Indoor Farming Market Size To Reach $88.48 Billion By 2030

May 2025 | Report Format: Electronic (PDF)

Indoor Farming Market Growth & Trends

The global indoor farming market size is estimated to reach USD 88.48 billion in 2030 and is anticipated to grow at a CAGR of 13.5% from 2025 to 2030, according to a new report by Grand View Research, Inc. The increasing demand for food owing to the rising population is expected to drive the growth. Factors such as declining water supply, urbanization, and climate change have contributed to the loss of arable land. This, in turn, is driving demand for indoor farms to produce food. In addition, challenges, such as rising global temperature and extreme weather conditions, act as a barrier to the traditional farming technique. The European Environment Agency (EEA) has carried out several initiatives to build vertical farms to overcome these challenges and produce food in an eco-friendly way.

Indoor farming increases the crop yield and reduces the farming impact on the environment by reducing the distance traveled in the supply chain. It reduces the need for the land space required to grow plants compared to traditional farming methods by using growing shelves mounted vertically. Rising consumer awareness regarding the consumption of healthy and fresh food is anticipated to positively influence the market for indoor farming during the forecast period. Furthermore, the use of technology, such as LED indoor farming, to create nature-like conditions will help farmers meet the expected demand for food supply in the near future.

Europe dominated the market in 2023 and is anticipated to remain dominant over the forecast period, owing to the continuous adoption of advanced technologies such as LED lighting, and controlled environment agriculture. Asia Pacific is expected to exhibit the fastest CAGR from 2024 to 2030, owing to the increasing indoor farms in countries such as China and Japan. Increasing adoption of greenhouses and vertical farms is expected to support regional growth. In addition, the rising demand for pesticide-free, fresh vegetables and fruits is expected to fuel the regional market growth.

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Indoor Farming Market Report Highlights

The hardware segment accounted for the largest market share of over 60.0% in 2024. The segment is further categorized into climate control systems, lighting systems, sensors, and irrigation systems, which enable the cultivation of indoor-grown crops
The greenhouses segment dominated the market and accounted for a revenue share of over 71.0% in 2024. Increasing demand for sustainable and controlled agricultural practices is driving greenhouse market growth
The fruits, vegetables, & herbs segment dominated the indoor farming industry and accounted for a revenue share of over 57.0% in 2024
The hydroponics segment accounted for the largest market share of over 55.0% in 2024. Hydroponics is a popular farming method due to low installation costs and ease of operation
Europe held the major share of over 31.0% of the indoor farming industry in 2024. The rising adoption of technologies for indoor farms, such as Controlled Environment-Agriculture (CEA), which controls the environmental factors, is responsible for regional growth

Indoor Farming Market Segmentation

Grand View Research has segmented the indoor farming market report based on component, facility type, crop category, growing mechanism, and region:

Indoor Farming Component Outlook (Revenue, USD Million, 2018 - 2030)

Hardware
- Climate Control Systems
- Lighting Systems
- Sensors
- Irrigation Systems
Software
- Web-Based
- Cloud-Based
Services
- System Integration & Consulting
- Managed Services
- Assisted Professional Services

Indoor Farming Facility Type Outlook (Revenue, USD Million, 2018 - 2030)

Greenhouses
Vertical Farms
- Shipping Container
- Building-based
Others

Indoor FarmingCrop Category Outlook (Revenue, USD Million, 2018 - 2030)

Fruits, Vegetables, & Herbs
- Tomato
- Lettuce
- Bell & Chili Peppers
- Strawberry
- Cucumber
- Leafy Greens
- Herbs
- Others
Flowers & Ornamentals
- Perennials
- Annuals
- Ornamentals
Others