Vertical Farming Market (2025 - 2033) Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Growing Mechanism (Aeroponics, Hydroponics, Aquaponics), By Crop Category, By Structure, By Region, And Segment Forecasts

Vertical Farming Market Summary

The global vertical farming market size was estimated at USD 8.15 billion in 2024 and is projected to reach USD 49.25 billion by 2033, growing at a CAGR of 22.6% from 2025 to 2033, driven by the increasing need for sustainable agricultural practices in urban areas, alongside rapid technological progress in IoT, AI, and hydroponics. The decline in available arable land, adverse impacts of climate change, and the pressures of rising urban population density are also major contributors to this expansion. 

Rapid urbanization is reducing the availability of arable land, prompting the need for innovative farming solutions. Vertical farming offers a method to cultivate crops in urban environments, utilizing vertical spaces such as warehouses and rooftops, thereby conserving valuable land resources. This approach is particularly pertinent in densely populated regions where traditional agriculture is increasingly untenable.

Traditional farming methods are highly susceptible to climatic variations, leading to inconsistent crop yields. Vertical farming mitigates these risks by providing a controlled environment, ensuring stable production regardless of external weather conditions. Moreover, it employs sustainable practices that reduce water usage and eliminate the need for pesticides, aligning with global sustainability goals.

The integration of technologies such as hydroponics, aeroponics, and automation has significantly enhanced the efficiency of vertical farming. These innovations enable precise control over growing conditions, leading to higher yields and reduced resource consumption. For instance, in March 2025, BrightFarms Inc. announced expansion of its 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. Automation further reduces labor costs and increases scalability, making vertical farming a more viable option for widespread adoption.

Component Insights

The hardware segment dominated the market and accounted for the revenue share of 61.5% in 2024, driven by the need for efficient and resource-optimized cultivation methods, rising energy costs, and technological innovations that enable year-round farming in controlled environments. Increasing demand for higher yields, lower operational costs, and sustainability has further accelerated investments in advanced hardware solutions designed to improve productivity and resource efficiency. The hardware segment has been further segmented into lighting, hydroponic components, climate control, and sensors.

The software segment is anticipated to grow at the highest CAGR during the forecast period due to the increasing complexity of indoor agriculture operations and the need for data-driven decision-making. Modern vertical farms require integrated solutions that manage various aspects of production, from environmental control and resource management to crop monitoring and yield forecasting. The adoption of advanced software platforms is essential for optimizing efficiency, ensuring consistency, and scaling operations in the competitive vertical farming industry.

Growing Mechanism Insights

The hydroponics segment dominated the market and accounted for the largest revenue share in 2024. With increasing concerns about water scarcity, arable land depletion, and urbanization, hydroponic farming has become an attractive solution for both commercial operators and individual growers. The integration of automation, IoT-based monitoring, and sustainable nutrient management systems has further enhanced operational efficiency and crop reliability.

The aquaponics segment is expected to grow at a significant CAGR during the forecast period. Rising awareness of circular economy models and the increasing focus on sustainable urban agriculture have positioned aquaponics as a critical component of the next generation of controlled-environment farming systems. Therefore, this approach is appealing in regions facing both water scarcity and limited arable land, offering a means to achieve self-sustaining local food production.

Crop Category Insights

The fruits vegetables & herbs segment dominated the market and accounted for the largest revenue share in 2024. Limited arable land and water scarcity have prompted the adoption of controlled-environmental agriculture, where innovative technologies such as multi-layer hydroponics, LED lighting, and climate-controlled systems enable efficient, high-density crop production. This approach allows farmers to produce a diverse range of vegetables, leafy greens, and herbs year-round, while minimizing resource consumption and improving yield predictability. The segment has been further segmented into lettuce, tomato, bell & chili peppers, cucumber, strawberry, leafy greens, herbs, and others.

The flowers & ornamentals segment is expected to grow at a significant CAGR during the forecast period, driven by the rising demand for sustainable, locally grown, and high-quality floral products. Urbanization, climate variability, and shrinking arable land have limited traditional flower cultivation, encouraging the adoption of controlled-environment agriculture (CEA). Vertical systems, using hydroponics or aeroponics, enable year-round production of high-density flowers and ornamentals while minimizing water use, reducing pesticide dependency, and improving overall quality. The segment has been further segmented into perennials, annuals, and ornamentals

Structure Insights

The shipping container dominated the market and accounted for the largest revenue share in 2024. The shipping container segment is witnessing significant adoption as urban populations expand, arable land availability declines, and global supply chains face increasing pressures. Container farms provide a localized approach to food production, reducing transportation costs and emissions while ensuring consistent supply. Recent advancements in automation, climate control technologies, and precision agriculture tools are enhancing the efficiency and productivity of these compact farming units. The growing preference for modular and easily deployable farming solutions is further positioning container-based farms as a viable choice for both urban operators and institutional buyers.

The building based segment is expected to grow at a significant CAGR over the forecast period. The building-based vertical farming segment is gaining traction as companies and governments seek to optimize food production within urban landscapes. By utilizing multi-story buildings, warehouses, or repurposed commercial spaces, these farms can produce large volumes of crops while minimizing land use. Advancements in hydroponics, aeroponics, LED lighting, and climate control technologies have significantly improved the efficiency and yield of building-based systems. In addition, increasing demand for fresh, locally grown produce, along with sustainability mandates and supply chain resilience requirements, is driving adoption among commercial operators, retailers, and institutional buyers.  

Regional Insights

North America dominated the global vertical farming market with the largest revenue share of 33.6% in 2024, driven by rising food security concerns. Frequent extreme weather events, supply chain disruptions, and increasing demand for locally grown produce have prompted investments in controlled-environment agriculture, enabling consistent year-round production and reducing reliance on imports.

U.S. Vertical Farming Market Trends

The vertical farming market in the U.S. is expected to grow significantly at a CAGR of 20.5% from 2025 to 2033, due to technological innovation and startup culture. Leading-edge automation, AI-based growth monitoring, and hydroponics/aeroponics systems are being rapidly adopted, allowing high-density crop production in urban centers and optimizing operational efficiency for commercial-scale farms.

Europe Vertical Farming Market Trends

The vertical farming market in Europe is anticipated to register considerable growth from 2025 to 2033 due to government sustainability initiatives and regulatory support. Policies promoting urban agriculture, reduction of carbon footprints, and sustainable food systems have encouraged the integration of vertical farming into cities, aligning with EU-wide climate goals.

The UK vertical farming market is expected to grow rapidly in the coming years, owing to consumer demand for fresh, pesticide-free produce. Urban populations increasingly prefer locally sourced, high-quality food, prompting vertical farms to focus on leafy greens and herbs that can be delivered quickly from urban farms to city consumers, reducing supply chain delays.

The Germany vertical farming market held a substantial market share in 2024 due to the energy-efficient and renewable integration. Vertical farms are increasingly adopting LED lighting, solar power, and energy-saving climate control systems, aligning with Germany’s strong emphasis on sustainability and energy-efficient industrial practices.

Asia Pacific Vertical Farming Market Trends

Asia Pacific vertical farming held a significant share in the global market in 2024, due to rapid urbanization and arable land scarcity are key drivers. Countries with dense populations face increasing pressure on farmland, making vertical farms an effective solution for producing fresh vegetables and herbs within urban areas, often integrated into high-rise buildings and commercial spaces.

The Japan vertical farming market is expected to grow rapidly in the coming years, driven by labor shortages in agriculture. With an aging farming population, automation, robotics, and hydroponic systems enable efficient, high-yield crop production while minimizing human labor requirements.

The China vertical farming market held a substantial market share in 2024, due to the government-backed urban food innovation projects. Large-scale urban agriculture initiatives, smart city integration, and subsidies for controlled-environment agriculture drive investments in vertical farms to ensure food security for rapidly growing cities.

Key Vertical Farming Company Insights

Key players operating in the vertical farming industry are Intelligent Growth Solutions, Signify Holding, iFarm, Freight Farms, Inc., and Argus Control Systems Limited. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In August 2025, Intelligent Growth Solutions partnered with Aberdeen-based EPC contractor Modutec to support its expansion into the UAE. The collaboration will focus on building 20 vertical farming growth towers as part of a larger 200-tower GigaFarm in Dubai’s Food Tech Valley. The towers will operate within a self-contained, closed-loop system designed to maximize resource efficiency and minimize waste, underscoring the partnership’s commitment to advanced, sustainable agriculture solutions.

• In June 2025, Signify Holding launched new 4-channel LED models in its Philips GreenPower toplighting force (TLF) series. These advanced 800W and 1040W lights provide precise control over red, blue, white, and far-red spectrums through the Philips GrowWise system, allowing growers to fine-tune light intensity, energy use, and crop development in real time. Designed for crops such as cucumbers, chrysanthemums, strawberries, and young plants, the TLF series combines high light output of up to 5150 μmol/s, efficacy up to 4.3 μmol/J, and patented Quadro Beam optics for exceptional uniformity, ensuring efficient growth and lower installation costs in greenhouse environments.

Vertical Farming Market Report Scope

Global Vertical Farming Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global vertical farming market report based on component, growing mechanism, crop category, structure, and region.

• Component Outlook (Revenue, USD Billion, 2021 - 2033)

  • Hardware

    • Lighting

    • Hydroponic components

    • Climate control

    • Sensors

  • Software

  • Services

    • System Integration & Consulting

    • Managed Services

    • Assisted Professional Services

• Growing Mechanism Outlook (Revenue, USD Billion, 2021 - 2033)

  • Aeroponics

  • Hydroponics

  • Aquaponics

• Crop Category Outlook (Revenue, USD Billion, 2021 - 2033)

  • Fruits Vegetables, & Herbs

    • Tomato

    • Lettuce

    • Bell & Chili Peppers

    • Strawberry

    • Cucumber

    • Leafy Greens

    • Herbs

    • Others

  • Flowers & Ornamentals

    • Perennials

    • Annuals

    • Ornamentals

    • Others

• Structure Outlook (Revenue, USD Billion, 2021 - 2033)

  • Shipping container

  • Building based

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa