Vertical Farming Market to Exceed $24 billion by 2030 at 21% CAGR, Irrigation Components Leading at 25%

Vertical Farming Market Growth

Vertical Farming market Trends

Vertical Farming Market Demand

The Business Research Company’s Vertical Farming Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, October 12, 2026 /EINPresswire.com/ -- The vertical farming industry is rapidly evolving as companies innovate with cutting-edge agricultural technologies and controlled environment solutions. These advancements focus on enhancing crop yields, optimizing resource use, and integrating smart digital systems to meet the growing demand for sustainable food production. Understanding this fast-changing market landscape is vital for stakeholders aiming to capitalize on new growth prospects through technological progress and strategic collaborations.

Signify N.V. Leads the Vertical Farming Market in 2025
In 2025, Signify N.V., formerly Philips Lighting N.V., emerged as the top performer in global vertical farming sales, capturing a 1% market share. Its horticultural lighting division specializes in LED grow lights, digital control systems, and solutions tailored for indoor farming and controlled environment agriculture, supporting optimized plant cultivation and energy efficiency.

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A Fragmented Market with Moderate Entry Barriers
The vertical farming market remains highly fragmented, with the top 10 companies collectively accounting for only 5% of total revenue in 2025. Entry challenges are moderate due to the sophisticated technology needed for controlled environment management, precision crop cultivation, and maintaining consistent quality. Leading firms maintain their positions through diverse product ranges, established partnerships in agriculture, widespread distribution channels, and ongoing innovation in vertical farming technologies.

Top Players and Their Market Shares in 2025
1. Signify N.V. (Philips Lighting N.V.) – 1%
2. AeroFarms – 1%
3. Osram AG – 1%
4. Bowery Farming Inc. – 1%
5. Plenty Unlimited Inc. – 1%
6. Infarm Indoor Farming GmbH – 0.3%
7. Valoya Inc. – 0.1%
8. Intelligent Growth Solutions Ltd. – 0.1%
9. CropOne Holdings Inc. – 0.1%
10. Urban Crop Solutions – 0.1%

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Modular Farming Solutions Shaping Market Trends
Modular, container-based vertical farming systems are revolutionizing the market by maximizing space efficiency and promoting sustainable, year-round crop cultivation. In October 2024, Growtainers unveiled such modular solutions designed to deliver scalable and efficient agricultural production. These systems combine energy-saving LED lighting, hydroponic setups, and automated monitoring to boost output while lowering costs and resource consumption.

Corporate Focus Areas in the Vertical Farming Market
Major players prioritize developing innovative technologies that increase crop output and sustainability. They emphasize optimizing space and resource utilization through advanced farming systems, expanding facility footprints to bolster local food supply, and deploying AI-driven tools for improved crop monitoring and automation.

Forecast and Market Size Projections for Vertical Farming by 2030
The vertical farming sector is expected to surpass $24 billion by 2030. Within the wider Crop Production market, projected to reach around $7,196 billion, vertical farming will represent roughly 0.3%. In the broader Agriculture industry, forecast to hit $17,550 billion, vertical farming accounts for nearly 0.1%. Between now and 2030, the segment should experience a robust CAGR of 21%, driven by rising demand for sustainable farming solutions.

Regions Experiencing the Fastest Vertical Farming Growth
Asia-Pacific is anticipated to be the largest regional market by 2030, growing from $3 billion in 2025 to $7 billion and registering an 18% CAGR. This growth is propelled by shrinking cultivable land in urban areas, investments in controlled environment agriculture, demand for locally sourced fresh vegetables, and government programs promoting sustainable urban farming.

In the United States, the vertical farming market is projected to expand from $2 billion in 2025 to $4 billion by 2030 at a 16% CAGR. Growth is fueled by commercial operations near metropolitan hubs, venture capital inflows into agtech startups, AI-based crop monitoring, automated systems, and consumer preferences for pesticide-free, premium indoor-grown produce.

Breakdown of Vertical Farming Market Segments
The market is categorized by components such as irrigation systems, lighting, sensors, climate control, building materials, and others. Irrigation components will dominate by accounting for 25% of the market share in 2030, worth approximately $6 billion. This segment benefits from the adoption of precision water delivery, automated nutrient dosing, water-saving recirculating systems, and smart irrigation controllers that respond to real-time environmental data.

Additionally, vertical farming structures are segmented into shipping container and building-based systems. Farming types cover hydroponics, aeroponics, and aquaponics. Crop types include leafy greens, pollinated plants, and nutraceutical crops. Applications are divided into indoor and outdoor farming.

Main Forces Propelling Vertical Farming Market Expansion
One major factor accelerating market growth is the wider adoption of vertical farming systems. Both businesses and governments are investing in controlled environment agriculture, using stacked systems that optimize land use and enable consistent year-round production. Innovations in LED lighting, automation, and hydroponics boost efficiency. Partnerships between retailers, food companies, and vertical farms, along with supportive policies, further stimulate market expansion. This driver is expected to contribute about 2.6% to annual market growth.

Consumer demand for organic and sustainably grown foods is another powerful growth engine. Vertical farms provide fresh, pesticide-free produce close to consumers, ensuring higher freshness and reduced transportation time. Increasing health consciousness among households and restaurants, combined with retailers’ expansion of organic offerings, ensures stable, higher-value sales. This trend is projected to add roughly 2.5% to annual growth.

A third growth catalyst is the rising global food demand driven by population growth and diminishing arable land. Vertical farming yields more crops per square meter, uses less water and land, is climate-independent, and shortens supply chains by growing near consumption points. Government and investor support for food security make this an essential factor, contributing an estimated 2.1% annual growth.

Market Opportunities in Vertical Farming Through 2030
All six component segments present ample opportunities, collectively expected to add over $15 billion in value by 2030. From 2025 to 2030, irrigation systems are forecasted to grow by $4 billion, lighting by $3 billion, sensors by $3 billion, climate control by $2 billion, building materials by $2 billion, and other components by $1 billion. This growth is fueled by the increasing demand for controlled environment agriculture, year-round production, resource-efficient farm investments, precision monitoring, and energy-saving horticultural equipment.

The Vertical Farming Market Value Chain’s Key Players
Raw material suppliers include companies such as Signify N.V. (Philips Lighting), OSRAM GmbH, Heliospectra AB, Valoya Oy, Gavita International B.V., Fluence Bioengineering Inc., Illumitex Inc., Current Lighting Solutions LLC, Lumileds Holding B.V., Cree Lighting, Rockwool International A/S, BASF SE, Scotts Miracle-Gro Company, Hawthorne Gardening Company, General Hydroponics, Netafim Ltd., Priva Holding B.V., Argus Control Systems Ltd., Autogrow Systems Ltd., Hort Americas LLC, Pentair plc, Hydrofarm Holdings Group, Inc., Grodan B.V., Koppert Biological Systems, and Richel Group.

Wholesalers and distributors servicing the market include Farnell Global, Digi-Key Electronics, Mouser Electronics, Inc., Arrow Electronics, Inc., Avnet, Inc., RS Group plc, TTI, Inc., Newark Electronics, Allied Electronics & Automation, McMaster-Carr Supply Company, Grainger Inc., Fastenal Company, MSC Industrial Direct Co., Inc., Uline Inc., Zoro Tools Inc., Global Industrial Company, Motion Industries, Inc., Rexel S.A., Sonepar Group, Wesco International, Inc., Graybar Electric Company, Inc., Ferguson Enterprises, Inc., and HD Supply Holdings, Inc.

End users encompass AeroFarms LLC, Bowery Farming Inc., Plenty Unlimited Inc., Infarm GmbH, Crop One Holdings Inc., Gotham Greens Farms LLC, BrightFarms Inc., Freight Farms Inc., Eden Green Technology Inc., Kalera AS, Jones Food Company Ltd., Nordic Harvest ApS, PlantLab B.V., iFarm Project, Mirai Co., Ltd., Spread Co., Ltd., Sky Greens Pte Ltd., Sustenir Agriculture Pte Ltd., FarmedHere LLC, Vertical Future Ltd., LettUs Grow Ltd., Agricool SAS, V-Farm Inc., and Square Roots Urban Farming.

Prominent Companies Competing in the Vertical Farming Market
Key market participants include Signify N.V. (Philips Lighting N.V.), AeroFarms, Osram AG, Bowery Farming Inc., Plenty Unlimited Inc., Infarm Indoor Farming GmbH, Valoya Inc., Intelligent Growth Solutions Ltd., CropOne Holdings Inc., Urban Crop Solutions, Freight Farms Inc., Agricool Group, Future Crops Vertical Farming B.V., Agrilution Systems GmbH, Spread Group GmbH, Green Sense Farms Holdings Inc., Heliospectra AB, Mirai Co. Ltd., Eden Green Technology, Square Mile Farms Ltd., Swegreen AB, Everlight Electronics Co. Ltd., Hort Americas LLC, American Hydroponics Inc., and General Hydroponics Inc.

Key enhancements in our 2026 market reports include:
• Market attractiveness scoring and analysis
• Total addressable market (TAM) analysis
• Company scoring matrix graphics and tables
• Excel-based forecasting dashboards
• Market hotspots infographics
• Key technologies and future trend analysis
• Updated graphics and tables

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