North America Indoor Farming Market Outlook, 2029

In North America, agricultural land remains a vital resource, encompassing vast areas dedicated to crop cultivation and livestock farming. However, shifting trends such as urbanization, climate change, and evolving consumer demands are driving the need for innovation in agriculture. As a result, farmers are increasingly adopting new technologies and sustainable practices to improve productivity and resilience. Precision agriculture, which utilizes GPS, drones, and data analytics, is becoming widespread, allowing farmers to optimize water usage, manage crops more efficiently, and reduce waste. Additionally, the adoption of vertical farming and hydroponic systems is growing, especially in urban areas where traditional farmland is limited. Growing leafy greens and other plants indoors has emerged in the past twenty years. Indoor vertical farms represent another method of growing fresh crops in stacked layer formation. While the development of indoor farms to grow leafy greens is relatively new, mushrooms have been grown this way for over 100 years. The advent of efficient LED lighting technologies has allowed farmers to save money while providing crops with just the right wavelengths of light to optimize growth. Other advantages include automation and artificial intelligence. Considering these new technologies, 39% of indoor growers are eager to find solutions to manage operations more efficiently. Lowering the cost of production by almost 20% and increasing yields by 19% are the main purposes of the agriculture industry in North America. North America is the largest market for indoor farming technologies as the region has plans to add 500-plus acres over the next 5 years for indoor farms. The region pays high prices for fresh produce. However, key technologies such as lighting (which are cheaper) and the cost of capital are low compared to other regions. There is a strong pipeline of commercial-scale growing facilities that are being developed across the region. In addition to that, current projects are focused on the leafy green market, with a growing investor appetite for indoor farming solutions such as BrightFarms and Little Leaf Farms. In the USA, controlled environment agriculture is growing at an unprecedented rate. In 2020, the US Department of Agriculture established a new office of Urban Agriculture and Innovation Production. Also, more than USD 3 million in grants was made in the same year. Indoor farming ventures in the USA received USD 929 million in investments. In addition to that, in May 2021, the Urban Agriculture and Innovation Production department announced up to USD 4 million in grants to support the development. Kroger has begun sourcing fresh produce from an Ohio-based indoor farm (80 acres). In the USA, there are more than 41 thousand indoor farms covering over 1.3 billion square feet of growing area. Research into solving the challenges of growing plants in CEA like a spacecraft inspired NASA (National Aeronautics and Space Administration) to build the first indoor farm in the United States. Further, NASA research is expected to spur a new generation of indoor farms across the country.

According to the research report "North America Indoor Farming Market Overview, 2029," published by Bonafide Research, the North America Indoor Farming market is expected to reach a market size of more than USD 12.75 Billion by 2029. The indoor farming industry in the North American region is sustained by the growth in the use of technology such as the internet of things (IoT) in indoor farming, a rapidly expanding populace, and an increase in the annual production of crops. The feasibility of setting up an indoor farm combined with the technological prowess to do so have driven the market growth across the North American region. The North American indoor farming market is segmented into three prominent countries, including the USA, Canada, and Mexico. Among these countries, the USA is estimated to dominate the market during the forecast period.

The North America indoor farming market is experiencing strong growth, driven by the need for sustainable food production, increased urbanization, and the demand for fresh, locally sourced produce. The market is segmented by growth mechanisms, with hydroponics being the largest and most widely adopted method. Hydroponics, which involves growing plants without soil by using nutrient-rich water solutions, has gained popularity due to its efficient use of water and space, making it ideal for urban areas with limited land availability. While hydroponics dominates the segment, other growth mechanisms like aeroponics and aquaponics are also gaining traction. Aeroponics, which involves growing plants in an air or mist environment, offers a highly efficient system that reduces water consumption even further and enhances growth rates, positioning it as a rapidly growing method. Aquaponics, which integrates fish farming with plant cultivation, is also seeing interest due to its closed-loop system that promotes sustainability. Soil-based methods remain significant in certain areas, especially for specific crops, but the trend is shifting towards soilless techniques due to their efficiency. Hybrid systems, combining various techniques, are emerging as well, offering flexibility and optimization for different crops. With the integration of advanced technologies like automation, artificial intelligence, and climate control systems, indoor farming in North America continues to evolve, making it a key player in addressing the region’s agricultural challenges while promoting food security and sustainability.

Within the facility type segment, greenhouses hold the largest share due to their long-standing presence and proven effectiveness in controlled environment agriculture. Greenhouses provide a stable environment for growing a variety of crops year-round while optimizing resources like water and energy, making them the preferred choice for large-scale operations. Vertical farming, although smaller in market share, is rapidly growing, particularly in urban centers where space is limited. This farming method maximizes vertical space, utilizing stacked layers to grow crops, often in fully controlled, automated environments that use advanced technologies such as LED lighting and hydroponic systems. Vertical farms are especially attractive for urban areas with high population densities, where the demand for locally produced, pesticide-free food is increasing. Other facility types, including hybrid structures and plant factories, are also emerging as innovative solutions that combine the benefits of both vertical farming and greenhouses, offering flexibility in crop production.

hardware remains the largest component, encompassing essential physical elements like LED lighting, climate control systems, hydroponic and aeroponic infrastructure, and irrigation equipment. These components form the backbone of indoor farming facilities, enabling controlled environments that optimize plant growth regardless of external weather conditions. Advanced lighting systems, particularly LEDs, are integral to vertical farming setups, allowing crops to grow efficiently by simulating natural sunlight while conserving energy. Climate control systems that regulate temperature, humidity, and CO2 levels further ensure year-round productivity.



Meanwhile, software solutions are rapidly gaining importance and driving growth in the market. Software platforms and applications that provide real-time monitoring, automation, and data analytics are increasingly being integrated into farming operations. These systems offer precision agriculture tools, enabling farmers to track crop health, nutrient levels, and environmental conditions in real-time, thereby improving yields and reducing resource waste.

In the North America indoor farming market, the crop type segment is led by vegetables, fruits, and herbs, which dominate due to the high demand for fresh, locally grown produce. This category includes leafy greens, berries, tomatoes, and herbs like basil, which are ideal for indoor environments and benefit from year-round cultivation in controlled settings. Vegetables, in particular, are the largest category, as consumers increasingly seek pesticide-free, sustainably grown produce. These crops are favored for their short growth cycles and ability to thrive in hydroponic and vertical farming systems, making them well-suited to the resource-efficient nature of indoor farming. Flowers and ornamentals, though smaller in market share, are also seeing growth as urban gardening trends and demand for sustainable floral products rise. These crops benefit from the controlled environments of greenhouses and vertical farms, allowing for consistent quality and the ability to meet off-season demand. The "Others" category, which includes niche crops like medicinal plants and specialty herbs, is also expanding, driven by the increasing interest in alternative agricultural products for health and wellness industries.

Covid-19 Impact:
The covid-19 pandemic has impacted the indoor farming market as the lockdown restriction and lack of transportation disrupted the y-o-y growth. Food is the key to surviving and providing nutrition and in pandemic times, the demand for healthy and organic food products was so high. The growing urbanization and awareness of hygiene and quality food etc. are the drivers for the indoor farming market.

Considered in this report
• Geography: North America
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• North America Indoor Farming Market with its value and forecast along with its segments
• Country wise Indoor Farming market analysis
• Application wise Indoor Farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• US
• Canada
• Mexico

Based on Growth Mechanism:
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

Based on Facility type:
• Vertical Farm
• Greenhouse
• Others

Based on components:
• Hardware
• Software

Based on Crop type:
• Fruits, Vegetables & Herbs
• Flowers & Ornamentals
• Others (rest crops)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.