Press release
Vertical Farming Market to Grow at 24.6% CAGR by 2031 Driven by AI and Sustainability
Vertical Farming Market
AI and Generative AI (GenAI) integration are accelerating the transformation of vertical farming by enhancing efficiency and automating operations. These technologies assist in precision agriculture, environmental control, and predictive crop optimization, making farming both more profitable and ecologically sound.
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Market Dynamics
Driver: Year-Round Crop Production
Vertical farming enables continuous, weather-independent cultivation. Regardless of seasonal or climatic disruptions, it provides consistent yields while maintaining produce quality and flavor. Controlled environments allow growers to optimize harvest cycles, achieve predictability in production schedules, and meet growing market demands.
Climate change-induced volatility further reinforces the appeal of vertical farming as a resilient substitute for traditional agriculture. Around 4% of global crop and livestock production is lost annually due to natural disasters, highlighting the need for secure farming alternatives. Furthermore, vertical farms operate efficiently in urban spaces, reducing dependence on imports and improving local food access.
Opportunity: Reducing Agriculture's Environmental Footprint
Vertical farming presents a sustainable solution to agriculture's intensive environmental impact. It consumes up to 95-99% less water than traditional methods and eliminates the use of pesticides and chemical fertilizers by operating in controlled, pest-free environments.
For example, while conventional field farming requires 60-200 liters of water to grow one kilogram of tomatoes, vertical farms achieve the same yield using just 2-4 liters. By utilizing renewable energy, aquaponic systems, and circular nutrient cycles, vertical farms also reduce carbon emissions and enhance water conservation.
These advancements support global sustainability goals as irrigation currently accounts for 70-80% of global freshwater use, while over 2 billion people face water scarcity. Sustainable vertical farming practices thus offer a promising approach to securing food production while minimizing ecological impact.
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AI and GenAI Revolutionizing the Market
AI and GenAI are playing transformative roles across all vertical farming functions:
Precision Agriculture: AI processes vast sensor data to optimize yields while minimizing resource inputs.
Crop Optimization: GenAI simulations provide optimal layout plans, identifying ideal crops, price points, and transport routes.
Image Analysis: Advanced algorithms detect early-stage plant diseases, pest invasions, and nutrient deficiencies.
Automation and Robotics: AI enhances the efficiency of robotic harvesting, climate control, and nutrient delivery systems.
Environmental Regulation: AI-driven systems control lighting, humidity, and temperature in real-time, boosting efficiency and sustainability.
As urban centers strive for food self-sufficiency, AI-powered vertical farming is emerging as a cornerstone of next-generation food production strategies.
Regional Insights
North America: Sustained Growth through Technological Innovation
North America's vertical farming market is expanding rapidly, growing at a projected 21.2% CAGR from 2025 to 2030. Technological advancement in hydroponics and aeroponics is central to this growth. Soil-less farming methods supported by nutrient-rich water or mist-based systems maximize yield potential while conserving resources.
These practices align with sustainability initiatives across urbanized regions, allowing cities to produce high-value crops closer to consumers. The region's advanced infrastructure and rising renewable energy adoption are further enhancing profitability in vertical farming.
U.S. Market Overview
The U.S. market is expected to grow at a 19.5% CAGR between 2025 and 2030, mainly driven by the integration of renewable energy sources. As solar and wind technologies become more economical, vertical farms are increasingly powered by clean energy, reducing operational costs and carbon footprints. This synergy between renewable energy and indoor farming is paving the way for scalable, climate-resilient agriculture in urban spaces.
Europe: Sustainability-Powered Expansion
Europe accounted for over 31% of the global market in 2024, with steady growth expected through 2031. The region's focus on sustainable agricultural practices and food security is driving widespread vertical farming adoption.
European initiatives such as the EU Green Deal and Farm to Fork Strategy are promoting low-impact agriculture, water conservation, and urban food production. With constrained arable land and population growth increasing demand for local food, vertical farms provide reliable, productive solutions.
United Kingdom
The UK vertical farming market is estimated to grow at a 17.9% CAGR from 2025 to 2030. Post-Brexit agricultural reforms, climate concerns, and food supply uncertainties are increasing interest in controlled-environment agriculture. Urban vertical farms are enabling year-round, locally produced fresh food, reducing dependency on imported produce.
Germany
Germany's market is forecast to grow at a 22.9% CAGR between 2025 and 2030, powered by the nation's engineering and automation expertise. German firms are pioneering innovations in climate control systems, robotics, and AI-based farm automation, enhancing operational efficiency. Government-backed agri-tech research and public-private collaborations further strengthen this momentum.
Asia-Pacific: Highest Growth Potential
Asia-Pacific's vertical farming market is projected to expand at a 22.5% CAGR from 2025 to 2030. The region's rising demand for fresh, pesticide-free produce, combined with rapid urbanization, is driving large-scale investment in agri-tech infrastructure.
China
China's vertical farming sector is forecast to grow at a 24.0% CAGR. Technological integration of AI, IoT, and robotics has led to highly automated smart-farming ecosystems. These systems enhance precision in crop management and address challenges such as labor shortages and urban land constraints.
India
India's market is anticipated to grow at a 23.0% CAGR through 2030, fueled by the urban farming movement. Expanding populations, coupled with limited agricultural land, have prompted increased adoption of rooftop and community-based vertical farms. Government support for urban agriculture and water conservation programs further promotes this shift toward sustainable food systems.
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Competitive Landscape
The vertical farming market is witnessing strong venture capital interest and rapid startup expansion as investors focus on sustainable food production solutions. Companies are leveraging AI integration, modular farming technologies, and renewable energy solutions to create highly productive, low-input farms.
Key market players include:
AeroFarms LLC
Plenty Unlimited Inc.
Green Spirit Farms LLC
Bowery Farming Inc.
These companies lead innovation across crop production technologies, sustainability frameworks, and automated vertical farming systems, setting new benchmarks for scalability and efficiency in urban agriculture.
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Email: Sai.k@datamintelligence.com
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About Us
DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.
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