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Vertical Farming Automation System Market Opportunity, Growth Drivers, Industry Trend Analysis and Forecast 2026-2035

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    Report

  • 220 Pages
  • January 2026
  • Region: Global
  • Global Market Insights
  • ID: 6219601
The Global Vertical Farming Automation System Market was valued at USD 817.1 million in 2025 and is estimated to grow at a CAGR of 6.5% to reach USD 1.53 billion by 2035.

Growth is driven by the need to maximize crop output in constrained spaces while reducing resource consumption. Vertical farming relies on stacked cultivation systems that allow higher yields with lower water usage and reduced dependency on chemical inputs. Automation plays a central role in improving productivity, consistency, and operational efficiency across these controlled environments. Supportive government initiatives and financial incentives that encourage sustainable farming practices further contribute to market expansion. Awareness of environmental benefits, such as water efficiency and reduced land use, strengthens adoption across regions. Advanced lighting technologies remain essential to vertical farming, as artificial illumination replicates optimal growth conditions for different crops. Modern LED solutions enable precise control of light intensity and spectrum while minimizing heat output, allowing closer placement to crops and improved space utilization. Dynamic lighting systems enhance growth cycles, improve yield quality, and support nutrient optimization throughout cultivation stages.

The lighting systems segment generated USD 208.3 million in 2025 and is expected to grow at a CAGR of 6.7% during 2026-2035. Demand rises alongside the need for accurate environmental management within vertical farms. Climate control solutions regulate temperature, humidity, and carbon dioxide levels to ensure uniform crop development. Advancements in intelligent climate management improve system efficiency while lowering operating costs. Lighting remains a critical component because it directly influences plant development, productivity, and quality. Energy-efficient LED technologies continue gaining preference due to their adaptability across crop types and growth phases.

The commercial segment is projected to grow at a CAGR of 93% from 2026 to 2035. Commercial operations increasingly depend on automation to support large-scale food production, reduce labor intensity, and maintain consistent crop quality. Technologies such as robotics, artificial intelligence, and connected systems support yield optimization and operational reliability.

United States Vertical Farming Automation System Market held 77% share, generating USD 320.1 million in 2025. Growth is supported by rising urbanization, demand for sustainable food systems, and the need to enhance agricultural efficiency. Increased adoption of urban farming solutions brings food production closer to consumption centers, reducing logistical complexity and improving supply freshness.

Key companies operating in the Global Vertical Farming Automation System Market include Signify Holding, Danfoss, OMRON Corporation, Heliospectra, Swisslog, American Hydroponics, Priva, AutoStore, Jungheinrich, Artechno Growsystems, Green Automation, Modula USA, Logiqs, Arianetech, and TTA. Companies in the vertical farming automation system market strengthen their market position by investing in advanced automation technologies that improve precision, scalability, and energy efficiency. Many focus on integrating AI-driven monitoring systems to optimize growing conditions and reduce operational costs. Strategic partnerships with agricultural operators help accelerate system adoption and customization. Manufacturers emphasize modular system designs to support flexible deployment and future expansion. Continuous innovation in lighting, climate control, and data analytics enhances performance differentiation. Expanding global distribution networks and offering long-term technical support further reinforce customer confidence.

Comprehensive Market Analysis and Forecast

  • Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
  • Competitive landscape with Porter’s Five Forces and PESTEL analysis
  • Market size, segmentation, and regional forecasts
  • In-depth company profiles, business strategies, financial insights, and SWOT analysis

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Table of Contents

Chapter 1 Methodology and scope
1.1 Market scope and definition
1.2 Research design
1.2.1 Research approach
1.2.2 Data collection methods
1.3 Data mining sources
1.3.1 Global
1.3.2 Regional/country
1.4 Base estimates and calculations
1.4.1 Base year calculation
1.4.2 Key trends for market estimation
1.5 Primary research and validation
1.5.1 Primary sources
1.6 Forecast model
1.7 Research assumptions and limitations
Chapter 2 Executive summary
2.1 Industry 360-degree synopsis
2.2 Key market trends
2.2.1 Regional
2.2.2 System Type
2.2.3 Technology Type
2.2.4 Automation Level
2.2.5 Crop Type
2.2.6 End Uses
2.2.7 Distribution Channel
2.3 CXO perspectives: strategic imperatives
2.3.1 Key decision points for industry executives
2.3.2 Critical success factors for market players
2.4 Future outlook and strategic recommendations
Chapter 3 Industry insights
3.1 Industry ecosystem analysis
3.1.1 Supplier landscape
3.1.2 Profit margin
3.1.3 Value addition at each stage
3.1.4 Factor affecting the value chain
3.2 Industry impact forces
3.2.1 Growth drivers
3.2.2 Industry pitfalls & challenges
3.2.3 Opportunities
3.3 Growth potential analysis
3.4 Future market trends
3.5 Technology and innovation landscape
3.5.1 Current technological trends
3.5.2 Emerging technologies
3.6 Price trends
3.6.1 By region
3.6.2 By system type
3.7 Regulatory landscape
3.7.1 Standards and compliance requirements
3.7.2 Regional regulatory frameworks
3.7.3 Certification standards
3.8 Porter’s analysis
3.9 PESTEL analysis
Chapter 4 Competitive landscape, 2025
4.1 Introduction
4.2 Company market share analysis
4.2.1 By region
4.2.1.1 North America
4.2.1.2 Europe
4.2.1.3 Asia-Pacific
4.2.1.4 Latin America
4.2.1.5 MEA
4.3 Company matrix analysis
4.4 Competitive analysis of major market players
4.5 Competitive positioning matrix
4.6 Key developments
4.6.1 Mergers & acquisitions
4.6.2 Partnerships & collaborations
4.6.3 New product launches
4.6.4 Expansion plans
Chapter 5 Market Estimates & Forecast, by System Type, 2022-2035 ($Million, Thousand Units)
5.1 Key trends
5.2 Climate control systems
5.2.1 HVAC systems
5.2.2 Dehumidifiers
5.2.3 Humidification systems
5.2.4 Ventilation systems
5.2.5 Others (Co2 injection/enrichment systems etc.)
5.3 Lighting systems
5.3.1 LED grow light systems
5.3.2 Fluorescent light systems
5.3.3 Others (light distribution hardware etc.)
5.4 Irrigation & fertigation systems
5.4.1 Drip irrigation systems
5.4.2 Automated dosing equipment
5.4.3 Water filtration & treatment systems
5.4.4 Others (nutrient film technique systems etc.)
5.5 Sensor & monitoring hardware
5.5.1 Environmental sensors
5.5.2 Light measurement sensors
5.5.3 Gas sensors
5.5.4 Others (water quality sensors etc.)
5.6 Others (robotic automation systems etc.)
Chapter 6 Market Estimates & Forecast, by Technology Type, 2022-2035 ($Million, Thousand Units)
6.1 Key trends
6.2 Hydroponics
6.3 Aeroponics
6.4 Aquaponics
Chapter 7 Market Estimates & Forecast, by Automation Level, 2022-2035 ($Million, Thousand Units)
7.1 Key trends
7.2 Semi-automatic
7.3 Fully automatic
Chapter 8 Market Estimates & Forecast, by Crop Type, 2022-2035 ($Million, Thousand Units)
8.1 Key trends
8.2 Leafy greens & herbs
8.3 Fruiting vegetables
8.4 Flowers & ornamentals
8.5 Others (medicinal plants etc.)
Chapter 9 Market Estimates & Forecast, by End Uses, 2022-2035 ($Million, Thousand Units)
9.1 Key trends
9.2 Individual/residential
9.3 Commercial
9.3.1 Retail & Hospitality
9.3.2 Restaurants
9.3.3 Grocery stores
9.3.4 Others (research & educational institutions etc.)
Chapter 10 Market Estimates & Forecast, by Distribution Channel, 2022-2035 ($Million, Thousand Units)
10.1 Key trends
10.2 Direct sales
10.3 Indirect sales
Chapter 11 Market Estimates & Forecast, by Region, 2022-2035 ($Million, Thousand Units)
11.1 Key trends
11.2 North America
11.2.1 U.S.
11.2.2 Canada
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 France
11.3.4 Spain
11.3.5 Italy
11.3.6 Netherlands
11.4 Asia-Pacific
11.4.1 China
11.4.2 Japan
11.4.3 India
11.4.4 Australia
11.4.5 South Korea
11.5 Latin America
11.5.1 Brazil
11.5.2 Mexico
11.5.3 Argentina
11.6 MEA
11.6.1 South Africa
11.6.2 Saudi Arabia
11.6.3 UAE
Chapter 12 Company Profiles
12.1 American Hydroponics
12.2 Arianetech
12.3 Artechno Growsystems
12.4 AutoStore
12.5 Danfoss
12.6 Green Automation
12.7 Heliospectra
12.8 Jungheinrich
12.9 Logiqs
12.10 Modula USA
12.11 OMRON Corporation
12.12 Priva
12.13 Signify Holding
12.14 Swisslog
12.15 TTA

Companies Mentioned

The companies profiled in this Vertical Farming Automation System market report include:
  • American Hydroponics
  • Arianetech
  • Artechno Growsystems
  • AutoStore
  • Danfoss
  • Green Automation
  • Heliospectra
  • Jungheinrich
  • Logiqs
  • Modula USA
  • OMRON Corporation
  • Priva
  • Signify Holding
  • Swisslog
  • TTA

Table Information