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

 

Segment Analysis of the Vertical Farming Market

By Growth Mechanism

Leading Segment: Hydroponics

Hydroponics dominates the market with over 60% of the revenue share because of its widespread adoption & proven efficiency in growing crops without soil. This method is highly scalable & suitable for leafy greens & herbs, which are popular in urban areas. Companies like AeroFarms & Gotham Greens use hydroponic systems extensively in their vertical farms. The segment is growing steadily at a CAGR of 10% which is driven by rising demand for locally sourced, pesticide-free produce.

Fastest-Growing Segment: Aeroponics

Aeroponics is growing at the fastest CAGR of 13%, fueled by its ability to maximize resource efficiency. This system uses mist to deliver nutrients directly to the plant roots which reduces water usage by up to 90% compared to traditional hydroponics. Plenty, a U.S.-based vertical farming company, uses aeroponics to grow crops with superior yield & resource efficiency which makes it a major driver of this segment's growth.

 

By Structure

Leading Segment: Building-Based Vertical Farms

Building-based vertical farms hold the largest market share at over 55%, as urban areas increasingly adopt these systems to grow fresh produce near consumers. These farms are often located in repurposed buildings, utilizing advanced technologies like LED lighting & climate control systems. In 2024, Plenty Unlimited entered into a $680 million joint venture with Mawarid, a subsidiary of Alpha Dhabi Holding, aiming to establish a network of indoor farms in the Middle East, starting with a $130 million indoor farm in Abu Dhabi expected to be operational by 2026. Companies like Infarm & Urban Crop Solutions are notable players leveraging this structure.

Fastest-Growing Segment: Shipping Container-Based Vertical Farms

Shipping container-based farms are growing at a projected CAGR of 12% because of their portability & flexibility. These systems are popular among small-scale farmers & startups looking for cost-effective solutions. Companies like Freight Farms & Grow Pod Solutions offer container-based farms that are pre-equipped with climate control & irrigation systems, enabling year-round crop production in diverse locations.

 

By Offering

Leading Segment: Hardware

Hardware components, including climate control systems & lighting systems, lead the market with over 70% of the revenue share. Advanced LED lighting systems designed to optimize photosynthesis are particularly critical driving demand in the segment. Signify (formerly Philips Lighting) provides specialized LED lighting for vertical farming, ensuring energy-efficient growth.

Fastest-Growing Segment: Software

Software solutions are growing at a CAGR of 14%, driven by advancements in cloud-based farming management systems and AI analytics platforms. These tools allow farmers to monitor and automate crop production remotely, reducing labor costs & improving yield predictability. Companies like Agrilyst & Bowery Farming integrate AI and IoT-based platforms to enhance operational efficiency.

 

By Crop Type

Leading Segment: Leafy Greens

Leafy greens account for over 40% of the market share because of their short growth cycles & high demand among urban consumers. Vertical farms like Kalera & BrightFarms are focusing extensively on leafy greens, leveraging their scalability & profitability. This segment is growing at a CAGR of 9%.

Fastest-Growing Segment: Microgreens

Microgreens are growing at a CAGR of 12%, driven by their increasing popularity in gourmet cooking & their high nutritional value. These crops require minimal space & have a short growth cycle which makes them ideal for vertical farming. Companies like Farm.One specialize in cultivating microgreens in controlled environments for premium markets.

 

By Region

Leading Region: North America

North America holds the largest market share at over 40%, driven by high investments in advanced farming technologies and growing consumer demand for sustainable, locally grown produce. The U.S. leads the region, with companies like Plenty & Bowery Farming spearheading innovations in the sector. By 2024, the United States had 3,483 businesses in the hydroponic crop farming industry, up from over 2,300 hydroponic farming units in 2022, reflecting the growing adoption of vertical farming practices. A 2020 survey of indoor farming in the U.S. found that production was distributed as follows - 26% leafy greens, 20% herbs, 16% microgreens, 10% tomatoes and 28% other crops. Vertical farms in North America are rapidly integrating AI-driven climate control & energy-efficient lighting systems, contributing to market growth.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region with a CAGR of 15%, fueled by rapid urbanization & government support for food security initiatives. Countries like Japan, China & Singapore are heavily investing in vertical farming projects to address limited arable land. For example, Singapore’s Sky Greens operates large-scale vertical farms, using innovative A-frame structures to maximize space efficiency.

 

Role Of AI In Vertical Farming

Precision Farming and Resource Optimization

AI-driven algorithms analyze real-time data from sensors to optimize the use of resources like water, nutrients & energy. AI systems in vertical farms monitor plant health, adjusting irrigation and nutrient levels based on specific crop needs. This precision reduces resource waste and ensures consistent crop quality. Bowery Farming employs AI to track temperature, light & humidity, enabling real-time adjustments that optimize plant growth with minimal input.

Predictive Analytics for Yield Management

AI can predict crop yields by analyzing historical data, weather patterns & growth rates. This allows farmers to anticipate harvest times & plan distribution efficiently, reducing food waste. Agrilyst, an AI-powered platform, helps vertical farmers forecast yields & optimize production schedules, improving profitability.

Pest and Disease Management

AI-powered image recognition systems detect early signs of pest infestations or diseases in crops by analyzing images captured by cameras. Early detection ensures timely intervention, reducing crop losses without excessive pesticide use. Infarm, a global vertical farming company, uses AI to monitor plant health & detect anomalies, ensuring disease-free produce.

Automation and Robotics

AI integrates with robotics for automation in planting, harvesting, & packaging processes. This reduces labor costs & ensures consistent quality. AI-powered robots can also handle repetitive tasks, increasing operational efficiency. Iron Ox, a U.S.-based vertical farm, employs AI-driven robotic systems for planting and harvesting, achieving significant labor savings.

 

Key Players

• AeroFarms

• Plenty

• Bowery Farming

• Infarm

• BrightFarms

• Iron Ox

• Freight Farms

• Gotham Greens

• CropOne Holdings

• Agricool

• Sky Greens

 

Vertical Farming Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 6.5 billion
Revenue Forecast in 2030	USD 28.32 billion
Overall Growth Rate	CAGR of 20.2%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Growth Mechanism, By Structure, By Offering, By Crop Type, By Region
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, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.