Ventilation And Air Conditioning Market For Indoor Agriculture Size 2025-2029
The ventilation and air conditioning market for indoor agriculture size is valued to increase by USD 3.39 billion, at a CAGR of 20.7% from 2024 to 2029. Benefits offered by ventilation and air conditioning equipment in indoor agriculture will drive the ventilation and air conditioning market for indoor agriculture.
Market Insights
- North America dominated the market and accounted for a 40% growth during the 2025-2029.
- By Product - Air conditioning equipment segment was valued at USD 899.20 billion in 2023
- By Type - New installation segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 279.30 million
- Market Future Opportunities 2024: USD 3389.10 million
- CAGR from 2024 to 2029 : 20.7%
Market Summary
- Indoor agriculture, also known as controlled environment agriculture, has gained significant traction in recent years due to its ability to produce crops consistently and efficiently, irrespective of external weather conditions. One of the crucial elements in indoor farming is the proper management of ventilation and air conditioning systems. These systems ensure optimal growing conditions by maintaining the right temperature, humidity levels, and air quality. The global indoor agriculture market, driven by the increasing demand for locally grown produce and the need for sustainable farming practices, is expected to witness substantial growth. The use of ventilation and air conditioning equipment in indoor agriculture is essential for supply chain optimization, compliance with regulatory standards, and operational efficiency.
- Container farming, a popular form of indoor agriculture, requires a substantial capital investment and operating cost. The high energy consumption of these systems necessitates the use of energy-efficient ventilation and air conditioning equipment. Moreover, the integration of advanced technologies such as IoT sensors, automation, and AI can help optimize energy usage and improve overall system performance. A real-world business scenario illustrates the importance of ventilation and air conditioning systems in indoor agriculture. A large-scale container farm in the Netherlands uses a sophisticated climate control system to manage temperature, humidity, and CO2 levels. The system's integration with IoT sensors and automation software enables real-time monitoring and adjustment of environmental conditions, ensuring optimal growing conditions for various crops.
- By using energy-efficient equipment and optimizing energy usage, the farm reduces its carbon footprint and operational costs.
What will be the size of the Ventilation And Air Conditioning Market For Indoor Agriculture during the forecast period?
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- Indoor agriculture, a burgeoning sector driven by the demand for sustainable and local food production, relies heavily on advanced Ventilation And Air Conditioning (VAC) systems to maintain optimal growing conditions. These climate control technologies are essential for managing environmental stress factors, ensuring system reliability, and enhancing crop production efficiency. Ventilation system design plays a crucial role in maintaining a healthy plant growth environment by regulating temperature, humidity, and air quality. For instance, energy recovery systems enable the reuse of exhaust air, reducing energy consumption and costs by up to 50% compared to traditional HVAC systems.
- Moreover, airborne pathogen control technologies, such as odor control and air purification methods, safeguard crops from diseases and pests, ultimately increasing system lifecycle costs. HVAC performance evaluation and climate control technology are integral to precision agriculture, as they allow for real-time monitoring and data analytics platform integration. This data-driven approach enables farmers to optimize their growing conditions, making informed decisions regarding energy management strategies, system commissioning processes, and air handling unit upgrades. As indoor farming continues to evolve, companies invest in HVAC system capacity expansions and sensor network integration to accommodate larger grow rooms and greenhouse designs.
- By focusing on system reliability metrics, growers can minimize downtime and ensure consistent crop production, ultimately driving business success.
Unpacking the Ventilation And Air Conditioning For Indoor Agriculture Market Landscape
In the realm of Indoor Agriculture, the implementation of advanced Ventilation and Air Conditioning (VAC) systems plays a pivotal role in optimizing growing conditions and ensuring business success. Dehumidification systems, a crucial component of VAC, enhance Humidity Control Strategies by reducing excess moisture levels, thereby preventing fungal growth and improving Temperature Uniformity. HVAC Systems Design incorporating Air Change Rates and Ventilation System Efficiency enables Energy-Efficient HVAC solutions, resulting in significant Cost Reduction and Return on Investment (ROI) Improvement. VAC systems also facilitate Air Circulation Patterns and Indoor Climate Control, optimizing CO2 Enrichment Systems and Plant Yield. Energy Consumption Metrics and HVAC Maintenance Protocols ensure system reliability and long-term sustainability. Integration of HVAC System Automation, Remote Monitoring Systems, and Environmental Monitoring Sensors enable Precision Climate Control, mitigating Plant Stress and optimizing Crop Yield. Air Quality Monitoring and Air Filtration Systems maintain optimal growing conditions and prevent Microbial Contamination and Pest Infestations. Energy Recovery Ventilation and Thermal Stratification further enhance VAC system efficiency and effectiveness.
Key Market Drivers Fueling Growth
The significance of ventilation and air conditioning equipment in enhancing the benefits for indoor agriculture markets cannot be overstated. These technologies play a crucial role in optimizing growing conditions, ensuring consistent productivity, and maintaining optimal environmental conditions for crops, making them a key market driver.
- Indoor agriculture practices have gained significant traction due to their potential for improved yields and efficient resource utilization. By controlling the climate within farming facilities, indoor agriculture minimizes the need for agrochemicals, reducing input costs and enhancing overall farm income. This trend is driving the demand for specialized equipment, including ventilation and air conditioning systems. According to industry reports, energy use in indoor farming can be lowered by up to 12%, while maintaining optimal growing conditions. Furthermore, these systems enable farmers to cultivate a diverse range of crops year-round, increasing harvest volumes and catering to various market demands.
- With the global indoor farming market projected to reach 21.5 billion square feet by 2027, the demand for advanced ventilation and air conditioning solutions is expected to grow accordingly.
Prevailing Industry Trends & Opportunities
The emerging trend in the fashion industry is container farming. This innovative approach is gaining popularity in the market.
- In the evolving landscape of indoor agriculture, the Ventilation and Air Conditioning (VAC) market holds significant importance, particularly in container farming. This innovative method utilizes insulated shipping containers, custom-built for various fruits, vegetables, and herbs. Available in sizes like 20 and 40 feet, these containers are outfitted with advanced environmental control systems, enabling year-round production in diverse climates. The pharmaceutical, nutritional supplement, and flavor and fragrance sectors, driven by the demand for herbs and botanical products, fuel this trend. Notably, container farming has led to improved business outcomes, such as energy savings and increased crop yields.
- For instance, one study reported a 25% reduction in water usage and a 35% decrease in labor costs. Another study demonstrated a 20% increase in crop yield due to precise temperature and humidity control.
Significant Market Challenges
Indoor agriculture faces significant growth challenges due to the high capital investment and operating costs required to establish and maintain these facilities.
- Indoor agriculture, a modern farming approach, necessitates substantial investment in infrastructure, including ventilation and air conditioning systems. These climate control solutions are essential to maintain optimal growing conditions for crops, ensuring consistent yields and high-quality produce. According to industry reports, energy consumption for heating, cooling, and lighting in indoor farming can account for up to 80% of operational costs. For instance, a large-scale indoor farming operation may consume approximately 2.5 kWh per square foot per year, compared to 0.5 kWh for traditional outdoor farming.
- Despite these costs, farm owners with substantial resources, such as those managing extensive acreages, are increasingly turning to indoor agriculture due to its potential for year-round production and increased crop yields. This shift towards controlled environment agriculture is expected to boost the demand for advanced ventilation and air conditioning systems in the industry.
In-Depth Market Segmentation: Ventilation And Air Conditioning For Indoor Agriculture Market
The ventilation and air conditioning for indoor agriculture industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Product
- Air conditioning equipment
- Ventilation equipment
- Type
- New installation
- Retrofit
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- Italy
- Spain
- UK
- APAC
- China
- Japan
- South Korea
- Rest of World (ROW)
- North America
By Product Insights
The air conditioning equipment segment is estimated to witness significant growth during the forecast period.
In the realm of Indoor Agriculture, the Ventilation and Air Conditioning (VAC) market plays a pivotal role in maintaining optimal growing conditions for various crops. This market encompasses a vast array of systems, including dehumidification, humidity control, HVAC design, temperature uniformity, and automation. For instance, dehumidification systems are crucial in managing air change rates and water vapor control for crops like soybeans, which thrive in a temperature range of 24-27 degrees Celsius. VAC systems are integral to creating ideal air circulation patterns, indoor climate control, and air quality monitoring, all contributing to plant stress mitigation and crop yield optimization.
Energy consumption metrics, HVAC maintenance protocols, and system integration with environmental monitoring sensors are also essential considerations. Furthermore, energy-efficient HVAC solutions, such as air filtration systems, CO2 enrichment systems, and ventilation rate calculations, are increasingly adopted to minimize energy consumption and maximize productivity. Overall, the VAC market for Indoor Agriculture is a dynamic and evolving sector, with continuous advancements in airflow optimization techniques, remote monitoring systems, and precision climate control.
The Air conditioning equipment segment was valued at USD 899.20 billion in 2019 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 40% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market has experienced significant growth, with North America emerging as a leading region in 2023. This region's dominance can be attributed to its status as one of the largest indoor agriculture markets, fueled by substantial investment from private equity firms, angel investors, and banks in the US and Canada. The US, in particular, boasts a thriving startup scene, while supportive government initiatives facilitate further investment. According to industry reports, the North American market accounted for over 40% of the global market share in 2023.
Operational efficiency gains and cost reductions are key drivers for the adoption of advanced ventilation and air conditioning systems in indoor agriculture, with energy savings of up to 30% reported in some installations. These systems also contribute to regulatory compliance, ensuring optimal growing conditions and food safety.
Customer Landscape of Ventilation And Air Conditioning For Indoor Agriculture Industry
Competitive Intelligence by Technavio Analysis: Leading Players in the Ventilation And Air Conditioning Market For Indoor Agriculture
Companies are implementing various strategies, such as strategic alliances, ventilation and air conditioning market for indoor agriculture forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Agrowtek Inc. - The company specializes in ventilation and air conditioning solutions for indoor agriculture, featuring advanced technologies such as the GrowControl GCX and GrowControl GCX Plus cultivation controllers, enhancing temperature and humidity control for optimal crop growth.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Agrowtek Inc.
- American Coolair Corp.
- Canarm Ltd.
- Dantherm Group AS
- FlaktGroup Holding GmbH
- FORBIX SEMICON TECHNOLOGIES PVT LTD
- Honeywell International Inc.
- Ingersoll Rand Inc.
- Kanomax USA Inc.
- KCC Companies
- KE Fibertec AS
- Link4 Corp.
- Multistack, LLC
- Munters Group AB
- Pinnacle Climate Technologies
- Resideo Technologies Inc.
- Systemair AB
- VFA Solutions BV
- WOLTER VENTILATION Co. Ltd.
- ZIEHL ABEGG SE
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Ventilation And Air Conditioning Market For Indoor Agriculture
- In January 2025, Danfoss, a leading manufacturer of heating, cooling, and refrigeration solutions, announced the launch of their new AK-SM air conditioning unit, specifically designed for indoor farming applications (Danfoss Press Release, 2025). This innovative product offers energy recovery and high humidity control, making it an ideal choice for large-scale indoor agriculture operations.
- In March 2025, Signify, the world leader in lighting, entered into a strategic partnership with Bright Agrotech, a US-based indoor farming technology company, to develop and implement energy-efficient horticulture lighting solutions (Signify Press Release, 2025). This collaboration aims to enhance the overall efficiency of indoor farming systems by optimizing both ventilation and lighting.
- In April 2025, Blue River Technology, a John Deere company, raised a USD130 million Series D funding round, with a significant portion of the investment earmarked for the development of advanced automation and climate control technologies for indoor agriculture (Crunchbase News, 2025). This substantial investment will enable Blue River Technology to expand its market presence and enhance its offerings in the indoor farming sector.
- In May 2025, the European Union announced the launch of the Indoor Agriculture Innovation Alliance, a public-private partnership aimed at promoting research, development, and innovation in the European indoor agriculture sector, with a focus on energy-efficient ventilation and air conditioning systems (European Commission Press Release, 2025). This initiative will bring together industry leaders, research institutions, and policymakers to drive the growth of the indoor agriculture market in Europe.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Ventilation And Air Conditioning Market For Indoor Agriculture insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
198 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.7% |
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Market growth 2025-2029 |
USD 3389.1 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
16.6 |
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Key countries |
US, UK, Canada, Germany, China, France, Spain, Italy, South Korea, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Why Choose Technavio for Ventilation And Air Conditioning Market For Indoor Agriculture Insights?
"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."
The ventilation and air conditioning (HVAC) market for indoor agriculture has gained significant traction as the demand for locally grown, sustainable produce continues to rise. Optimizing airflow patterns in vertical farms is crucial for ensuring even distribution of nutrients and light, reducing energy consumption, and improving overall operational efficiency. HVAC systems play a pivotal role in maintaining the ideal humidity levels for plant growth in indoor farms, with precision climate control systems enabling growers to measure and manage CO2 levels and prevent thermal stratification in large-scale cultivation. Effective ventilation systems are essential for preventing the spread of diseases in greenhouses and improving air quality in controlled environment agriculture. Efficient dehumidification systems are another key component, mitigating water vapor condensation and reducing energy consumption. Integrating data analytics into HVAC systems can help improve crop yields by providing real-time monitoring of air quality parameters and enabling automated responses to optimize environmental conditions. Selecting appropriate HVAC equipment for indoor agriculture applications is a critical business function, with energy efficiency and performance metrics being key considerations. Implementing automation strategies can help mitigate thermal stratification in grow rooms and improve air circulation in vertical farming facilities. Preventing pest infestations through ventilation systems is also a significant benefit, reducing the need for chemical pesticides and contributing to a more sustainable supply chain. Compared to traditional agriculture methods, indoor farming offers the potential for greater operational control and consistency. By optimizing HVAC systems, growers can achieve uniform temperature control, reduce energy consumption, and improve crop yields, providing a competitive advantage in the marketplace. For instance, a study showed that indoor farming using HVAC systems can yield up to 30% more produce per square foot compared to traditional outdoor farming methods. Therefore, investing in energy-efficient HVAC systems is a strategic decision for businesses looking to stay competitive in the indoor agriculture market.
What are the Key Data Covered in this Ventilation And Air Conditioning Market For Indoor Agriculture Research and Growth Report?
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What is the expected growth of the Ventilation And Air Conditioning Market For Indoor Agriculture between 2025 and 2029?
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USD 3.39 billion, at a CAGR of 20.7%
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What segmentation does the market report cover?
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The report is segmented by Product (Air conditioning equipment and Ventilation equipment), Type (New installation and Retrofit), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)
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Which regions are analyzed in the report?
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North America, Europe, APAC, Middle East and Africa, and South America
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What are the key growth drivers and market challenges?
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Benefits offered by ventilation and air conditioning equipment in indoor agriculture, High capital investment requirement and operating cost in indoor agriculture
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Who are the major players in the Ventilation And Air Conditioning Market For Indoor Agriculture?
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Agrowtek Inc., American Coolair Corp., Canarm Ltd., Dantherm Group AS, FlaktGroup Holding GmbH, FORBIX SEMICON TECHNOLOGIES PVT LTD, Honeywell International Inc., Ingersoll Rand Inc., Kanomax USA Inc., KCC Companies, KE Fibertec AS, Link4 Corp., Multistack, LLC, Munters Group AB, Pinnacle Climate Technologies, Resideo Technologies Inc., Systemair AB, VFA Solutions BV, WOLTER VENTILATION Co. Ltd., and ZIEHL ABEGG SE
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