Vertical Farming Market Size to Reach USD 16.88 Billion by 2030 | Driven by Urban Food Demand and Advanced Growing Methods

Introduction: Growth of Vertical Farming Market

The global vertical farming market is set to expand significantly, with market value projected to rise from USD 6.70 billion in 2025 to USD 16.88 billion by 2030, reflecting a CAGR of 20.3%. This growth is fueled by rising urbanization, limited availability of arable land, and increasing investments in controlled-environment agriculture. Vertical farms allow year-round production of fresh produce using stacked layers in controlled environments, utilizing techniques such as hydroponics, aeroponics, and aquaponics. These farms provide a reliable source of food while minimizing land and water use, offering an effective solution for feeding urban populations.

With cities worldwide facing challenges in food logistics, the vertical farming market is becoming essential for reducing supply chain distances and ensuring faster delivery of fresh crops. The adoption of energy-efficient LED lighting, automated nutrient systems, and advanced climate control contributes to the commercial viability of this agricultural method.

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Key Trends in the Vertical Farming Market

Urbanization and Local Food Demand

The increase in urban population, projected to reach 70% by 2050, has heightened the demand for locally grown produce. Vertical farms reduce the time from harvest to retail, often delivering crops within 48 hours, which ensures freshness and reduces spoilage. Singapore's "30 by 30" initiative highlights national efforts to rely on local vertical farming for a substantial portion of its food needs, including leafy greens and herbs.

Cost Reduction through LED Lighting and Automation

Lighting is the largest controllable cost in vertical farms. Trials by research institutions have shown significant energy reductions using spectrum-tuned LEDs and AI scheduling. Automation in nutrient delivery, climate control, and crop monitoring streamlines operations, lowers labor costs, and increases overall productivity. Companies like 80 Acres Farms and Eden Green are leveraging digital tools and robotics to standardize processes and improve crop yields.

Climate-Resilient Production

Vertical farms offer protection against weather extremes, such as heatwaves, droughts, or floods, which can affect traditional agriculture. In regions like the Middle East, large-scale indoor farms, supported by government funding, produce millions of pounds of leafy greens annually. Such controlled environments not only secure consistent output but also allow cultivation of high-protein crops with predictable yields.

Government Support and Agri-Tech Investment

Public grants and incentives play a key role in market expansion. In 2025, the USDA allocated USD 14.4 million for urban agriculture, including vertical farming initiatives. Programs in the UK and U.S. states like Maine demonstrate the use of blended finance, supporting the growth of innovative facilities. This public-private support encourages the adoption of new technologies and infrastructure in vertical farming.

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Vertical Farming Market Segmentation

By Growth Mechanism

- Hydroponics
- Aeroponics
- Aquaponics

By Structure

- Building-Based Vertical Farms
- Others

By Components

- Lighting
- Sensors
- Climate Control
- Others

By Crop

- Tomato
- Berries
- Pepper
- Cucumber
- Others

By Geography

- North America
- South America
- Asia-Pacific
- Europe
- Others

Key Players in the Vertical Farming Market

The vertical farming market remains fragmented, with the top five players controlling just over 20% of total revenue in 2024. Industry leaders include:

- Emirates Bustanica - Large-scale indoor farms in the UAE focusing on leafy greens.
- Badia Farms - Middle Eastern operator leveraging aquaponic systems.
- Local Bounti Corporation - North American vertical farm operator targeting supermarkets.
- Mowreq Specialized Agriculture Company - Specializes in container-based urban farming units.
- Eden Green Technology - Implements advanced LED lighting and AI-controlled nutrient delivery.

These companies are combining technology, agronomy services, and operational expertise to meet the increasing demand for urban-grown crops. Collaborative initiatives, such as partnerships with retailers or automation providers, help players optimize operations and expand market reach.

Conclusion: Outlook for the Vertical Farming Market

The vertical farming market is on a steady growth path due to urbanization, climate uncertainty, and the need for sustainable food systems. Rising adoption of hydroponics and aeroponics, coupled with energy-efficient LED lighting and automated systems, supports year-round production while lowering resource consumption. Regions like North America maintain a dominant share, while the Middle East shows rapid growth due to government-backed projects and arid climate adaptation.

Despite challenges such as high energy costs and technical skill gaps, vertical farming offers a scalable solution for local food production. With increasing investment, technological adoption, and supportive policies, the vertical farming market is expected to surpass USD 16.88 billion by 2030, providing fresh, reliable, and high-quality produce to urban populations worldwide.

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