Leading Element Driving Change in the Urban Farming Market in 2025: Urban Farming Thrives Amidst Declining Farmland Driver

What market dynamics are playing a key role in accelerating the growth of the urban farming market?
The impending scarcity of agricultural land is predicted to hasten the expansion of the urban farming market in the years ahead. Agricultural land is designated as territory used for farming or apt for such practices, which includes land that can be worked on to sow, cultivate, and harvest crops, along with meadows or rural spaces used for livestock grazing. Urban farming innovatively confronts the obstacle of dwindling agricultural land in urban locations by optimizing land use, fostering sustainability, and ensuring that residents have access to fresh vegetables and fruits, thus reducing the pressures of urban growth on conventional farming. For example, in December 2023, as per the GOV.UK, a government organization based in the UK, the entire agricultural area utilized in the UK dropped by 2.3%, amounting to just above 17.0 million hectares in 2023. As a result, the diminishing availability of agricultural space is fueling the urban farming market.

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How will the growth rate of the urban farming market shape industry trends by 2034?
The increase in the market size of urban farming in the last few years has been remarkable. A robust growth from $159.92 billion in 2024 to $174.23 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 8.9%, is anticipated. This growth during the historical period can be ascribed to factors such as a rise in population and urbanization, climate change and environmental issues, movements favoring locally-grown food, supportive government policies, and a heightened awareness about health and nutrition.

The market size of urban farming is predicted to experience robust expansion in the forthcoming years, reaching an estimated value of $233.61 billion in 2029, with a compound annual growth rate (CAGR) of 7.6%. The predicted growth in this period is due to factors like post-industrialization, unused spaces, the community gardens initiative, the green revolution, critical evaluation of industrial agriculture, ancient rooftop farming practices, the city beautiful movement, and urban development plans. Looking ahead, crucial trends for the forecast period are the integration of technology and automation, the application of circular economy methods, the introduction of hybrid farming practices, corporate and institutional collaborations, as well as the use of aquaponics and integrated farming systems.

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What trends are poised to drive the future success of the urban farming market?
Companies that play a significant role in the urban farming industry are concentrating their efforts on creating technology-driven solutions, such as intelligent vertical farming alongside AgriTech organizations, to tackle pressing industry requirements. An intelligent vertical farm under the guiding hand of an AgriTech firm can boost food security by increasing the yield of crops in urban areas, optimising the use of resources, taking advantage of IoT for monitoring and offering fresh produce locally throughout the year. For example, in February 2024, Masdar City, a prominent renewable energy enterprise based in the UAE, unveiled a smart vertical farm through a strategic partnership with the Agri-Tech company, Madar Farms. This move aims to boost food security in the UAE and is part of a larger scheme to encourage self-reliance in food production by utilizing novel farming technologies suited to the UAE's desert-like climate. The intelligent vertical farm is devised to cultivate leafy greens and other varieties of produce while using substantially less water compared to conventional farming practices. This tactic helps to address the dual issues of food and water security in the area. This initiative is in perfect consonance with the objectives of the UAE's National Food Security Strategy, which advocates for eco-friendly agricultural practices and domestic food production to decrease dependency on imports. This project demonstrates Masdar's continued dedication towards sustainability and innovation in urban living.

Which primary segments of the urban farming market are driving growth and industry transformations?
The urban farming market covered in this report is segmented -

1) By Type: Aquaponics, Hydroponics, Aeroponics, Other Types
2) By Structure: Indoor, Outdoor
3) By Crop Type: Non-Food Crops, Food Crops
4) By Application: Commercial, Agriculture, Other Applications

Subsegments
1) By Aquaponics: Recirculating Aquaponics Systems, Media-based Aquaponics Systems
2) By Hydroponics: Nutrient Film Technique (NFT), Deep Water Culture (DWC), Ebb And Flow Systems, Wick Systems
3) By Aeroponics: High-Pressure Aeroponic Systems, Low-Pressure Aeroponic Systems
4) By Other Types: Vertical Farming, Rooftop Farming, Container Farming

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North America was the largest region in the urban farming market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the urban farming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the urban farming market landscape?
Major companies operating in the urban farming market report are Infarm, Richel Group, UrbanFarmers AG, Plenty Unlimited Inc., Bowery Farming, Dalsem, Certhon, Aerofarms, Pasona, Plantagon International AB, Agrilution GmbH, BrightFarms Inc., Square Roots Urban Growers Inc., Brooklyn Grange Farm, Green Spirit Farm, Urban Crop Solutions, American Hydroponics, Sky Greens, GrowUP Urban Farms, Edenworks Inc., Garden Fresh Farms Inc., Metropolitan Farms, General Hydroponics, Green Sense Farms LLC, Eden Green Technology, Gotham Greens, Mirai Co. Ltd., SproutsIO Inc., Spread Co. Ltd., Harnois Greenhouses

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What Is Covered In The Urban Farming Global Market Report?

•Market Size Forecast: Examine the urban farming market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the urban farming market for a structured understanding.
•Key Players Overview: Analyze major players in the urban farming market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the urban farming market.
•Segment Contributions: Evaluate how different segments drive overall growth in the urban farming market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the urban farming market.
•Industry Challenges: Identify potential risks and obstacles affecting the urban farming market.
•Competitive Landscape: Review strategic developments in the urban farming market, including expansions, agreements, and new product launches.

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