Delray Beach, FL,, Oct. 06, 2025 (GLOBE NEWSWIRE) — The indoor farming revolution is accelerating, driven by rising consumer demand for fresh, locally sourced produce and the push for sustainable agricultural practices. According to recent research, published by MarketsandMarkets the global indoor farming technology market is projected to grow from USD 20.3 billion in 2023 to USD 32.3 billion by 2028, registering a CAGR of 9.7%. This surge highlights the growing adoption of controlled-environment farming systems across the world.
Greenhouses Leading the Way
Among the various facility types, glass and poly greenhouses are expected to dominate the market over the forecast period. These structures provide an efficient, controlled environment for growing crops year-round. Several factors contribute to this trend:
Rising demand for fresh produce: Urbanization and consumer preferences are pushing growers toward local, high-quality crops.
Advanced greenhouse technology: Innovations in climate control, irrigation, and automation are enhancing productivity and profitability.
Sustainability focus: Greenhouses offer energy-efficient solutions that help reduce carbon footprints, making them increasingly attractive in environmentally conscious markets.
As indoor farming expands, glass and poly greenhouses are set to remain a cornerstone of modern agricultural practices.
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Lighting Systems: Powering Growth
Lighting systems are a key component of indoor farming technology, holding a significant market share. In environments lacking natural sunlight, artificial lighting is essential for plant growth. The right lighting spectrum, intensity, and duration can dramatically improve yields while optimizing energy use.
Quality of light: Simulates natural sunlight or can be tailored for specific plant needs.
Intensity and duration: Adjusted to match the crop type, growth stage, and photoperiod requirements.
Energy efficiency: Advanced lighting reduces thermal load and energy consumption while maximizing growth potential.
With precision lighting, indoor farms can produce healthier crops faster, supporting the market’s rapid growth.
North America on the Rise
North America is expected to increase its market share in indoor farming technology, emerging as one of the fastest-growing regions. Factors driving this growth include:
The rise of greenhouses and vertical farms in the U.S. and Canada.
Government support for innovative urban farming solutions.
Widespread adoption of hydroponics and other soilless systems in urban centers to supply fresh produce.
Investment rebound: After a dip in 2020 due to the pandemic, private funding, M&A activity, and public listings of indoor farms have surged, with over USD 1.6 billion invested in recent years.
North America’s strong ecosystem of investors, technology providers, and growers is helping the region become a hub for indoor agriculture innovation.
Key Market Players
The indoor farming technology landscape features a mix of global innovators and regional specialists, including:
Scotts Company LLC (US)
Signify Holding (Netherlands)
EVERLIGHT ELECTRONICS CO., LTD (Taiwan)
NETAFIM (Israel)
Heliospectra AB (Sweden)
Argus Control Systems Limited (Canada)
Lumigrow, Inc (Canada)
Priva (Netherlands)
Vertical Farm Systems (Australia)
Sky Greens (Singapore)
SANANBIO (China)
These companies are leveraging partnerships, collaborations, and strategic agreements to expand their global footprint and advance indoor farming technologies.
The indoor farming technology industry is entering a period of accelerated growth, fueled by sustainability concerns, consumer demand for fresh produce, and technological innovation. From greenhouses to advanced lighting systems, the industry is evolving rapidly to meet the challenges of modern agriculture.
For growers, investors, and technology providers, the indoor farming sector offers immense opportunities to redefine how food is produced, distributed, and consumed—closer to urban consumers, with higher efficiency and lower environmental impact.
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