The global indoor farming market is valued at $40.51 billion, according to a new report from Fact.MR.

The market research firm also reports that the global indoor farming market is projected to see a compound annual growth rate (CAGR) of 11.3% from 2023 to 2033.

Fact.MR says global indoor farming sector is booming as a result of efforts to mitigate the effects of climate change, boost year-round productivity and satisfy the growing demand for sustainable agriculture solutions. Indoor farming offers an economical, space-efficient and environmentally sustainable way to grow food.

The primary forces behind market expansion are environmental sustainability and year-round production. Compared to traditional agriculture, indoor farming requires a significantly smaller quantity of land and water.

Urbanization's growth has spurred the use of indoor farming techniques, giving people access to locally grown, fresh produce. The boundaries of what can be grown indoors are being expanded by hydroponics, vertical farming and controlled environment agriculture. The necessity of robust local food systems was brought to light by the COVID-19 pandemic, which makes indoor farming an enticing possibility for food security.

As consumers grow more conscious of the environmental effects of food production, they are searching for locally sourced and sustainable alternatives. Indoor farming satisfies these needs. The productivity of crops and operational efficiency have significantly risen with the integration of IoT, AI and current LED lighting.

Key takeaways from market study include:

• North America accounted for 24.8% of the global market share in 2022.
• Asia Pacific accounted for 32.1% share of the global market in 2022.
• Demand for indoor farming solutions is projected to reach a market value of $118.17 billion by the end of 2033.
• The flowers and ornamentals segment accounted for a market share of 28.9% in 2022.
• The hydroponics segment accounted for 49.9% share of the market in 2022 and is projected to rise at a CAGR of 6.5% over the next ten years.