Vertical Farming Market
Vertical Farming Market Forecasts to 2032 - Global Analysis By Crop Type (Leafy Greens, Herbs, Fruits & Vegetables, Flowers & Ornamentals and Other Crop Types), Component (Hardware, Software and Services), Structure, System, Application and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $6.2 BN |
|
Projected Year Value (2032) |
US $24.6 BN |
|
CAGR (2025 - 2032) |
21.8% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
Asia Pacific |
|
Highest Growing Market |
North America |
According to Stratistics MRC, the Global Vertical Farming Market is accounted for $6.2 billion in 2025 and is expected to reach $24.6 billion by 2032 growing at a CAGR of 21.8% during the forecast period. Vertical farming is a method of cultivating crops in vertically stacked layers within controlled environments, often using hydroponics, aeroponics, or aquaponics. This approach optimizes space usage, reduces reliance on arable land, and enhances resource efficiency by minimizing water and pesticide consumption. It enables year-round production regardless of external climate conditions and can be integrated into urban settings for localized food supply. Vertical farming supports sustainable agriculture and is increasingly adopted in response to rising population demands and environmental constraints.
According to a 2023 study published in Frontiers in Plant Science, vertical farming can use up to 95% less water compared to traditional field farming. According to the same study, controlled environments in vertical farms also help reduce crop losses due to weather variability.
Market Dynamics:
Driver:
Rising urban populations and declining arable land
As cities expand and rural land becomes increasingly scarce, vertical farming offers a viable solution by enabling crop cultivation in compact, controlled environments. This method not only optimizes space but also supports year-round production, making it ideal for densely populated regions. Moreover, with climate change further threatening conventional farming, vertical farming is emerging as a resilient alternative boosting the market growth.
Restraint:
Significant upfront investment and energy-intensive operations
Establishing a vertical farm requires substantial capital outlay for infrastructure, automation systems, and climate control technologies. Additionally, the reliance on artificial lighting and HVAC systems contributes to high energy consumption, raising sustainability concerns. These factors can deter small-scale growers and startups from entering the market. Without cost-effective solutions or government subsidies, scalability remains a challenge for many operators.
Opportunity:
Government support for resilient food systems
Governments worldwide are increasingly recognizing the role of vertical farming in enhancing food security and reducing environmental impact. Policy frameworks, subsidies, and research grants are being introduced to encourage investment in controlled-environment agriculture. Urban farming initiatives are gaining traction, especially in regions with limited arable land. Furthermore, vertical farming aligns with national goals around sustainability, resource efficiency, and climate resilience.
Threat:
Lack of standardized policies for indoor farming
Varying standards across regions can lead to compliance challenges, especially for companies operating in multiple geographies. Issues such as food safety, labeling, and environmental impact assessments are often handled differently, creating ambiguity. This regulatory fragmentation may hinder cross-border investments and slow down technology adoption. Establishing global benchmarks for indoor farming could mitigate these risks and streamline operations.
Covid-19 Impact:
The COVID-19 pandemic served as both a disruptor and a catalyst for the vertical farming industry. On one hand, supply chain interruptions and labor shortages affected production timelines and distribution networks. On the other, the crisis underscored the importance of localized, resilient food systems. As consumers sought safer, pesticide-free produce with minimal handling, vertical farms gained attention for their ability to deliver fresh crops directly to urban centers.
The fruits & vegetables segment is expected to be the largest during the forecast period
The fruits & vegetables segment is expected to account for the largest market share during the forecast period due to the high consumer demand for leafy greens, herbs, and nutrient-rich produce that can be grown efficiently in stacked layers. These crops have shorter growth cycles and are well-suited to hydroponic and aeroponic systems, making them economically viable for vertical farms. Their consistent yield and minimal space requirements contribute to their popularity among commercial growers.
The building-based vertical farms segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the building-based vertical farms segment is predicted to witness the highest growth rate as these structures offer scalability, better climate control, and integration with urban infrastructure, making them ideal for metropolitan areas. Unlike container-based setups, building-based farms can support larger crop volumes and advanced automation systems. As cities prioritize sustainable development, building-based vertical farms are poised to become central to urban food ecosystems.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share driven by rapid urbanization, limited arable land, and strong government support. Countries like Japan, Singapore, and South Korea are leading the charge with smart-city initiatives and investments in agri-tech. The region’s dense population and growing demand for fresh produce make vertical farming a strategic necessity. Additionally, favorable policies and public-private partnerships are fostering innovation and infrastructure development, solidifying Asia Pacific’s leadership position.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR owing to the region benefits from a robust technological ecosystem, strong venture capital presence, and increasing consumer awareness around sustainable food. Urban centers such as New York, Chicago, and Toronto are embracing vertical farming to reduce food miles and enhance local supply chains. Moreover, the integration of AI, IoT, and robotics into farming operations is driving efficiency and scalability.
Key players in the market
Some of the key players in Vertical Farming Market include UrbanKisaan, Urban Crop Solutions, Triton FoodWorks, Plenty, Mowreq Specialized Agriculture Co, Local Bounti, Kalera, Jones Food Company, Infarm, GoodLeaf Farms (TruLeaf), Emirates Bustanica, Eden Green Technology, Crop One Holdings, Bowery Farming, Badia Farms, AgriCool, AeroFarms, and 80 Acres Farms.
Key Developments:
In June 2025, AeroFarms, an indoor vertical farming company and the leading supplier of microgreens to the U.S. retail market, celebrates eight years of partnership with Whole Foods Market (WFM), working closely together to pioneer a new microgreens segment within the leafy microgreens category.
In May 2025, Plenty Unlimited Inc. an innovative agricultural technology company with a unique indoor vertical farming platform announced that it has successfully emerged from chapter 11, after the United States Bankruptcy Court for the Southern District of Texas confirmed its plan of reorganization.
Crop Types Covered:
• Leafy Greens
• Herbs
• Fruits & Vegetables
• Flowers & Ornamentals
• Other Crop Types
Components Covered:
• Hardware
• Software
• Services
Structures Covered:
• Building-Based Vertical Farms
• Shipping Container-Based Vertical Farms
Systems Covered:
• Hydroponics
• Aeroponics
• Aquaponics
• Terraponics
• Hybrid Systems
Applications Covered:
• Commercial
• Residential
• Research & Development
• Institutional
• Retail
• Other Applications
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliance
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Vertical Farming Market, By Crop Type
5.1 Introduction
5.2 Leafy Greens
5.3 Herbs
5.4 Fruits & Vegetables
5.5 Flowers & Ornamentals
5.6 Other Crop Types
6 Global Vertical Farming Market, By Component
6.1 Introduction
6.2 Hardware
6.2.1 Lighting Systems
6.2.2 Hydroponic Components
6.2.3 Climate Control Systems
6.2.4 Sensors
6.2.5 Building Materials
6.2.6 Irrigation & Fertigation Systems
6.2.7 Shelves and Racks
6.3 Software
6.3.1 Farm Management Software (FMS)
6.3.2 Nutrient and Water Management
6.3.3 Yield Forecasting
6.3.4 Inventory Management
6.3.5 Data Collection & Visualization
6.4 Services
7 Global Vertical Farming Market, By Structure
7.1 Introduction
7.2 Building-Based Vertical Farms
7.3 Shipping Container-Based Vertical Farms
8 Global Vertical Farming Market, By System
8.1 Introduction
8.2 Hydroponics
8.3 Aeroponics
8.4 Aquaponics
8.5 Terraponics
8.6 Hybrid Systems
9 Global Vertical Farming Market, By Application
9.1 Introduction
9.2 Commercial
9.3 Residential
9.4 Research & Development
9.5 Institutional
9.6 Retail
9.7 Other Applications
10 Global Vertical Farming Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 UrbanKisaan
12.2 Urban Crop Solutions
12.3 Triton FoodWorks
12.4 Plenty
12.5 Mowreq Specialized Agriculture Co
12.6 Local Bounti
12.7 Kalera
12.8 Jones Food Company
12.9 Infarm
12.10 GoodLeaf Farms (TruLeaf)
12.11 Emirates Bustanica
12.12 Eden Green Technology
12.13 Crop One Holdings
12.14 Bowery Farming
12.15 Badia Farms
12.16 AgriCool
12.17 AeroFarms
12.18 80 Acres Farms
List of Tables
1 Global Vertical Farming Market Outlook, By Region (2024-2032) ($MN)
2 Global Vertical Farming Market Outlook, By Crop Type (2024-2032) ($MN)
3 Global Vertical Farming Market Outlook, By Leafy Greens (2024-2032) ($MN)
4 Global Vertical Farming Market Outlook, By Herbs (2024-2032) ($MN)
5 Global Vertical Farming Market Outlook, By Fruits & Vegetables (2024-2032) ($MN)
6 Global Vertical Farming Market Outlook, By Flowers & Ornamentals (2024-2032) ($MN)
7 Global Vertical Farming Market Outlook, By Other Crop Types (2024-2032) ($MN)
8 Global Vertical Farming Market Outlook, By Component (2024-2032) ($MN)
9 Global Vertical Farming Market Outlook, By Hardware (2024-2032) ($MN)
10 Global Vertical Farming Market Outlook, By Lighting Systems (2024-2032) ($MN)
11 Global Vertical Farming Market Outlook, By Hydroponic Components (2024-2032) ($MN)
12 Global Vertical Farming Market Outlook, By Climate Control Systems (2024-2032) ($MN)
13 Global Vertical Farming Market Outlook, By Sensors (2024-2032) ($MN)
14 Global Vertical Farming Market Outlook, By Building Materials (2024-2032) ($MN)
15 Global Vertical Farming Market Outlook, By Irrigation & Fertigation Systems (2024-2032) ($MN)
16 Global Vertical Farming Market Outlook, By Shelves and Racks (2024-2032) ($MN)
17 Global Vertical Farming Market Outlook, By Software (2024-2032) ($MN)
18 Global Vertical Farming Market Outlook, By Farm Management Software (FMS) (2024-2032) ($MN)
19 Global Vertical Farming Market Outlook, By Nutrient and Water Management (2024-2032) ($MN)
20 Global Vertical Farming Market Outlook, By Yield Forecasting (2024-2032) ($MN)
21 Global Vertical Farming Market Outlook, By Inventory Management (2024-2032) ($MN)
22 Global Vertical Farming Market Outlook, By Data Collection & Visualization (2024-2032) ($MN)
23 Global Vertical Farming Market Outlook, By Services (2024-2032) ($MN)
24 Global Vertical Farming Market Outlook, By Structure (2024-2032) ($MN)
25 Global Vertical Farming Market Outlook, By Building-Based Vertical Farms (2024-2032) ($MN)
26 Global Vertical Farming Market Outlook, By Shipping Container-Based Vertical Farms (2024-2032) ($MN)
27 Global Vertical Farming Market Outlook, By System (2024-2032) ($MN)
28 Global Vertical Farming Market Outlook, By Hydroponics (2024-2032) ($MN)
29 Global Vertical Farming Market Outlook, By Aeroponics (2024-2032) ($MN)
30 Global Vertical Farming Market Outlook, By Aquaponics (2024-2032) ($MN)
31 Global Vertical Farming Market Outlook, By Terraponics (2024-2032) ($MN)
32 Global Vertical Farming Market Outlook, By Hybrid Systems (2024-2032) ($MN)
33 Global Vertical Farming Market Outlook, By Application (2024-2032) ($MN)
34 Global Vertical Farming Market Outlook, By Commercial (2024-2032) ($MN)
35 Global Vertical Farming Market Outlook, By Residential (2024-2032) ($MN)
36 Global Vertical Farming Market Outlook, By Research & Development (2024-2032) ($MN)
37 Global Vertical Farming Market Outlook, By Institutional (2024-2032) ($MN)
38 Global Vertical Farming Market Outlook, By Retail (2024-2032) ($MN)
39 Global Vertical Farming Market Outlook, By Other Applications (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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