European Vertical Farming Market Outlook 2025-2035 Key Developments & Future Scope

[City], [Date] - The European vertical farming market is entering a compelling growth phase over 2025-2035. Fueled by increasing urbanization, demand for sustainable, locally produced food, and rapid advances in controlled-environment agriculture (CEA), stakeholders across agriculture, real estate, and technology are positioning themselves to benefit from what is expected to become a major pillar of Europe's food production ecosystem.

Market Size & Growth Trajectory
Current market intelligence indicates that Europe's vertical farming market is already substantial, and is forecast to expand at a compound annual growth rate (CAGR) of approximately 20-22% through the next decade. By 2033 (a near-term benchmark), projected revenue is estimated to reach USD 7.4 billion, up from roughly USD 1.5 billion in the mid-2020s. This growth trajectory is underpinned by strong underlying demand and favorable economics for high-efficiency urban farming. (Grand View Research)

Complementary global data suggests that the broader vertical farming market - including Europe as a key region - could grow from around USD 9.7 billion in 2025 to USD 74.4 billion by 2035, reflecting a global CAGR of 22.6%.

To access the complete data tables and in-depth insights, request a Discount On The Report here: https://www.factmr.com/connectus/sample?flag=S&rep_id=11603

Key Market Drivers

1. Urbanization & Food Security
Rapid urban growth across Europe is intensifying pressure on food supply chains. Vertical farming enables year-round, localized production of high-demand crops like leafy greens and herbs in or near cities, reducing reliance on distant farmland. This model also supports food security by making production geographically closer to consumers, mitigating risks associated with transport and climate disruption.

2. Resource Efficiency
Vertical farming delivers major resource savings: compared to traditional agriculture, it significantly reduces water use, land footprint, and pesticide dependency. Controlled-environment systems enable precision control over irrigation, nutrients, and climate, improving yield per square meter. These resource efficiencies are especially attractive in Europe, where land is scarce and regulatory costs are high.

3. Technology & Automation Innovation
Investments in hardware (LED lighting, climate control systems, sensors) will continue to dominate vertical farm capex. Automation via AI, IoT, and predictive analytics is becoming mainstream: farms are increasingly adopting real-time monitoring of light, CO2, humidity, and nutrient flow to optimize growth and reduce operational costs. By 2035, modular farms and AI-driven systems will likely represent a large share of new installations.

4. Growing Private & Institutional Investment
Financial backing for vertical farming is accelerating across Europe. Investors are drawn by the long-term potential of high-margin, scalable systems that align with ESG (environment, social, governance) principles. Corporate buyers, including supermarkets and food service companies, are also directly investing in "farm-as-a-service" models to secure local, fresh produce.

5. Regulatory Tailwinds & Sustainability Initiatives
European policy frameworks favor low-carbon and resource-efficient food production. Incentives for green technologies, tightened environmental regulations, and growing public demand for pesticide-free produce boost vertical farming's attractiveness. The drive toward circular agriculture - including energy-efficient lighting and reuse of water - gives vertical farms a clear competitive edge.

Browse Full Report https://www.factmr.com/report/vertical-farming-market

Challenges & Risks

High CapEx: Initial investments remain steep, especially for large-scale vertical farms with hardware, climate control, and lighting systems.

Energy Costs: High electricity demand for artificial lighting and climate control can pressure profitability, particularly in regions with high energy prices.

Crop Diversity Limitations: At present, vertical farms are most efficient with high-value, fast-growing crops like herbs and leafy greens. Scaling to staple crops remains technically and economically challenging.

Integration Complexity: Setting up vertical farms in urban or industrial zones often involves regulatory, zoning, and real-estate challenges.

Skill Gap: Operators need expertise in agronomy, data science, automation, and systems integration - a mix of skills that is still relatively niche.

Strategic Opportunities
Modular & Container Farming
Deploying container-based or modular vertical farms allows for scalable, lower-risk entry into urban agriculture. These units can be placed in underused real estate (warehouses, rooftops), enabling rapid deployment and flexibility.

AI & Smart Farming Systems
Firms that develop predictive growth models, closed-loop control, and real-time monitoring tools will drive cost optimization and efficiency, making vertical farming more commercially viable.

Partnerships with Retail & Food Service
Vertical farms partnering with grocery chains and restaurants can secure long-term demand contracts, reducing risk and enabling premium pricing for hyper-local, fresh produce.

Sustainable Infrastructure Integration
Linking vertical farms with renewable energy (solar, waste heat) and water recycling systems can lower operating costs and accelerate ESG positioning - appealing to both consumers and institutional investors.

Expansion into New Crop Types
R&D into high-margin specialty crops - such as medicinal plants, microgreens, and culinary herbs - offers a way to deepen revenue per square meter and improve economic resilience.

Outlook & Conclusion
Between 2025 and 2035, the European vertical farming market is poised to scale rapidly, anchored by urbanization, efficiency benefits, and strong technical innovation. The anticipated 20-22% CAGR over this decade suggests that vertical farming will transition from a niche, high-tech curiosity to a mainstream pillar of Europe's food production infrastructure.

Companies that can deliver modular, technology-rich, and energy-efficient vertical farming solutions - especially those aligned with sustainability goals and municipal partners - will be best placed to capture value. As capital flows into the space and policy tailwinds strengthen, vertical farming is set to drive a meaningful shift in how Europe grows, distributes, and consumes fresh produce.

Purchase Full Report for Detailed Insights

For access to full forecasts, regional breakouts, company share analysis, and emerging trend assessments, you can purchase the complete report here: https://www.factmr.com/checkout/11603

Have a specific Requirements and Need Assistant on Report Pricing or Limited Budget please contact us - sales@factmr.com

To View Related Report :

Palm Oil Demand Analysis in the USA https://www.factmr.com/report/united-states-palm-oil-demand-analysis

USA Kenaf Seed Oil Industry Analysis https://www.factmr.com/report/usa-kenaf-seed-oil-industry-analysis

Veterinary Dietary Supplements Market https://www.factmr.com/report/veterinary-dietary-supplements-market

Corn Oil Industry Analysis in the UK https://www.factmr.com/report/united-kingdom-corn-oil-industry-analysis

- Contact Us -
11140 Rockville Pike, Suite 400, Rockville,
MD 20852, United States
Tel: +1 (628) 251-1583 | sales@factmr.com

About Fact.MR
Fact.MR is a global market research and consulting firm, trusted by Fortune 500 companies and emerging businesses for reliable insights and strategic intelligence. With a presence across the U.S., UK, India, and Dubai, we deliver data-driven research and tailored consulting solutions across 30+ industries and 1,000+ markets. Backed by deep expertise and advanced analytics, Fact.MR helps organizations uncover opportunities, reduce risks, and make informed decisions for sustainable growth.

This release was published on openPR.