Each year, more arable land is lost to desertification and erosion from human industrial activities across the globe. In the last 40 years, 33% of the world’s arable land has been lost to erosion or population. In addition to that, 4 billion people (two thirds of the world’s population) experience major water shortages for at least one month each year. Feeding them is going to be a major concern for many industries. However, indoor farming can be a viable option to overcome these threats. Indoor farming is a technique of growing crops/plants on both large and small scales, in-home or commercially entirely indoor. It is also known as indoor gardening. It is, on the other hand, is particularly popular in major cities because plots of land of any size are scarce for growing and farming. The majority of indoor farming employs a combination of hydroponics and artificial lighting to supply plants with the nutrients and light that they would receive if cultivated outside.
Some indoor farming systems, such as those used in greenhouses, can, however, combine natural and artificial resources. So indoor farming provides protected areas for growing crops like greenhouses, vertical farms either in a building or in a shipping container and deep water culture.
According to the research report, “Global Indoor Framing Market Outlook, 2029” published by Bonafide Research, the market is expected to cross USD 49.01 Billion market size by 2029, increasing from USD 20.29 Billion In 2023. The global market is forecasted to grow with 16.23% CAGR by 2024-29. In order to fight water scarcity and loss of arable land, this is one of the great techniques. The method of growing plants and crops on a large scale entirely indoors and with the help of various growth mechanisms and artificial lights is known as indoor farming. In comparison to traditional farming, 70 to 95% of the water used in indoor farming is recycled. Also, there is no issue of pests or any other diseases because in this method, 90% less or no soil is used. Most commonly, fruits, vegetables, and herbs are grown in indoor farms. However, other varieties of plants can also be grown by the same method. Indoor farming is popular in those regions where it is difficult to find agricultural land. For optimum plant growth, greenhouse environmental control involves controlling and modifying day and night temperatures, relative humidity, and CO2 levels. During the winter and summer, extremes in temperature and humidity are common. A well-designed production facility will tend to maintain a temperature range of 55 to 85 with humidity levels high enough to prevent water stress but low enough to prevent disease and fungus outbreaks in the crop.
The global indoor farming market is experiencing significant growth, with Europe emerging as the leading region This dominance is attributed to the widespread adoption of greenhouse and vertical farming technologies across European countries, resulting in increased production of indoor-grown crops. Notably, the Netherlands stands out as a major contributor, accounting for over 30% of Europe's greenhouse-grown vegetable production. The region's commitment to sustainable agriculture and technological integration has propelled its leadership position. Countries like Germany have advanced from simple covered crop rows to sophisticated plant factories, leading in smart greenhouse hydroponics. Looking ahead, the United Kingdom is expected to register the highest compound annual growth rate (CAGR) from 2024 to 2030 within Europe, indicating a robust expansion in indoor farming practices. This growth is driven by increasing urbanization, food security concerns, and the adoption of advanced agricultural technologies. Europe's proactive approach to embracing innovative farming techniques and its focus on sustainability have established it as the leading region in the global indoor farming market.
Indoor farming utilizes advanced growth mechanisms, with hydroponics leading due to its efficient water usage and high crop yield. Hydroponics eliminates the need for soil by growing plants in nutrient-rich water, making it the most widely used technique in vertical farming and greenhouses. Aeroponics, another emerging method, suspends plant roots in the air and mists them with nutrients, enabling faster growth while using 95% less water than traditional farming. This technique is highly efficient but requires advanced technology and precise control. Aquaponics integrates hydroponics with fish farming, creating a symbiotic system where fish waste provides natural nutrients for plants, and plants purify water for fish. While this method is sustainable and eco-friendly, it is less commonly adopted due to its complexity and high initial investment. These growth mechanisms drive the success of indoor farming by optimizing resources and improving productivity in urban agriculture. Indoor farming structures are categorized into building-based and shipping container-based vertical farms. Building-based vertical farming involves multi-story setups in urban areas, allowing large-scale production with automated climate control and LED lighting. These farms maximize space efficiency, making them suitable for densely populated regions. Shipping container-based farms, on the other hand, offer mobility and scalability. These farms repurpose standard shipping containers into self-contained growth environments with hydroponic or aeroponic systems. This type is gaining popularity due to its adaptability, making it ideal for urban food supply chains and remote areas. Both structure types are crucial in modernizing agriculture and addressing global food security.
The global indoor farming market utilizes diverse growth mechanisms, including hydroponics, aeroponics, aquaponics, soil-based farming, and hybrid methods. Hydroponics dominates due to its high resource efficiency, allowing plants to grow in nutrient-rich water without soil. Aeroponics, which mists nutrients onto suspended roots, enables faster plant growth with minimal water usage. Aquaponics combines hydroponics with fish farming, creating a sustainable ecosystem but requiring high investment. Soil-based indoor farming remains relevant for certain crops that thrive in controlled soil environments. Hybrid methods integrate multiple techniques for optimal yield, resource use, and sustainability. These mechanisms cater to different farming needs, making indoor agriculture more adaptable and productive. Indoor farming facilities include vertical farms, greenhouses, and other structures. Vertical farms use multi-level indoor spaces to cultivate crops efficiently with controlled lighting, irrigation, and climate management. These farms are ideal for urban environments, reducing the need for transportation and lowering carbon footprints. Greenhouses, a well-established method, combine natural sunlight with controlled indoor environments, enabling year-round cultivation. They remain a dominant facility type due to their cost-effectiveness and scalability. Other facilities, such as repurposed warehouses, underground farms, and research labs, also contribute to the indoor farming sector, supporting innovation and localized food production.
Indoor farming relies on both hardware and software components. Hardware includes LED grow lights, hydroponic systems, climate control equipment, and irrigation systems, all essential for maintaining optimal growing conditions. These technologies ensure precision farming, maximizing crop yield with minimal resources. Software solutions, such as AI-driven monitoring systems, IoT-based climate control, and farm management applications, are crucial for real-time data analysis and automation. By integrating software with hardware, farmers can remotely monitor nutrient levels, temperature, humidity, and lighting conditions, making indoor farming more efficient and scalable. Indoor farming primarily supports the cultivation of fruits, vegetables, herbs, flowers, and ornamentals. Fruits and vegetables, including leafy greens, tomatoes, and cucumbers, are the most commonly grown due to their high market demand and fast growth cycle. Herbs such as basil and mint thrive in controlled environments, making them popular in vertical farms. Flowers and ornamentals also benefit from indoor farming, allowing year-round production of premium-quality plants for decorative and commercial purposes. Other crops, including medicinal plants, are also cultivated to meet niche market needs.
Indoor farming enables the growth of a variety of crops, including leafy greens (lettuce, spinach), tomatoes, cucumbers, strawberries, bell and chili peppers, herbs and microgreens, ornamentals, and more. Leafy greens are the most widely cultivated due to their short growth cycle and high demand. Tomatoes and cucumbers also thrive in controlled environments, ensuring a steady supply of fresh produce. Strawberries benefit from vertical farming, as they require precise temperature control for optimal yield. Bell and chili peppers adapt well to hydroponic systems, producing high-quality crops with minimal resource use. Herbs and microgreens, such as basil and parsley, are increasingly popular due to their nutritional value and culinary applications. Ornamentals, annuals, and perennials contribute to the floriculture industry, allowing year-round flower production. Other specialty crops, including medicinal plants, further diversify the indoor farming sector. These structured insights highlight the significance of indoor farming in revolutionizing modern agriculture, ensuring sustainability, and enhancing food security worldwide.