Market Snapshot

Indoor Farming Market is estimated to witness a rise in revenue from US$ 33.90 billion in 2024 to US$ 80.59 billion by 2033 at a healthy CAGR of 10.1% during the forecast period 2025-2033. 

Demand within the indoor farming market is rapidly evolving, driven by expanding retail penetration and increasing consumer affordability. The national presence of brands like Gotham Greens, with produce available across all 50 U.S. states as of 2025, signals robust and widespread retail demand. This is further evidenced by Oishii's 2024 expansion into major grocery chains like Harris Teeter and Wakefern, bringing premium indoor-farmed products to more consumers. Critically, this demand is being fueled by improved economics; Oishii's Omakase Berries saw a price drop to as low as $12 per tray in 2024, with its Koyo Berries reaching $9.99, making these products more accessible. The food service sector is also a significant demand driver, with Growy's new Singapore farm already supplying 34 different products to over 40 high-end hotels and restaurants, showcasing strong B2B market appetite.

The scale of recent corporate investments and facility expansions provides a clear quantitative measure of anticipated future demand. Oishii’s opening of a 237,500-square-foot smart farm in June 2024, capable of increasing its output twentyfold, is a direct response to this expected growth. Similarly, Cox Farms' expansion to over 700 acres of controlled-environment facilities and Plenty's 2024 opening of the world's largest vertical strawberry farm in Virginia underscore the industry's confidence in sustained demand. This confidence is mirrored by investors; the sector saw $475 million invested across 74 deals in 2024, while Italy's Planet Farms has announced a 200 million euro joint venture for 2025. These figures represent a tangible belief among market players and financiers in the long-term viability and growth of the indoor farming market.

Demand is also becoming more geographically diverse and technologically sophisticated. Significant projects are emerging outside of North America, such as the planned AeroFarms joint venture in Saudi Arabia with a projected annual output of 1.1 million kilograms of crops. This global expansion is creating demand for advanced technology, with German startup vGreens establishing a Singapore subsidiary in late 2024 specifically for AI-driven automated tissue cultures. The value of this technological demand is substantial; the market for robotics designed for vertical farming was valued at $2.2 billion in 2024. Furthermore, government support, including a $9 million USDA investment in October 2024 and a $20 million fund in California for urban agriculture, is actively stimulating demand for innovative and localized food production solutions.

Key Findings in Indoor Farming Market

• Based on growing systems, hydroponics segment holds highest share 46.4%.
• By crop type, common crops segment holds the highest share of 51.2%
• Based on technology, lighting technology is set to control over 42.10% share of the indoor farming market
• Europe is projected to continue leading the market until the end of forecast period 2025–2033
• Indoor farming market is poised to continue growing at robust CAGR to reach US$ 80.59 billion by 2033

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Three Dominant Trends Redefining Strategy and Growth in the Indoor Farming Market

• Market Maturation and Financial Discipline: The indoor farming market is shifting from speculative growth to strategic consolidation. While the industry saw major bankruptcies in 2024, including Bowery Farming, investment has become more focused. Capital is now flowing to fewer, better-positioned players with proven economics, demonstrated by Oishii securing a $150 million Series B funding round and the $475 million invested across 74 deals in 2024. This indicates investors are prioritizing operational efficiency and a clear path to profitability over rapid, unsupported expansion.
• Accelerated Adoption of AI and Robotics: Technology is advancing beyond simple automation into sophisticated, AI-driven operations. Companies are leveraging AI-controlled software and advanced vision-guided robots to monitor crop health and optimize yields, driving down labor costs. The scale of this trend is significant, with the dedicated market for vertical farming robotics reaching a value of $2.2 billion in 2024. Strategic partnerships, like the one between IronOx and HarvestAI, are further accelerating this push toward hyper-efficient, technologically advanced facilities.
• Product Diversification and Mainstream Accessibility: The industry is successfully moving beyond leafy greens to cultivate more complex, high-value crops like strawberries and tomatoes. This diversification, led by companies like Oishii and Plenty, is coupled with a crucial trend toward consumer accessibility. Increased production efficiency has enabled significant price reductions, with premium Omakase Berries dropping to as low as $12 a tray in 2024. This, along with major retail expansions into chains like Harris Teeter, is successfully transitioning indoor-farmed produce from a niche luxury to an affordable mainstream staple.

Survival of the Fittest: Niche Startups Redefine 2025 Indoor Farming

The indoor farming startup landscape of 2025 is defined by a flight to profitability and deep technological specialization. The era of venture-backed hypergrowth for generic leafy green producers has ended, replaced by a more disciplined ecosystem. Successful startups are those with a razor-sharp focus on unit economics and a defensible niche. For example, Hippo Harvest secured $21 million in 2024 not to grow produce itself, but to develop specialized robotics for greenhouses, targeting operational efficiency. This trend highlights a market that now values tangible solutions to industry-wide cost problems over simply adding more production capacity.

This new generation of startups is also characterized by strategic and creative financing. With venture capital less abundant, companies like 80 Acres Farms successfully secured $140 million in public bonds in 2024 for expansion, while Vertical Harvest raised $59.5 million in debt funding. This financial discipline is paired with a focus on high-value IP; 80 Acres also acquired biotech firm Plantae Biosciences in early 2025 to bolster its crop genetics. The successful 2025 startup is lean, technologically focused, and built on a model that prioritizes sustainable margins, a stark contrast to the cash-burning giants of the previous market cycle.

Based on significant strategic activities, funding, and market impact in 2024 and 2025, here are five key startups active in the indoor farming market:

• Oishii: A U.S.-based vertical farming company specializing in high-value produce, particularly strawberries and tomatoes. Notable for its premium branding, $150 million Series B funding in 2024, and expansion into major retail chains.
• 80 Acres Farms: Ohio-based vertical farming firm known for large-scale production and tech investment. Secured $140 million in public bonds in 2024; acquired Israeli biotech Plantae Biosciences in early 2025 to enhance crop genetics.
• Vertical Harvest: Wyoming public-benefit corporation building urban hydroponic farms, employing individuals with disabilities. Raised $59.5 million in debt financing in 2024, highlighting a scalable social-impact model.
• Hippo Harvest: California startup developing autonomous robots and AI for controlled agriculture. Raised $21 million Series B in 2024 for greenhouse deployment, aiming to boost automation.
• GrowUp Farms: UK vertical farming startup that raised £38 million (~$48 million) in 2024 to expand its "Pepperness" large-scale facility, supplying major UK supermarkets.

Large-Scale Procurement Cements Indoor Farming's Commercial Role

The second pillar defining demand in the indoor farming market is the rise of large-scale procurement from corporate and food service clients. This B2B demand is fueling the construction of massive, technologically advanced facilities built to fulfill high-volume, year-round contracts. A prime example is Plenty's new farm in Richmond, Virginia, which opened in 2024 and is designed to produce over 4 million pounds of strawberries annually, grown exclusively for its partner Driscoll's. This illustrates a shift towards dedicated production for major commercial buyers. The global reach of this trend is significant, highlighted by the joint venture in Saudi Arabia with AeroFarms to build a farm with a projected annual output of 1.1 million kilograms of crops.

The food service industry is a key driver of the indoor farming market . As of late 2024, Dutch company Growy's new 8,000m² Singapore farm supplies 34 different products to over 40, and now approximately 50, local hotels and restaurants. High-end culinary adoption is also raising the sector's profile, with Oishii's premium berries featuring on the menus of Michelin-starred Chicago restaurants like Esme and Omakase Yume as of 2024. Production is scaling to meet this commercial demand, with Nordic Harvest's Copenhagen facility reaching its full 1,000-tonne annual capacity in 2024. In Asia, Spread Co.'s Techno Farm Keihanna has a daily capacity of 30,000 heads of lettuce for its commercial partners. In Australia, construction began in January 2025 on Stacked Farm’s Melbourne facility, which will produce 3.4 million kilograms of greens annually for commercial clients. This is mirrored in the U.S., where BrightFarms opened three large-scale farms in 2024 to service major retailers and distributors.

Segmental Analysis 

Hydroponics: Spearheading Resource Efficiency in the Indoor Farming Market

Hydroponics technology unequivocally dominates the growing systems segment, holding a commanding 46.4% share. This market leadership is built on a foundation of unparalleled resource efficiency and productivity. By delivering nutrient-rich water directly to plant roots, hydroponic systems can accelerate crop growth by as much as 30-50% compared to traditional soil-based agriculture. This method's most significant contribution to the sustainable credentials of the indoor farming market is its remarkable water conservation; by recirculating water, these systems can reduce consumption by up to 90%. This efficiency allows for intensive food production in urban centers and arid regions, directly addressing challenges of land and water scarcity and cementing its position as the preferred cultivation method.

• The modular design of many hydroponic farms offers a key operational advantage, enabling the swift isolation of any diseased crops to prevent widespread contamination.
• Restaurants are increasingly adopting compact, on-site hydroponic systems to guarantee a fresh, year-round supply of essential herbs and vegetables, which also helps reduce waste from overbuying.
• By situating farms closer to consumers, hydroponics drastically shortens the supply chain, a critical factor in decreasing food waste from farm to fork.

The financial and operational benefits further solidify the dominance of hydroponics. The controlled, soilless environment virtually eliminates the need for chemical pesticides, as the risk of soil-borne pests and diseases is nullified. This directly meets the rising consumer demand for clean, pesticide-free produce. Furthermore, operating costs related to essentials like fertilizer and water are significantly lower. Vertical hydroponic systems amplify these benefits by producing up to five times more food per square meter than horizontal layouts. Automation through fertigation and dosing controllers reduces manual labor requirements, enhancing profitability. This combination of high yield, reduced operational costs, and alignment with consumer trends ensures hydroponics will continue to lead the indoor farming market.

Common Crops are the Profitable Core of the Indoor Farming Market

Accounting for a majority share of 51.2%, the common crops segment is the commercial engine of the indoor farming industry. This segment, featuring staples like leafy greens, herbs, and tomatoes, thrives due to relentless and predictable consumer demand. These crops are exceptionally well-suited for controlled environment agriculture, exhibiting rapid growth cycles that maximize profitability. For instance, popular leafy greens like lettuce can be harvested in just 30-40 days within a hydroponic system, allowing for numerous crop turns annually. This quick and reliable production cycle makes common crops the most bankable investment for commercial vertical farms, underpinning their substantial market share and driving the industry’s economic viability.

• The demand for fresh herbs is consistently high, fueled by both the restaurant trade and a growing consumer trend towards home cooking with fresh ingredients.
• In 2025, a powerful consumer sentiment is noted, with two out of every three shoppers feeling strongly about purchasing locally grown fruits and vegetables.
• This preference for local produce is even more pronounced in households with children, where 79% feel strongly about it, compared to 60% of households without children.

The alignment with consumer and retail needs solidifies this segment's dominance in the global indoor farming market . High-demand crops like tomatoes are major revenue generators, with some advanced facilities reporting astounding yields of 626kg per square meter in 2023. The ability to provide these crops year-round meets the consistent demand from supermarket chains, which are increasingly forging partnerships with vertical farms for a stable supply. Basil, another popular herb, can be ready for harvest in a mere 3-4 weeks. Restaurants are also driving demand by installing living walls of herbs and greens for immediate access to the freshest ingredients. This powerful synergy between high-yield, fast-growing crops and unwavering market demand ensures the common crops segment will remain the cornerstone of the market.

Advanced Lighting Powering the Future of the Indoor Farming Market

Lighting technology is poised to control a formidable 42.10% share, functioning as the critical technological enabler of the entire indoor farming market. In the absence of sunlight, artificial lighting is the single most important factor for plant growth, and the evolution to advanced LED systems has revolutionized the sector's potential. Modern LED grow lights are vastly more energy-efficient than traditional high-pressure sodium (HPS) lamps, delivering superior light output while consuming less power. This efficiency is paired with incredible durability; the operational lifespan of a high-quality LED can exceed 50,000 hours, which is more than five times longer than that of an HPS lamp. This reduces both energy costs and the long-term capital expenditure on maintenance and replacement.

• The development of "smart lighting" systems that intelligently adjust light intensity based on fluctuating electricity prices presents a significant opportunity to cut farm energy costs.
• IoT sensors and AI algorithms are being integrated with lighting systems, enabling the automation of lighting adjustments to maintain optimal plant health and maximize yield.
• Leading technology players like Signify and OSRAM are driving the market forward through continuous innovation and strategic partnerships focused on horticultural lighting solutions.

Beyond efficiency, the true power of modern lighting lies in its precision. Tunable spectrum LED lights allow growers to develop specific "light recipes" tailored to different crops, optimizing for growth speed, quality, and even taste. By strategically applying blue light for vegetative growth and red light for flowering, growers can precisely steer a plant’s development. Because LEDs produce significantly less heat, they can be placed much closer to plants without causing damage, improving light absorption and eliminating the high costs associated with cooling systems. The ability to monitor and control these parameters remotely via cloud-based platforms makes lighting the most dynamic and influential technology segment, shaping a more profitable and productive future for the indoor farming market.

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Regional Analysis 

Europe’s Strategic Scaling Defines a Mature and Technologically Advanced Market

Europe’s indoor farming market is characterized by strategic, large-scale expansions and significant public investment in advanced agricultural technology. In 2024, the UK's Fischer Farms opened a colossal 270,000-square-foot facility in Norfolk, showcasing the move towards massive industrial scale. This single farm has the capacity to produce 2,000 tonnes of leafy greens annually. Similarly, Nordic Harvest in Denmark reached its full production capacity of 1,000 tonnes annually in 2024, solidifying its position as one of the continent's largest operators. French company Jungle is also expanding, announcing plans in early 2024 for a new 5,000 square meter farm near Bordeaux designed to produce 400 tons of herbs and salads each year.

This physical growth is underpinned by robust financial and research commitments. Italy's Planet Farms is advancing a major joint venture valued at 200 million euros set for 2025. The European Union's Horizon Europe program in the regional indoor farming market allocated over 150 million euros specifically for food and agriculture innovation grants in its 2024 work program, directly benefiting the sector. At a national level, the Netherlands’ new "Greenhouse of the Future" research program received 8 million euros in government funding for 2024-2025. These investments are not limited to EU members; Dutch company Growy demonstrated the region's global technical leadership by launching an 8,000 square meter farm in Singapore, while German startup vGreens is also launching a Singaporean subsidiary in late 2024.

North America Shows A Dynamic Landscape of Public Funding and Corporate Expansion

North America's indoor farming market is a dynamic mix of massive corporate expansion, significant public funding initiatives, and market corrections. On the expansion front, industry giants are making bold moves. Oishii opened a new 237,500-square-foot smart farm in New Jersey in June 2024. Meanwhile, Cox Farms cemented its dominance by surpassing 700 acres of controlled-environment facilities in 2024. Revol Greens also opened a new 20-acre greenhouse in Temple, Texas, in 2024, which is projected to produce over 1 million pounds of lettuce annually. This growth is being financed through diverse mechanisms, illustrated by 80 Acres Farms' plan to receive $140 million in public bonds from Boone County, Kentucky.

Government support is a powerful catalyst in the regional indoor farming market . In October 2024, the USDA awarded $9 million across 10 different organizations to foster urban agriculture. At the state level, California's 2024 budget earmarked $20 million for urban agriculture projects. Canada's AgriInnovation Program allocated $50 million for technology adoption projects in 2024, a portion of which directly benefits controlled environment agriculture. Even as some players restructure—with Bowery Farming auctioning assets like over 5,000 grow panels from a Pennsylvania facility in early 2024—the overall trajectory is one of significant, publicly and privately backed growth, with Plenty opening its landmark Virginia strawberry farm in 2024.

Asia Pacific: Government-Led Initiatives Fuel a Hyper-Growth Trajectory

The Asia Pacific region is rapidly becoming a global hub for indoor farming market, driven by aggressive government policies and technological ambition. National governments are investing heavily to ensure food security. In 2024, South Korea's government announced a five-year, 300 billion KRW (approx. 220 million USD) fund for smart farm technology. This ambitious fund aims to help establish over 100 new smart farm complexes by 2028. Similarly, China’s new national plan for facility agriculture, released in 2024, calls for the construction of 500 large-scale plant factories by 2030.

In Singapore, the Agri-Food Cluster Transformation (ACT) Fund provided over S$60 million to 12 companies in its 2024 funding cycle to boost local production. This state-level support is fostering massive private sector projects in the indoor farming market . Japanese tech firm Spread Co. began construction in 2024 on its Techno Farm Keihanna, which will have a stunning production capacity of 30,000 heads of lettuce per day.

In Australia, Stacked Farm announced a new 7,000-square-meter facility in Melbourne for 2025, designed to produce over 600 tonnes of produce annually. The region is also attracting top international players, with Oishii set to open its first international R&D center in Tokyo by late 2025. Furthermore, a major joint venture with AeroFarms in the Middle East will result in a farm with a 1.1 million kilogram annual capacity, showcasing the immense scale of development in and around the APAC region.

Top 10 Strategic Investments Shaping the 2024-2025 Indoor Farming Market

• Oishii Closes $150 Million Series B Round (November 2024):  In a standout funding event for the vertical farming industry, strawberry producer Oishii closed its Series B funding round at an impressive $150 million. The round, which initially raised $134 million in February 2024, was extended due to strong continued interest from investors including the climate tech fund Resilience Reserve and Japanese venture firm Miyako Capital.
• Planet Farms and Swiss Life Launch €200 Million Joint Venture (May 2025): Swiss Life Asset Managers partnered with Italian ag-tech company Planet Farms to launch a major joint venture to expand vertical farming operations across EMEA. The venture is backed by up to €200 million (approximately $227 million) in initial funding, with Swiss Life contributing as much as €125 million to scale the high-tech farming model.
• 80 Acres Farms Secures $140 Million in Public Bonds (September 2024): In a significant move utilizing public financing, 80 Acres Farms landed $140 million in Industrial Revenue Bonds from Boone County, Kentucky. This funding is earmarked for the expansion of its 200,000-square-foot vertical farm near Florence, demonstrating a creative and successful approach to financing large-scale facility growth.
• 80 Acres Farms Raises $115 Million and Acquires Plantae Biosciences (February 2025): In a dual strategic move, 80 Acres Farms announced it raised $115 million in capital during 2024 from a mix of new and existing investors. Simultaneously, the company acquired Israeli biotechnology firm Plantae Biosciences to integrate advanced plant breeding technology, signaling a deep investment in future crop genetics in the indoor farming market .
• Vertical Harvest Secures $59.5 Million in Debt Funding (2024): Wyoming-based Vertical Harvest raised $59.5 million in debt financing, which was the highest funding figure for a leafy greens grower in 2024. This move highlights a broader industry trend where debt financing has become a crucial instrument for expansion amidst a tighter venture capital market.
• GrowUp Farms Snags $48 Million for UK Expansion (2024): UK-based GrowUp Farms secured £38 million (approximately $48 million) in 2024 to significantly expand the capacity at its "Pepperness" vertical farm in Kent. The investment is aimed at scaling production of its salads for major UK retailers, reinforcing its position in the European market.
• GoodLeaf Farms Obtains New Funding for Canadian Expansion (January 2025): Canada's GoodLeaf Farms secured an undisclosed amount of new funding from Farm Credit Canada (FCC). The capital injection is dedicated to accelerating the company's expansion across Canada, adding to its existing large-scale farms in Ontario, Alberta, and Quebec.
• Hippo Harvest Closes $21 Million Series B for Robotics (2024): Showcasing the importance of automation, Hippo Harvest secured $21 million in a Series B funding round. The investment is focused on adapting general-use robots for specific applications within greenhouse environments, aiming to drive efficiency and reduce labor costs in controlled environment agriculture.
• Harvest Corp Technologies Receives Strategic Investment (April 2024): Venture capital firm RHA Ventures Inc. made a strategic investment in Harvest Corp Technologies, a pioneer in agricultural harvesting robotics. The funding is intended to accelerate the commercialization of its robotic solutions, specifically targeting labor-intensive crops like asparagus for the 2025 season.
• Local Bounti Finalizes Acquisition of Pete's (April 2024): In a significant consolidation move, Local Bounti completed its acquisition of Hollandia Produce Group, which operates under the brand name Pete's. The deal combines Pete's extensive retail distribution network of approximately 10,000 stores with Local Bounti's technology, creating one of the largest CEA operators in the United States indoor farming market .

Top Companies in the Indoor Farming Market

• AeroFarms
• AgriCool
• Argus Control Systems
• Bowery Farming
• BrightFarms
• Everlight Electronics
• EXDIN Solutions
• General Hydroponics
• Gotham Greens
• GP Solutions
• Heliospectra AB
• Infarm
• Iron Ox
• LumiGrow
• Signify Holding
• Sky Greens
• SPREAD Co., Ltd.
• Other Prominent Players

Market Segmentation Overview 

By Growing System:

• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

By Crop Type:

• Common crops
  • Lettuce
  • Chard
  • Cabbage
  • Kale
  • Tomatoes
  • Spinach
• Herbs
  • Basil
  • Mint
  • Chives
  • Parsley
• Microgreens

By Technology:

• Controlled Environment Agriculture
  • Dosing systems
  • Sterilization Systems
  • Chemical disinfection
• Lighting
  • Fluorescent grow lights
  • LED lighting
• Air control
  • CO2 gassing
  • Compressed CO2
• The Internet of Things - IoT
  • Sensors

By Region:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of Latin America