Vertical Farming Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Structure (Building Based, Container-Based), By Growing Mechanism (Hydroponics, Aeroponics, Aquaponics), By Crop Type (Leafy Green, Pollinated Plants, Nutraceutical Plants), By Component (Lighting, Hydroponic Component, Climate Control, Sensors, Others), By Application (Indoor, Outdoor), By Region and Competition, 2020-2030F

Market Overview

Global Vertical Farming Market was valued at USD 8.18 Billion in 2024 and is expected to reach USD 25.47 Billion by 2030 with a CAGR of 20.84% during the forecast period. The global market for Vertical Farming is experiencing significant growth, driven by growing demand for healthy and safe food. The increased demand for organic and high-quality foods has changed the production capacity of vertical farming businesses and given them a foundation to assure high-quality and quantity-authorized production to satisfy the growing needs. In addition, individuals have begun growing fruits and vegetables indoors, giving rise to the idea of indoor vertical farming resulting in the growth of global vertical farming market in the forecast period.

Key Market Drivers

Urbanization, Food Security & Scarce Arable Land

Explosive urban growth is colliding with shrinking arable land per person, making proximity agriculture a strategic necessity. The UN projects that 68% of the world’s population will live in cities by 2050 (55% in 2018), concentrating food demand inside dense metros and stretching peri-urban supply chains. Vertical farming places production next to consumption, trimming spoilage and logistics emissions while stabilizing supply during disruptions. At the same time, the World Bank’s arable-land-per-capita series shows a long-run decline, reflecting demographic pressure and competing land uses; fewer hectares per person means conventional expansion can’t easily meet demand. Layer onto this FAO’s long-standing estimate that feeding mid-century populations will require ~70% more food production vs. 2005/07, and the case strengthens for yield-dense, land-efficient systems that exploit cubic rather than planar space. These structural forces (urbanization, land scarcity, higher demand) are precisely where vertical farms excel year-round output, tightly controlled environments, and high grams per square meter. Public-sector priorities are aligned: city-region food resilience, shorter supply lines, and reduced land conversion. As municipal planners and national food-security agencies wrestle with volatility—from climate shocks to transport bottlenecks—vertical farming’s ability to “in-fill” production within the built environment becomes a policy-friendly lever for resilience and equity in access to fresh produce.

Water Scarcity & Climate Resilience

Water risk is now a first-order constraint on agriculture, and policy is moving accordingly. The UN notes that about 72% of global freshwater withdrawals go to agriculture, and more than 2 billion people live in countries under high water stress; 3.6 billion face inadequate water access at least one month per year. Closed-loop hydroponics/aeroponics typical of vertical farms can cut water use dramatically versus field cultivation and shield production from drought, contamination, and runoff restrictions—factors that regulators increasingly police. In a warming climate, erratic precipitation and heat waves degrade yields and quality in open fields; controlled-environment systems maintain stable temperature, humidity, CO₂, and photoperiod, protecting both output and nutritional profile. Governments and city utilities also value the potential to pair vertical farms with water-recycling and desalination programs, or to harvest condensate from HVAC systems, lowering net withdrawals. As water governance tightens under SDG 6 reporting and national drought plans, public buyers (schools, hospitals, food-aid programs) and urban resilience offices have growing incentives to support production methods that decouple output from watershed volatility. This nexus—less water per kilogram, predictable supply amid climate extremes, and compatibility with municipal reuse targets—positions vertical farming as a policy-aligned solution in water-stressed regions from the Middle East to parts of North America and Southern Europe.

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Key Market Challenges

Energy Intensity & Power Price Volatility

Electricity is the single biggest operating cost for most vertical farms (LEDs, HVAC, dehumidification). When grid prices spike, unit economics can flip from marginally profitable to loss-making. The International Energy Agency (IEA) reported a 6% year-on-year decline in total EU electricity demand in H1-2023, driven largely by energy-intensive industries grappling with high prices—an indicator of how sensitive production businesses are to electricity shocks. The IEA’s 2025 mid-year update also notes that industrial electricity prices in the EU remain roughly twice U.S. levels, with renewed upward pressure possible in 2025—conditions that can undermine scale-up plans for power-hungry farms. While long-term power purchase agreements (PPAs), on-site solar, and demand-response can mitigate risk, many urban farms lack roof area for sufficient PV, and 24/7 lighting needs don’t perfectly match solar output without storage. Policymakers are exploring industrial-tariff relief and green-power corridors, but eligibility and timelines vary. Until grids get cheaper, cleaner, and more stable—or farms systematically tap waste heat and recover latent energy—energy costs will remain the most material headwind to expansion, especially for leafy-green SKUs with tight margins. For investors, diligence now hinges on power strategy (tariffs, hedges, co-location with CHP or data-center waste heat) as much as on agronomy.

Capital Intensity, Permitting & Skills Gaps

Vertical farms are complex infrastructure projects that must pass through zoning, building codes, food-safety certification, and sometimes utility interconnection approvals—each adding time and cost. Even where governments are supportive, grant programs are competitive and typically cover only a fraction of capex. In the United States, for example, USDA’s Urban Agriculture and Innovative Production (UAIP) grants aim to seed urban production, but awards are modest relative to the multimillion-dollar buildouts many farms require; applicants must also demonstrate community benefit, education, or composting links—important goals, yet additional workstreams for lean teams. Beyond capital, talent constraints bite: controlled-environment agriculture (CEA) blends horticulture, HVAC engineering, plant science, data ops, food safety, and supply-chain management. Many cities lack a deep bench of technicians familiar with fertigation, IPM for CEA, and LED spectrum tuning. Finally, site economics can conflict with urban real-estate dynamics; competing uses (logistics hubs, life-science labs, housing) bid up rents and compress payback periods. Governments are trying to help—streamlining urban-ag policies and offer technical assistance—but the interplay of capex, permitting, and workforce development continues to slow deployment velocity outside of a few highly supportive jurisdictions.

Key Market Trends

Food-Security Targets Driving Urban-Ag Pilots

National and city food-resilience goals are catalyzing pilots and early scaling of vertical farms. Singapore’s “30 by 30” program—produce 30% of nutritional needs domestically by 2030 on <1% of land—explicitly backs high-density, resource-efficient production, with the Singapore Food Agency funding R&D and commercial trials. Similar logic underpins U.S. USDA’s UAIP grants, which channel public dollars into urban production, education, and composting networks that often include CEA facilities. In Europe, Green Deal strategies and Farm-to-Fork actions emphasize energy and water efficiency across agri-food, creating a policy umbrella for greenhouse and indoor-growing innovation (e.g., Horizon-funded projects on efficient climate control and water reuse). For city governments, vertical farms double as workforce and STEM-education hubs while supplying institutional buyers with local produce—use cases that can justify public procurement commitments. Expect more jurisdictions to adopt measurable resilience targets (percentage of fresh produce from local/urban sources; days of supply during emergencies) and to integrate vertical farming into disaster-preparedness and heat-mitigation plans (co-siting with district-energy or cooled-space programs). This policy pull—clear targets plus grant scaffolding—reduces early-stage risk and attracts private co-investment into scalable models.

Greener Power, Waste-Heat & Water-Circularity Integration

To tame operating costs and decarbonize, vertical farms are stitching themselves into energy-and-water transition plans. On the energy side, co-location with CHP plants or data centers can capture low-grade waste heat for dehumidification and space heating, while PPAs and behind-the-meter renewables hedge price risk. EU policy is nudging agri-food toward energy efficiency and clean energy uptake (Farm-to-Fork), and EU-funded consortia are piloting more efficient greenhouse/indoor-farm climate system signals that future subsidies and carbon-credit frameworks may reward high-efficiency CEA. On water, pairing vertical farms with municipal reuse (greywater reclamation, condensate recovery) advances SDG-aligned targets and reduces withdrawals in drought-prone grids where agriculture competes with households and industry. As utilities roll out smart-tariffs and demand-response, farms can modulate lighting schedules and chilling loads to arbitrage off-peak rates—improving gross margins without sacrificing plant physiology. The direction of travel is clear: vertical farms that integrate with city infrastructure (district energy, reclaimed water, onsite renewables) will be favored by both regulators and lenders, unlocking concessional finance and de-risked scale-up.

Segmental Insights

Structure Insights

Based on Structure, Building-based vertical farming dominated the global market share, as it leverages existing or purpose-built infrastructure to maximize crop production within urban environments. This model involves cultivating crops inside multi-story buildings, warehouses, and repurposed factories, making it highly suitable for densely populated cities where arable land is scarce. According to the United Nations Department of Economic and Social Affairs (UN DESA), nearly 56% of the global population lived in urban areas in 2023, and this figure is expected to rise to 68% by 2050. With such rapid urbanization, building-based vertical farms provide a scalable and sustainable solution to grow food closer to consumers, reducing dependence on rural farmlands and long-distance transportation.

Moreover, governments across developed and emerging economies are actively supporting building-based vertical farms through funding and policy frameworks. For instance, the European Commission’s Horizon Europe program has allocated resources to support smart farming technologies, including vertical farms within urban infrastructure, to enhance food security and sustainability. Similarly, in the United States, the U.S. Department of Agriculture (USDA) has provided grants under its Urban Agriculture and Innovative Production (UAIP) program, encouraging city-based farms to expand production capacity inside commercial and residential buildings.

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Regional Insights

Based on the region, North America has emerged as the leading region in the global vertical farming market, primarily due to its early adoption of advanced agricultural technologies, high investment levels, and increasing urbanization. The United States and Canada are at the forefront, with significant government and private sector initiatives supporting sustainable food production. According to the U.S. Department of Agriculture (USDA), the U.S. spends billions annually on research and development in agricultural technology, which includes vertical farming, hydroponics, and controlled environment agriculture (CEA). Urban centers such as New York, Chicago, and Los Angeles are increasingly relying on vertical farming projects to address food security challenges, reduce dependency on imported produce, and ensure year-round supply of fresh vegetables. Furthermore, North America faces growing concerns about climate change, declining arable land, and high-water usage in conventional farming. Vertical farming offers a solution by using up to 90% less water compared to traditional methods, as highlighted by the Food and Agriculture Organization (FAO). In addition, the region benefits from strong infrastructure, a well-developed supply chain, and high consumer awareness regarding sustainable food production.

Recent Developments

• In March 2025, BrightFarms Inc. plans to expand its latest greenhouse in Macon, Georgia. Spanning 1.5 million square feet when completed, this state-of-the-art facility will be the most advanced greenhouse in Georgia. It is designed to meet the increasing demand for locally grown produce in the Southeast. Once fully operational, the Macon greenhouse strengthens regional food security by providing fresh greens within 24 hours of harvest.
• In December 2024, Brightfarms Inc. launched a greenhouse in Texas, offering its leafy greens products to the South Central and Southwest regions. The Lorena greenhouse, set to span 1.5 million square feet once fully completed, is equipped with advanced cooling technology, including KUBO's Ultra-Clima system. This technology allows BrightFarms to maintain ideal growing conditions year-round, unaffected by the extreme Texas heat or external weather conditions.
• In June 2023, Freight Farms partnered with Local Line, an integrated sales platform designed for farmers. This collaboration marks Freight Farms' latest effort to provide aspiring farmers with the tools necessary for building successful businesses. Local Line aligns with Freight Farms' mission of fostering local food systems, with Freight Farms focusing on empowering individuals to farm within their communities and Local Line ensuring those farmers' businesses thrive by connecting them with customers. Together, their shared goals of supporting sustainable local food systems make this partnership a perfect match.

Key Market Players

• AeroFarms LLC
• AmHydro
• Urban Crop Solutions
• Bowery Farming Inc.
• Freight Farms, Inc.
• Crop One Holdings, Inc.
• Altius Farms, Inc.
• Plenty Unlimited Inc.
• Upward Enterprises Inc.
• Intelligent Growth Solutions Limited

Report Scope:

In this report, Global Vertical Farming Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vertical Farming Market, By Structure:

o   Building-Based

o   Container-Based

• Vertical Farming Market, By Growing Mechanism:

o   Hydroponics

o   Aeroponics

o   Aquaponics

• Vertical Farming Market, By Crop Type:

o   Leafy Green

o   Pollinated Plants

o   Nutraceutical Plants

• Vertical Farming Market, By Component:

o   Lighting

o   Hydroponic Component

o   Climate Control

o   Sensors

o   Others

• Vertical Farming Market, By Application:

o   Indoor

o   Outdoor

• Vertical Farming Market, By Region:

o   North America

§  United States

§  Mexico

§  Canada

o   Europe

§  France

§  Germany

§  United Kingdom

§  Italy

§  Spain

o   Asia-Pacific

§  China

§  India

§  South Korea

§  Japan

§  Australia

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East and Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vertical Farming Market.

Available Customizations:

Global Vertical Farming Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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