Vertical Farming Market

Vertical Farming Market Size, Share & Trends Analysis Report By Offering, By Growing Mechanism, By Fruits, Vegetables & Herbs, By Structure (Shipping Container, Building-based), By Region, And Segment Forecasts, 2023 - 2031

Agriculture | December 2022 | Report ID: EMR007 | Pages: 262

The global vertical farming market size was estimated at USD 5.95 billion in 2022 and is expected to reach USD 30.15 billion in 2031. An old warehouse, a skyscraper, or a shipping container are just a few examples of places where vertical farming is practiced. Organic foods are thought to be more wholesome, safe, and environmentally friendly than conventional foods. Consumer food purchasing habits are a significant element influencing the demand for organic food, and producers, governments, and suppliers must take this into account to successfully implement marketing tactics.Consumer health issues including obesity and heart disease are very common. Traditional growers are being compelled to use alternative farming techniques by the growing groundwater shortage and changing climate circumstances. Along with the previously listed issues, rising customer concerns about their health are projected to boost industry demand.

Market Growth

The preference of customers for organic products, a decline in the amount of arable land, and an increase in the demand for high-quality land are the main drivers of the worldwide vertical farming market. The forecasted rise of the worldwide vertical farming market would be further fueled by the increased crop production brought on by the rising population, consumers' growing health concerns, and rising urbanization. The use of much less water decreased exposure to pesticides and diseases, and the ability to produce more with less land under cultivation and immunity to weather are just a few of the amazing advantages that vertical farming offers. The sum of these elements is causing a global increase in demand for vertical farming. Some of the key drivers behind market expansion are rising urbanization, autonomous agriculture methods, and rising food quality demand. The need for food has increased as a result of these circumstances. With an increasing population, the need for food is anticipated to increase significantly by 2030. With the use of the vertical farming technique, consumers can now cultivate their own produce in a warehouse or multi-story structure.

Market Dynamics

Market Drivers

Some of the most important and significant factors that will probably contribute to the growth of the vertical farming market include the increasing adoption of federal agricultural policy programmes in emerging economies, rising levels of food consumption worldwide along with a growing population, an increase in trade activities like exporting grains and oilseeds, and the introduction of new and highly sophisticated technology. The growth of vertical farming, where organic farming is widely practiced, has been facilitated by the rise in consumer demand for organic products, which has been propelled by an improved standard of living and greater disposable income. Future growth in crop production needs as a result of rising consumer demand for healthy products is anticipated to fuel the market for vertical farming. High-capital-outlay technologies, like sophisticated hydroponic systems and electronic traceability systems, are being adopted by many commercial producers.

Market Restraints

In the aforementioned anticipated projection period, the market for vertical farming will likely be constrained by a lack of technical expertise, a lack of experienced labor, and a growing demand for large capital investments. The biggest and most urgent obstacles to market expansion will be the marketing and distribution of new items as well as rising workloads.

Market Opportunities

The popularity of organic food products is rising as people's awareness of their health increases. Farmers all around the nation are switching to organic farming, as a result, improving the outlook for the market. A variety of projects are also being launched by the government to strengthen the nation's current agricultural infrastructure. In order to boost exports, it is also giving farmers financial aid for selling and shipping agricultural products. It's anticipated that these activities would have a big impact. By 2050, there will be an even greater demand for food to feed the world's growing population, which has sparked the market for vertical farming to expand. To bring innovations and technological advancements to this particular industry, money is being invested in the market.

Report Attribute


Projected Market Value (2031)

30.15 Billion

Estimated Market Value (2022)

5.95 Billion

Base Year


Forecast Years

2023 - 2031

Segments Covered

Structure Outlook, Offering Outlook, Growing Mechanism Outlook, Fruits, Vegetables, & Herbs Outlook, By Regional Outlook

Forecast Units

Value (USD Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.


Competitive Landscape

  • Ag Leader Technology (US),
  • Monsanto Company (Mexico),
  • Deere & Company (US),
  • CropMetrics LLC (Netherlands),
  • Trimble Navigation Limited (Australia),
  • CropX (US),
  • AgSmarts Inc (India),
  • AgSense, LLC (India),
  • AGCO Corporation (Austria),
  • DICKEY-john (U.K.),
  • Farmers Edge (US),
  • GEOSYS (US),
  • Granular (US),
  • Gro Intelligence (US),
  • Proagrica (UK) (Belarus)

these are some of the main market players of the Vertical Farming Market.

Regional Analysis

In terms of geography, Asia-Pacific is anticipated to lead the market during the projected period due to customer preferences for organic foods and a quick rise in the urban population. Furthermore, the expansion of the vertical farming industry in this region is being fueled by the increase in agricultural production annually brought on by the expanding population and expanding use of new technology.

The forecast period is expected to see tremendous growth in Europe as a result of the increased use of genetically modified crops. Additionally, the regional market demand is increased by the growing use of nanotechnology and robots in agriculture. The usage of nanotechnology aids in enhancing disease and pest management as well as improving food packaging. In North America, the US market was dominant. Growing awareness of issues related to nutrition and food security is anticipated to create a number of fresh chances for the business to thrive. It is projected that the United States will contribute significantly to creating a favorable environment for future food production.

Report Description

Offering Insight

With over 52.0% of the market share in 2022, the lighting segment was the market leader. The significant market share of the lighting segment can be due to vertical farms' reliance on artificial lighting. The necessary light intensities for crop growth are provided by artificial lights. Climate control is a type of farming where plants are raised in greenhouses in a controlled environment. This type of farming enables a producer to manage and monitor the ideal levels of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth. By minimizing heat stress on the root zone and supplying uniform lighting, farming with the aid of lighting technology assures continuous plant growth. The adoption of LED lighting technology enables higher productivity with less power consumption by acting as a supplement to the sun's light source. Sensors allow for thorough monitoring of the crop condition and surrounding environment. Crop growth is observed using a variety of sensors, including nutrition sensors, humidity sensors, and light sensors.

Structure Insight

In 2022, the shipping container segment had a market share of approximately 53.20%, and it is anticipated that this position will hold during the forecast period. The ability of the structure to support crop development regardless of location is credited with this growth. One of the main advantages of container-based farming is that it doesn't require a huge plot of land or a dedicated structure to begin producing. Container farms are also portable. The shipping container market is expected to rise throughout the forecast period as a result of factors including expanding technical development and the rising adoption of precision farming. 

Growing Mechanism Insight

Due to the significant usage of the aeroponics growth mechanism in vertical farming and its capacity for extensive planting, which is not offered by the other growth mechanisms, the aeroponics segment is anticipated to develop at a higher CAGR over the projected period. This method's low susceptibility to pests and diseases and friendliness to the environment also contribute to the market growth of this niche. Over 65.0% of the market's revenue was accounted for by the hydroponics segment in 2022, and this dominance is anticipated to continue over the forecast period. Due to its inexpensive installation costs and simplicity of use, hydroponics is a widely used growth method.

Fruit, Vegetables, & Herbs Insight

In 2022, the tomato sector dominated the market and accounted for about 35.0% of worldwide sales. In comparison to other crops like lettuce, leafy greens, peppers, cucumbers, herbs, and so on, tomatoes have a higher average demand across all regions, which is what is responsible for their significant market share. Strawberries, lettuce, bell and chili peppers, tomato, cucumber, and leafy greens are a few of the vegetables, herbs, and fruits that are most frequently grown in different parts of the world. Similar to how certain vegetables, like lettuce and mint, develop quickly, others, like some fruiting crops, take longer to grow but can have better margins than many other plants, which is the length of time it takes for crops to mature.

Recent Development

  • Brazil will get "AGXTEND," a cutting-edge platform for digital agricultural solutions, in 2021 thanks to CNH Industrial. The organization offers the highest standards at every stage of the crop cycle for the benefit of all types and profiles of farmers. The customer pays for the services rendered rather than the equipment when using the monitoring and management solutions, which are based on soil diagnosis and drone photos.
  • In order to assist Mexican farmers in meeting the expanding worldwide need for digital solutions in a sustainable way, Bayer Crop Science and Prospera will work together in April 2020. The strategic alliance offers data insights and AI to greenhouse vegetable growers for better outcomes and sustainability.


Segmentations :

Structure Outlook

  • Shipping Container
  • Building-based

Offering Outlook 

  • Lighting
  • Hydroponic Components
  • Climate Control
  • Sensors

Growing Mechanism Outlook

  • Hydroponics
  • Aeroponics
  • Aquaponics

Fruits, Vegetables, & Herbs Outlook

  • Tomato
  • Lettuce
  • Bell & Chili Peppers
  • Strawberry
  • Cucumber
  • Leafy Greens (excluding lettuce)
  • Herbs
  • Others

By Regional Outlook

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle East and Africa



What are the market dynamics for vertical farming

The increasing adoption of environmentally friendly methods for producing fruits and vegetables is one of the major drivers fueling the growth of the vertical farming market. The demand for urban agriculture has also increased as a result of the enormous rise in world population.

What size is the market for vertical farming

The global vertical farming market size was estimated at USD 5.95 billion in 2022 and is expected to reach USD 30.15 billion in 2031.

What is the market growth for vertical farming

The global vertical farming market is expected to grow at a compound annual growth from 2023 to 2031 to reach USD 30.15 billion by 2031

Which industry held the biggest market share for vertical farming

 Asia-Pacific is anticipated to lead the market during the projected period due to customer preferences for organic foods and a quick rise in the urban population. 

Who are the major companies in the market for vertical farming

Ag Leader Technology (US), Monsanto Company (Mexico), Deere & Company (US), CropMetrics LLC (Netherlands), Trimble Navigation Limited (Australia).

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