Indoor Farming Technology Market

Indoor Farming Technology Market by Growing System (Hydroponics, Aeroponics, Aquaponics, Soil-based, Hybrid), Facility Type, Component, Crop Type (Fruits & Vegetables, Herbs & Microgreens, Flowers & Ornamentals) and Region - Global Forecast to 2028

Report Code: AGI 6217 Jun, 2023, by

According to MarketsandMarkets, the indoor farming technology market is projected to reach USD 32.3 billion by 2028 from USD 20.3 billion by 2023, at a CAGR of 9.7% during the forecast period in terms of value.  Owing to the increase in demand for fresh foods with high nutritive value, the need for higher yields using limited space and water, and the lesser impact of external weather conditions drive the indoor farming technology market.

Indoor Farming Technology Market

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Indoor Farming Technology Market

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Market Dynamics

Driver : Rising demand for fresh foods with higher nutritive value

Indoor farming refers to the cultivation of crops or plants of both large and small sizes. Indoor farming is used on a wide scale to supplement local food sources and give consumers nutritious, fresh products. Because this farming method manages plant-fertilizing nutrients, the food generated using this technology is extremely nutritious. Indoor farming allows for the cultivation of a wide range of crops, including leafy vegetables, herbs, vegetables, fruits, micro greens, and flowers. Indoor vertical farming methods produce organic food that is free of agrochemical contamination. As a result, the increasing consumer demand for pesticide and herbicide-free food, as well as the growing need to reduce the carbon footprint of traditional agricultural practices, are driving forces for indoor vertical farming. For example, in 2016, Fujitsu Limited (Japan) established a vertical farming initiative in which lettuce with a low potassium level was cultivated, resulting in exceptionally nutritious lettuce with no unpleasant taste for people with kidney disease.

Restraint : There are restrictions on the types of crops that can be planted.

Indoor farming is not an appealing alternative for some farmers because it can only cultivate a restricted number of crops. Furthermore, controlled-environment farming can only generate a limited number of fruit and vegetable kinds. There are also restrictions on the plant species that can be grown indoors. Some fruits and plants, for example, have numerous edible components such as leaves, stems, and roots. These plant species would waste vertical farming space and resources. Before beginning the plantation, numerous aspects such as temperature adjustment, adequate water supply management, identification and provision of nutrients to the plants, the growth mechanism to be used, and individual harvest time of plants must be considered. As a result, growing various varieties of plants in indoor farms may be problematic. Fruits and vegetables are the best plants for vertical farming since they grow quickly. Water and sunlight are scarce and crops such as sugarcane, rice, and wheat require a lot of water and take a long time to harvest, making them challenging to cultivate utilizing indoor farming.

Opportunity : Development of innovative and cost-effective technologies

Many indoor farming methods lack a long commercial track record, and studies are still being undertaken to determine the impact of these technologies on plant shelf life. The impact of LED illumination on plants was evaluated in a study conducted at the Illumination Research Centre (New York), and the results were favorable. However, the technology is still in its early stages and requires further development before it can be considered ideally helpful and financially viable. To reduce the carbon footprint of indoor farming, new technologies must be created. Growers are more interested in investing in technologies that will reduce their labor expenses, as labor is necessary on large-scale farms for monitoring, maintenance, fertilizer supply, and harvesting. As a result, there is a potential opportunity to create completely automated urban farms based on vertical farming and controlled environment agriculture.

Challenge : Insufficient funding

Finding an investor is difficult in many agriculture-related firms, which may function as a barrier, leading to fewer growers investing in indoor farming. Furthermore, restricted funding hinders the speed of research and development for indoor farming in public institutions and colleges, limiting the availability of data and knowledge that would otherwise entice cultivators to invest. However, in the current context, some sources of high finance are available for players in the indoor farming technology market arena. For example, one of the indoor farming players, Aerofarms (US), obtained USD 50 million from Goldman Sachs Group (US) and Prudential Financial, Inc. (US).

Indoor Farming Technology Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of indoor farming technology. These companies have been operating in the market for several years and possess state-of-the-art technologies, a diversified product portfolio, and strong global sales and marketing networks. Prominent companies in this market include Scotts Company LLC (US), Signify Holding (Netherlands), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), NETAFIM (Israel), Heliospectra AB (Sweden), Argus Control Systems Limited (Canada), Lumigrow, Inc (Canada), weisstechnik (US), Priva (Netherlands), LOGIQS.B.V. (Netherlands).

Lesser impact of external weather conditions

Indoor farming frequently uses growing technologies such as hydroponics and artificial lighting to deliver nutrients to plants. Furthermore, it protects crops from adverse weather conditions and maintains optimal levels in the enclosed facility. Most places experience occasional rainfall shortages as a result of the steady shift in global climate conditions. Changes in rainfall and temperature may reduce agricultural productivity in countries such as India, the United States, Australia, and the Philippines. With global weather patterns becoming more unpredictable and global warming becoming a growing problem, indoor farming is a viable solution. Because the same water is used in irrigation systems, indoor farming conserves drinking water, which is becoming a limited resource. Indoor farming is a viable solution for many drought-stricken countries. Crop production in indoor farming takes place in a controlled atmosphere, and productivity is largely independent of outside weather conditions. Because the vertical growing platforms are set at ambient temperatures, fewer crops are lost due to hurricanes, hail, drought, and snap freezes.

Higher crop yields with minimal room and water

Indoor farming has a better yield than traditional agricultural methods, which is one of its key advantages. Indoor farming facilities produce optimal growing conditions for farmers, allowing them to develop a crop from seed to harvesting stages in less time and with higher yields in each cycle while having a limited land area. According to USDA data, the average output of greenhouse hydroponic tomatoes in 2016 was 10.59 pounds per square foot, while traditionally grown tomatoes yielded 185 pounds per square foot. As a result, by stacking additional layers and expanding the growing area, indoor farms can boost overall crop yield. According to the Food and Agriculture Organization of the United Nations, food output must increase by 70% before 2050 to meet global food demands. This expansion is required because urbanization is consuming arable land while lowering the total agricultural land area. As a result, indoor farming is a feasible option for helping to satisfy the food needs of the world's growing population. Indoor farming tackles the issue of restricted space by allowing certain plants to be cultivated in smaller spaces. For example, in vertical farming, each facility constructed reduces the demand for land use by a hundredfold. When compared to conventional farming, there is less water waste. Because indoor farms recirculate and reuse water, they require 95% less water to grow the same crops as outdoor farms. When plants or crops are produced in vertical greenhouses, the transpiration process occurs, allowing farmers to reuse the water for irrigation. Because the odds of water waste are reduced, this strategy aids in resource conservation. In 2014, agricultural irrigation had the biggest proportion of worldwide water reuse, followed by landscape irrigation. Agricultural and landscape irrigation accounted for 52.0% of the overall share. This demonstrates that the amount of water reuse in agriculture is greater.

Asia Pacific to boost market growth during the forecast period.

The Asia Pacific region is expected to grow at the fastest rate, as demand for indoor farming technology has increased due to increased investment by overseas business lines in agricultural operations to exclusively meet crop growers' demands for export-quality crops. Furthermore, the farming business in the Asia Pacific region has been changing away from traditional agricultural practices and towards technology and innovative ways. These adjustments result in the upgrading of crop management techniques to increase crop premium value. In 2020, the Asia Pacific region's indoor farming technology market accounted for approximately 30.7% of the global market in terms of value.

The key players in this market are Scotts Company LLC (US), Signify Holding (Netherlands), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), NETAFIM (Israel), Heliospectra AB (Sweden), Argus Control Systems Limited (Canada), Lumigrow, Inc (Canada), weisstechnik (US), Priva (Netherlands), LOGIQS.B.V. (Netherlands), Certhon (Netherlands), Bluelab (New Zealand), Barton Breeze (India), Green Sense Farms Holdings, Inc. (US), Greener Crop Inc. (Dubai), Sensaphone (US), Freight Farms, Inc (US), Climate Control Systems Inc (US), Sky Greens (Singapore), SANANBIO (China). The study includes an in-depth competitive analysis of these key players in the indoor farming technology market with their company profiles, recent developments, and key market strategies.

Indoor Farming Technology Market Size, and Share

Key Market Players

The key players in this include Scotts Company LLC (US), Signify Holding (Netherlands), EVERLIGHT ELECTRONICS CO., LTD (Taiwan), NETAFIM (Israel), Heliospectra AB (Sweden), Argus Control Systems Limited (Canada), Lumigrow, Inc (Canada), weisstechnik (US), Priva (Netherlands), LOGIQS.B.V. (Netherlands). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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Scope of the Report

Report Metric


Market size estimation


Base year considered


Forecast period considered


Units considered

Value (USD Billion)

Segments covered

By Growing, By Facility Type, By Component, By Crop type

Regions covered

North America, South America, Europe, Asia Pacific, and RoW

Companies studied

  • Scotts Company LLC (US)
  • Signify Holding (Netherlands)
  • NETAFIM (Israel)
  • Heliospectra AB (Sweden)
  • Argus Control Systems Limited (Canada)
  • Lumigrow, Inc (Canada)
  • weisstechnik (US)
  • Priva (Netherlands)
  • LOGIQS.B.V. (Netherlands)
  • Illumitex (US),
  • AmHydro (US),
  • RICHEL GROUP (France)
  • Vertical Farm Systems (Australia)
  • Hydroponic Systems International (Spain).
  • Certhon (Netherlands)
  • Bluelab (New Zealand)
  • Barton Breeze (India)
  • Green Sense Farms Holdings Inc. (US)
  • Greener Crop Inc. (Dubai)
  • Sensaphone (US)
  • Freight Farms Inc (US)
  • Climate Control Systems Inc (US)
  • Sky Greens (Singapore)
  • SANANBIO (China)

Report Scope:

Indoor Farming Technology Market:

By Growing System
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil-based
  • Hybrid
By Facility type
  • Glass or poly greenhouses
  • Indoor vertical farms
  • Container farms
  • Indoor DWC systems
By Component
  • Hardware
    • Climate Control Systems
    • Lighting Systems
    • Communication Systems
    • Sensors
    • System Controls
    • Irrigation Systems
    • Other hardware
  • Software & Services
By crop type
  • Fruits & vegetables
    • Leafy greens
      • Lettuce
      • Kale
      • Spinach
      • Other leafy greens
    • Tomatoes
    • Strawberries
    • Eggplants
    • Other fruits & vegetables
  • Herbs & microgreens
    • Basil
    • Herbs
    • Tarragon
    • Wheatgrass
  • Flowers & ornamentals
    • Perennials
    • Annuals
    • Ornamentals
  • Other crop types
By Region
  • North America
  • Europe
  • Asia Pacific
  • South America
  • RoW

Recent Developments

  • In May 2022, Signify Holding acquired the fluence for offering indoor farming lighting solutions that help Signify's position in the attractive North American horticulture lighting market and they also acquired Pierlite that strengthens Signity's position in the Australian and New Zealand lighting markets.
  • In January 2023, Priva partnered with Aranet to serve the growing demand for more, and new greenhouse sensors to generate data are the main driver of the collaboration between Aranet and Priva. This partnership will bridge the gap between wireless sensor platforms and other data sources in greenhouses.
  • In December 2021, Hawthorne acquired RIV Capital Inc (Canada) as the company is specialized in cannabis with a portfolio of 13 companies across various segments of the cannabis value chain. This gives an advantage to Hawthorne.

Frequently Asked Questions (FAQ):

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Table of Contents
      1.1 Objective of the study
      1.2 Market Definition
      1.3 Market Scope
      1.4 Region Covered
      1.5 Periodization Considered
      1.6 Currency Considered
      1.7 Volume Units Considered
      1.8 Stakeholders
      1.9 Summary of Changes
             1.9.1 Recession Impact
      2.1 Research Data
             2.1.1 Secondary Data
             Key Data from Secondary Sources
             2.1.2 Primary Data
             Kye data from primary sources
             Key Industry Insights
             Breakdown of primaries by company type, designation and region
      2.2 Market Estimation
             2.2.1 Bottom-Up Approach
             2.2.2 Top-Down Approach
      2.3 Data Triangulation
      2.4 Assumptions
      2.5 Limitations
      2.6 Recession Impact
      5.1 Introduction
      5.2 Market Dynamics
             5.2.1 Drivers
             5.2.2 Restraints
             5.2.3 Opportunities
             5.2.4 Challenges
      6.1 Introduction
      6.2 Value Chain Analysis
      6.3 Technology Analysis
      6.4 Pricing Analysis
             6.4.1 Average Selling Price Trends of Key Market Players, By Component
             6.4.2 Average Selling Price Trend
      6.5 Ecosystem/ Market Map
             6.5.1 Demand Side
             6.5.2 Supply Side
      6.6 Trends/ Disruptions Impacting the Customer's Business
      6.7 Patent Analysis
      6.8 Trade Analysis
      6.9 Key Conferences & Events in 2022-2023
      6.10 Tariff & Regulatory Landscape
             6.10.1 Regulatory Bodies, Government Agencies, and Other Organizations
      6.11 Porter's Five Forces Analysis
      6.12 Key Stakeholders & Buying Criteria
             6.12.1 Key Stakeholders in Buying Process
             6.12.2 Buying Criteria
      6.13 Case Study Analysis
      7.1 Introduction
      7.2 Hydroponics
      7.3 Aeroponics
      7.4 Aquaponics
      7.5 Soil-based
      7.6 Hybrid
      8.1 Introduction
      8.2 Glass or poly greenhouses
      8.3 Indoor vertical farms
      8.4 Container farms
      8.5 Indoor DWC systems
      9.1 Introduction
      9.2 Hardware
             9.2.1 Climate Control Systems
             9.2.2 Lighting Systems
             9.2.3 Communication Systems
             9.2.4 Sensors
             9.2.5 System Controls
             9.2.6 Irrigation Systems
             9.2.7 Other hardwares
      9.3 Software & Services
       10.1 Introduction
       10.2 Fruits & vegetables
               10.2.1 Leafy greens
                Other leafy greens
               10.2.2 Tomatoes
               10.2.3 Strawberries
               10.2.4 Eggplants 
               10.2.5 Other fruits & vegetables
       10.3 Herbs & microgreens
               10.3.1 Basil
               10.3.2 Herbs
               10.3.3 Tarragon
               10.3.4 Wheatgrass
       10.4 Flowers & ornamentals
               10.4.1 Perennials
               10.4.2 Annuals
               10.4.3 Ornamentals
       10.5 Other crops
       11.1 Introduction
       11.2 North America
               11.2.1 Recession Impact Analysis
               11.2.2 US
               11.2.3 Canada
               11.2.4 Mexico
       11.3 Europe
               11.3.1 Recession Impact Analysis
               11.3.2 Spain
               11.3.3 Netherlands
               11.3.4 UK
               11.3.5 Sweden
               11.3.6 Italy
               11.3.7 Rest of Europe
       11.4 Asia Pacific
               11.4.1 Recession Impact Analysis
               11.4.2 China
               11.4.3 Japan
               11.4.4 Singapore
               11.4.5 Taiwan
               11.4.6 Rest of Asia Pacific
       11.5 South America
               11.5.1 Recession Impact Analysis
               11.5.2 Brazil
               11.5.3 Argentina
               11.5.4 Rest of South America
       11.6 Rest of the World
               11.6.1 Recession Impact Analysis
               11.6.2 Middle East
               11.6.3 Africa
       12.1 Overview
       12.2 Market Share Analysis/Market Ranking
       12.3 Key Players Strategies
       12.4 Company Revenue Analysis of Top 5 Market Players.
       12.5 Company Evaluation Quadrant (Key Players)
               12.5.1 Star
               12.5.2 Emerging Leaders
               12.5.3 Pervasive Players
               12.5.4 Participant
               12.5.5 Competitive Benchmarking
       12.6 Product footprints
       12.7 Start-Up/SME Evaluation Quadrant
               12.7.1 Progressive Companies
               12.7.2 Starting Blocks
               12.7.3 Responsive Companies
               12.7.4 Dynamic Companies
               12.7.5 Competitive Benchmarking for Other Players
       12.8 Product Launches, Deals, and Other Developments
               12.8.1 New Product Launches
               12.8.2 Deals
               12.8.3 Other Developments
       13.1 Key Players
               13.1.1 Scotts Miracle Gro
               13.1.2 Signify
               13.1.3 Everlight Electronics 
               13.1.4 Netafim
               13.1.5 Heliospectra AB
               13.1.6 Argus Control Systems 
               13.1.7 Lumigrow
               13.1.8 Weiss Technik
               13.1.9 Priva
               13.1.10 Logiqs
               13.1.11 Illumitex 
               13.1.12 American Hydroponics 
               13.1.13 Richel Group 
               13.1.14 Vertical Farm Systems 
               13.1.15 Hydroponic System International 
       13.2 Other Players
               13.2.1 Certhon
               13.2.2 Bluelab
               13.2.3 Barton Breeze
               13.2.4 Green Sense Farms Holdings, inc 
               13.2.5 Greener Crop
               13.2.6 Sensaphone 
               13.2.7 Freight Farms 
               13.2.8 Climate Control Systems
               13.2.9 Sky Greens
               13.2.10 Sananbio
       14.1 Discussion Guide
       14.2 Related Reports

This research study involved the extensive use of secondary sources—directories and databases, such as Bloomberg Businessweek and Factiva—to identify and collect information useful for a technical, market-oriented, and commercial study of the indoor farming technology market. In-depth interviews were conducted with various primary respondents—such as key industry participants, subject matter experts (SMEs), and C-level executives of key market players and industry consultants—to obtain and verify critical qualitative and quantitative information, as well as to assess growth prospects. The following figure depicts the research design applied in drafting this report on the indoor farming technology market.

Secondary Research

In the secondary research process, various secondary sources were referred to, to identify and collect information for this study. The secondary sources included annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles from recognized authors, gold & silver standard websites, regulatory bodies, trade directories, and databases.

Primary Research

The market comprises several stakeholders, which include hydroponic system manufacturers, grow media and nutrient formulators, suppliers, and hydroponic crop growers in the supply chain. Various primary sources from both the supply and demand sides of the indoor farming technology market were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include research institutions, hydroponic growers, government agencies, horticulturists, floriculturists, and hydroponic and indoor farming associations. The primary sources from the supply side include hydroponic system manufacturers, grow media and nutrient manufacturers, raw material suppliers, and key opinion leaders.

Indoor Farming Technology Market Size, and Share

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Market Size Estimation

Both the top-down and bottom-up approaches were used to estimate and validate the total size of the indoor farming technology market. These approaches were also used extensively to determine the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:

Top-down approach:

  • The key industry and market players were identified through extensive secondary research.
  • The industry's supply chain and market size were determined through primary and secondary research.
  • All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
  • The adjacent market—the hydroponics market and commercial greenhouse market—was considered to validate further the market details of indoor farming technology.

Bottom-up approach:

    • The market size was analyzed based on the share of each type of indoor farming technology and its penetration within the growing systems at regional and country levels. Thus, the global market was estimated with a bottom-up approach to the growing systems at the country level.
    • Other factors include demand within the supply chain including the indoor farming industry; function trends; pricing trends; adoption rate and price factors; patents registered; and organic and inorganic growth attempts.
  • All macroeconomic and microeconomic factors affecting the indoor farming technology market were considered while estimating the market size.
  • All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.

Market size estimation: Bottom-up approach

In the bottom-up approach, each country's market size for indoor farming technology and the growing systems, including hydroponics, aeroponics, aquaponics, soil based, and hybrid was arrived at through secondary sources, such as annual reports, investor presentations, journals, and government publications. The bottom-up procedure was also implemented on the data extracted from secondary research to validate the market segment sizes obtained.

The penetration rate of each solution of indoor farming technology as a percentage of the application sector in each country was calculated from secondary sources. Country-level data for indoor farming technology were estimated based on the adoption rate of each solution of indoor farming technology within the growing systems. The growing system of each component type was tracked via product mapping and studied for its penetration level to estimate the market size at the regional level. Each product type was studied for its commercially available growing system and component type. The market size arrived at was further validated by primary respondents.

Market size estimation methodology: top-down approach

For the calculation of each type of specific market segment, the most appropriate, immediate parent and peer market sizes were used for implementing the top-down procedure.

Further, appropriate weightage was assigned to the data derived from each parameter to arrive at the final shares for each region. The regional demand-supply trends, presence of manufacturing units, and regulatory scenario were also analyzed to further validate the shares arrived at. These shares were then confirmed with primary respondents from across regions.

Indoor Farming Technology Market Size, and Share

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Data Triangulation

After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. To estimate the overall indoor farming technology market and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.

Indoor Farming Technology Market Size, and Share

Market Definition

Indoor farming is a method of growing crops or plants, usually on a large scale, entirely indoors. This method of farming often implements methods of cultivation such as hydroponics, aquaponics, and aeroponics and utilizes artificial lights and other systems to provide plants with the optimal conditions required for their growth. The technology used to consistently provide an indoor environment suitable for plants, coupled with equipment used for indoor cultivation, is known as indoor farming technology. The application of technology in indoor farming to increase yield has emerged as a major technological innovation. Some indoor farms are created in an area as small as a basement and used by a single gardener to provide fresh produce for their homes.

Key Stakeholders

  • Hydroponic hardware manufacturers, suppliers
  • Research & development institutions
  • Traders & retailers
  • Distributors, importers, and exporters
  • Regulatory bodies
    • Food and Drug Administration (FDA)
    • United States Department of Agriculture (USDA)
    • European Food Safety Agency (EFSA)
    • EUROPA
    • Food Safety Australia and New Zealand (FSANZ)
    • Government agencies
  • Intermediary suppliers
  • Universities and industry bodies
  • Manufacturers of commercial greenhouse and indoor farming equipment
  • Original design manufacturing (ODM) and original equipment manufacturing (OEM) technology solution providers
  • Sensor providers
  • Software solution providers
  • Individual and large growers
  • Horticulturists and floriculturists
  • Research institutes and organizations

Report Objectives

Market Intelligence

  • Determining and projecting the size of the indoor farming technology market based on growing systems, facility type, component, crop type, and region over five years ranging from 2023 to 2028.
  • Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
  • Analyzing the demand-side factors based on the following:
    • Impact of macro- and microeconomic factors on the market
    • Shifts in demand patterns across different subsegments and regions.
  • Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
  • To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders.
  • To strategically profile the key players and comprehensively analyze their core competencies.
  • To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development (R&D) in the indoor farming technology market

Competitive Intelligence

  • Identifying and profiling the key market players in the indoor farming technology market
  • Providing a comparative analysis of the market leaders based on the following:
    • Product offerings
    • Business strategies
    • Strengths and weaknesses
    • Key financials
  • Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key region.
  • Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
  • Providing insights into the key investments and product innovations and technology in the indoor farming technology market

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.

The following customization options are available for the report:

Product Analysis

  • Product Matrix, which gives a detailed comparison of the product portfolio of each company.

Geographic Analysis

With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.

  • Further breakdown of the Rest of Europe’s indoor farming technology market, by key country
  • Further breakdown of the Rest of South America’s indoor farming technology market, by key country.

Company Information

  • Detailed analyses and profiling of additional market players
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Report Code
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