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Vertical Farming's Market, By Component, By Growth Mechanism, By Farm Structure, Market - Growth, Future Prospects, Post COVID-19 Scenario 2021 to 2028

Report ID: GMRI0025     |      Published Date: Jul 2021      |        Report Format: PDF
Price :   $3549

Vertical Farming Overview

Vertical farming refers to the method of cultivating crops in vertically stacked layers, often within controlled indoor environments. This innovative approach is designed to produce food in locations where traditional agriculture is limited or infeasible due to scarce or inaccessible arable land. Vertical farms commonly utilize enclosed structures, similar to greenhouses, with layers either aligned directly above one another or staggered to enhance access to natural light.

Among the various farming techniques, hydroponics is widely employed in vertical farming due to its space-saving benefits. This method significantly reduces both the weight of the setup and water usage—by as much as 70%. Aeroponics is another technique gaining traction, further minimizing water and structural weight requirements. Currently, over 204,387 square meters of indoor vertical farms are operational globally. This area is projected to increase nearly tenfold, reaching approximately 2 million square meters within the next five years.

Vertical Farming Market Segmentation

The vertical farming industry is composed of several key components that manage environmental conditions, monitor crop progress, and regulate nutrient delivery. These components include:

  • Irrigation Systems

  • Lighting Systems

  • Sensors

  • Climate Control Units

  • Building Materials

  • Others

In terms of growth mechanisms, the vertical farming market is divided into:

  1. Hydroponics – the most widely adopted system, known for its cost efficiency and ease of implementation.

  2. Aeroponics – used for ultra-efficient water and nutrient delivery.

  3. Aquaponics – combines plant cultivation with aquaculture, promoting a sustainable ecosystem.

Vertical farms typically follow two structural models:

  • Building-Based Farms – located within repurposed buildings or skyscrapers.

  • Container-Based Farms – portable systems that require minimal land and offer flexibility in location and scalability.

Container farms are particularly advantageous due to their mobility and independence from large land requirements.

Key Industry Players and Trends

Prominent companies operating in the vertical farming market include:

  • Green Sense Farms, LLC

  • AeroFarms, LLC

  • BrightFarms Inc.

  • Everlight Electronics Co., Ltd.

  • Agrilution Systems GmbH

  • Spread Co. Ltd.

  • Koninklijke Philips N.V.

  • Illumitex Inc.

  • Plenty Unlimited Inc.

  • Crop One Holdings

These companies are actively pursuing growth strategies such as partnerships, geographic expansion, and new product development. Investments in research and development (R&D) are also prominent, aiming to drive innovation and improve productivity in vertical farming technologies.

Global Vertical Farming Market by Component (2020 vs. 2028)

The market analysis by component highlights the comparative value contribution of each segment from 2020 to 2028. This includes a visual graph (not shown here) comparing growth trends for:

  • Irrigation Components

  • Lighting Systems

  • Sensors

  • Climate Control Systems

  • Building Materials

  • Others

This growth is driven by increasing demand for sustainable agriculture, urban food production, and technological advancements in controlled-environment agriculture.

Lighting System Segment Leading the Market

In 2020, the lighting system segment dominated the global vertical farming market and is expected to maintain substantial growth throughout the forecast period. The significant share of this segment is largely due to the essential role of artificial lighting in vertical farming environments. Since many vertical farms operate indoors with limited access to natural sunlight, artificial lighting systems are crucial to simulate ideal conditions for photosynthesis and plant growth.

These lighting systems—often using LEDs—are engineered to provide specific wavelengths that optimize crop development, improve yield quality, and reduce energy consumption. As vertical farming continues to scale, particularly in urban and climate-constrained regions, demand for advanced lighting technologies is projected to rise accordingly.

Global Vertical Farming Market, By Growth Mechanism

Based on the growth mechanism, the vertical farming market is segmented into the following categories:

  • Hydroponics: The most widely adopted method, recognized for its relatively low setup cost, efficient nutrient delivery, and operational simplicity.

  • Aeroponics: An advanced technique where roots are suspended in air and misted with nutrient-rich solutions, known for extremely low water usage and enhanced oxygen exposure to roots.

  • Aquaponics: A hybrid system combining hydroponics with aquaculture, where fish waste provides nutrients for plants and plants purify the water for fish.

The chart below presents a comparative analysis of the value contribution for each of these segments in 2020 and projected for 2028. Hydroponics currently leads the segment due to its scalability and ease of management, but both aeroponics and aquaponics are expected to gain momentum as sustainable and technologically sophisticated alternatives.

Hydroponics Segment Leading the Growth Mechanism Category

In 2020, the hydroponics segment accounted for the largest share in the global vertical farming market. This dominance can be attributed to its cost-effectiveness, straightforward operational procedures, and its ability to mitigate risks posed by soil-borne diseases. Unlike traditional farming, hydroponics eliminates the need for soil, reducing exposure to harmful organisms and enhancing plant health.

Additionally, growing consumer awareness regarding pesticide-free produce has significantly boosted the popularity of hydroponic farming. Since this method uses nutrient-rich water solutions instead of chemical-based soil treatments, it aligns well with the rising demand for clean, safe, and sustainable food production.

Given these advantages, the hydroponics segment is expected to continue leading the vertical farming market over the forecast period, outpacing other growth mechanisms like aeroponics and aquaponics.

Global Vertical Farming Market, By Farm Structure

Based on farm structure, the vertical farming market is divided into:

  • Building-Based Structures

  • Container-Based Structures

The chart below (not included here) presents a comparative analysis of the market value contribution of these two segments for the years 2020 and 2028.

Building-based structures are typically established in urban environments, such as repurposed warehouses, skyscrapers, or designated vertical farming facilities. These structures offer scalability and can support large-scale, high-tech operations with sophisticated climate control and lighting systems.

On the other hand, container-based structures are gaining popularity due to their portability, modular design, and minimal land requirements. These mobile farms can be deployed in urban areas, disaster zones, or remote locations, making them ideal for decentralized and localized food production.

While building-based farms currently hold a higher market share, container-based vertical farms are expected to witness notable growth in the coming years due to their adaptability and reduced setup costs.

Container-Based Structures Dominating the Market

In 2020, the container-based structure segment led the global vertical farming market. This dominance is largely attributed to the versatility and mobility of container farms, which can support crop production regardless of geographical constraints. These systems are especially useful in urban settings, remote regions, and areas with limited arable land.

Another key factor contributing to their widespread adoption is the cost-effectiveness of using repurposed shipping containers. As competition in the vertical farming industry increases, the price of acquiring and outfitting used containers has dropped, making it easier for new players to enter the market. These structures also offer scalability and standardization, helping operators maintain consistency in crop yields and quality.

With these advantages, container-based farming is expected to retain its market lead and continue gaining traction during the forecast period.

Global Vertical Farming Market, By Geography

The vertical farming market is geographically segmented as follows:

North America

  • United States

  • Canada

Europe

  • United Kingdom

  • Germany

  • France

  • Rest of Europe

Asia Pacific

  • China

  • Japan

  • India

  • Rest of Asia Pacific

Latin America

  • Mexico

  • Brazil

  • Rest of Latin America

Middle East and Africa (MEA)

  • GCC Countries

  • South Africa

  • Rest of MEA

Geographical Insights

  • North America currently holds a significant share due to early technology adoption, strong investment in agri-tech, and increasing demand for locally grown, pesticide-free produce.

  • Europe follows closely, driven by sustainability initiatives, smart city projects, and urban agriculture trends.

  • Asia Pacific is projected to witness the fastest growth during the forecast period. High population density, limited farmland, and governmental support for food security are propelling investment in vertical farming, especially in countries like China, Japan, and India.

  • Latin America, Middle East, and Africa are emerging markets with increasing interest, especially in regions facing water scarcity and harsh climatic conditions.

Asia Pacific Dominates the Vertical Farming Market

In 2020, the Asia Pacific region led the global vertical farming market in terms of market value. This region is expected to continue experiencing significant growth throughout the forecast period. Asia Pacific is recognized as one of the early adopters and pioneers of vertical farming technologies.

The rising demand for organic and pesticide-free food in the region is a key driver fueling the expansion of vertical farming. Additionally, growing awareness about the benefits of alternative farming methods is contributing to this trend. Factors such as limited availability of fertile agricultural land and a rapidly increasing population further emphasize the need for innovative agricultural solutions, making vertical farming an attractive and necessary approach for sustainable food production.

Consequently, the Asia Pacific market is projected to maintain its leadership position, capitalizing on both technological advancements and evolving consumer preferences.

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