Vertical Farming Market

Vertical Farming Market Overview:

The global vertical farming market size reached USD 6.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 36.8 Billion by 2033, exhibiting a growth rate (CAGR) of 20.56% during 2025-2033. Asia Pacific leads the market owing to high urban population density, rising demand for pesticide-free food, government support for agricultural innovation, and higher investment in controlled-environment agriculture. The growing demand for sustainable agriculture methods, rising advancements in hydroponics, aeroponics, and aquaponics to improve crop yields, and implementation of favorable government policies and monetary rewards to encourage investment are some of the factors impelling the market growth.

Market Size & Forecasts:

• Vertical farming market was valued at USD 6.8 Billion in 2024.
• The market is projected to reach USD 36.8 Billion by 2033, at a CAGR of 20.56% from 2025-2033.

Dominant Segments:

• Component: Lighting leads the vertical farming market accredited to its essential function in controlling photosynthesis, enhancing plant development, and facilitating multi-tiered growing in confined settings. Cutting-edge lighting improves energy efficiency, elevates crop yield and quality, and facilitates stable production cycles despite external weather variations, guaranteeing dependable output throughout the year.
• Structure: Container-based vertical farms represent the largest segment attributed to their modular structure, portability, and suitability for urban environments. Such systems facilitate year-round farming with reduced space needs, ease the process of installation and relocation, and provide regulated conditions that improve crop uniformity, operational adaptability, and scalability for commercial farming uses.
• Growth Mechanism: Hydroponics account for the largest market share because of their efficient water usage, accurate nutrient distribution, and significant crop yield potential. The technique promotes quicker plant growth in regulated settings, lessens reliance on soil, and cuts down on resource waste, making it ideal for expandable and sustainable indoor farming systems.
• Region: Asia Pacific dominates the vertical farming market owing to robust government backing, rising technological integration, and an increasing need for sustainable food options. High population density and scarce arable land further drive regional investment in controlled-environment agriculture, establishing the region as a frontrunner in vertical farming innovation and execution.

 Key Players:

• The leading companies in vertical farming market include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, and Vertical Farm Systems Pty Ltd.

Key Drivers of Market Growth:

• Technological Improvements: Precision agriculture technologies, such as automated systems and artificial intelligence (AI)-powered controls, are enhancing vertical farming practices by minimizing labor, boosting productivity, and ensuring efficient resource use. Smart lighting and irrigation technologies facilitate ongoing crop production, enhancing the scalability and commercial appeal of vertical farming in diverse urban environments.
• Environmental Sustainability: Vertical farming uses far less land and water than conventional techniques, eliminating chemical inputs that lead to environmental harm. Its soilless systems reduce pollution and aid in climate adaptation efforts. This eco-friendly approach is becoming favored by organizations committed to sustainability, urban resilience, and enduring ecological development.
• Favorable Regulations: Support from the public sector via funding, tax benefits, and regulatory changes is fostering investment in vertical farming. Changes in zoning and strategic incorporation within urban planning structures facilitate easier adoption. These actions are broadening access, enhancing innovation, and aiding food security strategies via localized, sustainable farming methods endorsed at both national and local levels.
• Year-Round Production Cycles: Vertical farming allows for continuous growth despite climate or seasonal variations, fostering reliable yield timelines and consistent supply chains. The model enhances financial planning, diminishes operational uncertainty, and reinforces vertical farming’s standing in the commercial agriculture sector.
• Changing Consumer Expectations: The growing demand for food safety, decreased chemical usage, and clear sourcing is shaping buying habits. Vertical farming addresses this by providing clean, traceable produce while minimizing environmental effects. These preferences are promoting investment and aiding in the adoption of the vertical farming.
• Integration with Sustainable Transport Solutions: Integrating vertical farming with electric mobility allows for growing and transporting within one system, reducing environmental effects and logistics expenses. This method promotes local food networks, improves urban access to food, and coincides with wider sustainable infrastructure objectives.

Future Outlook:

• Strong Growth Outlook: The vertical farming market is experiencing growth owing to rising food demand, increasing urban population, and advancements in agricultural technology. Supportive government initiatives, consumer preference for sustainable produce, and improved production efficiency are encouraging large-scale adoption, positioning the sector for sustained growth across multiple regions and applications.
• Market Evolution: The vertical farming market is evolving through continuous innovation, integration of smart technologies, and increasing commercial viability. Enhanced scalability, data-driven operations, and expanding investor interest are reshaping the industry landscape. This evolution supports improved productivity, broader accessibility, and the transition toward more resilient and sustainable food production systems globally.

As cities expand and rural farmland declines, traditional agriculture faces space constraints. Vertical farming provides a way to grow food in urban centers using far less land. By stacking crops in controlled environments, producers can grow high volumes of produce close to where people live, reducing the need for vast rural acreage. Furthermore, in several regions, public funding, subsidies, or relaxed regulations are supporting controlled-environment agriculture. Authorities see vertical farming as a way to enhance food security, lower import dependency, and promote sustainable innovation, especially as part of smart city planning or climate mitigation strategies. Besides this, progress in light-emitting diode (LED) lighting, hydroponics, sensors, and artificial intelligence (AI)-driven monitoring is making vertical farming more efficient. These technologies allow precise control over nutrients, light, temperature, and humidity. This level of automation and optimization reduces labor needs and energy waste, making operations more scalable and economically viable.

Vertical Farming Market Trends:

Technological Advancements

Advancements in hydroponics, aeroponics, and aquaponics are transforming the way crops are cultivated, enabling growth without soil in regulated settings. Besides this, the integration of automation and artificial intelligence (AI) technologies to monitor and oversee growth conditions is leading to decreased labor expenses and enhanced accuracy in resource utilization. These technologies improve efficiency and allow farming all year round, regardless of the weather. These innovations are driving the vertical farming demand as they address critical challenges in food production and meet the rising consumer preference for fresh, locally sourced, and environment-friendly produce. Moreover, energy-efficient light-emitting diode (LED) lighting replicates natural sunlight, maximizing photosynthesis and improving crop yields. For example, in 2024, C-LED announced three innovations for indoor crop lighting at GreenTech Amsterdam. These included a high-efficiency lamp for vertical farming, a humidity-resistant lamp for grafting and root chambers, and a smart irrigation system based on evaporation data.

Environmental Sustainability

Traditional farming methods often lead to deforestation, soil deterioration, and excessive water usage. Vertical farming offers an eco-friendly option by utilizing just a small percentage of land and water relative to conventional techniques. Methods like hydroponics and aeroponics minimize water usage by providing nutrients straight to the roots of plants without the need for soil. This method removes dependence on chemical pesticides and herbicides, resulting in cleaner crops and reducing the likelihood of environmental pollution due to chemical runoff. Vertical farming, thus, provides a practical option for addressing issues linked to climate change and the excessive utilization of natural resources. Its eco-friendly characteristics make it appealing to policymakers, institutions, and organizations focusing on environmental protection and food safety. Vertical farms enhance urban the resilience of food systems by localizing production and minimizing reliance on large-scale land conversion, aligning with long-term objectives for ecological balance and responsible resource management.

Government Support and Favorable Regulations

Numerous governing bodies around the world are acknowledging the benefits of vertical farming in improving food security and lowering environmental effects. They are taking steps and providing financial incentives to encourage investment in this sector. The incentives consist of grants, subsidies, and tax benefits, as well as support for research and development (R&D) to enhance the technology. In addition, urban planning strategies are including more vertical farming projects, either requiring or encouraging their integration in both new and existing buildings. This regulatory assistance lowers barriers for new entrants, creating a favorable environment for vertical farming industry growth. In 2024, the Association for Vertical Farming (AVF) revealed a collaboration with Nigeria's National Information Technology Development Agency and Swedish company Grow Pipes AB. The aim of the partnership was to introduce vertical farming to Nigeria by implementing a project called "Vertical Farming in Africa for Innovation" (VFAI), with a focus on training facilities, local food production, and supply networks. This effort represented a major milestone in the promotion of sustainable agricultural methods in Africa.  

Vertical Farming Market Growth Drivers:

Year-Round Production Cycles

Traditional agriculture is constrained by seasonal fluctuations, impacting crop supply and prices. Vertical farming removes this limitation by allowing year-round production. This reliability guarantees a steady yield of crops, irrespective of external factors or farming schedules. Retailers and distributors gain from consistent supply levels, aiding in long-term agreements and inventory management. For producers, harvesting throughout the year enhances asset use and speeds up income generation. The capacity to forecast and schedule yields with little variance also diminishes the unpredictability usually linked to perishable food logistics. This reliable performance is an appealing factor for investors and business purchasers alike. In 2025, Square Roots launched Square Roots Japan to blend traditional Japanese farming with modern vertical farming technology. Using modular container-based vertical farms, the initiative focuses on growing specialty crops like mizuna and shiso year-round. The project aims for sustainable year-round production while preserving local farming knowledge.  

Shifting Consumer Expectations

People are placing greater value on transparency, traceability, and sustainability in their food sources. Vertical farming aligns with these expectations by offering produce grown without pesticides, often with lower environmental footprints. Quick response (QR) code traceability, real-time freshness tracking, and reduced use of synthetic inputs are part of the appeal for health-conscious buyers. Retailers and food service companies respond to this demand by seeking supply partnerships with vertical farms, especially for high-margin, perishable crops. This change in purchasing behavior is encouraging producers to differentiate themselves through cleaner, tech-supported methods of cultivation. This shift in consumer demand is playing a vital role in increasing the vertical farming market value, as producers and investors align with evolving preferences for cleaner and more transparent food systems.

Integration with Sustainable Transport Solutions

With the increasing demand for locally sourced, fresh produce that has a low environmental footprint, combining vertical farming systems with electric vehicles (EVs) allows for both growing and final delivery within one mobile unit. This dual-purpose strategy improves adaptability, cuts logistics expenses, and decreases the carbon footprint linked to food distribution. By aligning with wider urban sustainability objectives, such transport-oriented models promote decentralized agriculture, enhance accessibility in neglected regions, and draw investment from stakeholders dedicated to eco-friendly infrastructure. In 2025, Nature’s Miracle Holding Inc. and ZO Motors launched five EV trucks in California to support mobile vertical farming. Each truck is outfitted with hydroponic systems, enabling efficient, eco-friendly cultivation and delivery of micro greens and herbs. This initiative aims to deploy up to 100 units by year-end, promoting sustainable urban agriculture. Such developments reflect broader vertical farming market trends, where mobility, sustainability, and localized production are becoming central to innovation and growth strategies.

Vertical Farming Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on component, structure, growth mechanism, and application.

Breakup by Component:

• Irrigation Component
• Lighting
• Sensor
• Climate Control
• Building Material
  • Glass Greenhouse
  • Plastic Greenhouse
• Others

Lighting accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes irrigation component, lighting, sensors, climate control, building material (glass greenhouse and plastic greenhouse), and others. According to the report, lighting represented the largest segment.

Lighting accounts for the majority of the market share, driven by its critical role in the growth and productivity of crops. Sophisticated lighting choices such as LED lights are essential for supplying the required light wavelengths for photosynthesis, ensuring optimal plant development, regardless of outdoor circumstances. LED technology is increasingly preferred for vertical farms because of its efficiency, long lifespan, and energy-saving capabilities, resulting in consistent high crop yields and quality. Moreover, the ability to control light intensity and spectra precisely allows farmers to tailor lighting conditions to the needs of different crops, enhancing both productivity and resource efficiency. In 2023, Polymatech Electronics revealed the Ravaye™ LED grow light, specifically created for improved greenhouse and vertical farming. This full-spectrum light promoted faster plant growth and lowered lighting system costs.

Breakup by Structure:

• Building-based Vertical Farms
• Container-based Vertical Farms

Container-based vertical farms hold the largest share of the industry

A detailed breakup and analysis of the market based on the structure have also been provided in the report. This includes building-based vertical farms and container-based vertical farms. According to the report, container-based vertical farms accounted for the largest market share.

Container-based vertical farms represent the largest segment according to the vertical farming market outlook due to their flexibility, scalability, and lower setup expenses when compared to building-based farms. These farms make use of shipping containers that have been modified with advanced hydroponic or aeroponic systems, climate control, and LED lighting to establish controlled growing conditions. Container-based farms are easily deployed in urban areas, parking lots, and other non-traditional farming locations due to their compact and modular design, making them ideal for local food production and cutting down on transportation expenses. Their ability to be easily moved and effectively use space allows for quick growth and duplication, meeting the increasing need for locally sourced produce in cities.

Breakup by Growth Mechanism:

• Hydroponics
• Aeroponics
• Aquaponics

Hydroponics represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the growth mechanism. This includes hydroponics, aeroponics, and aquaponics. According to the report, hydroponics represented the largest segment.

Hydroponics holds the biggest market share owing to its efficiency and higher yield capabilities compared to traditional soil-based farming. This method involves cultivating plants in a nutrient-rich water solution, which allows for precise control over nutrient intake and environmental conditions, resulting in faster growth and higher crop productivity. Hydroponics is ideal for urban and indoor farming because it uses less water and space. Vertical farming market opportunities are further enhanced by the potential of hydroponics to maximize yield and resource efficiency, attracting notable investment and innovation.

Breakup by Application:

• Indoor
• Outdoor

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes indoor and outdoor.

Indoor involves cultivating crops in controlled environments like warehouses, basements, or specially constructed buildings. This segment is able to maintain total control over environmental factors, including temperature, humidity, and light, enabling cultivation throughout the year regardless of outside weather conditions. The ability to grow crops without soil and the protection from pests and diseases lead to higher quality produce and reduced pesticide use. In 2024, American vertical farming startup Plenty unveiled a $680 million partnership with UAE's Mawarid to establish a series of indoor farms in the Middle East. The project aimed to construct five farms, with the first one in Abu Dhabi scheduled to start building in early 2025.

Outdoor includes the use of vertical structures in open-air environments, such as vertical gardens or rooftop farms, where crops are grown in stacked layers. The outdoor segment leverages natural sunlight and often integrates with urban architecture, contributing to urban greening and sustainability efforts. This segment is gaining traction as cities seek innovative ways to incorporate agriculture into their landscapes, encouraging local food security and environmental sustainability.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Asia Pacific leads the market, accounting for the largest vertical farming market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for vertical farming.

Asia Pacific dominates the market due to rising investments in agricultural technology. Nations in the region are embracing vertical farming to tackle food security issues and lessen reliance on imported crops. The emphasis on creativity and eco-friendliness is resulting in the creation of high-tech vertical farming systems that optimize both space usage and harvest production. Vertical farming market dynamics are further influenced by government backing and favorable regulations, which consist of numerous initiatives aimed at integrating vertical farming into urban planning and development. Additionally, the growing health consciousness among consumers is driving the demand for fresh, pesticide-free produce. In 2024, CubicFarm Systems collaborated with BoomA Food Group to distribute 10 HydroGreen GLS 808 machines and 2 DGS-66 units for producing livestock feed in Australia. The agreement made BoomA the sole partner of HydroGreen in Australia and New Zealand, strengthening the importance of vertical farming in the beef and dairy industry. The goal of this partnership was to enhance feed efficiency and sustainability in the agricultural industry.

Competitive Landscape:

• The vertical farming market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, Vertical Farm Systems Pty Ltd., etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the market are actively innovating and expanding their operations to meet the growing demand for sustainable and locally sourced produce. They are investing heavily in research operations to enhance farming technologies, including advanced hydroponic and aeroponic systems, AI-driven automation, and energy-efficient LED lighting, to maintain competitive advantage and gain comprehensive vertical farming market insights to stay ahead. These companies are also forging strategic partnerships and collaborations to optimize supply chains and broaden their market reach. In 2023 Singapore-based AlfaTech became the service partner for Urban Crop Solutions in South East Asia. They collaborated on indoor vertical farming projects, including the National University of Singapore's Agricultural Translational Research Centre. This partnership aimed to integrate and service Urban Crop Solutions' technology in the region, addressing climate change and food production challenges.

Vertical Farming Market News:

• July 2025: Kuwait Financial Centre “Markaz” launched a vertical farming education initiative at The English School (TES) as part of its CSR efforts. The program gives students hands-on experience in sustainable agriculture using indoor vertical farming systems. It supports UN SDGs and aims to build student capacity in environmental innovation.
• May 2025: Illinois State University opened a new Vertical Farm to promote sustainable urban agriculture and hands-on student learning. Housed in a 320-square-foot repurposed shipping container, it uses vertical hydroponics and LED lighting to grow 4,600 plants year-round with 95% less water. The project aims to address food security and environmental challenges through advanced farming technology.
• April 2025: The Government of India announced financial support for vertical farming under the Agriculture Infrastructure Fund (AIF), offering loans up to ₹2 crore with a 3% interest subsidy. Eligible applicants include farmers, startups, and cooperatives adopting hydroponics, aeroponics, or greenhouse farming. This move supports sustainable agriculture and modern agri-entrepreneurship.
• March 2025: Zhejiang PUKU Agricultural Technology launched a 5,000 m² AI Auto vertical farm in Hangzhou, China, integrating AI and automation to reduce energy and water use by 30%. Their system uses real-time sensor data and AI analytics to optimize growing conditions, improve yields, and lower costs. PUKU aims to expand overseas, promoting sustainable and precise indoor vertical farming for global food security.
• February 2025: Saudi Arabia completed its largest indoor vertical farming facility in Riyadh, a 19-layer, 20,000 sqm farm using AI and automation to grow leafy greens sustainably. The project, a collaboration between Mowreq, VFCo, and YesHealth Group, aims to boost local food security and supports Saudi Vision 2030. The farm also features an experiential center for visitors, blending agriculture with education and dining.
• January 2025: Oslo-based AgriTech startup Avisomo raised €5 million, including a €1.6 million grant from Innovation Norway, to develop its fully automated vertical farming technology. The “no-hands farming” system aims to enable large-scale, sustainable local food production with minimal resource use and reduced food waste. Avisomo plans to start production in summer 2025 with a pilot facility producing up to 100 tons of fresh lettuce annually.
• February 2024: Jones Food Company Limited (JFC) opened its second vertical farm, JFC2, in Gloucestershire, claiming it to be the world's most advanced vertical farm. The new farm, spanning 14,448 square meters, utilized 100% renewable energy to grow various crops and aimed to revolutionize sustainable food production.

Vertical Farming Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, vertical farming market forecasts, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the vertical farming industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.