Indoor Farming Market

November 6, 2020

Global Indoor Farming market

In 2017, the Global Indoor Farming market accounted for $106.6 billion and is expected to reach $171.12 billion by 2026, growing at a CAGR of 5.4 % during the forecast period.

Source: Mordor Intelligence (2020)

Indoor farming is a modern form of agriculture in which plants are grown in indoor environments. It works on a large and small scale. It is climate-friendly and protects your farm from climate-related ideas which often hindering the production of existing crops. The cultivation space is limited, so it is widely used in urban areas. In recent years, the technological development of agricultural sensor technology, monitoring and regulating devices for every aspect of farming has promoted indoor farming.

Market growth is accelerating due to factors such as increased mechanisms in indoor farming and increased interest in the application of advanced and effective technologies. However, restrictions on crops and high initial investment will stifle market growth. In addition, as the need to maximize crop yields increases, there will be many growth opportunities in the near future. 

By systematic farming, hydroponic industry will increase profits during the forecast period due to the application of growth mechanisms that minimize most risks, such as limited space in urban areas and available water. There are low, and provide enough fresh produce. Geographically, the Asia-Pacific region appears to be in great demand due to the increasing number of these farms in countries like China and Japan and climate change in the region.

North America Dominates By Being The Largest Market for Indoor Farming (Mordor Intelligence, 2020)

North America accounted for the largest market share in 2019. The US is a major contributor to the share in the region, followed by Canada and Mexico.

With the help of high-efficiency LED lights and enhanced indoor management practices, the US growers have been able to adopt large scale indoor farming and are expected to reduce energy lighting costs by 50%, hence reducing the carbon footprint of controlled environment agriculture. As per the United States Department of Agriculture (USDA), the average yield of conventional lettuce farming doubled by two folds, when cultivated through vertical farming. According to the United Nations Food and Agriculture Organisation, drylands in Mexico occupy approximately 101.5 million hectares of land, thereby thrusting the need for indoor farming practices. Canada has also seen a positive growth trend, contributing significantly to the world exports of hydroponically grown tomatoes. The growth of hydroponics and aeroponics systems in the region is further driving the overall indoor farming market, majorly due to the increasing focus on adopting innovative and efficient technologies to improve the yields.

(*) Indoor farm Image by SANANBIO


Research and Markets (2019). Indoor Farming – Global Market Outlook (2017-2026). Retrieved from (accessed January 2020)

Mordor Intelligence (2020). Global Indoor Farming Market (2020-2025), p.14. Retrieved from (accessed January 2020)

Further Reading

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Potential Market of Smart Indoor Garden in North America

Canada and the U.S. market will be a potential niche market for developing Smart Indoor Garden – where supply fresh, safe, and nutrient vegetables for households in their apartment or condominium. If one percent of total Canadian & American homeowner of apartments buy Smart Indoor Garden, the demand for Smart Indoor Garden will be over 200,000 units.

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Microgreens’ Nutrient and Health Benefits

Microgreens contain larger amounts of vitamins, minerals and antioxidants than their more mature counterparts. Microgreens deliver a concentrated dose of nutrients and beneficial plant compounds. As a result, they may reduce the risk of certain diseases.



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