Vertical Farming Market Size, Share | Growth & Forecast to 2028

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Vertical Farming Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics) and Component (Lighting, Sensor, Climate Control, Irrigation Component, Building Material, and Others)

Publication Month: Oct 2021 | Report Code: TIPRE00007018 | No. of Pages: 145 | Category: Manufacturing and Construction | Status: Published

The vertical farming market is expected to grow from US$ 4,300.2 million in 2021 to US$ 19,864.8 million by 2028; it is estimated to grow at a CAGR of 24.4% from 2021 to 2028.

The vertical farming market is experiencing significant traction across the world due to the mounting demand for food, propelled by the rising global population. Since it uses 90% less water, requires less space, and yields more crops in shorter periods, compared to conventional farming, its demand is increasing at a significant rate. In this technique, the cultivation of fruits and vegetables is not restricted to seasonal cycles, as the requisite atmospheric conditions can be created at farming sites. However, the high initial investment cost is a hindrance to the growth trajectory of the vertical farming market. Nevertheless, the increasing demand for organic food, coupled with the rising adoption of veganism across the world, is anticipated to boost the global vertical farming market during the forecast period.

Strategic Insights

Report Coverage - Vertical Farming Market
Report CoverageDetails
Market Size Value inUS$ 4,300.2 million in 2021
Market Size Value byUS$ 19,864.8 million by 2028
Growth rateCAGR of 24.4% from 2021-2028
Forecast Period2021-2028
Base Year2021
No. of Pages145
No. of Tables61
No. of Charts & Figures74
Historical data availableYes
Segments coveredGrowth Mechanism and Component
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
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Impact of COVID-19 Pandemic on Vertical Farming Market

Governments across the world imposed various containment measures to control the spread of COVID-19. While in several countries the governments imposed complete lockdown, other countries experienced partial lockdown, and businesses were allowed to operate with various regulations. The production facilities were halted due to the shortage of workers in the vertical farming sector. Long-term decline in manufacturing, travel bans, and facility shutdown kept the workers away from factories for prolonged periods. This led to the shortage of equipment such as sensors and lighting required in the vertical agriculture market, decelerating the growth of the vertical farming market in 2020. The pandemic has also led to limitations on the availability of agricultural laborers and disruptions in international supply chains. However, the negative impact of COVID-19 on the electronics and semiconductors industries is expected to last for a short span, and the market is anticipated to observe a high demand in 2021, as economies have begun reopening and containment measures are being relaxed since the start of this year. The vertical farming market is also anticipated to witness significant growth due to the rise in urban agriculture as the  means of addressing local food shortage during the post-pandemic period.

Lucrative Regions for Vertical Farming Providers

Lucrative Regions for Vertical Farming Providers

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Vertical Farming Market Insights

Benefits of Vertical Farming Over Conventional Farming

The vertical farming market has picked up significant momentum over the years. The rising awareness pertaining to the benefits of vertical farming is a key factor driving this growth. Since vertical farming is independent of weather, it allows farmers to achieve a consistent annual crop production without having to worry about adverse weather conditions. Moreover, it enables them to yield more in a small area. Compared to conventional farming, vertical farming yields ~240-times greater while requiring 99% less land and 98% less water. The emergence of next-generation, AI-powered vertical farming technologies that can help reduce the consumption of land and water further is boosting the growth of this market substantially. Moreover, increasing demand for sustainable agricultural ecosystems will continue to boost the demand for vertical farming in the coming years. Technological advancements have enabled the use of controlled environmental resources and agriculturally unsuitable sites, mainly skyscrapers, shipping containers, and vacant warehouses. Ascending focus on recapturing evaporated water and recycling products, in a bid to reduce wastage, is also projected to augment the vertical farming market proliferation in the coming years.

Component-Based Market Insights

Light-emitting diode (LED) lights, high-intensity discharge lights, and fluorescent lamps are among the lighting types used for vertical farming. Among this, LED lights are the most widely used lighting for vertical farming. The unique properties of LED lights—such as energy-efficiency, low heat generation, compact size, and lifespan up to 50,000—encourage the adoption of LEDs. These lights are cost effective and their light intensity can be controlled to suit different plants and crops, which are among the major advantages of LEDs. Moreover, these lights can separate dissipated heat from the illumination source, which becomes an important characteristic for high-intensity LEDs. This type of decoupling rules out the risk of plant overheating, thus allowing the placement of LEDs near plant canopies. However, the cost of LED light bulbs is higher than the other two types lighting technologies fluorescent lamps and high-intensity discharge lights

Vertical Farming Market, by Component – 2020 and 2028 (%)

Vertical Farming Market, by Component – 2020 and 2028 (%)

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Players operating in the vertical farming market adopt strategies such as mergers and acquisitions to maintain their positions in the market. A few of developments by key players are listed below:

  • In August 2021, AeroFarms announced that it will be expanding its footprint in St. Louis, Missouri, US, with an indoor vertical farm spread over the area of 150,000 ft2. The expansion would provide AeroFarms a rapid access to retail partners across the Midwest in the US.
  • In July 2020, Eden Green Technology, a vertical greenhouse farming technology firm based in Dallas, announced a shift in its business strategy; the company operates as a provider of economically and ecologically sustainable solutions, in addition to the farming technologies. This is especially crucial during the COVVID-19 pandemic as it has disrupted supply chains and redirected consumers’ attention toward health and safety.

The vertical farming market has been segmented as follows:


Vertical Farming Market – by Growth Mechanism

  • Hydroponics
  • Aeroponics
  • Aquaponics


Vertical Farming Market – by Component

  • Lighting
  • Sensor
  • Climate Control
  • Irrigation Component
  • Building Material
  • Others 

Vertical Farming Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • Germany
    • France
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • Australia
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Middle East and Africa (MEA)

    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM

Company Profiles

  • Eden Green Technology
  • Elevate Farms Inc.
  • iFarm
  • OSRAM GmbH
  • Plenty Unlimited Inc.
  • Sky Greens
  • Vertical Farm Systems
  • Square Mile Farms
  • Agrilution
  • AeroFarms

Frequently Asked Questions

The vertical farming market is experiencing significant traction across the world due to the mounting demand for food, propelled by the rising global population. Since vertical farming uses 90% less water, requires less space, and yields more crops in a shorter period of time compared to conventional farming, its demand is increasing at a significant rate. In this technique, the cultivation of fruits and vegetables are not restricted to seasonal cycles, as the requisite atmospheric conditions can be created in vertical farms. Meanwhile, the increasing demand for organic foods, coupled with the rising adoption of veganism across the world is anticipated to boost the global vertical farming market over the forecast period.
The farming and agriculture industry is leveraging the potential of AI considerably. Key market players are monitoring the requisite environment for plant development, including soil, water, light exposure, and crop yield data. They are now able to track and control plant development using various advanced technologies, such as AI-powered tools and robotics. The advanced climate-controlled vertical farming setup consists of AI-powered robots, which control water consumption, temperature, and lighting and produce 720 acres worth of fruit and vegetable yields in just 2 acres of farmland. Favorable conditions are being created manually with the use of LED panels to replicate sunlight for the optimal development of crops. Such innovations in modern farming that leverage the advantages of AI and robotics are anticipated to provide lucrative growth opportunities for players in the vertical farming market space.
Hydroponics is one the modern horticulture practices which involves cultivation of plants without the use of soil. The necessary nutrients required for the growth of the plants are integrated in the water and this water is circulated in among the roots of the plants for providing the nourishment. The nutrients integrated in the water varies from the type of produces to be cultivated. Moreover, the hydroponics can yield more produce in smaller space and requires 90% less water compared to conventional farming practices. With the rising demand for food across the globe various governments are taking various initiatives for boosting modern farming practices. For instance, The US Department of Agriculture (USDA) have announced to over US $4 billion toward strengthening our food system owing to the rising food demand. Further, Maharashtra state government in India has recently announced to provide 50% subsidy to farmers for adopting hydroponics for growing animal fodder. Thus, such initiatives by governments across the globe is expected to boost the vertical farming market.
In 2020, North America led the market with a substantial revenue share, followed by Europe and APAC. Asia Pacific is a prospective market for vertical farming market players.
The major companies in Vertical Farming includes AGRILUTION SYSTEMS GMBH; iFarm; AEROFARMS, LLC; SKY GREENS; Everlight Electronics; and Green Sense Farms LLC
The major components in Vertical Farming includes lighting, sensor, climate control, irrigation component, building material, and others.

The List of Companies - Vertical Farming Market

  1. Eden Green Technology
  2. Elevate Farms Inc.
  3. iFarm
  4. OSRAM GmbH
  5. Plenty Unlimited Inc.
  6. Sky Greens
  7. Vertical Farm Systems
  8. Square Mile Farms
  9. Agrilution
  10. AeroFarms
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global vertical farming market.
  • Highlights key business priorities in order to assist companies to realign their business strategies.
  • The key findings and recommendations highlight crucial progressive industry trends in the global vertical farming market, thereby allowing players across the value chain to develop effective long-term strategies.
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
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