Vertical Farming Technology Market Report 2025

This Vertical Farming Technology Market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The vertical farming technology market size has grown exponentially in recent years. It will grow from $6.27 billion in 2024 to $7.89 billion in 2025 at a compound annual growth rate (CAGR) of 25.9%. The growth during the historic period can be attributed to increasing urbanization, which has led to limited arable land, rising concerns over food security, government support for sustainable farming, a growing demand for local and fresh produce, and environmental concerns surrounding traditional farming methods.

The vertical farming technology market size is expected to see exponential growth in the next few years. It will grow to $19.67 billion in 2029 at a compound annual growth rate (CAGR) of 26.6%. The growth in the forecast period is expected to be driven by an increase in demand for organic food, the need for water conservation in agriculture, rising awareness of climate change impacts on farming, growing popularity of urban farming solutions, and the demand for year-round crop production. Key trends during this period include the use of artificial intelligence for crop monitoring and yield optimization, the development of energy-efficient farming systems, the expansion of vertical farms in urban areas, the adoption of modular and scalable farm designs, and the integration of renewable energy sources.

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.

Key players in the vertical farming technology market are focusing on developing innovative technologies, such as aeroponic precision growing systems, to transform crop production with efficient, sustainable, and high-yield solutions. Aeroponic precision growing systems are a type of hydroponic farming where plants' roots are suspended in the air and periodically misted with a nutrient-rich solution. For example, in September 2022, Innovation Agri-Tech Group (IAG), a UK-based agricultural technology company, launched the GrowFrame 360 system, which was developed after five years of research and development. The GrowFrame 360 system is an advanced vertical farming solution designed for efficient, space-saving plant cultivation. It uses a modular, stackable frame to support various growing techniques, such as aeroponics or hydroponics, to maximize plant production in a compact space. The system is designed for precision growing, offering a controlled environment with adjustable light, temperature, humidity, and nutrient delivery, making it ideal for urban farming, home gardening, and commercial agriculture. Its innovative design allows for 360-degree plant access, optimizing growth and yield while minimizing resource consumption.

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 players in the vertical farming technology market are Signify Holding, Swegreen, Bowery Farming Inc., SPREAD Co. Ltd., Cropin Technology Solutions Private Limited, Plenty Unlimited Inc., Lufa Farms, IGS Ltd., AeroFarms LLC, Freight Farms Inc., MIRAI Official HP, SANANBIO, Vertical Future Ltd., 4D Bios Inc., Grow Pod Solutions, Sky Greens, Vertical Farm Systems Pty Ltd, Eden Green Technology, Urban Crop Solutions, Hort Americas LLC, TruLeaf, Gronska Stadsodling, iFarm.

North America was the largest region in the vertical farming technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in vertical farming technology report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the vertical farming technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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.

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 receive from the sale of goods and/or services within the specified market and geography, whether through sales, grants, or donations, expressed in the specified 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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