Indoor Farming Technology Market Report 2026

The indoor farming technology market size has grown rapidly in recent years. It will grow from $41.84 billion in 2025 to $47.14 billion in 2026 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to increasing urbanization, early adoption of greenhouse technologies, rising need for consistent crop yields, limited availability of arable land, growing awareness of pesticide-free produce.

The indoor farming technology market size is expected to see rapid growth in the next few years. It will grow to $73.75 billion in 2030 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to rising investments in indoor farm automation, expansion of commercial vertical farming players, increasing demand for climate-resilient food systems, growing shift toward sustainable cultivation methods, rising adoption of aeroponics and aquaponics. Major trends in the forecast period include rising demand for pesticide-free controlled cultivation, expansion of multi-layer indoor growing facilities, increasing adoption of led-based growth acceleration, growth in commercial production of herbs and microgreens, shift toward high-density urban farming models.

The growing demand for organic food is expected to drive the growth of the indoor farming technology market going forward. Organic food is produced using farming practices that avoid or significantly limit synthetic pesticides, herbicides, fertilizers, GMOs, growth hormones, and certain food additives. Indoor farming technology supports the production of high-quality, sustainable, and pesticide-free organic food, minimizes environmental impact, and offers precise growing conditions that ensure consistent quality, flavor, and appearance of organic produce. For example, in April 2025, according to the Organic Trade Association (OTA), a U.S.-based membership organization, U.S. sales of certified organic products in 2024 increased by 5.2% year over year, more than double the 2.5% growth rate of the overall market, reaching a record $71.6 billion. Therefore, the rising demand for organic food is contributing to the growth of the indoor farming technology market.

Leading companies in the indoor farming technology market are focusing on strategic partnerships, such as integrated vertical farming systems, to gain a competitive edge. These systems combine hydroponic technologies with smart automation to support efficient indoor cultivation using minimal resources, enabling the growth of fresh local produce. For example, in October 2025, Agroz, a Malaysia-based agrotech company, launched the Agroz Groz Wall in collaboration with US-based Harvest Today. The Groz Wall offers a scalable vertical farming system that uses 97% less water, requires no pesticides, and includes a remote-controlled Vertigation system for automated watering managed through a mobile app. This system supports sustainable, pesticide-free, high-yield crop production ideal for urban and semi-urban settings. The partnership reflects a shift toward practical, adaptable vertical farming solutions that enhance regional food security while expanding market presence in Southeast Asia. This strategic alliance demonstrates the market’s emphasis on innovation tailored to local needs to strengthen food system resilience and sustainability.

In March 2024, AGEYE, an agritech company based in Raleigh, North Carolina, acquired HYVE Brand for an undisclosed amount. This acquisition aims to enhance AGEYE's capabilities in controlled environment agriculture (CEA) by integrating HYVE's automated vertical farming systems with AGEYE's advanced AI technology. HYVE Brand is a custom activewear company located in the UK, founded by a group of sports enthusiasts from IIM Ahmedabad and NIFT.

Major companies operating in the indoor farming technology market are Advanced Nutrients Holdings Inc., Agrilution GmbH, American Hydroponics LLC, BrightFarms Inc., General Hydroponics Inc., Hydrodynamics International Inc., Logiqs B. V., Netafim USA, Richel Group SA, Vertical Farm Systems Pty Ltd, AeroFarms LLC, Bowery Farming Inc., Emerald Harvest Inc., Freight Farms Inc., FreshBox Farms LLC, Grobo Inc., Metropolis Farms Inc., The Scotts Miracle-Gro Company, VitaLink Limited, Plenty Unlimited Inc., Crop One Holdings Inc., 80 Acres Farms LLC, Oasis Biotech Limited, AppHarvest Inc., Gotham Greens Holdings LLC, Green Sense Farms Holdings Inc., Lufa Farms Inc., Farm. One Inc., Infarm AG, Square Roots Inc., iFarm Project Ltd., Urban Crop Solutions NV, Local Roots Farms LLC, Kalera Inc., Valoya Oy, Heliospectra AB, Fluence by OSRAM GmbH, AEssenseGrows Inc., Nordic Harvest A/S.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported LED lighting, climate control hardware, hydroponic components, and automation equipment have raised system installation costs for indoor farming facilities, particularly affecting vertical farms and container farms in regions dependent on foreign technology such as North America, Europe, and parts of Asia-Pacific. These increased costs slow expansion for small and medium operators but may encourage regional manufacturing growth and localized supply chains, creating long-term cost advantages and reducing future import dependency.

The indoor farming technology market research report is one of a series of new reports that provides indoor farming technology market statistics, including indoor farming technology industry global market size, regional shares, competitors with a indoor farming technology market share, detailed indoor farming technology market segments, market trends and opportunities, and any further data you may need to thrive in the indoor farming technology industry. This indoor farming technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Indoor farming technology employs innovations to create an artificial environment within a closed facility, accelerating plant growth and nutrient uptake compared to traditional farming methods. It involves the use of controlled growing and nutrition systems, LED illumination, and layering for optimal indoor plant cultivation. This agricultural approach offers advantages such as the ability to produce more food using less land and avoiding the use of chemicals.

The primary types of indoor farming technology focus on cultivating fruits and vegetables, flowers and ornamentals, and herbs and microgreens. Fruits, being the mature ovary of a seed plant, are typically generated from flowers and contain seeds that contribute to the plant's reproductive cycle. Vegetables, on the other hand, are edible plants or parts of plants that may not necessarily play a role in the plant's reproductive cycle. These technologies encompass various components, including hardware, software, services, and integrated systems, with facilities such as glass or poly greenhouses, indoor vertical farms, container farms, and indoor deep water culture systems. Indoor farming utilizes cultivation methods like aeroponics, aquaponics, and hybrid techniques to optimize plant growth.North America was the largest region in the indoor farming technology market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the indoor farming technology market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the indoor farming technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The indoor farming technology market consists of revenues earned by entities by monitoring, analyzing, and adjusting climate conditions within greenhouses and indoor farms. The market value includes the value of related goods sold by the service provider or included within the service offering. The indoor farming technology market also includes sales of hydroponics, aeroponics, and aquaponics. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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