Vertical Farming Market Size To Grow At A CAGR Of 23.2% In The Forecast Period Of 2024-2030

[Rushistellar]

Vertical Farming Market is expected to grow from USD 5.5 billion in 2023 to USD 20.1 billion by 2030, registering a CAGR of 20.2% during the forecast period. The growth is being propelled by increasing demand for high-quality food, limited arable land, technological advancements, and the need for sustainable farming practices in urban areas.

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 Market Estimation, Growth Drivers & Opportunities
Vertical farming—a method of growing crops in stacked layers using controlled environments—has rapidly emerged as a sustainable solution to meet the food demands of growing urban populations. It offers year-round production, reduced resource usage, and minimal dependency on climate conditions.

Key Growth Drivers:

Land & Water Scarcity: Limited availability of arable land and the need for water-efficient farming systems are accelerating adoption.

Urbanization: With more than half the world’s population residing in cities, urban agriculture is gaining momentum.

Climate-Resilient Farming: Vertical farms are immune to climate variability and natural disasters, ensuring consistent crop yields.

Consumer Demand for Pesticide-Free Produce: Increased health consciousness is driving the market for organically grown, chemical-free vegetables and herbs.

Emerging Opportunities:

Integration of AI and IoT: Real-time monitoring, climate control, and automated nutrient delivery are enhancing productivity and reducing operational costs.

Customized Crop Cultivation: Restaurants, supermarkets, and pharma companies are partnering with vertical farms for tailored produce.

Sustainable Supply Chains: Reduced food miles and carbon footprint offer advantages in eco-sensitive markets.

 U.S. Market Trends & 2024 Investment Highlights
The U.S. continues to lead the vertical farming movement, with 2024 seeing record investments in urban agriculture projects. Major players such as AeroFarms and Bowery Farming expanded production capacity and partnered with retailers like Walmart and Whole Foods for direct supply chains. Public-private initiatives in cities like Chicago and New York are incentivizing rooftop farming and indoor cultivation systems as part of green infrastructure programs.

 Market Segmentation – Leading Segments by Share

By Structure:

Building-Based Vertical Farms hold the largest market share due to space efficiency and urban integration, especially in cities with high real estate utilization.

By Growth Mechanism:

Hydroponics is the dominant segment, favored for its water efficiency, faster plant growth, and higher yields without soil use.

By Crop Type:

Leafy Greens (lettuce, kale, spinach) lead the market, driven by fast growth cycles, high market demand, and suitability for controlled environments.

Competitive Analysis – Top 5 Companies and Recent Developments
1. AeroFarms
A pioneer in vertical aeroponic farming, AeroFarms expanded its Newark facility and introduced its “Dream Greens” line in new U.S. cities in 2024. The company also invested in AI-driven growth systems for yield optimization.

2. Bowery Farming
Known for its large-scale urban vertical farms, Bowery secured additional Series C funding in 2024 to expand into Texas and California. It also launched proprietary LED lighting systems to enhance energy efficiency and crop uniformity.

3. Plenty Unlimited Inc.
With backing from SoftBank and Walmart, Plenty introduced new plant varieties like strawberries and tomatoes tailored for vertical environments. Their Laramie facility is one of the most automated vertical farms globally.

4. Infarm
The Germany-based firm expanded its footprint into the U.S. and Canada. Infarm’s modular farming units are popular in supermarkets, enabling fresh, on-site produce harvesting.

5. Kalera
Kalera ramped up production in its Atlanta and Houston vertical farms and signed deals with foodservice distributors. It has also developed low-energy consumption growing chambers suitable for deployment in schools and hospitals.

 Regional Insights – Focus on USA, UK, Germany, France, Japan, and China
United States:
The U.S. holds the largest global share, backed by innovation, VC funding, and municipal support for sustainable urban development. Federal initiatives under the USDA continue to support urban ag-tech startups.

United Kingdom:
The U.K. government supports vertical farming under its agri-tech strategy. London and Manchester have seen increasing deployment of underground and container-based farms to reduce dependence on imported produce.

Germany:
Germany focuses on smart farming technologies, with companies receiving EU funding to develop low-energy and AI-optimized growing environments.

France:
Paris and Lyon are promoting rooftop and indoor farming as part of eco-urban redevelopment plans. Subsidies for controlled-environment agriculture (CEA) are boosting adoption.

Japan:
With a tech-savvy population and high land cost, Japan is a strong adopter of vertical farming. The country is leading in robotic and automated farming units, supported by government R&D initiatives.

China:
Rapid urbanization and food safety concerns are key market drivers. China's support for high-tech agriculture through its Five-Year Plans has led to the emergence of large-scale vertical farms in Shanghai and Beijing.

 Conclusion & Strategic Outlook
The Vertical Farming Market is rapidly evolving as a sustainable solution to global food security challenges. Technological innovation, environmental regulations, and changing consumer preferences are making vertical farming a critical component of modern agriculture.


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