Vertical Farming Market By Type (Hydroponics {Deep Water Culture (DWC), Nutrient Film Technique (NFT), Wick System, Ebb and Flow System} Aeroponics, Aquaponics), By Structure (Building-Based Vertical Farms, Shipping-Container Vertical Farms, Underground tunnels Vertical Farms), By Crop Type (Leafy Greens, Fruits, Herbs, Root Vegetables, Microgreens, Others), By Component (Lighting System, Irrigation & Fertigation, Climate Control, Sensors, Others), and By Application (Urban Farming, Indoor farming, Greenhouses, Food Processing, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Vertical Farming market accounted for USD 55.2 Billion in 2024 and is expected to reach USD 124.2 Billion by 2035, growing at a CAGR of around 7.65% between 2025 and 2035. Vertical farming is the technique whereby crops are cultivated in stacked layers or vertically indoors under controlled conditions. The plants are either grown hydroponically, aeroponically, or aquaponic, without needing soil, thereby requiring less water and space for production. This method allows for year-round production in urban locations, not needing tracts of large land. Because the produce is closer to consumer markets, it can reduce the costs of transportation. It is advancing objectives on meeting food security, environmental sustainability, and climate change issues. The demand for vertical farming is booming as more people seek to acquire local, sustainable food.

Report Scope:

Market Dynamics

• Vertical Farming A Sustainable Solution for Urban Food Demands

The increasing urban population and limited space for traditional agriculture are key drivers for the vertical farming market. According to the Food and Agriculture Organization, approximately 56% of the world's population currently lives in an urban environment, which is a tremendous challenge for food systems. With cities expanding their horizons, demand for locally produced food is increasing.

In such a scenario, innovative solutions like vertical farming, which involves growing crops in several layers piled up to make smaller controlled environments, come into the picture. This method does not require large land areas and minimizes the negative environmental impact of farming through reduced water usage as well as transportation emissions.

Vertical farms will also be implemented in urban fields so that food mileage is reduced and fresh produce is delivered closer to the consumer. Hydroponics and aeroponics, among many other technological advancements, enhance yield in small spaces and further encourage vertical farming.

Further studies show vertical farming uses up as much as 90% less water compared to traditional agriculture, which proves to be a highly sustainable alternative. This aligns with global trends toward building more resilient and sustainable food systems in the face of widespread urbanization.

• Nutrient-Rich Crops and Climate Resilience Drive Vertical Farming Growth

The two main drivers of the rapid growth of vertical farming are the superior quality of crops from such systems and the need to adapt to adverse changes in climate. Vertical farming makes use of crop cultivation in stacked layers within controlled, indoor environments. while being dependent on technologies such as hydroponics and aeroponics to optimize resource efficiency.

The most recent example is the Vertical Harvest Detroit project, which annually produces 2.2 million pounds of vegetables by these novel ways of farming. An Another important benefit of vertical farms is their capability to enhance the nutritional quality of crops. Being in control of environmental factors such as light, temperature, humidity, and nutrient supplies, vertical farms can optimize the production of nutrients, antioxidants, and phytochemicals for better nutrition.

All these aspects make vertical farming a rather convincing solution to the growing call for nutrient-dense food while proving useful in strategies for solving climate and food insecurity challenges.

• High Setup Costs Hindering Vertical Farming Market Growth

A very high initial setup cost is one of the major restraints for the vertical farming market because it consists of infrastructure, technology, and other equipment expenses, which is very high for many new entrants. These may not allow growth in the market and slow down the adoption of vertical farming in some regions. Specialized systems such as hydroponics, aeroponics, and controlled environment agriculture require a more significant amount of capital expenditures.

One of the biggest challenges is financial, especially for small-scale farmers and start-ups who cannot access the capital required. A USDA report indicated that erecting a vertical farm will cost hundreds of thousands to millions of dollars, depending on the size of the farm or the technology used. Although vertical farming is still long-term sustainable and efficiently productive, with relatively high capital costs, though slowing wider adoption and further market expansion, it is highly-priced in comparison to conventional systems.

• Opportunity for Vertical Farming in Niche Culinary Markets and Government Investment

One of the most important opportunities for vertical farming is the growing demand for niche specialty culinary products, microgreens, exotic herbs, and specialty fruits, which have seen growing demand from gourmet restaurants and chefs, as well as high-net-worth individuals. The efficiency of vertical farms in producing crops in a controlled environment makes them ideal for capturing the demand for year-round production of high-quality fresh produce.

As reported by the by the U.S. Department of Agriculture, announced late in February that it was investing nearly $121 million to accelerate research and Extension work focused on solving major challenges confronting specialty crop and organic agriculture producers. Specialty Crop Production research will account for $70.4 million, while high-quality organic food production will receive $50.5 million. This way, vertical farming will be poised to benefit from such investments as it seeks to provide specialty crops on demand while supporting sustainable agriculture.

• Growing Demand for Natural Health Products Drives Vertical Farming Opportunities

An increasing opportunity for vertical farming is the growing demand for natural health products and wellness solutions. A new report released recently by the USDA suggests an increasing market for plant-based and organic nutraceuticals, which is perceived to carry significant momentum due to consumer interest in natural health solutions. Such an emerging opportunity would represent a tremendous chance for vertical farming markets, particularly in the production of medicinal herbs, nutraceuticals, and other plant-based pharmaceuticals.

Since vertical farming is the ultimate of controlled environment agriculture, these high-value crops shall be consistent in quality and availability throughout the year. The growing trend of demand for natural health products has positioned vertical farms in an excellent position to leverage this trend by cultivating proprietary crops like turmeric and ginger or cannabidiol from hemp to meet the demand for therapeutic qualities. This trend opens a promising avenue for the growth of vertical farming from producing medicinal and nutraceutical crops, in line with increasing interest in health and wellness.

Industry Experts Opinion

"This farm is a model for the positive impact climate-agnostic agriculture can have, and proof that vertical farming can deliver the crop diversity, scaled and local production needed to future-proof the global food system,"

• Arama Kukutai, Plenty CEO. 

"Plenty is on a mission to change the way we eat by growing produce with craveable flavor while increasing availability to a world that long ago ran out of additional fruit and vegetable farmland,"

• Matt Barnard, co-founder of Plenty.

Segment Analysis

Based on type, the Vertical Farming market is classified into Hydroponics (Deep Water Culture, NFT, Wick, Ebb and Flow), Aeroponics, and Aquaponics. Hydroponics leads the market due to its efficiency in nutrient delivery, water conservation, and scalability, making it the most widely adopted method.

Based on structure, the Vertical Farming market is classified into Building-Based Vertical Farms, Shipping-Container Vertical Farms, and Underground Tunnel Vertical Farms. Building-Based Vertical Farms lead the market due to their scalability, ability to integrate into urban environments, and efficient use of space, making them the preferred choice for large-scale commercial operations.

The Vertical Farming market is classified as per crop type, such as Leafy Greens, Fruits, Herbs, Root Vegetables, Microgreens, and Others. Leafy greens lead the market due to their rapid growth cycle, high demand, and suitability for vertical farming systems.

Regional Analysis

The North American market dominates the highest share of vertical farming globally because of the adoption of advanced technologies, high investment in ag-tech, and increasing demand for sustainability in food production. A higher focus on urbanization, food security, and sustainability has contributed to the advancement of CEA solutions in this region. Also, the infrastructure established, research capabilities, and government support are some of the factors that position North America at the very top as the dominant player in the vertical farming market. This region is also experiencing a rise in consumer demand for fresh, locally sourced produce that supports the rapid growth of vertical farming operations. North America is most likely to be maintained at the top, with innovation and investment pouring into the sector of vertical farming.

The Asia-Pacific region is growing faster with rapid urbanization, a very dense population, and an ever-increasing necessity for more sustainable food solutions. Countries like Japan, Singapore, and China are also leading these trends. Increasing demands for fresh produce in urban centers, coupled with government support and investments in agricultural technologies, are key enablers of fast growth in vertical farming within this region. The area further benefits from Asia-Pacific's expertise in precision agriculture and resource-efficient farming systems.

Competitive Landscape

The competitive landscape for the vertical farming market is shifting rapidly as several key sector players are propelling innovation and growth. Important names that fit into this category are AeroFarms, Bowery Farming, Plenty Unlimited, and Infarm. They further cultivate advanced technologies in their pursuit of AI, hydroponics, and aeroponics that would help increase crop yield and sustainability. Companies have spread their operations across the world, seeking easy scalability and efficiency to cater to the increasing demand by consumers for locally-grown produce. Recent news includes the announcement of Plenty Unlimited investment of $130 million in a partnership with Mawarid Holding to invest in vertical farming projects across the GCC, and Bowery Farming expands retail partnerships to bring fresh produce to the largest U.S. markets. Industrial players have received high investments, strategic partnerships, and technological advancement to reduce operational costs and increase food security.

Vertical Farming Market, Company Shares Analysis, 2024

To explore in-depth analysis in this report - Request Free Sample Report

Recent Developments:

• In September 2024, GreenVenus, LLC introduced fast-growing lettuce cultivars for controlled environments, growing nearly twice as fast and with larger biomass than traditional varieties.
• In July 2024, Plenty Unlimited Inc. and Mawarid Holding Investment launched a partnership to build a vertical farm in Abu Dhabi, investing AED500 million (US$130 million) to produce over 2 million kilograms of strawberries annually.
• In March 2024, Vertical Future (VF) partnered with the World Green Economy Organisation (WGEO) to promote sustainable, resource-efficient agriculture, supporting WGEO’s mission for a green economy.

Report Coverage:

By Type

• Hydroponics
  • Deep Water Culture (DWC)
  • Nutrient Film Technique (NFT)
  • Wick System
  • Ebb and Flow System
• Aeroponics
• Aquaponics

By Structure

• Building-Based Vertical Farms
• Shipping-Container Vertical Farms
• Underground tunnels Vertical Farms

By Crop Type

• Leafy Greens
• Fruits
• Herbs
• Root Vegetables
• Microgreens
• Others

By Component

• Lighting System
• Irrigation & Fertigation
• Climate Control
• Sensors
• Others

By Application

• Urban Farming
• Indoor farming
• Greenhouses
• Food Processing
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Plenty Unlimited Inc.
• AeroFarms
• Bowery Farming
• Gotham Greens
• Vertical Harvest
• Mirai Co. Ltd.
• Urban Crop Solutions
• Sky Greens
• iFarm
• Infarm
• Agricool
• Green Spirit Farms
• Cropshift
• LettUs Grow
• Growsmart Agriculture

Frequently Asked Questions (FAQs)