Vertical Farming Market By Growth Mechanism (Hydroponics, Aeroponics, Aquaponics); By Structure (Building-based Vertical Farms, Shipping Container-based Vertical Farms); By Offering (Hardware (Climate Control Systems, Sensors and Monitoring Devices, Lighting Systems (LEDs), Irrigation Systems, Growing Systems (Racks, Trays)), Software (Cloud-based Farming Management Systems, AI & Machine Learning Analytics Platforms, Remote Monitoring & Automation), Services (Consulting, Installation, Maintenance & Support)); By Crop Type (Leafy Greens (Lettuce, Spinach), Herbs (Basil, Mint), Fruits (Strawberries, Tomatoes), Microgreens, Flowers, Others (e.g., medicinal plants)); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The vertical farming market in 2023 was worth USD 6.5 billion and is expected to be worth USD 28.32 billion by 2030, expanding at a CAGR of 20.2% during the forecast period.

 

The global vertical farming market is also shifting towards more automation and application of AI to enhance crop production and resource utilization. For instance, the integration of Artificial Intelligence and machine learning in vertical farming enhances crop production by 30 % due to controlled conditions of light, temperature, and humidity. Recent developments include using technology like robots in planting, harvesting, and packaging to minimize human labor and maximize production. Furthermore, the achievements in LED lighting define specific light spectra, facilitating rapid plant growth while cutting energy use in half, which in turn stabilizes vertical farming’s efficiency and its impact on the environment.

 

Market Dynamics

The main factors expected to drive the vertical farming market growth include the need for sustainable agriculture practices, food security, and resource optimization. With the global population projected to reach 9.7 billion by 2050, the demand for food is expected to increase by 70%, making traditional farming methods less sustainable. Vertical farming can yield up to 10 times the normal yield inside a given area by the use of controlled climate and layering of the crops. Newer methods have been adopted include Hydroponics and Aeroponics, the latter using 95% less water than soil-based farming.

 

One of the key factors that may limit the growth of the vertical farming market is the high investment and operational costs required to create and support innovative farming systems.

 

One of the major business opportunities in the global vertical farming market is using renewable energy sources and off-grid technologies to drive down operating costs and environmental footprint. For example, solar photovoltaic technology for LED lighting and climate control reduces energy consumption by approximately 30%, thus lowering vertical farming costs. Additionally, advancements in energy-efficient LED technology and battery storage have recently enabled some vertical farms to operate with a smaller carbon footprint, appealing to eco-conscious consumers and investors. The adoption of such green technologies opens up new possibilities for vertical farms in urban and remote areas, enhancing food production while minimizing resource consumption and emissions.

 

Market Segmentation

By Growth Mechanism:

• Hydroponics

• Aeroponics

• Aquaponics

 

By Structure:

• Building-based Vertical Farms

• Shipping Container-based Vertical Farms

 

By Offering:

• Hardware

  • Climate Control Systems

  • Sensors and Monitoring Devices

  • Lighting Systems (LEDs)

  • Irrigation Systems

  • Growing Systems (Racks, Trays)

• Software

  • Cloud-based Farming Management Systems

  • AI & Machine Learning Analytics Platforms

  • Remote Monitoring & Automation

• Services

  • Consulting

  • Installation

  • Maintenance & Support

 

By Crop Type:

• Leafy Greens (Lettuce, Spinach)

• Herbs (Basil, Mint)

• Fruits (Strawberries, Tomatoes)

• Microgreens

• Flowers

• Others (e.g., medicinal plants)

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

The North American market of vertical farming is expected to grow at the greatest pace during the forecast period due to an increase in technological innovation in this region and local and sustainable agriculture needs. The United States is leading in the region from where numerous vertical farming companies are applying advancements in hydroponics, aeroponics, and automation. For example, urban vertical farms in cities like New York and San Francisco have reported up to a 75% reduction in water usage compared to traditional farming, producing crops year-round regardless of weather conditions. New trends are the collaborations between IT corporations and agricultural businesses to launch farming solutions based on AI to enhance resource utilization and yields. This regional dominance is further encouraged by government policies to support food production as well as the increasing tendency of consumers to opt for locally grown fresh produced, free from chemicals.

 

Key Players

• AeroFarms

• Plenty

• Bowery Farming

• Infarm

• BrightFarms

• Iron Ox

• Freight Farms

• Gotham Greens

• CropOne Holdings

• Agricool

• Sky Greens