Vertical Farming Market Overview

The global vertical farming market is expected to increase from US$ 6.25 Billion in 2025 to US$ 31.9 Billion in 2035. The market is expected to expand at a CAGR of 24.4% during the period 2025-2035. This growth is driven by the increasing global demand for sustainable and efficient agricultural solutions.

As urbanization increases and arable land becomes scarce, vertical farming presents an innovative approach to food production, allowing crops to be grown in vertically stacked layers, usually in controlled indoor environments. The market size is expanding at a rapid rate due to advancements in hydroponics, aeroponics, and aquaponics systems, which allow year-round growing of crops with minimal land and water utilization. These technologies are influencing market trends by offering higher yields, reduced dependence on climatic conditions, and lower environmental impact than traditional farming. The Vertical Farming Market report says the sector is being driven by increasing investments in AgTech, government initiatives for sustainable food production, and increasing demand for pesticide-free and locally grown crops. Additionally, the use of AI, IoT, and automation in vertical farming operations is streamlining efficiency, crop monitoring, and yield optimization, further boosting market growth. The key market trends are the growing use of vertical farming by major food retailers, higher demand for organic and sustainable food from consumers, and technology development to improve energy efficiency and scalability.

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 increasing need for sustainable agricultural practices is a major driver for the Vertical Farming Market. As the global population increases, pressure is mounting to produce more food using limited resources such as land and water. Traditional farming is heavily dependent on soil, climate, and season, leading to fluctuating yields and loss of resources. Vertical farming is a controlled environment agriculture (CEA) technique, which offers ideal conditions for plant growth regardless of the surrounding environment.

The market size is expanding as more businesses and governments realize the need for sustainable food production systems capable of meeting the demands of urban populations with minimal carbon footprint, water consumption, and pesticide use. Vertical farming makes use of up to 95% less water and significantly less land than traditional farming and is therefore an attractive sustainable alternative in regions beset by climate change-related concerns. Additionally, market analysis project that technological innovations in LED lighting, automation, and AI-driven crop monitoring systems are constantly improving efficiency, making vertical farming an economically viable and ecologically sound alternative for food security worldwide.

​Technological innovation: AI, IoT, and automation is a key driver 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 has collaborated with Siemens, a technology firm, for the provision of IT services for vertical farming. It reports 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 have the ability to 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 agri-tech 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 market share. Hydroponics is a soilless cultivation technique where the crops are induced to grow in a nutrient solution instead of soil, with 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.

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.

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. Vertical farming allows for the production of crops such as tomatoes, lettuce, bell peppers, strawberries, cucumbers, leafy greens, and herbs all year round, making their supply continuous irrespective of seasonal changes.

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

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 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