Europe Indoor Farming Market Overview

Base Year: 2024

Historical Years: 2019–2024

Forecast Years: 2025–2033

Market Growth Rate: 9.2% (2025–2033)

Europe Indoor Farming Market is growing due to rising demand for sustainable agriculture, technological advancements, and increasing urbanization. The Europe indoor farming market size is projected to exhibit a growth rate (CAGR) of 9.2% during 2025-2033.

Europe Indoor Farming Industry Trends and Drivers:

Indoor farming market in Europe is expanding rapidly, driven by demand for sustainable agriculture and food security. Valued at USD 12.7 billion in 2024, Mordor Intelligence projects it to reach USD 21.2 billion by 2030, with a CAGR of 8.9%. Urbanization, with 75% of Europe’s population in cities, and land scarcity fuel adoption of vertical farming and greenhouses, particularly in Netherlands and United Kingdom. Hydroponics dominates, holding 40% market share, using 95% less water than traditional farming. Innovations like AI-driven climate control and LED lighting, adopted by companies such as Signify, enhance yields by 20%. Regulatory support, like the EU’s Farm to Fork Strategy, encourages eco-friendly practices. However, high setup costs, around USD 1 million per hectare, make it tough for smaller players.

Vertical farming, growing at a 10% CAGR, is transforming Europe’s indoor farming market, especially in Germany and France. Stacked systems in warehouses and skyscrapers save space. They produce 100 times more yield per acre than traditional methods. Infarm raised USD 200 million in 2023. They integrate farms into supermarkets. This cuts transport emissions by 30%. The market struggles with high energy costs. Electricity makes up 25% of operating expenses. This issue worsened due to the energy crises in 2022. The EU is giving USD 5 billion in subsidies for green agriculture. This will help farmers use solar-powered systems. Consumer demand for high-value crops, such as leafy greens and herbs, is strong. These crops make up 60% of total output. This trend matches health interests, as 70% of shoppers are willing to pay more for local produce. Future growth relies on scaling automation and cutting energy dependence. Startups like Bowery Farming are moving into Poland and Spain. They are taking advantage of lower labor costs in Eastern Europe to boost their market presence through 2030.

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Europe Indoor Farming Industry Segmentation:

The report has segmented the market into the following categories:

Facility Type Insights:

• Greenhouse
• Indoor Vertical Farms
• Container Farms
• Indoor Deep Water Culture
• Others

Crop Type Insights:

• Fruits, Vegetables and Herbs 
  • Lettuce
  • Spinach
  • Kale
  • Tomato
  • Herbs
  • Bell and Chilli Peppers
  • Strawberry
  • Cucumber
  • Others 
• Flowers and Ornamentals
  • Annuals
  • Perennials
  • Ornamentals
  • Others
• Others

Component Insights:

• Hardware 
  • Structure
  • LED Lights
  • HVAC
  • Climate Control System
  • Irrigation Systems
  • Others 
• Software
  • Web-based
  • Cloud-based

Growing System Insights:

• Aeroponics
• Hydroponics
• Aquaponics
• Soil-based
• Hybrid

Regional Insights:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Key highlights of the Report:

• Market Performance (2019–2024)
• Market Outlook (2025–2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

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