The Growth of Indoor Farming in the United States

1. Investment Rebound & Industry Consolidation In Indoor Farming

• After a dip in 2023, investment in indoor farming rebounded in 2024, focusing on high-tech greenhouses and automation.
• M&A activity is increasing, with larger players acquiring smaller operations.
• Branded greenhouse produce is gaining traction via franchising and strategic alliances.
• AI-driven solutions are helping reduce operational costs and improve efficiency.

2. Expansion Beyond Leafy Greens

Vertical farming is expanding into new crop categories, including:

• Tomatoes (cherry, beefsteak, sliced)
• Cucumbers, peppers
• Strawberries, small watermelons

Shlomy Raziel, President & Founder, Grow-Tec
“The ability to focus on flavor and quality, alongside the resurgence of heritage varieties that can no longer be grown through traditional farming methods, is transforming the market.”

3. Automation & Robotics Driving Efficiency

Automation is now a central tool for achieving uniformity and scale:

• Automated seeding, transplanting, and harvesting technologies are reducing labor needs.
• TTA-ISO continues to lead innovations in automated solutions for greenhouses and vertical farms.

Renko Schuil, Sales Manager, TTA-ISO
“Automation is never the goal itself—profitability, quality, uniformity, and predictability are the goals, and automation is the tool to achieve them.”

4. Policy & Sustainability Challenges

• Energy costs and evolving regulatory frameworks remain barriers to adoption.
• Integration of renewable energy and smarter climate control systems are improving ROI.
• USDA funding and state-level initiatives are influencing market direction.

Shlomy Raziel, Grow-Tec
“State recognition of the importance of local food production, alongside strong encouragement to reduce pesticide and chemical use, has been a tremendous boon for the industry.”