The Global vertical farming market size was valued at USD 3.0 billion in 2022 and is projected to reach USD 15.7 billion by 2030, growing at a CAGR of 30.7% during the forecast period.

The global vertical farming market is expected to grow at a significant pace in the coming years, driven by factors such as increasing demand for high-quality food with limited land availability, rising adoption of urban farming, and technological advancements in agriculture.

North America is expected to dominate the global vertical farming market due to the presence of major players in the region and increasing investments in urban agriculture. Asia Pacific is also expected to witness significant growth in the market owing to the rising population, limited availability of arable land, and increasing demand for fresh produce.

Some of the key players operating in the global vertical farming market include AeroFarms, BrightFarms Inc., Sky Greens, Everlight Electronics Co. Ltd., and Green Sense Farms Holdings Inc., among others. These companies are adopting various strategies such as mergers and acquisitions, partnerships, and collaborations to strengthen their market position and expand their product portfolio.

Market Dynamics 

Driving Factors

There are several driving factors contributing to the growth of the global sleep apnea device market, including:

Increased investment in research and development: Companies in the sleep apnea device market are investing more in research and development to create new and innovative products. This is expected to lead to the development of more effective and efficient devices in the future.

Favorable reimbursement policies: Governments and private health insurance providers are providing favorable reimbursement policies for sleep apnea devices, which is making them more accessible to patients who may not be able to afford them otherwise.

Restraining Factors

There are several driving factors contributing to the growth of the global vertical farming market, including:

Increasing demand for high-quality food: With the growing concern over food safety, quality, and security, consumers are increasingly demanding fresh and pesticide-free food products. Vertical farming offers a controlled environment that enables the cultivation of fresh and high-quality produce.

Limited availability of land: The amount of arable land available for agriculture is limited, and the increasing population is putting pressure on the available land. Vertical farming provides a solution to this problem by utilizing unused spaces such as rooftops, abandoned buildings, and shipping containers.

Challenges Factors

Vertical farming, which involves growing crops in vertically stacked layers using artificial lighting and controlled environments, has gained significant popularity in recent years due to its potential to address food security and sustainability issues. However, there are several challenges that the global vertical farming market faces, including:

Technical expertise: Vertical farming requires specialized technical expertise, including knowledge of plant biology, lighting and irrigation systems, and climate control. The shortage of skilled labor in the industry may limit its growth potential.

Regulatory challenges: The regulatory environment for vertical farming is still developing, and many countries lack clear guidelines for the operation and management of vertical farms. This can make it challenging for vertical farmers to obtain financing and navigate the legal and regulatory landscape.

Opportunity Factors

Opportunity analysis involves identifying potential areas for growth and development within a particular market or industry. Here are some potential opportunities for growth in the global vertical farming market:

Expansion into new crop varieties: While vertical farming is currently dominated by leafy greens and herbs, there is potential to expand into other crops, such as fruits, vegetables, and even grains. With continued innovation in technology and infrastructure, vertical farmers may be able to scale up production for a broader range of crops.

New market opportunities: With continued growth in the global population, there is increasing demand for food, and vertical farming offers a potential solution for meeting this demand. Additionally, vertical farming may offer opportunities for new market channels, such as direct-to-consumer sales or partnerships with restaurants and grocers.

Segmentation Analysis

Growing Outlook

Hydroponics is a soilless growing mechanism that uses nutrient-rich water to nourish plants. It is the most common growing mechanism used in vertical farming systems. Hydroponics enables efficient use of water and nutrients, allowing crops to grow faster and with higher yields. The demand for hydroponic systems is expected to grow due to their advantages in crop quality and productivity.

Aeroponics is a growing mechanism that suspends plants in air and delivers nutrients and water through mist. This method uses less water than hydroponics and enables plants to grow faster and produce higher yields. However, it is a more expensive method than hydroponics and requires specialized equipment and expertise.

Aquaponics is a hybrid growing mechanism that combines hydroponics with aquaculture. Fish are raised in tanks and their waste is converted into nutrients for plants. This method is considered a sustainable and efficient way to grow crops as it recycles nutrients and reduces water consumption. Aquaponics is a niche market, but it is expected to grow in popularity due to its sustainability. Other growing mechanisms in vertical farming include nutrient film technique (NFT), deep water culture (DWC), and vertical soil-based farming. These methods are less common than hydroponics, aeroponics, and aquaponics and have varying levels of complexity and efficiency.

By analyzing the growing mechanism segment of the global vertical farming market, it is clear that hydroponics is the dominant method used, but there is also room for growth in niche markets such as aquaponics. As the industry matures, it is expected that new growing mechanisms will emerge, leading to greater efficiency and sustainability in vertical farming.

Crop Category Outlook

Leafy greens, such as lettuce, spinach, and kale, are the most commonly grown crops in vertical farms. These crops have a short growing cycle and can be harvested multiple times, making them ideal for vertical farming systems. The demand for leafy greens is growing due to their high nutritional value and increasing popularity in the health and wellness market.

Herbs, such as basil, mint, and cilantro, are also popular crops in vertical farming systems. These crops have a high value and are in high demand in the foodservice industry, as well as in the home gardening market. Herbs are also easy to grow and have a short growing cycle, making them ideal for vertical farming.

Regional Analysis

North America is the largest market for vertical farming, with the US accounting for the majority of the market share. The region's high population density and increasing demand for locally grown produce have been significant drivers of growth in the vertical farming industry. However, the high energy costs associated with vertical farming in colder climates such as Canada can be a challenge for growers.

Europe is a rapidly growing market for vertical farming, with the region's increasing focus on sustainable food production driving demand for locally grown produce. However, the lack of clear regulations and guidelines for vertical farming in some countries can be a barrier to growth.

The Asia-Pacific region is the fastest-growing market for vertical farming, with significant investments in the industry by countries such as Japan, Singapore, and China. The region's high population density, limited arable land, and increasing demand for fresh produce are driving growth in the industry. However, the high initial investment costs and lack of skilled labor can be a challenge for growers.

The Middle East and Africa are emerging markets for vertical farming, driven by the region's arid climate and limited access to arable land. However, the high energy costs associated with vertical farming in hot climates can be a challenge, and the lack of infrastructure and skilled labor can limit the industry's growth potential.

Latin America is a growing market for vertical farming, with significant investments in the industry by countries such as Brazil and Mexico. The region's favorable climate and increasing demand for fresh produce are driving growth in the industry. However, the lack of infrastructure and financing options can be a challenge for growers.

Scope Of Report:

The Global Vertical Farming Market has been segmented into:

By Structure

• Shipping Container
• Building-based

By Component

• Hardware
• Lighting
• Hydroponic components
• Climate control
• Sensors
• Software
• Services
• System Integration & Consulting
• Managed Services
• Assisted Professional Services

By Growing Mechanism

• Hydroponics
• Aeroponics
• Aquaponics

By Crop Category

Fruits Vegetables, & Herbs

• Tomato
• Lettuce
• Bell & Chili Peppers
• Strawberry
• Cucumber
• Leafy Greens (excluding lettuce)
• Herbs
• Others

Flowers & Ornamentals

• Perennials
• Annuals
• Ornamentals
• Others (Cannabis, Microgreens)

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global vertical farming market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• AeroFarms (U.S.)
• Illumitex, Inc. (U.S.)
• American Hydroponics (U.S.)
• Agrilution GmbH
• Brightfarms Inc.
• Everlight Electronics Co., Ltd.
• Freight Farms
• GrowUp Urban Farms Ltd.
• Green Sense Farms, LLC
• Vertical Farm Systems

AeroFarms is a leading player in the global vertical farming market. The company uses aeroponic technology to grow a variety of crops in its vertical farms, with a focus on leafy greens. AeroFarms has established partnerships with major retailers and restaurants, and its products are sold in stores across the United States.

Infarm is a German-based company that specializes in indoor vertical farming. The company's modular farms are designed to be installed in grocery stores, restaurants, and other urban locations, providing customers with fresh, locally grown produce. Infarm has partnerships with major retailers and restaurants in Europe and the United States.

Bowery Farming is a leading indoor vertical farming company that uses hydroponic technology to grow a variety of crops, including leafy greens, herbs, and tomatoes. The company's farms are located in the New York City area and its products are sold in major retailers such as Whole Foods and Stop & Shop.

Strategic Developments

Microsoft's $19.7 billion acquisition of Nuance Communications (April 2021): Microsoft acquired Nuance Communications, an artificial intelligence and speech recognition company, to strengthen its healthcare business.

Amazon's acquisition of MGM Studios for $8.45 billion (May 2021): Amazon bought MGM Studios, the movie and television studio behind the James Bond franchise and other popular shows, to bolster its streaming service, Amazon Prime Video.

Ford investing $29 billion in electric and autonomous vehicles (May 2021): Ford announced that it would invest $29 billion in electric and autonomous vehicles by 2025, doubling its previous commitment.

Visa's acquisition of Tink for $2.1 billion (June 2021): Visa acquired Tink, a Swedish fintech company that provides open banking services, to expand its capabilities in Europe.

Square's acquisition of Afterpay for $29 billion (August 2021): Square, the payment processing company, acquired Afterpay, an Australian buy now, pay later company, to expand its presence in the fast-growing sector.

PayPal's acquisition of Paidy for $2.7 billion (October 2021): PayPal acquired Paidy, a Japanese buy now, pay later company, to expand its presence in the country.

United Airlines' acquisition of Boom Supersonic for $3 billion (December 2021): United Airlines bought Boom Supersonic, a startup developing supersonic commercial airplanes, to eventually introduce faster-than-sound travel to its customers.