Vertical Farming Technology Market Report 2026

The vertical farming technology market size has grown exponentially in recent years. It will grow from $7.84 billion in 2025 to $9.84 billion in 2026 at a compound annual growth rate (CAGR) of 25.5%. The growth in the historic period can be attributed to increasing urban population density, early adoption of hydroponic systems, demand for pesticide-free produce, limited arable land availability, growth in greenhouse farming.

The vertical farming technology market size is expected to see exponential growth in the next few years. It will grow to $24.03 billion in 2030 at a compound annual growth rate (CAGR) of 25%. The growth in the forecast period can be attributed to expansion of sustainable food systems, rising demand for high-yield indoor production, increasing investment in smart farming technologies, growth in urban commercial farms, focus on climate-resilient food production. Major trends in the forecast period include growing adoption of stacked crop cultivation, rising use of hydroponic and aeroponic growing techniques, expansion of controlled indoor farming systems, increasing focus on water-efficient cultivation, rising demand for urban food production.

The growing demand for sustainable agricultural practices is expected to drive the vertical farming technology market in the future. Sustainable agriculture focuses on meeting current food needs without compromising the ability of future generations to meet their own. These practices aim to preserve the environment, conserve resources, and promote social and economic equity. The rising demand for sustainable agriculture is driven by the need to minimize environmental impact, conserve water and land, enhance food security, combat climate change, reduce chemical dependence, and support long-term agricultural productivity. Vertical farming technology plays a crucial role in this shift by enabling high-density crop production in urban areas, using less land, conserving water, reducing carbon emissions, minimizing pesticide use, and promoting year-round farming, all while enhancing resource efficiency and supporting local food systems. For example, in December 2024, the Department for Environment, Food & Rural Affairs, a UK-based government body, reported that the land area under Agri-Environment Schemes (AES) for sustainable agriculture in the UK grew from 4.92 million hectares in 2021 to 5.87 million hectares in 2023. Therefore, the demand for sustainable agriculture is driving the growth of the vertical farming technology market.

Leading companies in the vertical farming technology market are focusing on innovations such as inflatable aeroponic farming systems to promote sustainable food production in urban and resource-limited environments. An inflatable aeroponic farming system is a modular, lightweight indoor cultivation unit that delivers a fine nutrient mist to plant roots within a controlled environment, enabling efficient water usage, accelerated crop growth, and adaptability to various locations. For example, in January 2025, AirFarm, a Jordan-based agricultural technology company, introduced FOOD ARK, an inflatable aeroponic farming solution. The system combines patented water vapor conversion and recirculation technology with smart monitoring features to maximize water efficiency and automation in crop cultivation. Its compact, flat-packable design allows for rapid deployment and scalability, making it ideal for urban and arid regions where conventional farming is challenging.

In October 2023, Lactuca Holdings, a US-based agricultural technology company, acquired Kalera for an undisclosed amount. This acquisition, supported by Sandton Capital Partners, aims to accelerate Kalera's growth, strengthen customer relationships, and scale its operations with new partners. Kalera plans to increase production, expand its micro-green portfolio, and license its technology to other vertical growers. The company will continue operating under its premium brand with its current leadership in place. Kalera is a US-based vertical farming company.

Major companies operating in the vertical farming technology market are Signify Holding, Swegreen, Bowery Farming Inc., SPREAD Co. Ltd., Plenty Unlimited Inc., Lufa Farms, IGS Ltd., AeroFarms LLC, Freight Farms Inc., MIRAI Official HP, SANANBIO, Vertical Future Ltd., Grow Pod Solutions, Sky Greens, Vertical Farm Systems Pty Ltd, Eden Green Technology, Urban Crop Solutions, Hort Americas LLC, TruLeaf, Gronska Stadsodling, iFarm.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported lighting systems, sensors, water-circulation units, and climate-control equipment have increased capital and operating costs for vertical farming technology, especially for indoor hydroponic and aeroponic installations in regions dependent on foreign suppliers such as North America and Europe. These tariffs slow expansion for small growers while disproportionately affecting pre-installed systems that rely heavily on imported components. However, they may stimulate domestic manufacturing and innovation in vertical farming equipment, creating longer-term benefits for regional supply chains.

The vertical farming technology market research report is one of a series of new reports that provides vertical farming technology market statistics, including vertical farming technology industry global market size, regional shares, competitors with a vertical farming technology market share, detailed vertical farming technology market segments, market trends and opportunities, and any further data you may need to thrive in the vertical farming technology industry. This vertical farming technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Vertical farming technology is an agricultural method that involves growing crops in stacked layers or on vertically inclined surfaces, typically within controlled indoor environments. This technology utilizes hydroponics, aeroponics, and aquaponics to cultivate plants without soil, optimizing space and water efficiency. Vertical farming allows for year-round production, reduces land usage, and can be implemented in urban areas, making it a sustainable solution for food production.

The main types of vertical farming technology are indoor farming and outdoor farming. Indoor farming, a key aspect of vertical farming, takes place within controlled-environment agriculture systems housed in enclosed spaces, optimizing resource efficiency, enabling year-round cultivation, and maximizing crop yield regardless of external climate conditions. It can be both on-site installed and pre-installed, using growing technologies such as hydroponic, aeroponic, and aquaponic farming methods. This technology is used for vegetable cultivation, fruit planting, and more, with end users including the agricultural industry, restaurants and other food services, and home users.North America was the largest region in the vertical farming technology market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vertical farming technology market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vertical farming technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vertical farming technology market consists of revenues earned by entities by providing services such as managed services, assisted professional services, automation services, and system integration and consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. The vertical farming technology market also includes sales of lighting systems, hydroponic components, sensors, and climate control systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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