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Vertical Farming Market Size
The global vertical farming market size was valued at USD 6.7 billion in 2024 and is expected to reach USD 19.7 billion by 2034, growing at a CAGR of 11.4% from 2025 to 2034, due to the increasing urbanization, concern for food security, and the need for sustainable agricultural solutions. Vertical farming is an innovative technique of growing crops in controlled environments, through methods such as hydroponics, aeroponics, and aquaponics. Vertical farming offers efficient conservation of water and land while producing crops all year round, making it easier to cultivate in urban areas with less farmland.
To get key market trends
According to 2020 report by the World Wide Fund for Nature, the U.S. recorded the presence of most vertical farms while the sector is booming in Asian countries including Japan, China, Singapore, South Korea, Taiwan, and Thailand. Vertical farms can also be found in Germany, France, the United Kingdom, and the Netherlands, in Europe.
Vertical Farming Market Report Attributes
Key Takeaway
Details
Market Size & Growth
Base Year
2024
Market Size in 2024
USD 6.7 Billion
Forecast Period 2025 – 2034 CAGR
11.4%
Market Size in 2034
USD 19.7 Billion
Key Market Trends
Growth Drivers
Urbanization and limited arable land
Demand for fresh, pesticide-free produce
Government initiatives and incentives
Pitfalls & Challenges
High initial investment costs
Technical complexity
What are the growth opportunities in this market?
Advancements in technology such as automation, artificial intelligence, IoT, and LED lighting, increase productivity and resource efficiency. Hydroponics is the most used process due to its effectiveness and simplicity, followed by other sustainable methods such as aeroponics and aquaponics. Climate control systems, lighting, irrigation and fertigation, and advanced sensors ensure consistent crop yields regardless of external weather. Vertical farms are enhancing their crop range to include fruits, herbs, and vegetables to meet the demand for fresh, pesticide free, and locally grown products.
One significant challenge in the vertical farming market is the high initial investment. In comparison with traditional farms, vertical farms need installation of modern technology to control the growing environment, including LED lighting systems, climate control units, hydroponic and aeroponic systems, as well as automation software. Vertical farming also incurs additional costs for purchasing buildings and containers necessary for mounting these systems. Furthermore, operational costs such as energy expenses for lighting and climate control additionally strain the expenditure of the vertical farm in the early stages of business development. The high costs can deter farmers, investors, and most startups from widespread adoption of vertical farming.
Vertical Farming Market Trends
Recent technological developments such as LED lighting, robotics, climate control systems, and real-time data monitoring via IoT sensors have streamlined vertical farming making it more productive, less costly, and flexible. The demand for fresh, pesticide-free and locally grown food can be met year-round and reliably by vertical farms.
Smart sensors are an important component of a vertical farming technique. The Internet of Things (IoT) is a critical component, as it is impossible to ensure good farm productivity without constant monitoring of the surrounding environment and plant condition. Automation systems for plant cultivation management. They may include planting and harvesting systems controlled by artificial intelligence and robots.
The government-supportive incentives, research subsidies, and policy frameworks aimed at urban agriculture are fostering investment by both startups and established companies. These factors are reshaping the agricultural landscape, making vertical farming a promising solution for future food security.
Vertical Farming Market Analysis
Learn more about the key segments shaping this market
Based on structure, the market is segmented into shipping-container based and building based. Building based segment crossed USD 4.1 billion in 2024, due to various benefits such as easily scalable, flexibility and control compared to shipping-container based farms. Furthermore, repurposed warehouses or factories and purpose-built vertical farming facilities can incorporate multi-layered farming systems to maximize yield per square foot.
Building-based structure also allows ease of installation for advanced automation systems for climate control, lighting, and irrigation, ensuring year-round optimal growing conditions. These building based farms are usually situated in or around urban centers, lowering transportation costs and enabling delivery of fresher produce. These factors make them more desirable to commercial growers, and therefore, drive segment growth.
Learn more about the key segments shaping this market
Based on process, the market is segmented into hydroponics, aeroponics and aquaponics. The hydroponics segment accounted for around 47% market share in 2024.
The hydroponics segment holds the largest share in the market because it is an efficient form of soilless cultivation. Hydroponics allow plant to grow in nutrient rich water solutions, reducing water usage by 90% compared with soil farming and eliminating the need for herbicides and pesticides. This system supports fast plant growth and higher yields, making it ideal for commercial scale vertical farms. Hydroponics is also easy to implement, and scale compared to more complex systems such as aquaponics or aeroponics. Its versatility across various crop types, especially leafy greens and herbs, drives its dominant market position.
Aeroponics is also a soilless farming method where the roots of plants are held suspended and periodically moisturized with a nutrient-rich solution. In comparison to hydroponics where the roots are submerged into the water, aeroponics provide nutrients and oxygen to the roots via a mist which can enhance nutrient uptake and accelerate growth.
Looking for region specific data?
The U.S. contributed 69% share of the North America vertical farming market in 2024. In the U.S. and Canada, the transition towards reducing transportation carbon footprint has prompted the proximity of farms to the target consumers. Cities such as New York, Chicago, Vancouver, and Toronto are becoming hotspots for vertical farming facilities producing leafy greens, herbs, and microgreens. Consumer demand for fresh and healthy food with low environmental impact continues to fuel the market expansion.
Strong technological foundation of the U.S further drives the market growth, enabling widespread use of advanced systems such as hydroponics, aeroponics, LED grow lights, climate control, and data-driven automation. These innovations have made vertical farming more efficient and scalable, allowing consistent year-round production even in uncertain climatic conditions.
North America held the largest share in the vertical farming market, generating a revenue of USD 2.5 billion in 2024, driven by growing population, sustainability initiatives, and technological advancements. Vertical farming is also driven by several factors such as limited arable land in the cities and urban areas and the growing demand for pesticide-free produce. Vertical farms require less land and water compared to conventional farming, as these systems operate in containers, buildings and warehouses.
Vertical Farming Market Shares
The top companies in the vertical farming industry include Philips, ams Osram, Panasonic, General Electronics, Artechno, and they collectively hold a share of 25-30% in the market. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.
Vertical Farming Market Companies
Major players operating in the vertical farming industry are:
AMS OSRAM AG
Artechno
C-LED srl
Ecopia
General Electronics
LED iBond
MechaTronix
Nuvege
Organizzazione Orlandelli
Panasonic
Parus
Philips
Signify
Tungsram
UNI-TROLL
Key market players such as Signify (Philips), Osram, and Priva are component providers specializing in climate control systems, LED grow lights, and fertigation devices, which are critical for vertical farm systems to operate. Some emerging startups, like Freight Farms and Bowery Farming, are gaining attention for their modular and containerized urban farming and software-centric farming designed for small-scale operations.
The collaborations between technology and agricultural companies are driving innovative advances in this industry, especially in AI, IoT, and data science. With the market maturation, competition is expected to be based on operational efficiency and sustainability of vertical farms, innovations, crop variety and diversity, and reducing operational costs while meeting growing demand for locally produced & pesticide-free food.
Vertical Farming Industry News
In January 2025, Valoya launched the LL-CV Series, a lighting solution for vertical farming, tissue culture, and plant research. The developed product series feature lengths from 60 cm to 150 cm, ensuring compatibility with various shelving systems and uniform light distribution. It also includes advanced spectral uniformity, compliance with photobiological safety standards, and an FEP protective covering for durability.
In March 2025, PhenoVation introduced an innovative sensor technology, the Cf2Go sensor, an advanced device that measures the photosynthesis efficiency of crops in real time. The company announced official market release of its developed product in June 2025.
In May 2025, Aranet, a SAF Tehnika brand, announced the launch of Light Spectrum sensor at GreenTech Amsterdam 2025. The device delivers real-time spectral data across the 350 to 950 nanometer range and provides significantly broader analysis than standard PAR sensors. It helps farmers to optimize lighting strategies based on real-time spectrum data.
The Vertical Farming Market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:
to Buy Section of this Report
Market, By Structure
Shipping-Container Based
Building Based
Market, By Process
Hydroponics
Aeroponics
Aquaponics
Market, By Component
Lighting Systems
Irrigation and Fertigation
Climate Control
Sensors
Market, By Crop Type
Fruits
Vegetables
The above information is provided for the following regions and countries:
North America
U.S.
Canada
Europe
Germany
UK
France
Spain
Italy
Asia Pacific
China
Japan
India
Australia
South Korea
Latin America
Brazil
Mexico
Argentina
MEA
South Africa
Saudi Arabia
UAE
Author: Avinash Singh, Sunita Singh
Frequently Asked Question(FAQ) :
Who are the key players in vertical farming market?+
Some of the major players in the vertical farming industry include AMS OSRAM AG, Artechno, C-LED srl, Ecopia, General Electronics, LED iBond, MechaTronix, Nuvege.
How much vertical farming market share captured by U.S. in 2024?+
The U.S. vertical farming market held around 69% share in 2024.
How big is the vertical farming market?+
The vertical farming market was valued at USD 6.7 billion in 2024 and is expected to reach around USD 19.7 billion by 2034, growing at 11.4% CAGR through 2034.
What is the size of building based segment in the vertical farming industry?+
The building based segment generated over USD 4.1 billion in 2024.