GVR Report cover Vertical Farming Market Report

Vertical Farming Market Analysis By Structure, By Component (Hardware, Software, Services), By Growing Mechanism (Aeroponics, Hydroponics), By Crop Category (Fruits Vegetables, & Herbs, Flowers & Ornamentals) And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-1-68038-797-1
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Report Overview

The global vertical farming market size was valued at USD 5,894.4 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 20.1% from 2023 to 2030. The market growth is attributed to the growing adoption of environment-friendly production of fruits and vegetables. The unprecedented growth of the global population has increased the demand for urban agriculture.

Canada vertical farming market size, by offering, 2020 - 2030 (USD Million)

Vertical farming is the practice of producing food in vertically stacked layers such as in a used warehouse, skyscraper, or shipping container. Organic foods are perceived as healthier, nutritious, safer, and more environmentally friendly. A critical factor that influences the demand for organic food is the food purchasing behavior of consumers, which is essential for producers, policymakers, and suppliers to implement successful marketing strategies.

Obesity and heart diseases are prevalent, health-related issues among consumers. Furthermore, the growing depletion of groundwater and changing climatic conditions have urged traditional growers to adopt alternate farming methods. Increasing consumer concerns toward health and the abovementioned factors are likely to elevate the industry demand.

Unlike traditional farming, indoor farming can produce crops throughout the year, which results in increased productivity. Furthermore, indoor farming can protect crops from extreme weather conditions through the usage of techniques such as the controlled environment agriculture technology, where the facilities use artificial environmental control, control of light, and fertigation.

Increasing demand for high-quality food, independent agriculture technique, and growing urbanization are some of the critical factors responsible for market growth. These factors have increased the requirement for food. Demand for food is expected to witness significant growth with a growing population by 2030. The adoption of the vertical cultivation technique allows the consumers to grow crops in a warehouse or a multi-story building.

Component Insights

On the basis of component, the vertical farming market is segmented into hardware, software, and services. Hardware segment accounted the largest market share in 2022. The hardware plays a significant role in maintaining the environment in vertical farming. The segment is further categorized into lighting, hydroponic components, climate control, and sensors. The lighting segment led the market and accounted for more than 44% of the global hardware revenue in 2022. The large share of the lighting segment can be attributed to the dependence of vertical farms on artificial lighting. Artificial lights provide sufficient light intensities required for crop growth. The climate control segment is expected to register the highest CAGR of 27.0% over the forecast period. Increasing adoption of hydroponic components by farmers to minimize the weight load and infrastructure needed to support the equipment is anticipated to drive the demand for hydroponic components.

Climate control is a kind of agriculture where plants are grown inside a greenhouse under a controlled environment that allows a grower to maintain and monitor the proper supply of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth. The main aim of climate control farming is to facilitate the protection and maintain optimum growth conditions throughout the development period of a crop. In many cases, climate-controlled farming is used to ensure that plants receive optimal nutrients for their growth.

Farming with the help of lighting technology ensures consistent plant growth by reducing the heat stress on the root zone and providing uniform lighting. The use of LED lighting technology acts as a supplementary light source to the sun and ensures increased productivity with minimum power usage. Sensors enable the comprehensive monitoring of the external environment and crop condition. Various sensors such as nutrient sensors, humidity sensors, and light sensors are used to monitor crop growth. Monitoring also enables the notification of changes and alerts.

Automation in vertical farming is aiming at minimizing time to market, reducing distribution, production, and environmental costs, and standardizing the high quality. IoT has become the mainstream technology that drives several industries such as transportation, manufacturing, and agriculture. The proliferation of IoT has revolutionized the agriculture industry.

Furthermore, the software segment is expected to exhibit a CAGR of 22.2% from 2023 to 2030, owing to the upcoming trends in technologies and farming practices. The software may identify a grower, crop batch, land or field, and supplier information for fruits and vegetables. Since cloud-based software gathers millions of data points in real-time that can be analyzed with machine learning techniques to ascertain how changes in specific environmental parameters affect the yield and flavour of the finished product, it is anticipated that the market will grow significantly in the years to come.

Growing Mechanism Insights

The hydroponics segment registered a largest market share in 2022 and is expected to remain dominant over the between 2023 and 2030. Hydroponics is a popular growth mechanism due to low installation costs and ease of operations. It is a method of growing plants without soil, where the soil is replaced by a mineral solution inserted around the plant roots. Additionally, the hydroponics method removes the risk of soil organisms causing diseases.

Growing awareness among consumers regarding the effects of pesticides is expected to boost the demand for hydroponics. Hydroponically grown plants produce a greater yield than similar plants grown in soil because of proper control over the nutrients. In addition, plant roots are submerged under the chemical solution and checked periodically to ensure that appropriate chemical composition is maintained for growth.

The aquaponics segment is anticipated to gain a significant market share over the forecast period. Aquaponics is the integration of hydroponics and aquaculture, which eliminates the need for harmful chemicals for cultivation. Plants such as lettuce, chives, peppers, kale, mint, cucumbers, and peas are grown through aquaponics. The water used in the aquaponics systems contains fish waste that becomes nutrient-rich and increases crop production time. This creates a sustainable natural system, which eliminates the need for chemicals to produce food.

The aeroponics segment is anticipated to witness considerable growth over the forecast period. This system is similar to hydroponics as neither method uses soil to grow plants. However, in aeroponics, there is no need for a growing medium as roots of plants are hung in a dark chamber and sprayed with nutrient-rich solution periodically.

Crop Category Insights

The fruits vegetables, & herbs segment registered a largest market share in 2022 and is expected to remain dominant over the between 2023 and 2030. The increasing cultivation of commonly grown fruits and vegetables in vertical farming is driving the segment growth. Crops grown in vertical farming provide maximum profit to companies involved in their cultivation. At the same time, vertical farming improves biodiversity as it does not cause land disturbances. As such, vertical farming is in high demand for growing different types of crops. Further, fruits vegetables, & herbs is segmented into tomato, lettuce, bell & chili peppers, strawberry, cucumber, leafy greens (excluding lettuce), herbs, others. Among which tomatoes segment led the market and accounted for more than 24% of the global fruits vegetables, & herbs revenue in 2022. This large share is attributed to the high average demand for tomatoes in all regions compared to other crops such as lettuce, leafy greens, peppers, cucumbers, herbs, and so on. Some of the most commonly grown vegetables, herbs, and fruits across different regions include strawberry, lettuce, bell and chili peppers, tomato, cucumber, and leafy greens among others. One of the important factors behind growing any crop in vertical farming is to validate the economic viability of that crop, which ensures that the company is making a large amount of money from its cultivation.

Similarly, the time taken for crops to grow fully is one of the criteria because some vegetables like lettuce and mint grow fast, whereas herbs and some fruiting crops take more time to grow but can have higher margins than many other plants. As a farmer, it is imperative to make sure that we can sell what we grow, and production costs should not be too high. In order to make this decision, the kind of crops also plays a very vital role in the feasibility study of vertical farming. Lettuces have shown consistent demand globally that has enhanced its cultivation.

The flowers and ornamentals segment is anticipated to grow with the significant CAGR during the forecast period. The increasing usage of flowers and ornamentals for decorative and aesthetic purposes is anticipated to boost the market growth. Also, the vertical farming has gained popularity in growing edible flowers which include marigolds, matthiol, cloves, and snapdragons. The segment has been further segregated into perennials, annuals, and ornamentals. The ornamentals flowers held the largest market share in 2022, owing to its increasing sales.

Structure Insights

The shipping container segment dominated the market with a share of about 53.32% in 2022 and is expected to remain dominant between 2023 and 2030. This growth is attributed to the ability of the structure to help grow crops irrespective of the geographic location. One of the primary benefits of container-based farming is that container farms are easy to transport, and one doesn’t require a large piece of land or a dedicated building to start cultivating.

Moreover, the price of shipping containers decreases with increased competition because the cost of acquiring used containers is relatively less, which gives other companies an opportunity to enter the market space. However, low comparative output and antagonism between light, heat, and layout are some of the drawbacks of such kind of agriculture.

Global vertical farming market share, by structure, 2022 (%)

Factors such as growing technological advancements and increasing penetration of precision farming are anticipated to drive the shipping container segment over the forecast period. The building-based segment is widely accepted in Japan, China, and other Asian countries and it is the fastest-growing segment in terms of revenue owing to its growing acceptance in the region. Building-based farming helps in minimizing the cultivation cost and requires larger farming areas than single farming land, hence ensuring food security.

Shipping container-based farming uses 95% less water than traditional cultivation with drip irrigation. Shipping containers are easy to modify, stackable, durable, and can be recycled and refurbished at a lower cost. Additionally, the surplus availability of unused shipping containers across the globe is likely to influence the segment growth over the forecast period.

Regional Insights

In terms of revenue, Asia Pacific dominated the vertical farming market in 2022 with a share of approximately 28.04% and is expected to remain dominant between 2023 and 2030. Growing awareness regarding the importance of alternative farming owing to less availability of fertile agricultural land and increasing population in the region is the key factor anticipated to spur the demand.

Vertical Farming Market Trends by Region

Europe is anticipated to witness significant growth over the projected period owing to the growing expansion of genetically modified crop technology. Furthermore, the increasing adoption of nanotechnology and robotics for farming enhances the regional market demand. The use of nanotechnology helps in improving food packaging and enhancing disease and pest control.

The European environment agency has carried out several initiatives to build vertical farms for the purpose of overcoming challenges of continuous population growth and climate change as well as producing food in an environment-unfriendly way. This has resulted in a rise in the market demand in the region.

The growing urban population and commercialization of indoor farming are anticipated to drive the demand in Africa. However, the lack of financial resources to build modern vertical farms and limited access to water and land are expected to restrain the regional market growth. To overcome such challenges, various models followed in the region include vertically stacked wooden crates and sack gardens.

Key Companies & Market Share Insights

Key market players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. The players are investing in R&D for product innovation and enhancement. They are also utilizing the improved database of the customers, products, and processes to achieve the requisite transformation necessary for sustaining in this highly competitive market. The market is primarily dominated by lighting providers accounting for a major share. Some prominent players in the global vertical farming market include:

  • AeroFarms (U.S.)

  • Illumitex, Inc. (U.S.)

  • American Hydroponics (U.S.)

  • Agrilution GmbH

  • Brightfarms Inc.

  • Everlight Electronics Co., Ltd.

  • Freight Farms

  • GrowUp Urban Farms Ltd.

  • Green Sense Farms, LLC

  • Vertical Farm Systems

Vertical Farming Market Report Scope

Report Attribute


Market size value in 2023

USD 6,915.9 million

Revenue forecast in 2030

USD 24,948.3 million

Growth Rate

CAGR of 20.1% from 2023 to 2030

Base year for estimation


Historical data

2017 - 2021

Forecast period

2023 - 2030

Market representation

Revenue in USD million/billion & CAGR from 2023 to 2030

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments covered

Structure, offering, growing mechanism, fruits, vegetables, and herbs, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Spain; Japan; China; India; Singapore; South Korea; Brazil

Key companies profiled

Agrilution GmbH; Aerofarm; Brightfarms Inc.; Everlight Electronics Co., Ltd; Freight Farms; GrowUp Urban Farms Ltd.; Green Sense Farms, LLC; Vertical Farm Systems

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global vertical farming market report based on structure, component, growing mechanism, crop category, and region:

  • Structure Outlook (Revenue, USD Million, 2017 - 2030)

    • Shipping Container

    • Building-based

  • Component Outlook (Revenue, USD Million, 2017 - 2030)

    • Hardware

      • Lighting

      • Hydroponic components

      • Climate control

      • Sensors

    • Software

    • Services

      • System Integration & Consulting

      • Managed Services

      • Assisted Professional Services

  • Growing Mechanism Outlook (Revenue, USD Million, 2017 - 2030)

    • Hydroponics

    • Aeroponics

    • Aquaponics

  • Crop Category Outlook (Revenue, USD Million, 2017 - 2030)

    • Fruits Vegetables, & Herbs

      • Tomato

      • Lettuce

      • Bell & Chili Peppers

      • Strawberry

      • Cucumber

      • Leafy Greens (excluding lettuce)

      • Herbs

      • Others

    • Flowers & Ornamentals

      • Perennials

      • Annuals

      • Ornamentals

    • Others (Cannabis, Microgreens)

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Singapore

      • South Korea

    • South America

      • Brazil

    • Middle East and Africa (MEA)

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member

D&B icon

Leading SME award by D&B

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.

great place to work icon