The global indoor farming technology market is on a strong growth trajectory, projected to reach USD 32.3 billion by 2028 from USD 20.3 billion by 2023, growing at a robust CAGR of 9.7% during the forecast period. The surge in demand for locally sourced, fresh produce has fueled a wave of indoor farming initiatives, making this sector increasingly attractive for investors and agritech companies alike. The increasing indoor farming technology market size reflects the growing adoption of controlled-environment agriculture globally.
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Glass and Poly Greenhouses Lead the Facility Segment
Among indoor farming facilities, glass or poly greenhouses are expected to dominate the market over the forecast period. This growth is driven by several factors:
- The need for locally produced, high-quality produce, which greenhouses facilitate through controlled growing conditions.
- Technological advancements in climate control, irrigation systems, and automation, improving productivity and profitability.
- Increasing environmental awareness and efforts to reduce carbon footprints, as greenhouses offer energy-efficient solutions for sustainable farming.
As indoor agriculture continues to expand, greenhouses remain a cornerstone for efficient, sustainable, and high-yield crop production, directly contributing to the indoor farming technology market share of different facility types.
Lighting Systems: A Key Component Driving Growth
Lighting systems hold a significant share in the indoor farming technology market, critical for plant growth in controlled environments. Since artificial light is the primary source in vertical farming setups, optimizing the light spectrum, intensity, and duration is essential to ensure high yields while maintaining energy efficiency.
Key considerations for indoor lighting include:
- Quality: Spectrum tailored to the plant’s growth stage.
- Quantity: Intensity sufficient to promote photosynthesis without excess thermal load.
- Duration: Photoperiod aligned with plant species requirements.
Advances in LED technology and smart lighting controls allow growers to simulate natural conditions, maximize crop output, and reduce energy costs, making lighting systems a crucial element in the indoor farming technology market size.
North America Emerges as a Key Market
North America is poised to increase its market share in indoor farming technology, projected to grow at the second-highest CAGR from 2023 to 2028. Factors driving this growth include:
- Rapid adoption of greenhouses and vertical farms in urban areas of the US and Canada.
- Government and private support promoting hydroponic and controlled-environment agriculture.
- Rebounding private investments and M&A activity, surpassing USD 1.6 billion, signaling renewed confidence in the sector.
This growth reinforces North America’s position as a leading hub for innovation in the indoor farming technology market.
Leading Players Shaping the Market
The indoor farming technology companies operating globally are highly competitive, adopting partnerships, collaborations, and strategic agreements to expand their presence. Notable players include:
- US: Scotts Company LLC, Lumigrow, Inc, Illumitex, Green Sense Farms Holdings, Freight Farms Inc, Climate Control Systems Inc
- Netherlands: Signify Holding, Priva, LOGIQS.B.V., Certhon
- Taiwan: EVERLIGHT ELECTRONICS CO., LTD
- Israel: NETAFIM
- Sweden: Heliospectra AB
- Canada: Argus Control Systems Limited
- France: RICHEL GROUP
- Australia: Vertical Farm Systems
- Spain: Hydroponic Systems International
- New Zealand: Bluelab
- India: Barton Breeze
- Dubai: Greener Crop Inc
- Singapore: Sky Greens
- China: SANANBIO
These indoor farming technology companies continue to innovate in lighting, climate control, and hydroponics systems to maintain a competitive edge.
The indoor farming technology market is evolving rapidly, driven by the demand for fresh, local produce, advancements in greenhouse and lighting technologies, and growing environmental consciousness. With increasing adoption in North America and strategic expansions by global indoor farming technology companies, the market is set for significant growth through 2028, reflecting the expanding indoor farming technology market size and share across regions.
Frequently Asked Questions
- What is the indoor farming technology market?
- What factors are driving the growth of the indoor farming technology market?
- Which facility type dominates the indoor farming technology market?
- What are the key components in indoor farming technology?
- How important are lighting systems in indoor farming?
- Which regions are experiencing the fastest growth in the indoor farming technology market?
- What are the major types of indoor farming systems?
- Who are the leading indoor farming technology companies globally?
- How does indoor farming technology help produce fresh and locally sourced crops?
- What trends are shaping the future of the indoor farming technology market?