Vertical Farming Market

Vertical Farming Market Report, By Structure (Building-Based Structure, and Container-Based Structure), By Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics), and Regions 2024-2032

Market Overview:

"The global vertical farming market size reached US$ 6.4 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 41.5 billion in 2032, exhibiting a growth rate (CAGR) of 23.1% during 2024-2032."

Vertical farming is an agricultural practice that involves cultivating crops in stacked or inclined layers within controlled indoor environments. Its primary goal is to maximize space usage and enhance crop production efficiency. In contrast to conventional horizontal farming, which spreads crops across expansive fields, vertical farming employs multiple tiers, shelves, or towers to foster crop growth within a more compact space.

Vertical farming is viewed as a promising strategy to tackle issues related to food security, urbanization, and climate change. The vertical farming market is undergoing rapid expansion within the realm of agriculture. This expansion is propelled by the rising need for sustainable food production in urban locales and a concerted effort to tackle the myriad issues associated with conventional farming practices.

Vertical Farming Market Report Overview:

The global vertical farming market report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Vertical farming market share and revenues are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. Vertical farming market growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others.

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, strategies, product launches, agreements, expansion, mergers & acquisitions, and others. 

The global Vertical farming market report is segmented according to structure, growth mechanism, component, and others. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA).

Vertical Farming Market Trends and Drivers:

Crop Diversification: Vertical farming is undergoing a significant transformation through crop diversification. Traditionally, these farms have concentrated on cultivating common crops like leafy greens and herbs due to their compatibility with controlled indoor environments. However, the current trend is shifting towards a more extensive range of plant varieties, including fruits, vegetables, and even more exotic and specialty plants. This shift is fueled by the aim to provide consumers with a broader selection of locally grown, fresh produce while also exploring new market prospects. Vertical farms are harnessing cutting-edge technologies and optimized growth conditions to experiment with diverse crops, expanding the assortment of offerings and pushing the boundaries of what can be successfully grown in vertical farming systems. For instance, in February 2023, Plenty Unlimited has recently expanded its vertical farming research capabilities by constructing the "world's largest vertical farming research center" in Wyoming, United States. This new facility effectively doubles Plenty's existing research space, providing more diverse research environments. It also assists in transitioning new crops to commercial farms by incorporating areas that closely resemble Plenty's actual farm conditions.

Technological Advancements: Vertical farming is advancing significantly due to technological innovations. These developments encompass a range of key areas, notably the enhancement of LED lighting systems. These cutting-edge lighting solutions are precisely tuned to provide the ideal light spectrum for photosynthesis, resulting in increased crop yields. Automation is also a vital element, with the incorporation of robotics and automated systems for planting, harvesting, and maintenance tasks. Sensor technology enables real-time monitoring of environmental conditions, allowing for immediate adjustments to factors such as temperature, humidity, and nutrient levels. Additionally, data analytics, powered by artificial intelligence, plays a crucial role by processing vast amounts of data to fine-tune growth parameters, leading to more efficient resource utilization and healthier crops. These technological strides collectively promote greater productivity and sustainability in the realm of vertical farming. For instance, in August 2021, Nokia Bell Labs has partnered with AeroFarms to enhance crop production. The research lab for industrial technology has created drones equipped with cameras and AI-trained computer vision capabilities. These drones are deployed at AeroFarms' vertical farms to capture plant data and assist in monitoring the overall health of the crops.

Sustainable Packaging: As vertical farms increasingly emphasize sustainability; they are showing a growing interest in adopting environmentally-friendly packaging solutions. The goal is to minimize the ecological impact of food distribution. Vertical farms recognize that sustainability should extend beyond the cultivation process and encompass how their produce is packaged and delivered to consumers. Sustainable packaging involves the use of materials that are biodegradable, recyclable, or compostable, with an emphasis on reducing the reliance on single-use plastics and excessive packaging. By prioritizing sustainable packaging, vertical farms not only align themselves with the preferences of environmentally-conscious consumers but also play a part in reducing waste and pollution throughout the food supply chain. This commitment to eco-friendly packaging is a significant stride towards achieving overall sustainability and responsible agriculture in the vertical farming industry. For instance, in July 2023, Fieldless farms, a Canadian company known for its expertise in vertical farming, has recently unveiled an innovative cardboard packaging solution for leafy greens. This introduction marks a significant milestone as it represents a departure from traditional single-use plastics, aligning with their commitment to sustainability and environmental responsibility.

What factors are restraining growth of vertical farming market?  

High Initial Costs: The considerable upfront investment demanded by vertical farming systems, which encompasses the costs associated with building the necessary infrastructure, acquiring advanced technology, and securing specialized equipment, stands as a significant roadblock to the broader growth of this industry. This financial hurdle can dissuade prospective participants, whether they are new entrants seeking to venture into vertical farming or established agricultural entities contemplating a transition to this innovative method. The substantial initial costs can, in turn, impede the expansion of the vertical farming market, limiting its potential reach and impact.  However, it's crucial to emphasize that there are ongoing initiatives and advancements within the vertical farming sector aimed at addressing this challenge. The industry is actively seeking cost-effective solutions to make vertical farming more accessible and financially viable. These efforts may lead to the development of more affordable technologies and operational practices, ultimately reducing the financial burden associated with entering the vertical farming market. This, in turn, could pave the way for greater market growth and the realization of the industry's full potential in the future.

Energy Costs: These indoor farming facilities heavily depend on electricity to operate essential components such as specialized lighting systems, climate control, and automation technologies. While these elements are vital for creating an optimal environment for plant growth, they also contribute to a substantial energy demand. Escalating energy costs can have a dual impact on vertical farming operations. Firstly, they can directly affect the profitability of these farms, potentially reducing profit margins and, in some cases, resulting in financial losses, especially for those heavily reliant on artificial lighting and year-round climate control. Secondly, these rising energy costs can impede the ability to scale up vertical farming operations, making it less economically viable to establish larger or additional farms. This limitation can decelerate the industry's expansion and its capacity to meet the growing demand for locally cultivated produce. In response to these challenges, the vertical farming sector is actively exploring energy-efficient technologies and practices. This includes advancements in LED lighting, more precise climate control methods, and the integration of renewable energy sources like solar and wind power. By reducing energy consumption and costs, the industry aims to bolster its long-term sustainability and resilience in the face of escalating energy expenses.

What are the opportunities for leading vertical farming solution providers?  

Crop Expansion: Expanding the variety of crops cultivated within vertical farms emerges as a promising strategy for leading manufacturers in the years ahead. While traditional crops like leafy greens and herbs have been the primary focus, there's a growing opportunity to diversify the product range. This includes the growth of fruits, vegetables, and specialty crops, which can cater to a broader and more diverse consumer base. By broadening their crop selection, leading manufacturers not only tap into new market segments but also reduce their dependency on a single crop category, enhancing overall resilience and profitability. Moreover, the cultivation of fruits and vegetables in vertical farms addresses a wider array of dietary choices and requirements, solidifying vertical farming as a versatile and competitive agricultural method. This crop diversification, complemented by advancements in technology and expertise, promises to be a lucrative and dynamic direction for the industry's future expansion.

Government Support: Government support represents a significant opportunity for leading vertical farming manufacturers. Many governments worldwide are increasingly recognizing the benefits of sustainable agriculture and vertical farming, leading to the provision of support in the form of funding, grants, tax incentives, and the establishment of favorable regulatory frameworks. Leading manufacturers can take advantage of these programs to access vital financial resources for research, expansion, and sustainability initiatives. Furthermore, these supportive regulations simplify the process of establishing vertical farms, making it easier for manufacturers to grow their operations. This collaboration between industry leaders and government entities not only fosters the growth of the vertical farming industry but also underscores the critical role of vertical farming in achieving sustainable, and locally sourced food production. For instance, in July 2023, the UK government has unveiled a new EUR 5 million funding initiative, aimed at assisting farmers in implementing projects to boost sustainable food production, advance efforts towards achieving net-zero emissions, enhance farm resilience and promote nature recovery.

What are the factors driving the vertical farming demand in North America Region?

As per the analysis of Reports and Insights, the vertical farming market in North America was valued more than 3 billion in the year 2023. The North American vertical farming market is witnessing remarkable growth, primarily fueled by the growing demand for locally cultivated produce, amplified sustainability concerns, and noteworthy technological advancements. The companies and research institutions in this region are actively involved in the development and adoption of advanced systems. These innovations encompassed automation, LED lighting, and state-of-the-art climate control mechanisms, collectively enhancing the efficiency and productivity of vertical farming practices.

What factors are generating vertical farming demand in Europe?

The European vertical farming market is on the rise, primarily due to the increased desire for sustainable agriculture and the production of fresh and locally sourced food. This trend aligns with environmental concerns and the desire for fresh, pesticide-free food sources. Urban areas have emerged as a key focus, with vertical farms positioned to provide fresh food to densely populated regions. In terms of crop variety, although leafy greens and herbs continue to be popular choices, there is a growing inclination towards expanding the spectrum of crops cultivated in vertical farms. This includes the cultivation of fruits, vegetables, and specialty products, reflecting an evolving landscape in response to changing consumer preferences and market demands. For instance, in February 2023, A French startup, Futura Gaïa, has leveraged indoor vertical agriculture to advance sustainability. The agro tech team recently secured EUR 11 million in funding to scale up their operations to an industrial level.

What are the factors contributing to the significant of Asia Pacific vertical farming market?

The Asia Pacific vertical farming market was in a phase of substantial growth, with momentum stemming from various drivers, including the region's increasing urbanization, the imperative for food security, and mounting sustainability concerns.  The rapid urbanization in the Asia Pacific region had notably shifted the focus towards urban agriculture, with vertical farming taking center stage as a key approach to meet the demand for fresh, locally produced food in densely populated urban centers. For instance, in February 2023, The Indian Institute of Horticulture Research has designed affordable vertical farming structures for the protected cultivation of crops like cabbage and cauliflower, as well as flowers such as lilium and gerbera.

What are the aspects that are driving the vertical farming market in Latin America? 

The swift urbanization of Latin America, marked by a substantial portion of the population living in cities, has sparked a growing interest in urban agriculture, particularly vertical farming. The imperative for food security and the desire for a reliable source of fresh, and locally cultivated crops have been pivotal in propelling the adoption of vertical farming. This innovative technology enables year-round crop cultivation, which can reduce the reliance on imported food and enhance food security measures.

What is the stance on vertical farming market in Middle East and Africa?

The arid climate in various MEA regions pose substantial challenges for traditional agriculture. Vertical farming, through its controlled indoor environment, presents a viable solution to counter the effects of extreme temperatures, water scarcity, and soil limitations. Other than that, the Middle East and Africa have been adopting cutting-edge technologies such as automated systems, LED lighting, and hydroponics to enhance both efficiency and production levels. As per Reports and Insights, the MEA vertical farming market was valued more than 1200 million in the year 2022.

Leading Vertical Farming Solution Providers & Competitive Landscape:

The vertical farming market is highly competitive, with several key players vying for market share and actively engaging in strategic initiatives. These companies focus on product innovation, technological advancements, and expanding their product portfolios to gain a competitive edge. These companies are continuously investing in research and development activities to enhance their product offerings and cater to the evolving needs of customers in terms of efficiency, performance, and sustainability.

Company List

  • AeroFarms
  • Illumitex, Inc.
  • American Hydroponics
  • Agrilution GmbH
  • Brightfarms Inc.
  • Everlight Electronics Co., Ltd.
  • Freight Farms
  • GrowUp Urban Farms Ltd.
  • Green Sense Farms, LLC
  • Vertical Farm Systems

Recent Development

  • In March 2023, UP Vertical Farms has inaugurated its first vertical farming facility in Pitt Meadows, British Columbia.

Research Scope

Report Metric

Report Details

Market size available for the years  


Base Year


Forecast Period     


Compound Annual Growth Rate (CAGR)


Segment covered

Structure, growth mechanism, component and regions.

Regions Covered

North America: The U.S. Canada

Latin America: Brazil, Mexico, Argentina, Rest of Latin America

Asia Pacific: China, India, Japan, Australia New Zealand, ASEAN, & Rest of Asia Pacific

Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, Rest of Europe

The Middle East & Africa: Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA

Fastest Growing Country in Europe


Largest Market in Asia Pacific


Key Players

AeroFarms, Illumitex, Inc., American Hydroponics, Agrilution GmbH, Brightfarms Inc., Everlight Electronics Co., Ltd., Freight Farms, GrowUp Urban Farms Ltd., Green Sense Farms, LLC and Vertical Farm Systems.

Vertical Farming Market Segmentation

By Structure

  • Building-Based Structure
  • Container-Based Structure

By Growth Mechanism

  • Hydroponics
  • Aeroponics
  • Aquaponics

By Component

  • Irrigation Component
  • Lighting
  • Sensor
  • Climate Control
  • Building Materials
  • Others

By Region

North America

  • United States
  • Canada


  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • Poland
  • Benelux
  • Nordic
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Mexico
  • Argentina
  • Rest of LATM

Middle East & Africa

  • Saudi Arabia
  • South Africa
  • United Arab Emirates
  • Israel
  • Rest of MEA

Frequently Asked Question

What are some key factors driving revenue growth of the vertical farming market?

Some key factors driving market revenue growth include crop diversification, technological advancements and sustainable packaging.

What are some major challenges faced by companies in the vertical farming market?

Companies face challenges such as high initial costs, and energy costs.

How is the competitive landscape in the global vertical farming market?

The market is competitive, with key players focusing on technological advancements, product innovation, and strategic partnerships. Factors such as product quality, reliability, after-sales services, and customization capabilities play a significant role in determining competitiveness.

What are the potential opportunities for companies in the vertical farming Market?

Companies can leverage opportunities such as crop expansion and government support.

How is the vertical farming Market segmented?

The market is segmented based on factors such as structure, growth mechanism, component and regions.

Please Fill Your Details

Your personal details will remain secure and confidential. Privacy Policy