With 19.7% CAGR, Vertical Farming Market Growth to Surpass USD 13.7 billion
The global vertical farming market was valued at USD 5.6 billion in 2024 and is projected to reach USD 13.7 billion by 2029; it is expected to register a CAGR of 19.7% during the forecast period. The increasing demand for vertical farming (SHM) is propelled by various critical factors. The global vertical farming market is rapidly growing on account of numerous factors. Peculiarities of the environment such as climate change, scarcity of land and water and need for efficiency in the use of the available resources are forcing its adoption. Also, application demand is being fuelled by such non-technical factors as population growth, urbanisation, and food security issues. Other relative gains include cheaper transportation, production throughout the year, and using the soil to grow premium crops strengthen the place’s appeal. In addition, technologies such as IoT, AI, LED lightings, hydroponics among others are taking efficiency and productivity to another level. Altogether, such components make vertical farming look like a very realistic approach to modern agriculture.
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Within the hardware offering of the vertical farming market, sensors segment, is anticipated to expand at the fastest pace since they managed to achieve increased adoption of innovations like artificial intelligence and IoT, as well as big data analytics. These sensors as has been discussed earlier have been shown to be very effective in monitoring many requirements in the environmental process including temperature, humidity, light and nutrient levels during the growing process. It also enhances crop production, yield and hence the efficiency and sustainability of the vertical farming systems as it also increases resource productivity. It was also noted that the concern of vertical farming has already been established in tackling challenges such as food security and sustainability of food production systems The segment of advanced sensor technologies is believed to be on the ascendancy in the future.
Buildings-based vertical farms is dominating the global vertical farming market. First of all, their general nature permits them to be set up in any climatic region, no matter unfavourable weather conditions. This makes them fit well with countries or regions having troubles in traditional farming because of the presence of deserts or cities. Secondly, the intensiveness of building-based structures of vertical farming evident, since a they can first, optimize the use of water, space and energy. Through vertical stacking, these farms are able to produce a great yield but within a limited area.
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US to dominate vertical farming market size in North America because vertically farmed produce is most abundant in this region and across the globe. When it comes to vertical farming, the current statistics indicate that the US is the most advanced country in North America as it boasts of the most vertical farms owing to a large population and the rising demand for locally grown crops. The US alone has more than 330 million people, and there is always a demand for fresh agricultural products to feed these people, making vertical farming solutions a top priority. Furthermore, the country has an unrestricted supply of capital resources mainly due to it being an economically stable country with adequate money for funding. This financial backing has made it possible for the vertical I farming companies to grow and expand. Secondly, the US also has relatively friendly policies to help firms quickly enter the vertical farm market. Some of the most successful vertical farming venture in operation within United States include AeroFarms, Bowery Farming, and Gotham Greens having farms in different cities.
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