Vertical Farming Market Growth, Size, Share, Trends, and Forecast 2030

Vertical Farming Industry Prospective:

The global vertical farming market size was worth around USD 6.87 billion in 2023 and is predicted to grow to around USD 41.75 billion by 2032 with a compound annual growth rate (CAGR) of roughly 22.2% between 2024 and 2032.    

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Vertical Farming Market: Overview

The technique of producing crops in layers that are piled vertically is known as vertical farming. To maximize plant development, it frequently combines soilless farming methods like hydroponics, aquaponics, and aeroponics with controlled-environment agriculture. Vertical farming systems are frequently housed in buildings, shipping containers, tunnels beneath the surface, and abandoned mine shafts.

The vertical farming market is being driven by several factors including rising urbanization, increasing land scarcity, technological advancements, growing demand for food, rising demand for sustainable agriculture and many others.

Key Insights

• As per the analysis shared by our research analyst, the global Vertical Farming market is estimated to grow annually at a CAGR of around 22.2% over the forecast period (2024-2032).
• In terms of revenue, the global Vertical Farming market size was valued at around USD 6.87 billion in 2023 and is projected to reach USD 41.75 billion, by 2032.
• The growing collaboration is expected to propel the market growth during the forecast period.
• Based on structure, the Shipping Container segment is expected to capture a significant market share over the forecast period.
• Based on the growing mechanism, the Hydroponics segment is expected to dominate the market over the forecast period.
• Based on the crop, the Fruits, Vegetables & Herbs segment is expected to hold the largest market share over the forecast period.
• Based on region, North America is expected to hold a prominent market share over the forecast period.

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Vertical Farming Market: Growth Drivers

Growing demand for sustainable farming drives market growth

The market is expanding because of the growing need for more sustainable and ecologically friendly agricultural methods. To use as little water as possible, vertical farming systems use a variety of techniques such as hydroponics, aeroponics, and recirculating water systems. Therefore, vertical farming promotes market expansion by preserving soil quality and enabling the conversion of non-arable or degraded land into productive farming areas.

Furthermore, the growing utilization of energy-efficient technologies, renewable energy sources, and decreased dependence on long-distance transportation contribute to the reduction of greenhouse gas emissions, hence favorably impacting the growth of the market. In addition, as vertical farming takes place in a controlled indoor environment, it produces sustainable and ecologically friendly farming by minimizing or entirely doing away with the need for chemical pesticides and herbicides.

Vertical Farming Market: Restraints

Limited crop variety and yield hinder market growth

Only a limited number of fruit and vegetable types are appropriate for farming. Farmers are therefore only able to cultivate a limited number of fruits and vegetables. Furthermore, since vertical farming demands a high level of food security, it cannot produce foods high in calories.

Conventional agricultural practices are mostly used in the production of domesticated grain crops, including rice, wheat, barley, and maize. Similarly, outdoor gardening is the only way to raise calorie-dense root foods. Therefore, over the projected period, the market may be impacted by these limitations.

Vertical Farming Market: Opportunities

Increasing collaboration provides a lucrative opportunity for market growth

The increasing collaboration is expected to provide a lucrative opportunity for market growth during the forecast period. For instance, in January 2023, Siemens and 80 Acres Farms, a pioneer in indoor farming, announced their partnership. Grown in eco-friendly indoor farms closer to consumers' tables, 80 Acres Farms specializes in producing the food of the future. With five production farms in southwest Ohio, a new farm in Florence, Kentucky, a future farm in Covington, Georgia, and R&D facilities in Arkansas and the Netherlands, the company aims to grow the food of tomorrow.

The entirety of Siemens' partnership entails the automation, control, and optimization of 80 Acres farming infrastructure and procedures. Siemens helps with the industrialization and scaling of the company's proprietary Loop platform, which includes crop management software and algorithms, environmental controls, robotics, and automation. Siemens works with the company's technology subsidiary, Infinite Acres.

Vertical Farming Market: Challenges

Technological complexity and maintenance pose a major challenge to market expansion

Complicated technology and automated systems are used in vertical farming to control environmental factors and guarantee ideal crop development. Operators may find it difficult to maintain and repair these systems since they demand specific expertise and abilities, especially in smaller-scale or less technologically sophisticated environments. Thus, technological complexity and maintenance pose a major challenge to market growth.

Vertical Farming Market: Segmentation

The global Vertical Farming industry is segmented based on Structure, Component, Growing Mechanism, Crop and region.

Based on structure, the global Vertical Farming market is bifurcated into Shipping Container and Building-based. The Shipping Container segment is expected to capture a significant market share over the forecast period. Shipping containers have intrinsic flexibility, making them highly adaptable to vertical agricultural applications. Their uniform dimensions enable easy stacking, transportation, and incorporation into existing infrastructure. Containerized vertical farms may be quickly deployed and relocated as needed, providing flexibility in reacting to changing market demands or land availability. Thus, these benefits drive the segment growth.

Based on the component, the global Vertical Farming industry is segmented into Software, Hardware and Services.

Based on the growing mechanism, the global Vertical Farming market is segmented into Aeroponics, Hydroponics and Aquaponics. The Hydroponics segment is expected to dominate the market over the forecast period. Hydroponics is a popular growing method due to its inexpensive installation costs and ease of operation. It is a method of growing plants without soil in which mineral solutions are introduced around the plant's roots. Furthermore, the hydroponics technology eliminates the possibility of soil organisms transmitting diseases. Growing public knowledge of pesticide hazards is predicted to drive more demand for hydroponics. Because of good nutrient management, hydroponically grown plants produce higher yields than comparable soil-grown plants. In addition, plant roots are immersed in a chemical solution and tested regularly to ensure that the proper chemical composition is maintained for growth.

Based on the crop, the global Vertical Farming industry is segmented into Fruits, Vegetables & Herbs, Flowers & Ornamentals and Others. The Fruits, Vegetables & Herbs segment is expected to hold the largest market share over the forecast period. The expansion of this category is being driven by the increasing production of frequently cultivated fruits and vegetables in vertical farming. Vertical farming yields optimum profit for the company cultivating the crops. Additionally, since vertical farming does not disturb the earth, biodiversity is enhanced. Because of this, vertical farming is quite popular for producing a variety of crops.

Vertical Farming Market: Report Scope

Regional Analysis

North America is expected to hold a prominent market share during the forecast period

North America is expected to hold a prominent market share during the forecast period. The regional market was dominated by the US market. Growing concerns about nutrition and food security should present the business with several new opportunities for growth. It is expected that the US will contribute significantly to supporting the environment for meals of the future. The country (which is also the pioneer in embracing this idea) is projected to see an increase in the availability of freshly picked veggies across retail outlets as more consumer insights into "fresh-from-farm-to-table" develop.

Urban population growth in cities like New York, Chicago, and Milwaukee created an environment that was conducive to vertical farming through projects like repurposing abandoned buildings, high-rises, and abandoned warehouses. This has increased the amount of freshly grown food. New aeroponic systems are being built and are scheduled to start sometime soon.

For example, Brooklyn-based Upward Farms announced earlier this year that it intends to open a gigantic 250,000-square-foot vertical farm in Luzerne County, Northeastern Pennsylvania, in 2022. The farm will open in early 2023 and concentrate only on microgreens. Thus, this is expected to drive the market growth in the region.

Vertical Farming Market: Competitive Analysis

The global Vertical Farming market is dominated by players like:

• Brightfarms Inc.
• AeroFarms
• American Hydroponics
• Agrilution GmbH
• Illumitex Inc.
• Freight Farms
• Everlight Electronics Co. Ltd.
• Green Sense Farms LLC
• GrowUp Urban Farms Ltd.
• Vertical Farm Systems

The Global Vertical Farming market is segmented as follows:

By Structure

• Shipping Container
• Building-based

By Component

• Software
• Hardware
• Services

By Growing Mechanism

• Aeroponics
• Hydroponics
• Aquaponics

By Crop

• Fruits, Vegetables & Herbs
• Flowers & Ornamentals
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa