What Has Been the Progress and Growth of the Vertical Farming Market in Recent Years?
The vertical farming market has seen considerable growth due to a variety of factors.
• In recent times, there has been exceptional growth in the vertical farming market size. The market, which is expected to rise from $7.74 billion in 2024 to $9.6 billion in 2025, boasts a compound annual growth rate (CAGR) of 24.0%.
This considerable increase during the historic period can be associated with issues of water scarcity, independence from climate and seasons, demand for produce sourced locally, growing population, and concerns over food safety.
What Will Be The Vertical Farming Market Size In The Future?
The vertical farming market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of vertical farming is predicted to undergo significant expansion in the coming years. A compound annual growth rate (CAGR) of 21.8% is slated to catapult the market to the value of $21.12 billion by the year 2029. The factors contributing to this surge during the projected period include the synergy of smart cities with vertical farming, the inclusion of vertical farming in retail environments, initiatives in education and research, widening to cover developing nations, and shifting consumer preferences towards local and organic produce. The forecast period will also be marked by notable trends such as tailor-made crop varieties, alliances with the food service industry, multi-level and layered agricultural systems, automation in planting and harvesting procedures, and the use of aeroponic and hydroponic technology.
Which Factors Are Boosting Growth In The Vertical Farming Market?
Urban expansion is forecasted to fuel the growth of the vertical farming industry. The process of urbanization enlarges the overall farmland area and reduces the countryside population, leading to a surge in the per-capita farmland area of rural inhabitants and consequently, a rise in the size of farms. According to predictions, nearly 80% of the global population will dwell in cities by 2050, accompanying a three billion rise in the human populace. The World Economic Forum also forecasts that over one-third of the anticipated urban development between the present day and 2050 will transpire solely in India, China, and Nigeria. By 2050, India is predicted to see an increase of 416 million city dwellers, China 255 million, and Nigeria 189 million. Therefore, urban growth is a significant factor propelling the vertical farming market.
What are the Market Segments in the Vertical Farming Market?
The vertical farming market covered in this report is segmented –
1) By Component: Irrigation Component, Lighting, Sensor, Climate Control, Building Material, Other Components
2) By Structure: Shipping Container, Building-Based
3) By Type: Hydroponics, Aeroponics, Aquaponics
4) By Crop Type: Leafy Green, Pollinated Plants, Nutraceutical Plant
5) By Application: Indoor, Outdoor
Subsegments:
1) By Irrigation Component: Drip Irrigation Systems, Hydroponic Systems, Nutrient Delivery Systems
2) By Lighting: Led Grow Lights, High-Intensity Discharge (Hid) Lights, Fluorescent Lights
3) By Sensor: Soil Moisture Sensors, Temperature And Humidity Sensors, Light Sensors
4) By Climate Control: Hvac Systems, Dehumidifiers, Fans And Ventilation Systems
5) By Building Material: Racks And Shelving, Containers And Growing Media, Enclosures And Walls
6) By Other Components: Automation Systems, Monitoring And Control Software, Energy Management Systems
Pre-Book The Vertical Farming Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Trends are Shaping the Vertical Farming Market?
Key players in the vertical agriculture sector are investing in technological advancements such as solutions for vertical farming that work within modular containers. These containers are developed with the goal of maximizing space and resources for the effective production of crops. Vertical agriculture involves crop cultivation in stacked layers under supervised settings, using techniques like hydroponics to make the best use of space and support sustainability. Growtainers, an American company, launched a vertical farm in October 2024 that runs at 30-60% lower capital costs compared to other farms. This company is known for its modular agriculture solutions which emphasize on efficiency and sustainable farming methods. The characteristic features of their vertical farms include a modular setup, LED lights for energy conservation, hydroponic systems for growing plants without soil, automatic supervision, sustainable procedures, capability to produce throughout the year, and the ability to scale according to rising demands. Their farm runs on 30-60% lower capital costs in comparison to traditional farms.
Who Are the Key Players in the Vertical Farming Market?
Major companies operating in the vertical farming market include:
• Philips Lighting N.V.
• Osram AG
• Everlight Electronics Co Ltd.
• Infarms Indoor Forming GmbH
• Spread Group GmbH
• Bowery Farming Inc.
• Plenty Unlimited Inc.
• BrightFarms Inc.
• Mirai Co Ltd.
• Intelligent Growth Solutions Ltd.
• Freight Farms Inc.
• AeroFarms
• General Hydroponics Inc.
• Agricool Group
• CropOne Holdings Inc.
• CropOne Holdings Inc
• AppHarvest Inc.
• Vertical Future Ltd.
• Valoya Inc.
• Kalera Public Limited Company
• Agrilution Systems GmbH
• American Hydroponics Inc.
• Square Mile Farms Ltd.
• Swegreen AB
• Green Sense Farms Holdings Inc.
• Hort Americas LLC
• Urban Crop Solutions
• Eden Green Technology
• Illumitex Inc.
• Heliospectra AB
• Future Crops Vertical Farming B.V.
• Sky Urban Solutions Holding Pte Ltd.
What are the Regional Insights into the Vertical Farming Market?
North America was the largest region in the vertical farming market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the vertical farming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
