texas are showcasing large-scale vertical and hydroponic projects focused on sustainable food accessibility. The government's support for climate-resilient agriculture, coupled with initiatives promoting water efficiency, is fueling both consumer and producer adoption.

Furthermore, the shrinking per capita arable land-a fall from 0.197 hectares in 2013 to 0.192 hectares in 2016 according to The World Bank-is forcing a strategic transition toward indoor farming. The integration of cloud-based software and smart sensors is propelling the shift to precision-controlled food production.

Market Dynamics

Market Drivers:

Surging demand for locally grown and pesticide-free produce, growing environmental concerns, and technological advancements in LED lighting and automation are key market drivers. Indoor farms' ability to reduce water consumption and maintain year-round operations further supports strong industry growth.

Market Restraints:

High initial cost remains the primary barrier. Establishing vertical farms requires expensive warehouse space, LED infrastructure, and climate control systems. These setup and maintenance expenses limit access for small-scale operators.

Market Opportunities:

Advancements in AI, IoT-based monitoring, and renewable energy integration are creating new opportunities for cost-optimized, smart agriculture. Expanding investment by large food producers and venture-backed startups will further catalyze commercial scalability.

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Reasons to Buy the Report

✔ Comprehensive analysis of U.S. indoor farming trends and growth opportunities to 2030.
✔ Segmented insights by facility type, growing mechanism, and component category.
✔ Overview of technological innovations shaping the indoor agriculture ecosystem.
✔ Evaluation of leading players' strategic developments, M&A, and R&D focus areas.
✔ Coverage of future market prospects driven by sustainability and resource efficiency.

Frequently Asked Questions (FAQs)

◆ How large is the U.S. Indoor Farming Market in 2023?
◆ What is the forecasted growth rate (CAGR) for the U.S. Indoor Farming Market through 2030?
◆ Which facility type dominates market share in the U.S. Indoor Farming industry?
◆ Who are the key players driving technological innovation in the market?
◆ What are the growth prospects for hydroponics and vertical farming during the forecast period?

Company Insights

Argus Control Systems Ltd.

Netafim

General Hydroponics

Hydrodynamics International

Illumitex

AeroFarms

BrightFarms Inc.

Bowery Farming Inc.

Gotham Greens

Plenty Unlimited Inc.

Recent Developments:

In March 2023, Elevate Farms started operations at its first fully owned U.S. facility in Orange, New Jersey. Spanning 14,000 square feet, the autonomous indoor farm is capable of producing up to 500,000 pounds of plants annually.

In January 2024, Forever Feed Technologies partnered with Dr. Greenhouse, Inc. to design an enterprise-scale indoor feed mill in Hanford, California, aimed at cultivating automated sprouted grain for 5,000 dairy cows. Production is expected to begin by late 2024.

Conclusion

The U.S. Indoor Farming Market is witnessing robust growth fueled by sustainability trends, consumer focus on healthy living, and technological innovation in controlled-environment agriculture. As urbanization accelerates and environmental challenges grow, indoor farming provides a reliable, resource-efficient, and scalable solution for ensuring year-round food production. Supported by automation, AI systems, and increased investment, the market is set to transform the future of U.S. agriculture by 2030.

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This release was published on openPR.