Vertical Farming Market Size To Reach $49.25 Billion By 2033

Vertical Farming Market Growth & Trends

The global vertical farming market size is estimated to reach USD 49.25 billion by 2033, registering a CAGR of 22.6% from 2025 to 2033, according to a new report by Grand View Research, Inc. Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. The growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.

Vertical farming is effective in ensuring stability in crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over the traditional farming technique, such as less use of water, the lesser need for agrochemicals, and low dependence on agricultural labor. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.

Genetically modified organisms and the environmental and health effects of pesticides and other non-natural substances that are used for increasing agricultural production have encouraged consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by around 5% in 2019 owing to the increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990, the handlers and growers of organic products need to comply with the regulations.

Artificial lighting helps in extending the hours of natural daylight, which further increases the health, growth rate, and yield of the plants. Artificial lighting such as high-pressure sodium lighting and LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce a dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.

A hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors such as high initial investment and fewer crop varieties are likely to restrain the market growth.

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Vertical Farming Market Report Highlights

• Based on structure, the shipping container segment accounted for the largest market share in 2024. Shipping container-based farming uses less water than traditional farming with drip irrigation. Shipping containers can be easily stacked, modified, recycled, and refurbished at a lower cost. Additionally, the excess availability of unused shipping containers across the region will likely influence segment growth over the forecast period.

• Based on component, the hardware segment accounted the largest market share in 2024. The hardware plays a significant role in maintaining the environment of the indoor farms. The segment is further categorized into climate control systems, lighting systems, sensors, and irrigation systems, which enables the cultivation of indoor-grown crops.

• Based on crop category, the fruits vegetables, & herbs segment accounted for the largest revenue share in 2024. The increasing cultivation of commonly grown fruits and vegetables in greenhouses is driving the segment growth. Crops grown in vertical farming provide maximum profit to companies involved in their cultivation.

• By growing mechanism, the aeroponics segment is expected to observe considerable CAGR over the forecast period, as the aeroponics facilitate fast growth in plants (under normal conditions).

• North America vertical farming market dominated the global industry with the largest revenue share of 33.6% in 2024, driven by rising food security concerns.

Vertical Farming Market Segmentation

Grand View Research has segmented the global vertical farming market based on component, growing mechanism, crop category, structure, and region:

Vertical Farming Component Outlook (Revenue, USD Billion, 2021 - 2033)

• Hardware

  • Lighting

  • Hydroponic components

  • Climate control

  • Sensors

• Software

• Services

  • System Integration & Consulting

  • Managed Services

  • Assisted Professional Services

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

• Aeroponics

• Hydroponics

• Aquaponics

Vertical Farming 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

Vertical Farming Structure Outlook (Revenue, USD Billion, 2021 - 2033)

• Shipping container

• Building based

Vertical Farming 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

List of Key Players in the Vertical Farming Market 

• AGEYE Technologies

• American Hydroponics

• Argus Control Systems Limited

• CubicFarm Systems Corp.

• EVERLIGHT ELECTRONICS CO., LTD.

• FOSHAN REINFA AGTECH CO., LTD.

• Freight Farms, Inc.

• iFarm

• Intelligent Growth Solutions Limited

• LOGIQS B.V.

• OnePointOne

• Vertical Farm Systems