Vertical Farming Market Gains Momentum as Sustainable Food Production and Urban Agriculture Accelerate Globally
Market Overview:
The Vertical Farming Market is experiencing robust expansion, driven by Growing Demand for Sustainable Agriculture Methods, Technological Advancements in Growing Systems and Favorable Government Policies and Support. According to IMARC Group's latest research publication, "Vertical Farming Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024–2032", The global vertical farming market size reached USD 6.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 36.8 Billion by 2033, exhibiting a growth rate (CAGR) of 20.56% during 2025-2033.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
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Our Report Includes:
- Market Dynamics
- Market Trends and Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors in the Vertical Farming Industry:
- Growing Demand for Sustainable Agriculture Methods
The growth of the world's population, increasing urbanization, and a decrease in cultivable land are three of the main reasons that vertical farming has gained support as a method for sustainable agriculture. Vertical farming is the growing of food on stacked racks in a controlled environment, grow room or greenhouse. Less water is needed, fewer pesticides are used, and the environmental footprint is reduced. Public pressure to produce food in a more sustainable way and reduce the carbon footprint that conventional agriculture has on the environment is building a case for the vertical farming technology that would allow continuous crop production and reduced resource consumption.
- Technological Advancements in Growing Systems
Due to improvements in technology such as light-emitting diode (LED) lighting and hydroponics, vertical farming in urban settings is becoming increasingly efficient and productive. Because LEDs can emit different colors of light specifically suited to the plant species, they use a fraction of the energy of conventional lighting. Technologies such as artificial intelligence (AI) and Internet of Things (IoT) can be used to precisely monitor and control temperature, humidity, nutrient levels and light in vertical farms. Automation enables better control over crop yields, improves the quality of the produce, and generally makes the facility more efficient. These include advanced climate control systems and automated nutrient delivery systems, which ease the feasibility and scalability of vertical farming operations.
- Favorable Government Policies and Support
In a growing number of urban planning policies, vertical farms are either required or incentivized in existing and new developments, lowering the barriers for newcomers to the vertical farming market and creating better conditions for it. Governments have also financially supported vertical farms with grants, subsidies and other financial incentives. In 2024, the Association for Vertical Farming (AVF) partnered with Nigeria's National Information Technology Development Agency and Swedish company Grow Pipes AB to expand vertical farming to Nigeria as part of a project titled "Vertical Farming in Africa for Innovation" (VFAI), alongside a global trend toward sustainable agriculture.
Key Trends in the Vertical Farming Market
- Usage of Automation and Artificial Intelligence
Developing new agricultural technology is a driving trend in this market. Automation and artificial intelligence are being used to both increase crop yield and decrease labor costs. Automated agricultural systems have replaced labor in tasks like seeding, harvesting, and monitoring crop health. Automated systems have also increased accuracy. In vertical farming, artificial intelligence can be used to model optimal growing conditions based on sensor information, predict yields, and diagnose problems. Machine learning has been used to make vertical farms more resource efficient, waste less, and produce more. Robotics is utilized to optimize vertical farming operations, as well as create new scalable models to provide food for the growing population.
- Integration in Urban Planning and Architecture
New and existing buildings are being designed with vertical farm possibilities, and other urban planning is considering the potential for vertical farms to produce food. Rooftop farms, building-integrated farms, dedicated vertical farms, and vertical farm complexes are examples. This addresses food security, while minimizing transportation distance, transport and delivery costs, and emissions. The idea that urban vertical farms might be incorporated into new buildings as part of local food systems in the community is being embraced by some city planners and architects as a solution for how to feed a growing urban population.
- Focus on Training and Knowledge Infrastructure
There are also educational products and training opportunities available to develop the skills necessary to use controlled environment agriculture techniques. Training centers and courses are available for vertical farmers and entrepreneurs to improve their skills. Platforms present within the industry, such as knowledge sharing platforms and industry associations, allow for cooperation and the sharing of best practices, enabling the industry to build up human capital and achieve sustainable scaling while maintaining quality. International cooperation enables technology transfer from regions with established technologies.
Leading Companies Operating in the Global Vertical Farming Industry:
- AeroFarms LLC
- American Hydroponics, Inc. (AmHydro)
- Everlight Electronics Co., Ltd.
- Freight Farms, Inc.
- Gronska Standsodling 365 AB
- Heliospectra AB
- Jones Food Company Limited
- Koninklijke Philips N.V.
- ams-OSRAM AG
- Signify Holding B.V.
- Urban Crop Solutions BV
- Vertical Farm Systems Pty Ltd
Vertical Farming Market Report Segmentation:
Breakup by Component:
- Irrigation Component
- Lighting
- Sensor
- Climate Control
- Building Material
- Glass Greenhouse
- Plastic Greenhouse
- Others
This includes irrigation component, lighting, sensors, climate control, building material (glass greenhouse and plastic greenhouse), and others. According to the report, lighting represented the largest segment.
Breakup by Structure:
- Building-based Vertical Farms
- Container-based Vertical Farms
This includes building-based vertical farms and container-based vertical farms. According to the report, container-based vertical farms accounted for the largest market share.
Breakup by Growing Mechanism:
- Hydroponics
- Aeroponics
- Aquaponics
Breakup by Application:
- Indoor
- Outdoor
Indoor involves cultivating crops in controlled environments like warehouses, basements, or specially constructed buildings.
Breakup by Region:
- North America (United States, Canada)
- Europe (Germany, France, United Kingdom, Italy, Spain, Others)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Asia Pacific leads the market, accounting for the largest vertical farming market share.
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