Vertical Farming Market Report by Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material, and Others), Structure (Building-based Vertical Farms, Container-based Vertical Farms), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Application (Indoor, Outdoor), and Region 2024-2032

Vertical Farming Market Report by Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material, and Others), Structure (Building-based Vertical Farms, Container-based Vertical Farms), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Application (Indoor, Outdoor), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A5695
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Vertical Farming Market Overview:

The global vertical farming market size reached US$ 5.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 33.3 Billion by 2032, exhibiting a growth rate (CAGR) of 21.41% during 2024-2032. The growing demand for sustainable agriculture methods, rising advancements in hydroponics, aeroponics, and aquaponics to improve crop yields, and implementation of favorable government policies and monetary rewards to encourage investment are some of the factors impelling the market growth.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 5.6 Billion
Market Forecast in 2032 US$ 33.3 Billion
Market Growth Rate (2024-2032) 21.41%


Vertical Farming Market Analysis:

  • Major Market Drivers: The market is experiencing robust growth because of the increasing world population, urbanization, and declining arable land. Moreover, technology improvements including light-emitting diode (LED) lighting and hydroponic systems are enhancing the effectiveness and productivity of vertical farming activities.
  • Key Market Trends: Notable market trends include the usage of automation and artificial intelligence (AI) to enhance crop yields and cut down on labor expenses. Additionally, there is a rise in the interest in organic and pesticide-free produce, which vertical farming can more easily provide compared to traditional farming methods.
  • Geographical Trends: Asia Pacific dominates the market because of the rapid urbanization and government support for novel agricultural practices.
  • Competitive Landscape: Some of the major market players in the industry include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, and Vertical Farm Systems Pty Ltd.
  • Challenges and Opportunities: The high cost of the initial setup and the need for constant technology advancements are impacting the vertical farming market revenue. Nevertheless, there are various opportunities available due to the rising consumer interest in fresh, locally sourced fruits and vegetables, as well as the potential of vertical farming to address food security challenges in cities.
     

Global Vertical Farming Market


Vertical Farming Market Trends:

Technological Advancements

Advancements in hydroponics, aeroponics, and aquaponics are transforming the way crops are cultivated, enabling growth without soil in regulated settings. Besides this, the integration of automation and artificial intelligence (AI) technologies to monitor and oversee growth conditions is leading to decreased labor expenses and enhanced accuracy in resource utilization. These technologies improve efficiency and allow farming all year round, regardless of the weather. These innovations are driving the vertical farming demand as they address critical challenges in food production and meet the growing consumer preference for fresh, locally sourced, and environment-friendly produce. Moreover, energy-efficient light-emitting diode (LED) lighting replicates natural sunlight, maximizing photosynthesis and improving crop yields. For example, in 2023, Colruyt Group and MechaTronix introduced the CoolGrow VF, a vertical farming light that is 38% more energy-efficient than traditional systems. Created in partnership with KU Leuven and backed by VLAIO, the light employed an original ceiling-mounted reflection mechanism to improve plant photosynthesis.

Environmental Sustainability

Conventional farming often leads to forest loss, soil erosion, and over utilization of water. Vertical farming, on the other hand, uses only a small portion of the land and water resources, greatly decreasing its environmental footprint. Modern methods of irrigation, such as hydroponics and aeroponics, require significantly less water than traditional farming practices. Additionally, vertical farms eliminate the need for pesticides and herbicides, resulting in cleaner produce and reducing chemical runoff into the environment. The growing food in controlled environments reduces the need for using fossil fuels for transportation as crops can be produced closer to their point of consumption. This sustainable farming method tackles the urgent problems of climate change and resource depletion, appealing to governments and organizations committed to environmental preservation. In 2024, Edamah and Badia Farms from the UAE revealed a large investment in a 50,000-square-meter hydroponic farm in Bahrain. The aim of the project was to grow fresh fruits and vegetables throughout the year by utilizing sustainable methods such as solar energy and water reuse. This project was anticipated to improve Bahrain's food security and tackle local agricultural issues.

Government Support and Favorable Regulations

Numerous governing bodies around the world are acknowledging the benefits of vertical farming in improving food security and lowering environmental effects. They are taking steps and providing financial incentives to encourage investment in this sector. The incentives consist of grants, subsidies, and tax benefits, as well as support for research and development (R&D) to enhance the technology. In addition, urban planning strategies are including more vertical farming projects, either requiring or encouraging their integration in both new and existing buildings. This regulatory assistance lowers barriers for new entrants, creating a favorable environment for vertical farming market growth. In 2024, the Association for Vertical Farming (AVF) revealed a collaboration with Nigeria's National Information Technology Development Agency and Swedish company Grow Pipes AB. The aim of the partnership was to introduce vertical farming to Nigeria by implementing a project called "Vertical Farming in Africa for Innovation" (VFAI), with a focus on training facilities, local food production, and supply networks. This effort represented a major milestone in the promotion of sustainable agricultural methods in Africa.

Vertical Farming Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, structure, growth mechanism, and application.

Breakup by Component:

vertical farming market

  • Irrigation Component
  • Lighting
  • Sensor
  • Climate Control
  • Building Material
    • Glass Greenhouse
    • Plastic Greenhouse
  • Others
     

Lighting accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. 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.

Lighting accounts for the majority of the market share, driven by its critical role in the growth and productivity of crops. Sophisticated lighting choices such as LED lights are essential for supplying the required light wavelengths for photosynthesis, ensuring optimal plant development, regardless of outdoor circumstances. LED technology is increasingly preferred for vertical farms because of its efficiency, long lifespan, and energy-saving capabilities, resulting in consistent high crop yields and quality. Moreover, the ability to control light intensity and spectra precisely allows farmers to tailor lighting conditions to the needs of different crops, enhancing both productivity and resource efficiency. In 2023, Polymatech Electronics revealed the Ravaye™ LED grow light, specifically created for improved greenhouse and vertical farming. This full-spectrum light promoted faster plant growth and lowered lighting system costs.

Breakup by Structure:

  • Building-based Vertical Farms
  • Container-based Vertical Farms
     

Container-based vertical farms hold the largest share of the industry

A detailed breakup and analysis of the market based on the structure have also been provided in the report. 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.

Container-based vertical farms represent the largest segment according to the vertical farming market outlook due to their flexibility, scalability, and lower setup expenses when compared to building-based farms. These farms make use of shipping containers that have been modified with advanced hydroponic or aeroponic systems, climate control, and LED lighting to establish controlled growing conditions. Container-based farms are easily deployed in urban areas, parking lots, and other non-traditional farming locations due to their compact and modular design, making them ideal for local food production and cutting down on transportation expenses. Their ability to be easily moved and effectively use space allows for quick growth and duplication, meeting the increasing need for locally sourced produce in cities.

Breakup by Growth Mechanism:

Hydroponics represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the growth mechanism. This includes hydroponics, aeroponics, and aquaponics. According to the report, hydroponics represented the largest segment.

Hydroponics holds the biggest market share owing to its efficiency and higher yield capabilities compared to traditional soil-based farming. This method involves cultivating plants in a nutrient-rich water solution, which allows for precise control over nutrient intake and environmental conditions, resulting in faster growth and higher crop productivity. Hydroponics is ideal for urban and indoor farming because it uses less water and space. Vertical farming market opportunities are further enhanced by the potential of hydroponics to maximize yield and resource efficiency, attracting notable investment and innovation.

Breakup by Application:

  • Indoor
  • Outdoor
     

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes indoor and outdoor.

Indoor involves cultivating crops in controlled environments like warehouses, basements, or specially constructed buildings. This segment is able to maintain total control over environmental factors, including temperature, humidity, and light, enabling cultivation throughout the year regardless of outside weather conditions. The ability to grow crops without soil and the protection from pests and diseases lead to higher quality produce and reduced pesticide use. In 2024, American vertical farming startup Plenty unveiled a $680 million partnership with UAE's Mawarid to establish a series of indoor farms in the Middle East. The project aimed to construct five farms, with the first one in Abu Dhabi scheduled to start building in early 2025.

Outdoor includes the use of vertical structures in open-air environments, such as vertical gardens or rooftop farms, where crops are grown in stacked layers. The outdoor segment leverages natural sunlight and often integrates with urban architecture, contributing to urban greening and sustainability efforts. This segment is gaining traction as cities seek innovative ways to incorporate agriculture into their landscapes, encouraging local food security and environmental sustainability.

Breakup by Region:

vertical farming market

  • North America
    • United States
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Russia
    • Others
  • Latin America
    • Brazil
    • Mexico
    • Others
  • Middle East and Africa
     

Asia Pacific leads the market, accounting for the largest vertical farming market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for vertical farming.

Asia Pacific dominates the market due to rising investments in agricultural technology. Nations in the region are embracing vertical farming to tackle food security issues and lessen reliance on imported crops. The emphasis on creativity and eco-friendliness is resulting in the creation of high-tech vertical farming systems that optimize both space usage and harvest production. Vertical farming market dynamics are further influenced by government backing and favorable regulations, which consist of numerous initiatives aimed at integrating vertical farming into urban planning and development. Additionally, the growing health consciousness among consumers is driving the demand for fresh, pesticide-free produce. In 2024, CubicFarm Systems collaborated with BoomA Food Group to distribute 10 HydroGreen GLS 808 machines and 2 DGS-66 units for producing livestock feed in Australia. The agreement made BoomA the sole partner of HydroGreen in Australia and New Zealand, strengthening the importance of vertical farming in the beef and dairy industry. The goal of this partnership was to enhance feed efficiency and sustainability in the agricultural industry.

Competitive Landscape:

  • The vertical farming market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, Vertical Farm Systems Pty Ltd., etc.

    (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
     
  • Key players in the market are actively innovating and expanding their operations to meet the growing demand for sustainable and locally sourced produce. They are investing heavily in research operations to enhance farming technologies, including advanced hydroponic and aeroponic systems, AI-driven automation, and energy-efficient LED lighting, to maintain competitive advantage and gain comprehensive vertical farming market insights to stay ahead. These companies are also forging strategic partnerships and collaborations to optimize supply chains and broaden their market reach. In 2023 Singapore-based AlfaTech became the service partner for Urban Crop Solutions in South East Asia. They collaborated on indoor vertical farming projects, including the National University of Singapore's Agricultural Translational Research Centre. This partnership aimed to integrate and service Urban Crop Solutions' technology in the region, addressing climate change and food production challenges.


Vertical Farming Market News:

  • February 2024: Jones Food Company Limited (JFC) opened its second vertical farm, JFC2, in Gloucestershire, claiming it to be the world's most advanced vertical farm. The new farm, spanning 14,448 square meters, utilized 100% renewable energy to grow various crops and aimed to revolutionize sustainable food production.
  • August 2023: FarmByte and Archisen finalized a 70:30 joint venture to build a 52,000 square foot vertical farm in Johor Bahru. The $7.81 million project, supported by an additional $2.6 million investment, aimed to produce over 306,000 kg of premium leafy vegetables annually.


Vertical Farming Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
 Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Component
  • Structure
  • Growth Mechanism
  • Application
  • Region
Components Covered
  • Irrigation Component
  • Lighting, Sensor
  • Climate Control
  • Building Material: glass greenhouse, plastic greenhouse
  • Others
Structures Covered Building-based Vertical Farms, Container-based Vertical Farms
Growth Mechanisms Covered Hydroponics, Aeroponics, Aquaponics
Applications Covered Indoor, Outdoor
Regions Covered North America, Asia Pacific, Europe, Middle East and Africa, Latin America
Countries Covered United States, Canada, China, Japan, India, South Korea, Australia, Indonesia, Germany, France, United Kingdom, Italy, Spain, Russia, Brazil, Mexico
Companies Covered AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, Vertical Farm Systems Pty Ltd., etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, vertical farming market forecasts, and dynamics of the market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the vertical farming industry and its attractiveness.
  • The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.

Key Questions Answered in This Report

According to the IMARC Group, the global market size of vertical farming was US$ 5.6 Billion in 2023. This can be attributed to several factors, such as the inflating popularity of indoor farming practices, the growing consumer concerns toward the presence of chemical additives in conventional food crops, the rising need for better food security with the expanding population levels, etc.

We expect the global vertical farming market to exhibit a CAGR of 21.41% during 2024-2032.

Vertical farming is highly profitable as it can facilitate year-round crop production irrespective of the weather conditions, climatic or seasonal challenges. Usage of this technique can also produce ample quantities of crops in limited spaces. Various farmers are introducing vertical farming closer to urban areas, where there is a shortage of arable land, to create a local, stable, and sustainable year-round food supply. In addition to this, vertical farming involves hydroponic solution in crop cultivation that reduces the water needs to only 10% of what is needed in conventional methods. Moreover, vertical farming provides higher productivity, reduced resource consumption, lesser use of pesticides, better food safety, etc., thereby is expected to gain immense traction in the future over traditional agricultural practices.

Vertical farming has a huge scope around the world pertaining the high-quality agricultural produce, enhanced energy efficiency, limited land and water requirements, reduced labor costs, etc. In the current times, the increasing demand for organic food products, especially fruits and vegetables, is augmenting the adoption of vertical farming methods that minimize the use of pesticides and insecticides. Additionally, the widespread adoption of environmental-friendly farming practices will continue to drive the vertical farming market in the coming years.

The United States accounts for the largest market for vertical farming across the globe. The country accounts for 30-35% of the total global production. Using vertical farming, fruits and vegetables are majorly grown in the country. Some of the key products produced from vertical farming include herbs, lettuce, spinach, tomato, kale, strawberry, cucumber, bell and chilli peppers, etc. Apart from these crops, ornamentals and perennial flowers are also cultivated using vertical farming.

The rising adoption of robotics and automation that deliver effective and efficient operations within vertical farms and help in cost reduction is expected to create lucrative growth opportunities for the vertical farming market. Moreover, several technological advancements in farming sensors, monitoring, and regulating devices will continue to drive the market growth in the coming years. Additionally, various farmers are introducing indoor facilities closer to urban areas to create a local, stable, and sustainable year-round food supply, which is further expected to augment the demand for vertical farming methods over the forecast period.

The vertical farming market is trending across different locations. The ongoing development of high-tech and automated greenhouse facilities is positively influencing the market growth. Moreover, the widespread adoption of eco-friendly farming practices that eliminate wastewater by recycling throughout the operation, save energy, reduce risks in the food supply chain, etc., is also propelling the market growth. Additionally, the increasing demand for organic farming practices for minimizing the use of chemical pesticides will continue to augment the product demand in the forecast period.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in temporary halt in various agricultural activities and non-availability of migrant labor, thereby negatively impacting the global market for vertical farming.

The rising adoption of vertical farming over traditional farming practices for crop cultivation on arid lands, mountains, unfertile lands, etc., as it is sustainable and has lower water and energy requirements, is primarily driving the global vertical farming market.

Based on the component, the global vertical farming market can be segmented into irrigation component, lighting, sensor, climate control, building material, others. Currently, lighting holds the majority of the total market share.

Based on the structure, the global vertical farming market has been divided into building-based vertical farms and container-based vertical farms, where container-based vertical farms currently exhibit a clear dominance in the market.

Based on the growth mechanism, the global vertical farming market can be categorized into hydroponics, aeroponics, and aquaponics. Among these, hydroponics account for the largest market share.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.

Some of the major players in the global vertical farming market include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, and Vertical Farm Systems Pty Ltd.

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Vertical Farming Market Report by Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material, and Others), Structure (Building-based Vertical Farms, Container-based Vertical Farms), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Application (Indoor, Outdoor), and Region 2024-2032
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