Vertical Farming Market

Market Definition

The market comprises advanced cultivation systems, integrated technologies, and support services designed for crop production in vertically arranged structures within controlled environments. It includes hydroponic, aeroponic, and aquaponic methods, along with climate regulation, lighting, and monitoring solutions. 

The market serves commercial farming operations, urban agricultural initiatives, and institutional research aimed at enhancing productivity and land-use efficiency. This report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Vertical Farming Market Overview

The global vertical farming market size was valued at USD 7.34 billion in 2024 and is projected to grow from USD 8.51 billion in 2025 to USD 27.45 billion by 2032, exhibiting a CAGR of 18.22% during the forecast period. The market is witnessing strong growth due to the increasing demand for sustainable agricultural practices and the need to optimize food production in urban areas. The limited availability of arable land is accelerating the adoption of soil-free cultivation methods.

Major companies operating in the vertical farming industry are AeroFarms, Plenty Unlimited Inc., Voeks, Inc's, Crop One Holding, Farm.One, Inc., Kalera Inc., Grow Up Group Limited, AgriFORCE, MIRAI Official HP, Autogrow, Netled Ltd., VerticalField, Valoya, ams-OSRAM AG, and GP Solutions, Inc.

The integration of advanced technologies such as automated climate control, energy-efficient LED lighting, and real-time crop monitoring is enhancing yield and operational efficiency. Growing consumer preference for locally grown and pesticide-free produce is supporting market expansion. 

Investments in scalable farming infrastructure and supportive government initiatives are enabling the broader deployment of vertical farms across metropolitan regions and high-density areas.

• In July 2024, Plenty formed a USD 680 million joint venture with Mawarid, to develop a network of indoor farms in the Middle East. The partnership plans to build five farms over five years, beginning with an indoor farm in Abu Dhabi expected to be operational by 2026. This facility aims to produce over 4.5 million pounds of premium strawberries annually for local consumption and export within Gulf Cooperation Council countries.

Key Highlights

1. The vertical farming industry size was valued at USD 7.34 billion in 2024.
2. The market is projected to grow at a CAGR of 18.22% from 2025 to 2032.
3. North America held a market share of 37.12% in 2024, with a valuation of USD 2.73 billion.
4. The hardware segment garnered USD 3.48 billion in revenue in 2024.
5. The leafy greens segment is expected to reach USD 8.21 billion by 2032.
6. The hydroponics segment is expected to reach USD 14.65 billion by 2032.
7. The shipping container segment is expected to reach USD 17.66 billion by 2032.
8. The market in Asia Pacific is anticipated to grow at a CAGR of 22.58% during the forecast period.

Market Driver

Rising Demand for Sustainable and Space-efficient Farming Solutions

The vertical farming market is driven by growing concerns over climate change and the decreasing availability of arable land worldwide. As traditional agriculture faces challenges like soil degradation, extreme weather conditions, and limited cultivable areas, the need for sustainable and space-efficient farming methods has become critical. 

Vertical farming offers a controlled environment that maximizes land use by stacking crops vertically, enabling year-round production with reduced water consumption and minimal pesticide use. These advantages align with the increasing global focus on sustainable food production and resource conservation, making vertical farming a viable solution to address food security and environmental challenges.

• In May 2025, the World Meteorological Organization reported that global temperatures are likely to remain high over the next five years, with a high chance of exceeding 1.5°C above pre-industrial levels, increasing climate risks and impacts globally.

Market Challenge

Energy Consumption and Sustainability Challenges

A significant challenge faced by the vertical farming market is the substantial energy consumption required to maintain optimal growing conditions. Vertical farms rely heavily on artificial lighting, climate control systems, and ventilation to ensure consistent temperature, humidity, and light levels. This intensive energy use results in high operational costs and raises environmental concerns, especially in regions where electricity is generated from non-renewable sources. 

Such factors can limit the economic viability and scalability of vertical farming ventures. To address this challenge, the industry is adopting energy-efficient LED lighting that delivers precise light spectra tailored for plant growth, integrating renewable energy sources like solar or wind power, and utilizing smart automation systems to optimize energy usage.

Market Trend

Advancements in Automation and Intelligent Farming Technologies

The market is driven by significant technological innovations, particularly the development of advanced systems, that incorporate automation and artificial intelligence. These technologies facilitate precise control over environmental parameters such as climate and nutrient delivery and enhance cultivation consistency and productivity. 

Automation contributes to the reduction of labor costs and improves operational efficiency through process optimization. Meanwhile, AI-enabled platforms provide real-time monitoring and adaptive management, resulting in improved crop yields and resource utilization. 

Technological advancements enhance the scalability and sustainability of vertical farming, addressing the increasing need for efficient food production in urban and space-constrained environments.

• In May 2025, Farmers Lab Ltd. introduced BK Conveyor Culture (BKCC), a vertical farming system featuring a horizontal conveyor structure that rotates trays to enhance labor efficiency and simplify operations. The system is being deployed in pilot projects across Korea, Singapore, and Africa, with plans for expansion into Australia, Vietnam, and the Middle East. Farmers Lab is also partnering with Blue Lab to integrate AI-based automation for climate and nutrient control.

Vertical Farming Market Report Snapshot

Segmentation	Details
By Component	Hardware (Lighting Systems, Climate Control Systems, Irrigation & Fertigation Systems, Others), Software (Monitoring and Control Software, Automation Systems, Data Analytics Platforms, Others), Services (Covers Installation, Maintenance, Consulting, Others)
By Crop Type	Leafy Greens (Lettuce, Spinach, Kale, Arugula, Others), Herbs & Microgreens (Basil, Cilantro, Parsley, Others), Fruits & Vegetables (Tomatoes, Strawberries, Bell and Chili Peppers, Others), Flowers & Ornamentals, Others (Perennials, Annuals, Ornamentals)
By Growing Mechanism	Aeroponics, Hydroponics, Aquaponics
By Structure	Building-based, Shipping Container
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Hardware, Software, Services): The hardware segment earned USD 3.48 billion in 2024, due to the increased deployment of automation systems, lighting units, and environmental sensors for high-efficiency crop production.
• By Crop Type (Leafy Greens, Herbs & Microgreens, Fruits & Vegetables, Flowers & Ornamentals, and Others): The leafy greens segment held 33.40% of the market in 2024, owing to their short growth cycles, high yield per square foot, and strong demand in urban retail markets.
• By Growing Mechanism (Aeroponics, Hydroponics, and Aquaponics): The hydroponics segment is projected to reach USD 14.65 billion by 2032, on account of its efficient water usage, scalability, and suitability for a wide range of crops.
• By Structure (Building-based, and Shipping Container): The shipping container segment is projected to reach USD 17.66 billion by 2032, due to its mobility, modular design, and suitability for space-constrained urban environments.

Vertical Farming Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America vertical farming market share stood at around 37.12% in 2024, with a valuation of USD 2.73 billion. The region’s growth is supported by the strong presence of commercial vertical farms concentrated near major urban centers. This proximity enables efficient supply chains and quick delivery of fresh produce to consumers. 

The U.S. market benefits from significant investments in scalable farming infrastructure and the widespread adoption of advanced technologies such as energy-efficient lighting and precise climate control systems. Rising consumer demand for locally sourced and pesticide-free products further fuels market expansion, making North America a leading region in vertical farming development.

Asia Pacific vertical farming industry is expected to register the fastest growth in the market, with a projected CAGR of 22.58% over the forecast period. Rapid urban population growth, combined with limited agricultural land, is pushing countries such as Japan, Singapore, and South Korea to scale vertical farming as a strategic food production model. 

High consumer preference for safe and high-quality produce is driving the demand for locally grown crops cultivated in controlled environments. In Japan, compact vertical farms are integrated into urban buildings and supermarkets, reducing reliance on food imports. Additionally, increased private investment in sustainable farming startups across Southeast Asia is fueling the expansion of modular and energy-efficient farming systems.

• In November 2024, Growy opened a new vertical farm in Singapore, transitioning from research and development to commercial operations. The facility supplies 34 products, including microgreens, herbs, and baby leaf varieties, to over 40 hotels and restaurants across the city. Growy plans to enter the retail market by year-end, aiming to expand its reach and further contribute to Singapore’s sustainable food ecosystem.

Regulatory Frameworks

• In the U.S., farming is governed by the United States Department of Agriculture (USDA), which oversees agricultural policies, food safety, and support programs. Additionally, the Environmental Protection Agency (EPA) regulates the use of pesticides and environmental standards related to farming practices.
• In Europe, farming is regulated by the European Commission through its Directorate-General for Agriculture and Rural Development (DG AGRI), which sets agricultural policies and standards. Additionally, the European Food Safety Authority (EFSA) oversees food safety and risk assessments related to farming and agricultural products across EU member states.
• In Japan, the Ministry of Agriculture, Forestry and Fisheries (MAFF) regulates farming. MAFF oversees all aspects of agriculture, forestry, and fishing, including setting standards and regulations for farming practices, agricultural products, and import/export regulations.

Competitive Landscape

The vertical farming industry is characterized by key players focusing on technological innovation and strategic partnerships. Market leaders are investing heavily in research and development to enhance automation, improve energy efficiency, and optimize crop yield through advanced climate control and lighting solutions. 

Collaboration with technology providers and retail chains is common for expanding market reach and streamlining supply chains. Several players are adopting scalable and modular farm designs to cater to diverse customer needs and urban space constraints. 

Expansion into emerging markets through joint ventures and licensing agreements is a prevalent strategy to capture new growth opportunities. Continuous product portfolio enhancement and customer-centric solutions remain central to maintaining a competitive advantage.

• In July 2024, GrowUp Farms secured a USD 47 million investment from Generate Capital to expand its sustainable vertical farming operations. The funding will increase capacity at GrowUp’s Kent vertical farm, accelerate leadership in the UK salad market, support R&D at the Cambridge GrowUp Lab, and strengthen its position as a certified B Corp.

List of Key Companies in Vertical Farming Market:

• AeroFarms
• Plenty Unlimited Inc.
• Voeks, Inc's
• Crop One Holding
• Farm.One, Inc.
• Kalera Inc.
• Grow Up Group Limited
• AgriFORCE
• MIRAI Official HP
• Autogrow
• Netled Ltd.
• VerticalField
• Valoya
• ams-OSRAM AG
• GP Solutions, Inc.

Recent Developments (Joint Venture)

• In April 2025, Swiss Life Asset Managers entered into an industrial joint venture with Planet Farms Holding to develop a European platform for Controlled Environment Agriculture (CEA) infrastructure. The fund committed up to USD 137 million to support the development and construction of indoor farming facilities, while Planet Farms contributed a vertical farm in Lombardy, customer relationships, and a project pipeline.