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. This remarkable growth is driven by the increasing need for sustainable agricultural practices within urban environments, coupled with rapid advancements in technologies such as the Internet of Things (IoT), artificial intelligence (AI), and hydroponics. Additionally, the global decline in arable land availability, the growing impact of climate change, and rising urban population density are major factors contributing to the expansion of the vertical farming market.

Rapid urbanization has significantly reduced the amount of land suitable for traditional agriculture, creating a pressing need for innovative farming approaches. Vertical farming provides a viable solution by enabling crop cultivation within urban settings using vertical spaces such as warehouses, high-rise buildings, and rooftops. This method not only maximizes spatial efficiency but also reduces the dependence on fertile agricultural land, making it particularly valuable in densely populated regions where conventional farming practices are increasingly impractical.

Conventional farming methods are highly dependent on weather conditions, making crop yields unpredictable and often inefficient. Vertical farming addresses these challenges by creating controlled environments where temperature, light, and humidity can be precisely regulated, ensuring consistent production throughout the year. Moreover, vertical farming systems incorporate sustainable practices such as reduced water usage through hydroponics or aeroponics, and the elimination of chemical pesticides, thereby supporting global environmental and sustainability objectives.

Key Market Trends & Insights

• North America dominated the global vertical farming market, accounting for the largest revenue share of 33.6% in 2024. The region’s leadership is primarily driven by advanced technological adoption, strong investments in agricultural innovation, and a growing emphasis on sustainable food production. Moreover, increasing consumer demand for locally grown, pesticide-free produce is further stimulating market growth in the region.
• The vertical farming industry in the U.S. is expected to experience significant growth during the forecast period due to supportive government policies promoting sustainable agriculture, the adoption of advanced farming systems, and the rising demand for high-quality, fresh produce within urban populations.
• By component, hardware led the market and held the largest revenue share of 61.5% in 2024. This dominance is attributed to the extensive use of components such as lighting systems, climate control equipment, and sensors that are critical for maintaining optimal growing conditions in vertical farms.
• By growing mechanism, the hydroponics segment held the dominant position in the market and accounted for the largest revenue share in 2024. Hydroponic systems offer enhanced control over nutrient levels, greater water efficiency, and higher yields, making them the preferred choice for commercial vertical farming operations.
• By structure, the building-based segment is expected to grow at the fastest CAGR from 2025 to 2033. This growth is driven by the increasing use of urban infrastructure, such as abandoned buildings and warehouses, for vertical farming, thereby supporting urban food supply chains while reducing transportation costs and emissions.

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Market Size & Forecast

• 2024 Market Size: USD 8.15 Billion
• 2033 Projected Market Size: USD 49.25 Billion
• CAGR (2025-2033): 22.6%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share 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.

Key Players

• 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

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Conclusion

In conclusion, the global vertical farming market is set for exceptional growth, driven by technological innovation, rising urbanization, and the urgent need for sustainable food production systems. The combination of AI, IoT, and hydroponic technologies is revolutionizing the way crops are cultivated in urban environments, ensuring high efficiency and year-round productivity. North America continues to lead in adoption, while emerging economies are catching up with investments in smart agriculture. As environmental challenges intensify and urban populations grow, vertical farming will play a crucial role in achieving food security, sustainability, and resilience in the global agricultural landscape by 2033.