Global Vertical Farming Market 2025- 2025
Description
Vertical Farming Market Size, Share & Trends Analysis Report by Structure Type (Building-Based Vertical Farms, and Shipping Container-Based Vertical Farms) by Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics) by Component (Irrigation and Fertigation Systems, Lighting Systems, Sensors, Climate Control Systems, Building Materials, and Others) and by Crop Type (Leafy Greens, Herbs, Fruits & Vegetables, and Other Crops) and (Forecast Period (2025-2035)
Industry Overview
Vertical farming market was valued at $7.8 billion in 2024 and is projected to reach $61.1 billion by 2035, growing at a CAGR of 20.6% during the forecast period (2025–2035). A vertical farming system is primarily a method of growing crops in layers that are organized vertically, as opposed to a conventional farm or a single surface, such as a field or greenhouse. These layers are typically incorporated by growers into vertical configurations such as buildings, shipping storage containers, old warehouses, and mine channels. It is defined by the use of controlled environments, innovative methods combined with hydroponic, aeroponic, and aquaponic farming systems, and the vertical building of crops. The main drivers of the market's expansion are rising urbanization, a shortage of agricultural land, and developments in light-emitting diode (LED) technology.
Market Dynamics
Urbanization and Limited Arable Land
Rapid urbanization worldwide is reducing the availability of arable land for traditional farming. Cities are expanding, and agricultural land is often converted into residential or commercial use. Vertical farming allows for high-density crop production within urban spaces, including rooftops, repurposed warehouses, and multi-story buildings. This proximity to urban consumers reduces transportation costs, minimizes food spoilage, and ensures year-round availability of fresh produce.
Technological Advancements in Farming Systems
Modern vertical farming leverages innovations such as LED lighting tailored for photosynthesis, automated irrigation, fertigation systems, climate control, and robotics. These technologies allow for precise control over plant growth parameters, significantly improving yields compared to traditional agriculture. For instance, LED lighting systems optimize light spectrum to promote faster plant growth while reducing energy consumption. Automation reduces labor costs, ensures consistent quality, and supports scalability for large commercial operations.
Rising Demand for Fresh and Locally Grown Produce
Consumers increasingly prefer organic, fresh, pesticide-free, and locally sourced food. Vertical farming caters to this demand by producing crops close to urban markets, ensuring higher freshness, better flavor, and longer shelf life. Retailers and restaurants are adopting vertical-farmed produce to meet the premium quality expectations of health-conscious consumers.
Government Initiatives and Investments
Several countries are supporting vertical farming as part of their food security and sustainability strategies. Incentives such as subsidies, tax benefits, and research grants are encouraging startups and established companies to invest in vertical farming technologies. For example, Singapore, Japan, and the Netherlands actively promote urban farming initiatives to enhance self-sufficiency in food production.
Market Segmentation
By growth mechanism, the hydroponics segment is projected to lead the global Vertical Farming market with the largest share. The dominance of hydroponics is driven by its ability to deliver higher crop yields, efficient nutrient management, and faster growth cycles compared to traditional farming methods. Its adaptability to both small- and large-scale setups, coupled with reduced water usage and minimal reliance on arable land, positions hydroponics as the preferred technology for vertical farming operators globally.
Lighting Systems: Key Segment in Market Growth
Among component segments, lighting systems represent the key driver of growth in the global Vertical Farming market. Advanced LED lighting technologies optimize photosynthesis, enable year-round crop production, and improve energy efficiency. The integration of smart lighting solutions, which adjust light intensity and spectrum according to crop needs, further boosts productivity and reduces operational costs.
Regional Outlook
The global vertical farming market is divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
India’s Market Expands Rapidly in Asia-Pacific
India is emerging as one of the fastest-growing markets in the Asia-Pacific vertical farming sector. The country’s rapid expansion is driven by rising urbanization, shrinking arable land, and growing demand for pesticide-free and high-nutrition foods. Increased government focus on sustainable agricultural practices, along with supportive initiatives like subsidies for hydroponics and precision farming, further accelerates adoption. Additionally, India’s strong IT and technology ecosystem is fostering innovations in automation, sensor-based farming, and AI-driven climate control systems. With a young population open to adopting modern farming techniques and investors backing large-scale urban farming projects, India is set to become a key hub for vertical farming in the region.
North America Maintains Strong Market Position
North America continues to maintain a dominant position in the global vertical farming market, with the US emerging as the leading country commanding a major share. The US market benefits from advanced farming technologies, strong investment activity, and the presence of leading vertical farming companies. Urban centers like New York, Chicago, and San Francisco are at the forefront of adopting large-scale indoor farming projects to ensure food security and reduce supply chain vulnerabilities. The growing consumer preference for locally grown, sustainable produce further supports market expansion. Canada also contributes to regional growth with the rising adoption of container-based farms and government support for agri-tech innovation.
Market Players Outlook
The major companies operating in the global vertical farming market include AeroFarms, Plenty, Signify, Bowery Farming, and Bright Farms, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments
Industry Overview
Vertical farming market was valued at $7.8 billion in 2024 and is projected to reach $61.1 billion by 2035, growing at a CAGR of 20.6% during the forecast period (2025–2035). A vertical farming system is primarily a method of growing crops in layers that are organized vertically, as opposed to a conventional farm or a single surface, such as a field or greenhouse. These layers are typically incorporated by growers into vertical configurations such as buildings, shipping storage containers, old warehouses, and mine channels. It is defined by the use of controlled environments, innovative methods combined with hydroponic, aeroponic, and aquaponic farming systems, and the vertical building of crops. The main drivers of the market's expansion are rising urbanization, a shortage of agricultural land, and developments in light-emitting diode (LED) technology.
Market Dynamics
Urbanization and Limited Arable Land
Rapid urbanization worldwide is reducing the availability of arable land for traditional farming. Cities are expanding, and agricultural land is often converted into residential or commercial use. Vertical farming allows for high-density crop production within urban spaces, including rooftops, repurposed warehouses, and multi-story buildings. This proximity to urban consumers reduces transportation costs, minimizes food spoilage, and ensures year-round availability of fresh produce.
Technological Advancements in Farming Systems
Modern vertical farming leverages innovations such as LED lighting tailored for photosynthesis, automated irrigation, fertigation systems, climate control, and robotics. These technologies allow for precise control over plant growth parameters, significantly improving yields compared to traditional agriculture. For instance, LED lighting systems optimize light spectrum to promote faster plant growth while reducing energy consumption. Automation reduces labor costs, ensures consistent quality, and supports scalability for large commercial operations.
Rising Demand for Fresh and Locally Grown Produce
Consumers increasingly prefer organic, fresh, pesticide-free, and locally sourced food. Vertical farming caters to this demand by producing crops close to urban markets, ensuring higher freshness, better flavor, and longer shelf life. Retailers and restaurants are adopting vertical-farmed produce to meet the premium quality expectations of health-conscious consumers.
Government Initiatives and Investments
Several countries are supporting vertical farming as part of their food security and sustainability strategies. Incentives such as subsidies, tax benefits, and research grants are encouraging startups and established companies to invest in vertical farming technologies. For example, Singapore, Japan, and the Netherlands actively promote urban farming initiatives to enhance self-sufficiency in food production.
Market Segmentation
- Based on the structure type, the market is segmented into building-based vertical farms and shipping container-based vertical farms.
- Based on the growth mechanism, the market is segmented into hydroponics, aeroponics, and aquaponics.
- Based on the component, the market is segmented into irrigation and fertigation systems, lighting systems, sensors, climate control systems, building materials, and others.
- Based on the crop type, the market is segmented into leafy greens, herbs, fruits & vegetables, and other crops.
By growth mechanism, the hydroponics segment is projected to lead the global Vertical Farming market with the largest share. The dominance of hydroponics is driven by its ability to deliver higher crop yields, efficient nutrient management, and faster growth cycles compared to traditional farming methods. Its adaptability to both small- and large-scale setups, coupled with reduced water usage and minimal reliance on arable land, positions hydroponics as the preferred technology for vertical farming operators globally.
Lighting Systems: Key Segment in Market Growth
Among component segments, lighting systems represent the key driver of growth in the global Vertical Farming market. Advanced LED lighting technologies optimize photosynthesis, enable year-round crop production, and improve energy efficiency. The integration of smart lighting solutions, which adjust light intensity and spectrum according to crop needs, further boosts productivity and reduces operational costs.
Regional Outlook
The global vertical farming market is divided by region, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).
India’s Market Expands Rapidly in Asia-Pacific
India is emerging as one of the fastest-growing markets in the Asia-Pacific vertical farming sector. The country’s rapid expansion is driven by rising urbanization, shrinking arable land, and growing demand for pesticide-free and high-nutrition foods. Increased government focus on sustainable agricultural practices, along with supportive initiatives like subsidies for hydroponics and precision farming, further accelerates adoption. Additionally, India’s strong IT and technology ecosystem is fostering innovations in automation, sensor-based farming, and AI-driven climate control systems. With a young population open to adopting modern farming techniques and investors backing large-scale urban farming projects, India is set to become a key hub for vertical farming in the region.
North America Maintains Strong Market Position
North America continues to maintain a dominant position in the global vertical farming market, with the US emerging as the leading country commanding a major share. The US market benefits from advanced farming technologies, strong investment activity, and the presence of leading vertical farming companies. Urban centers like New York, Chicago, and San Francisco are at the forefront of adopting large-scale indoor farming projects to ensure food security and reduce supply chain vulnerabilities. The growing consumer preference for locally grown, sustainable produce further supports market expansion. Canada also contributes to regional growth with the rising adoption of container-based farms and government support for agri-tech innovation.
Market Players Outlook
The major companies operating in the global vertical farming market include AeroFarms, Plenty, Signify, Bowery Farming, and Bright Farms, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments
- In August 2025, Plenty launched its fourth large-scale vertical farm in California, integrating AI-powered robotics to maximize yield efficiency and crop diversity.
- In June 2025, Bowery Farming secured $150 million in Series D funding to expand its vertical farm network across the Midwest and enhance its proprietary farm operating system.
- In May 2025, AeroFarms partnered with a major US retail chain to supply locally grown leafy greens produced at its new vertical farm in New Jersey.
- In March 2025, Infarm introduced its next-generation modular farming units in Canada, enabling supermarkets and restaurants to grow produce on-site with a reduced environmental footprint.
- In January 2025, BrightFarms expanded its indoor farming operations into Texas, leveraging renewable energy-powered greenhouses to improve scalability and cost-efficiency.
- Market value data analysis of 2024 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global vertical farming market. Based on the availability of data, information related to new products and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
Table of Contents
158 Pages
- 1. Report Summary
- Current Industry Analysis and Growth Potential Outlook
- Global Vertical Farming Market Sales Analysis – Structure Type | Growth Mechanism | Component | Crop Type ($ Million)
- Vertical Farming Market Sales Performance of Top Countries
- 1.1. Research Methodology
- Primary Research Approach
- Secondary Research Approach
- 1.2. Market Snapshot
- 2. Market Overview and Insights
- 2.1. Scope of the Study
- 2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Vertical Farming Market Trends
- 2.2.2. Market Recommendations
- 3. Market Determinants
- 3.1. Market Drivers
- 3.1.1. Drivers For Global Vertical Farming Market: Impact Analysis
- 3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global Vertical Farming Market: Impact Analysis
- 3.3. Market Opportunities
- 3.3.1. Opportunities For Global Vertical Farming Market: Impact Analysis
- 4. Competitive Landscape
- 4.1. Competitive Dashboard – Vertical Farming Market Revenue and Share by Manufacturers
- Vertical Farming Structure Comparison Analysis
- Top Market Player Ranking Matrix
- 4.2. Key Company Analysis
- 4.2.1. AeroFarms
- 4.2.1.1. Overview
- 4.2.1.2. Product Portfolio
- 4.2.1.3. Financial Analysis (Subject to Data Availability)
- 4.2.1.4. SWOT Analysis
- 4.2.1.5. Business Strategy
- 4.2.2. BrightFarms
- 4.2.2.1. Overview
- 4.2.2.2. Product Portfolio
- 4.2.2.3. Financial Analysis (Subject to Data Availability)
- 4.2.2.4. SWOT Analysis
- 4.2.2.5. Business Strategy
- 4.2.3. Bowery Farming
- 4.2.3.1. Overview
- 4.2.3.2. Product Portfolio
- 4.2.3.3. Financial Analysis (Subject to Data Availability)
- 4.2.3.4. SWOT Analysis
- 4.2.3.5. Business Strategy
- 4.2.4. Plenty
- 4.2.4.1. Overview
- 4.2.4.2. Product Portfolio
- 4.2.4.3. Financial Analysis (Subject to Data Availability)
- 4.2.4.4. SWOT Analysis
- 4.2.4.5. Business Strategy
- 4.2.5. Signify
- 4.2.5.1. Overview
- 4.2.5.2. Product Portfolio
- 4.2.5.3. Financial Analysis (Subject to Data Availability)
- 4.2.5.4. SWOT Analysis
- 4.2.5.5. Business Strategy
- 4.3. Top Winning Strategies by Market Players
- 4.3.1. Merger and Acquisition
- 4.3.2. Product Launch
- 4.3.3. Partnership And Collaboration
- 5. Global Vertical Farming Market Sales Analysis By Structure Type ($ Million)
- 5.1. Building-Based Vertical Farms
- 5.2. Shipping Container-Based Vertical Farms
- 6. Global Vertical Farming Market Sales Analysis By Growth Mechanism ($ Million)
- 6.1. Hydroponics
- 6.2. Aeroponics
- 6.3. Aquaponics
- 7. Global Vertical Farming Market Sales Analysis By Component ($ Million)
- 7.1. Irrigation and Fertigation Systems
- 7.2. Lighting Systems
- 7.3. Sensors
- 7.4. Climate Control Systems
- 7.5. Building Materials
- 7.6. Others
- 8. Global Vertical Farming Market Sales Analysis By Crop Type ($ Million)
- 8.1. Leafy Greens
- 8.2. Herbs
- 8.3. Fruits & Vegetables
- 8.4. Other Crops
- 9. Regional Analysis
- 9.1. North American Vertical Farming Market Sales Analysis – Structure Type | Growth Mechanism | Component | Crop Type ($ Million)
- Macroeconomic Factors for North America
- 9.1.1. United States
- 9.1.2. Canada
- 9.2. European Vertical Farming Market Sales Analysis – Structure Type | Growth Mechanism | Component | Crop Type ($ Million)
- Macroeconomic Factors for Europe
- 9.2.1. UK
- 9.2.2. Germany
- 9.2.3. Italy
- 9.2.4. Spain
- 9.2.5. France
- 9.2.6. Russia
- 9.2.7. Rest of Europe
- 9.3. Asia-Pacific Vertical Farming Market Sales Analysis – Structure Type | Growth Mechanism | Component | Crop Type ($ Million)
- Macroeconomic Factors for Asia-Pacific
- 9.3.1. China
- 9.3.2. Japan
- 9.3.3. South Korea
- 9.3.4. India
- 9.3.5. Australia & New Zealand
- 9.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 9.3.7. Rest of Asia-Pacific
- 9.4. Rest of the World Vertical Farming Market Sales Analysis – Structure Type | Growth Mechanism | Component | Crop Type ($ Million)
- Macroeconomic Factors for the Rest of the World
- 9.4.1. Latin America
- 9.4.2. Middle East and Africa
- 10. Company Profiles
- 10.1. AeroFarms
- 10.1.1. Quick Facts
- 10.1.2. Company Overview
- 10.1.3. Product Portfolio
- 10.1.4. Business Strategies
- 10.2. Axios
- 10.2.1. Quick Facts
- 10.2.2. Company Overview
- 10.2.3. Product Portfolio
- 10.2.4. Business Strategies
- 10.3. Bowery Farming
- 10.3.1. Quick Facts
- 10.3.2. Company Overview
- 10.3.3. Product Portfolio
- 10.3.4. Business Strategies
- 10.4. BrightFarms
- 10.4.1. Quick Facts
- 10.4.2. Company Overview
- 10.4.3. Product Portfolio
- 10.4.4. Business Strategies
- 10.5. Crop One Holdings
- 10.5.1. Quick Facts
- 10.5.2. Company Overview
- 10.5.3. Product Portfolio
- 10.5.4. Business Strategies
- 10.6. Eden Green Technology
- 10.6.1. Quick Facts
- 10.6.2. Company Overview
- 10.6.3. Product Portfolio
- 10.6.4. Business Strategies
- 10.7. Everlight Electronics Co., Ltd.
- 10.7.1. Quick Facts
- 10.7.2. Company Overview
- 10.7.3. Product Portfolio
- 10.7.4. Business Strategies
- 10.8. Gotham Greens
- 10.8.1. Quick Facts
- 10.8.2. Company Overview
- 10.8.3. Product Portfolio
- 10.8.4. Business Strategies
- 10.9. Green Sense Farms
- 10.9.1. Quick Facts
- 10.9.2. Company Overview
- 10.9.3. Product Portfolio
- 10.9.4. Business Strategies
- 10.10. Heliospectra AB
- 10.10.1. Quick Facts
- 10.10.2. Company Overview
- 10.10.3. Product Portfolio
- 10.10.4. Business Strategies
- 10.11. Intelligent Growth Solutions
- 10.11.1. Quick Facts
- 10.11.2. Company Overview
- 10.11.3. Product Portfolio
- 10.11.4. Business Strategies
- 10.12. Oishii
- 10.12.1. Quick Facts
- 10.12.2. Company Overview
- 10.12.3. Product Portfolio
- 10.12.4. Business Strategies
- 10.13. Plenty
- 10.13.1. Quick Facts
- 10.13.2. Company Overview
- 10.13.3. Product Portfolio
- 10.13.4. Business Strategies
- 10.14. Signify
- 10.14.1. Quick Facts
- 10.14.2. Company Overview
- 10.14.3. Product Portfolio
- 10.14.4. Business Strategies
- 10.15. Stacked Farm
- 10.15.1. Quick Facts
- 10.15.2. Company Overview
- 10.15.3. Product Portfolio
- 10.15.4. Business Strategies
- 10.16. Urban Crop Solutions
- 10.16.1. Quick Facts
- 10.16.2. Company Overview
- 10.16.3. Product Portfolio
- 10.16.4. Business Strategies
- 10.17. Vertical Harvest
- 10.17.1. Quick Facts
- 10.17.2. Company Overview
- 10.17.3. Product Portfolio
- 10.17.4. Business Strategies
Pricing
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