U.S. Vertical Farming Market to Surpass USD 2.45 Billion by 2030, Driven by Urbanization and Sustainable Agriculture Innovation

The U.S. vertical farming market, valued at USD 735.6 million in 2023, is projected to reach USD 2.45 billion by 2030, growing at a robust CAGR of 19.1%, according to DataM Intelligence. The market's expansion is propelled by rising urbanization, reduction in arable land, and growing demand for sustainable and locally produced food. Vertical farming allows crops to be cultivated in controlled indoor environments that utilize advanced lighting, hydroponic systems, and automation-generating high yields year-round independent of climatic conditions.

In recent years, increasing consumer demand for fresh, chemical-free, and organic produce has accelerated the adoption of vertical farming across the U.S. The practice is gaining traction in urban centers where space is limited, offering efficient food production closer to end consumers. Moreover, the technology's ability to use 90% less water than traditional agriculture and eliminate harmful pesticides positions vertical farming as a key solution for climate-resilient food systems.

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Key Highlights from the Report

➤ U.S. vertical farming market to grow from USD 857.8 million in 2024 to USD 2.45 billion by 2030 at a 19.1% CAGR.
➤ Hardware components lead with 63.22% share, led by advanced lighting and climate-control systems.
➤ Hydroponics dominates with a 55.56% share due to low cost, reduced water use, and high crop yields.
➤ Container-based structures account for 51.09% share in 2023, favored for modular, scalable installations.
➤ Fruits, vegetables, and herbs lead crop category, with tomatoes commanding nearly 25% of market revenue.
➤ Technological innovation and mergers across emerging startups are accelerating market consolidation.

Market Segmentation
By component, the hardware segment dominated the market with 63.22% share in 2023, encompassing lighting, hydroponic components, and environmental control systems. The lighting sub-segment, accounting for nearly 39% of total revenue, is crucial for replicating natural sunlight and enabling crop growth indoors. Software is anticipated to record the fastest CAGR of 21% through 2030, with AI- and IoT-enabled systems optimizing yield and monitoring growing conditions in real-time.

By growing mechanism, hydroponics remained the leading segment with 55.56% share due to water efficiency, affordability, and suitability for a wide range of produce. Aquaponics is emerging as a sustainable alternative, integrating aquaculture with plant cultivation to reduce water waste and reliance on synthetic nutrients.

By structure, container-based vertical farms captured a commanding 51.09% share, enabling mobile, compact installations that maximize land efficiency. Building-based vertical farms are projected to grow fastest, spurred by the rise of urban agriculture initiatives in commercial and residential spaces.

By crop category, fruits, vegetables, and herbs represented the largest revenue segment in 2023, driven by high consumption and profitability. Tomatoes, lettuce, leafy greens, and herbs dominate vertical farming yields across retail and foodservice channels. Meanwhile, flowers and ornamentals are poised for significant expansion, boosted by the popularity of edible flowers in culinary applications.

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Regional Insights
The United States holds approximately 10.6% of the global vertical farming market, with rapid adoption in metropolitan areas such as New York, Chicago, Los Angeles, and Seattle. Demand is particularly strong in Northeast and West Coast regions, where high population density and limited farmland stimulate innovation in urban agriculture. States like California and New York are incentivizing sustainable farming practices through funding programs and research collaborations. The presence of pioneering companies such as AeroFarms, Bowery Farming, and Freight Farms continues to elevate the U.S. position as a hub for controlled-environment agriculture.

Market Dynamics
Market Drivers
The market is driven by rising urbanization, loss of arable land, and consumer preference for sustainable, high-quality produce. Vertical farming ensures year-round cultivation with minimal environmental impact, utilizing controlled environments to boost yields and reduce resource waste.

Market Restraints
High initial investment remains a key barrier, driven by the costs of warehouses, automated systems, lighting installations, and irrigation technologies. Maintenance and energy consumption present additional operational challenges.

Market Opportunities
Emerging technologies such as cloud-based farm management tools, robotics, and AI-driven nutrient optimization offer lucrative opportunities. Collaborations between startups and food retailers, along with government sustainability incentives, are expected to accelerate expansion across urban regions.

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Reasons to Buy the Report
✔ Comprehensive analysis of market growth drivers, restraints, and opportunities through 2030.
✔ In-depth segmentation of the U.S. market by crop type, structure, component, and mechanism.
✔ Insight into technological advancements shaping the future of urban agriculture.
✔ Competitive landscape highlighting major innovators and emerging startups.
✔ Evaluation of policy support and sustainability investments driving the U.S. agri-tech ecosystem.

Frequently Asked Questions (FAQs)
◆ How large is the U.S. vertical farming market in 2024 and what is its projected value by 2030?
◆ Which farming mechanism dominates the U.S. vertical farming market?
◆ Who are the leading players shaping innovation in the U.S. vertical farming industry?
◆ What are the major factors driving the demand for hydroponic farming?
◆ Which crop categories represent the largest share of vertical farming revenues?

Company Insights
AmHydro

AeroFarms

BrightFarms

Freight Farms, Inc.

Bowery Farming Inc.

Green Sense Farms Holdings, Inc.

Gotham Greens

Plenty Unlimited Inc.

General Hydroponics

Hydrodynamics International

Recent Developments:

February 2024: Local Bounti Corporation received a U.S. patent for its proprietary Stack & Flow Technology, combining vertical and greenhouse farming for enhanced efficiency and yield.

November 2023: JR Automation partnered with Forever Feed Technologies to design automated feed production systems using low-water, controlled-environment technologies to support dairy and cattle operations.

Conclusion
The U.S. vertical farming market is entering a high-growth phase, driven by technological innovation and growing awareness of food sustainability amid shrinking arable land. With hydroponics and container-based structures leading adoption, vertical farming is becoming the cornerstone of urban agriculture. Companies like AeroFarms, Bowery Farming, and BrightFarms are demonstrating scalability through energy-smart systems and AI integration. Supported by government incentives and shifting consumer preferences toward organic, locally grown foods, the sector is poised to transform the U.S. agricultural landscape-achieving a projected market value of USD 2.45 billion by 2030.

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This release was published on openPR.