Global Urban Farming Market to Reach US$311.24 Billion by 2032 | Vertical farms lead with 40% share, driven by high space utilization, year-round production, and adoption in urban areas |Datam Intlligence

Leander, Texas and TOKYO, Japan - Dec.2.2025
Market Size
Global Urban Farming Market reached US$172.62 billion in 2024 and is expected to reach US$311.24 billion by 2032, growing with a CAGR of 7.6% during the forecast period 2025-2032, according to DataM intelligence Report

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United States: Recent Industry Developments
✅ In November 2025, AeroFarms and Plenty launched vertical farming facilities using AI-enabled climate control systems, increasing crop yield and reducing water usage. This reinforces their leadership in U.S. urban agriculture innovation.

✅ In October 2025, Bowery Farming invested $40 million to expand urban indoor farms in major U.S. cities, incorporating automated harvesting and IoT-based monitoring systems. This strengthens Bowery's footprint in sustainable urban food production.

✅ In September 2025, urban grocery chains adopted locally grown produce from vertical farms to reduce supply chain dependency and enhance freshness. This boosts adoption of urban farming in the retail sector.

Global: Recent Industry Developments
✅ In November 2025, global urban farming companies implemented AI and IoT technologies for vertical farms, improving crop efficiency, sustainability, and yield predictability. This accelerates adoption of precision urban agriculture worldwide.

✅ In October 2025, Europe, North America, and Asia-Pacific saw significant investments in rooftop farms and indoor agriculture projects to reduce food miles and enhance food security. This strengthens global urban farming infrastructure.

✅ In September 2025, multinational collaborations focused on sustainable hydroponics and aeroponics solutions to optimize resource efficiency and reduce energy consumption. This promotes environmentally friendly urban farming globally.

Key Drivers
- The Urban Farming market is experiencing significant growth as cities increasingly focus on sustainable food production and reducing the environmental impact of traditional agriculture. Rising urban populations, limited arable land, and increasing demand for fresh, locally sourced produce are driving adoption of vertical farming, hydroponics, and rooftop farming solutions. Technological advancements in smart farming systems, IoT-enabled monitoring, and automated cultivation are enhancing productivity and resource efficiency. Additionally, growing awareness of food security, climate change mitigation, and healthier lifestyles is fueling investments in urban agriculture. Government support, favorable policies, and initiatives promoting green cities further contribute to the expansion of the urban farming market.

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Major Key Players
UrbanFarmers AG, Urban Crop Solutions, AeroFarms, Sky Greens, Koninklijke Philips N.V., Oishii, GrowUp Farms Ltd., Green Sense Farms Holdings, Inc., Gotham Greens and Freight Farms, Inc.

Segment Covered in the Market:
By Farm Type
- Vertical farms lead with 40% share, driven by high space utilization, year-round production, and adoption in urban areas.
- Rooftop farms hold 30%, preferred for residential and commercial buildings, supporting local food supply.
- Community & Backyard farms account for 20%, supported by urban gardening trends and sustainability initiatives.
- Other farm types capture 10%, including container farms and modular urban farms for specialized cultivation.

By Structure
- Greenhouse structures dominate with 45% share, offering controlled environments, optimized growth, and higher yields.
- Open-field farms hold 25%, widely adopted for low-cost urban agriculture in peri-urban areas.
- Indoor farms account for 20%, used for vertical farming, hydroponics, and high-tech plant factories.
- Other structures represent 10%, including modular or container-based setups for experimental or small-scale production.

By Growing Medium
- Soil-based cultivation leads with 35% share, driven by traditional farming familiarity and low initial investment.
- Hydroponics holds 30%, favored for water-efficient, high-yield, and nutrient-controlled farming.
- Aeroponics accounts for 20%, used in high-tech urban farms for faster growth and precision agriculture.
- Other media represent 15%, including aquaponics and coco peat, supporting sustainable and circular urban farming systems.

By Crop Type
- Leafy greens dominate with 40% share, supported by fast growth cycles, high demand, and suitability for urban farming.
- Fruits hold 25%, driven by vertical farms and greenhouse cultivation.
- Herbs account for 20%, widely grown in home, community, and commercial urban farms.
- Other crops capture 15%, including root vegetables, microgreens, and specialty crops for niche markets.

By Application
- Commercial application leads with 50% share, driven by supermarkets, restaurants, and supply to urban consumers.
- Residential use holds 25%, supported by rooftop gardens, home-based vertical farms, and DIY urban farming kits.
- Research & educational application accounts for 15%, focused on sustainable agriculture studies and urban farming innovations.
- Other applications represent 10%, including community initiatives, urban landscaping, and corporate wellness programs.

Regional Analysis
North America - 30% Share
North America leads with 30%, driven by growing demand for local food production, sustainable agriculture practices, and government support for urban farming initiatives.

Europe - 28% Share
Europe holds 28%, supported by increasing adoption of vertical farming, greenhouse technology, and sustainable food supply chains in Germany, Netherlands, and France.

Asia Pacific - 32% Share
Asia Pacific dominates with 32%, fueled by rapid urbanization, rising population, and growing investment in smart agriculture and hydroponic systems in China, Japan, and India.

Latin America - 6% Share
Latin America accounts for 6%, driven by urban food security initiatives and expansion of controlled environment agriculture in Brazil and Mexico.

Middle East & Africa - 4% Share
Middle East & Africa hold 4%, supported by adoption of vertical and hydroponic farming to combat arid climate challenges and food scarcity.

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