Vertical Farming Market Overview

The global Vertical Farming Market is projected to grow significantly, rising from USD 6.0 billion in 2025 to USD 32.9 billion by 2035. This represents an impressive compound annual growth rate (CAGR) of 24.6% over the forecast period of 2025–2035. The market’s rapid expansion is largely attributed to the increasing global demand for sustainable and efficient agricultural solutions.

With accelerating urbanization and the continuous decline of arable land, vertical farming has emerged as an innovative solution for food production. It allows crops to be cultivated in vertically stacked layers within controlled indoor environments, maximizing space utilization and ensuring year-round output. Technological advancements in hydroponics, aeroponics, and aquaponics are propelling market growth by enabling higher yields, minimizing dependence on climate conditions, and reducing land and water consumption compared to conventional farming methods. The growth trajectory is further supported by rising investments in AgTech, supportive government policies for sustainable agriculture, and a surge in consumer preference for pesticide-free, locally sourced produce. Additionally, the integration of advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), and automation is enhancing crop monitoring, resource optimization, and operational efficiency. Emerging trends in the sector include the adoption of vertical farming systems by major food retailers, increasing demand for organic and sustainable food products, and the development of energy-efficient, scalable solutions. Together, these factors are shaping a dynamic growth outlook for the global Vertical Farming Market.

Vertical Farming Market Drivers and Opportunities

​​Increasing demand for sustainable and efficient food production is anticipated to drive the vertical farming market during the forecast period

The growing emphasis on sustainability in agriculture is one of the key drivers of the Vertical Farming Market. With the global population steadily increasing, the demand for food production is rising at a pace that traditional farming methods, constrained by land scarcity and water shortages, are struggling to meet. Conventional agriculture remains highly dependent on factors such as soil fertility, climate, and seasonality, which often lead to inconsistent yields, higher resource consumption, and vulnerability to environmental disruptions. In contrast, vertical farming operates within controlled environment agriculture (CEA) systems, ensuring stable and optimized growing conditions regardless of external environmental factors. Vertical farming offers a sustainable alternative by drastically reducing resource use, consuming up to 95% less water and significantly less land than traditional farming. This is particularly beneficial in regions affected by urbanization, water stress, and climate change-related challenges. Governments, corporations, and investors are increasingly recognizing the role of vertical farming in achieving food security while minimizing carbon footprints and pesticide reliance. Furthermore, continuous technological advancements such as energy-efficient LED lighting, automation, and AI-enabled crop monitoring are improving productivity and lowering operational costs. Together, these factors position vertical farming as a scalable, sustainable, and economically viable solution to future global food supply challenges.

​Technological innovation: AI, IoT, and automation are key drivers for influencing the growth of the global vertical farming market

Technology is a primary propeller of the growth of the Vertical Farming Market. The integration of AI (artificial intelligence), IoT (Internet of Things), and automation has heightened farming precision, reducing labor dependency and costs. Smart sensors monitor parameters like humidity, temperature, CO₂, and nutrient supply, ensuring optimal plant growth and higher yields. For instance, in June 2023, Signify collaborated with Siemens, a technology firm, for the provision of IT services for vertical farming. It reports that the idea is to see how technology can be leveraged to control and manage processes like climate, lighting, planting, and watering for 80 Acres Farm, an Ohio-based chain that grows crops indoors and supplies produce to local supermarkets and retailers.

AI-driven analytics predict plant health issues, control light exposure, and automate watering schedules, making vertical farming more efficient and scalable. Automated robotic systems are increasingly being used for seeding, transplanting, and harvesting crops, which leads to higher productivity and consistency in output. These technological innovations are driving the market, with investors and agritech startups being drawn to develop innovative smart farming technologies. The future growth of the market is directly linked to these innovations, as they enable lower operational costs and higher scalability, making vertical farming more viable economically for large-scale production.

​Diversification into Alternative Crop Production is poised to create huge opportunities in the Vertical Farming market globally.

The vertical farming market presents huge opportunities beyond herbs and leafy greens, with other crops such as fruits, berries, and medicinal crops. Currently, most vertical farms focus on high-margin, fast-growing crops such as lettuce, spinach, and microgreens, but interest in growing diversified crops is rising. With advancements in LED lighting spectrums, hydroponics, and genetic research, vertical farming can successfully grow strawberries, tomatoes, peppers, and specialty crops that traditionally require large tracts of agricultural land. Furthermore, demand for medicinal crops and pharmaceutical-grade crops is growing, providing new revenue streams for vertical farming participants. In addition, participants can develop specialized farming solutions to target niche markets such as organic herbal medicine, cannabis farming, and functional foods.

For instance, in December 2023, Oishii debuted its newest product, the Rubi Tomato, at select Whole Foods stores in the US. These tomatoes, which hail from a Japanese varietal called a "fruit tomato," are cultivated at Oishii's indoor vertical farms outside of New York City. This is Oishii's third product release into the consumer market and its first non-tomato item. Additionally, Oishii is making its products available to the Northeastern US region for the first time. Governments and research institutions are also funding projects to research the feasibility of indoor cultivation of staple crops such as rice and wheat, providing long-term market growth potential.

Vertical Farming Market Scope

Vertical Farming Market Report Segmentation Analysis

The global vertical farming market industry analysis is segmented by Growth Mechanism, by Offering, by Structure, by Crop Type, and by Region.

The hydroponics segment is likely to have the biggest share in the global vertical farming market during the forecast period.

Based on growth mechanism, the market is segmented into Hydroponics, Aeroponics, and Aquaponics. In 2025, Hydroponics was the dominating segment, holding 44.5% of the market share. Hydroponics is a soilless cultivation technique where the crops are induced to grow in a nutrient solution instead of soil, with a controlled supply of nutrients, water, and environmental conditions. This is a very efficient system that facilitates quicker growth of crops, higher yields, and reduced dependency on natural soil conditions, and hence is the preferred technique for vertical farming operations worldwide.

The hardware segment is anticipated to hold the largest market share during the forecast period.

Based on offering, the vertical farming market is segmented into Hardware, Software, and Services, with Hardware being the dominant segment. Hardware components, including lighting systems, irrigation and fertigation systems, climate control systems, and sensors, are required for the proper operation of vertical farms. These components enable precision agriculture, through which farmers can control parameters such as light intensity, humidity, temperature, and supply of nutrients, thus creating optimal growing conditions for plants and higher yield.

The Shipping Container segment dominated the market in 2025 and is anticipated to grow at the highest share over the forecast period.

Based on structure, the market is segmented into building-based and shipping container vertical farms, with shipping container farming being the dominant segment. Shipping container farming is gaining popularity because it is modular, scalable, and space-efficient, making it ideal for urban settings, remote areas, and commercial applications. Shipping container farms utilize recycled shipping containers equipped with hydroponic, aeroponic, or aquaponic systems to produce crops year-round in a controlled environment.

Fruits, Vegetables, & Herbs was the largest market and is anticipated to grow at the highest rate over the forecast period.

By crop type, the vertical farming market is segmented into Fruits, Vegetables, & Herbs, Flowers & Ornamentals, and others. The Fruits, Vegetables, & Herbs segment is the dominant segment. Increasing consumer demand for fresh, pesticide-free, and locally grown produce is driving the market for this segment. Crops like tomatoes, lettuce, bell peppers, strawberries, cucumbers, leafy greens, and herbs can be produced year-round through vertical farming, ensuring a steady supply regardless of seasonal variations.

The following segments are part of an in-depth analysis of the global vertical farming market:

Vertical Farming Market Share Analysis by Region

North America is projected to hold the largest share of the global vertical farming market over the forecast period.

In 2025, North America dominated the market with a 40.2% share. The growth is due to its rapid adoption of emerging agricultural technologies, increasing demand for locally produced fresh produce, and high investment in sustainable agricultural practices. The region's increasing urban population, limited arable land, and growing concerns about food security have led to the large-scale adoption of vertical farming systems in metropolitan cities. The United States and Canada are key countries, with high contributions from agritech startups, government support for indoor farming, and retailers adopting vertical farming solutions in their supply chains. The market growth in North America is also fueled by the presence of key players, increasing adoption of hydroponic and aeroponic farming practices, and technological innovations in LED lighting and AI-based automation. For instance, in February 2023, AMS OSRAM signed an agreement with Revolution Microelectronics, a United States of America-based designer of the controlled agriculture environment. The region's stringent regulations on pesticide usage and growing consumer awareness about organic and pesticide-free food have also played a crucial role in the high adoption of vertical farming.

Meanwhile, the Asia-Pacific (APAC) region is expected to record the highest CAGR during the projected period. The market is driven in countries like China, Japan, India, and Singapore by factors such as accelerated urbanization, increasing food demand, government support for sustainable agriculture, and the evolution of farming technologies. With attention shifting to food security and building farming techniques, APAC is expected to become a key growth hub for the Vertical Farming Market in the near future.

Vertical Farming Market Competition Landscape Analysis

The global vertical farming market is marked by robust competition among key players focusing on innovation, strategic expansion, and sustainability. Continuous research and development efforts lead to the introduction of new products catering to evolving industry demands.

Global Vertical Farming Market Recent Developments News:

• In March 2023, indoor farming leader BrightFarms is growing with the addition of four new regional greenhouse centers that make sustainably grown leafy greens available to even more people in the Eastern and Central United States. The newly built greenhouse centers should meet growing demand for organic produce and commence distribution to retailers by 2024. The company, with this growth, is expecting 10x revenue growth by 2024.
• In February 2023, AeroFarms and Public Investment Fund (PIF), a Saudi Arabian wealth funding agency, formed a joint venture to establish indoor vertical farms in Saudi Arabia and the Middle East.

The global vertical farming market is dominated by a few large companies, such as

●        AeroFarms

●        Agrilution GmbH

●        BrightFarms Inc.

●        Everlight Electronics Co., Ltd.

●        Freight Farms

●        Green Sense Farms, LLC

●        GrowUp Urban Farms Ltd.

●        Heliospectra AB

●        Osram

●        Plenty

●        Signify

●        Sky Greens

●        Spread

●        Valoya

●        Vertical Farm Systems

●        Others