Urban Farming Market Set for Steady Growth to USD 311.24 Billion by 2032, Led by North America's 34.2% Global Market Share | DataM Intelligence

The Global Urban Farming Market reached USD 172.62 billion in 2024 and is expected to reach USD 311.24 billion by 2032, growing at a steady CAGR of 7.6% during the forecast period 2025-2032.

Market growth is driven by rapid urbanization, increasing demand for fresh, locally grown produce, and rising concerns around food security and supply chain sustainability. Additionally, advancements in vertical farming, hydroponics, aquaponics, and controlled-environment agriculture, along with supportive government initiatives and growing consumer awareness of sustainable food systems, are further accelerating market expansion.

Get a Free Sample PDF Of This Report (Get Higher Priority for Corporate Email ID):- https://www.datamintelligence.com/download-sample/urban-farming-market?ram

United States: Key Industry Developments
✅ November 2025: AeroFarms expanded its vertical farming operations in Newark, New Jersey, launching a new 100,000 sq ft facility using AI-optimized LED lighting for year-round leafy greens production, enhancing urban food security.​

✅ October 2025: Plenty introduced its first commercial urban farm in Los Angeles, featuring robotic harvesting systems for strawberries and herbs, reducing water usage by 95% compared to traditional methods.​

✅ September 2025: Bowery Farming partnered with Walmart to supply vertically grown basil from its Pennsylvania farm, integrating machine learning for precise climate control and boosting local supply chains.​

Asia Pacific / Japan: Key Industry Developments
✅ November 2025: Mirai launched a new plant factory in Tokyo using hydrogen-powered energy systems for pesticide-free vegetables, targeting urban supermarkets amid rising food import costs.​

✅ October 2025: Spread Co. opened an expanded vertical farm in Kyoto, producing 10,000 heads of lettuce daily with automated nutrient delivery, supporting Japan's sustainability goals.​

✅ August 2025: Japanese government allocated ¥5 billion in subsidies for urban farming tech startups, focusing on aquaponics innovations in megacities like Osaka to combat land scarcity.

Key Merges and Acquisitions(2025):
✅ CoStar Group - acquired Ag-Analytics in February 2025, integrating its AcreValue agricultural data platform to enter the urban farming land market and enhance data-driven decisions for CEA investments.​

✅ Granite Creek Capital - purchased Ritchie Industries in January 2025, supporting innovation in automated watering systems critical for urban livestock integration and vertical farm expansions.​

✅ 80 Acres Farms - acquired Plantae Biosciences in February 2025, merging it with Infinite Acres to advance plant breeding technologies for improved flavor, texture, and nutrition in controlled environment agriculture crops.​

Market Segmentation Analysis:
-By Farm Type: Commercial Farms Dominate with 40% Market Share
Commercial farms (aligned with corporate) lead urban farming with 40% share in 2023, fueled by scalable tech like vertical systems for high-yield produce in cities.​
Home gardens follow at around 25%, enabling urban dwellers to grow personal food amid rising self-sufficiency trends.​
Community farms hold 20%, fostering local collaboration, while others (e.g., institutional) take 15%, driven by niche pilots.​

-By Structure: Outdoor Leads at 45% Share
Outdoor structures command 45% market share as of 2023, leveraging natural light and lower setup costs for rooftop or balcony setups.​
Indoor grows at the fastest pace (highest CAGR), capturing 55% via controlled environments like LEDs and climate tech for year-round yields.​

-By Growing Medium: Soil-Based Tops with 40% Share
Soil-based (traditional base for many) holds 40.14% in 2023, offering reliable, low-tech entry for beginners.​
Hydroponics surges with top CAGR at 30% share, using water-efficient nutrient films for dense urban spaces.​
Aquaponics and aeroponics split 30%, blending fish-plant symbiosis or mist-fed roots for sustainable, high-efficiency crops.​

-By Crop Type: Food Crops Hold 70% Share
Food crops dominate at 70%, prioritizing vegetables, fruits, and herbs for direct urban consumption and food security.​
Non-food crops take 30%, including ornamentals and medicinals for aesthetics and wellness markets.​

-By Application: Commercial Leads with 60% Share
Commercial applications claim 60%, targeting profit via direct sales and restaurants with premium local produce.​
Agriculture follows at 30%, focusing on scalable yields, while others (e.g., research) hold 10% for innovation.​

Purchase this report before year-end and unlock an exclusive 30% discount: https://www.datamintelligence.com/buy-now-page?report=urban-farming-market?ram (Purchase 2 or more Reports and get 50% Discount)

Growth Drivers:
-Urbanization Pressures
Rapid urban population growth strains traditional food supply chains, pushing demand for local production in cities to cut transport costs and ensure freshness.

-Technological Advances
Innovations like hydroponics, vertical farming, and AI automation boost yields in limited spaces, making urban setups efficient and scalable.

-Food Security Focus
Rising concerns over supply disruptions and nutrition drive adoption of urban farms for reliable, pesticide-free produce amid global challenges.

-Sustainability Demand
Consumer shift toward eco-friendly practices favors urban farming's low-carbon model, integrating renewables and circular economies for greener cities.

-Government Support
Policies and incentives promote urban agriculture through grants, zoning reforms, and initiatives enhancing food resilience in expanding metros.

Regional Insights:
-North America leads the urban farming market with approximately 34.2% share, driven by advanced infrastructure, high urbanization, and strong government support for innovative practices like vertical farming in the United States, which alone holds about 19.6% of the global market.​

-Europe follows with substantial growth potential, fueled by widespread adoption of farming technologies and investments to meet rising demand for sustainable urban produce amid dense city populations.​

-Asia Pacific ranks next, emerging as the fastest-growing region due to rapid urbanization, population pressures, and increasing focus on food security through hydroponics and local production innovations.​

Speak to Our Analyst and Get Customization in the report as per your requirements: https://www.datamintelligence.com/customize/urban-farming-market?ram

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 | Freight Farms, Inc.

Key Highlights (Top 5 Key Players) for Urban Farming Market:
-UrbanFarmers AG develops modular rooftop hydroponic farming systems for producing leafy greens and herbs in urban environments using vertical farming technology.

-AeroFarms operates large-scale indoor vertical farms employing aeroponics to grow high-yield, pesticide-free produce with minimal water and land usage.

-Sky Greens manufactures automated vertical farming towers that rotate crops under natural sunlight to maximize space efficiency in high-density urban areas.

-Koninklijke Philips N.V. provides LED lighting and smart grow systems integrated into urban agriculture solutions for controlled-environment farming.

-Gotham Greens runs hydroponic greenhouses in cities to supply fresh lettuces, basil, and microgreens year-round through sustainable, water-efficient methods.

Unlock 360° Market Intelligence with DataM Subscription Services: https://www.datamintelligence.com/reports-subscription?ram

Power your decisions with real-time competitor tracking, strategic forecasts, and global investment insights all in one place.

✅ Competitive Landscape
✅ Sustainability Impact Analysis
✅ KOL / Stakeholder Insights
✅ Unmet Needs & Positioning, Pricing & Market Access Snapshots
✅ Market Volatility & Emerging Risks Analysis
✅ Quarterly Industry Report Updated
✅ Live Market & Pricing Trends
✅ Import-Export Data Monitoring

Have a look at our Subscription Dashboard: https://www.youtube.com/watch?v=x5oEiqEqTWg

Contact Us -

Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -

DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

This release was published on openPR.