U.S. Vertical Farming Market Set to Reach $2.55 Billion by 2029

NORTHBROOK, Ill. - April 21, 2025 - PRLog -- The vertical farming market in the US was valued at USD 1.11 billion in 2024 and is projected to reach USD 2.55 billion by 2029; it is expected to register a CAGR of 18.2% during the forecast period.

Multiple factors drive the US vertical farming market such as decreasing arable land, increasing consumer demand for local pesticide-free produce, and improved hydroponic, aeroponic, and aquaponic technology capabilities. Moreover, rising investments in controlled environment agriculture (CEA) combined with increased adoption of automation and artificial intelligence in farming solutions further boost market growth. Furthermore, growing demand for climate-resilient farming systems and government backing for sustainable and urban farming projects further drive market expansion across the country.

Building-based vertical farms are likely to dominate the US vertical farming market between 2024 and 2029.

Building-based vertical farms are expected to dominate the US vertical farming market because they can work in every site without environmental constraints thus benefitting cities and areas where fertile land availability is minimal. Vertical stacking in these farms creates efficient space utilization thus producing higher crop yields for each unit of area when compared to conventional farming methods. Building-based vertical farming maximizes its resource efficiency through automated systems along with AI-based climate control systems and precise water and nutrient distribution which leads to reduced waste. The combination of smart technology makes these facilities able to produce food throughout the year thus achieving food security targets and promoting sustainability efforts. The increasing need for local fresh produce across the country has made building-based vertical farms develop into the most practical and efficient approach for present-day agriculture.

By Mechanism, aeroponics farming exhibits the highest CAGR between 2024 and 2029 in the US vertical farming market.

Aeroponics farming is expected to exhibit the highest CAGR in the US vertical farming market because it provides higher productivity with fewer resources. Unlike hydroponics or soil, aeroponic farming nourishes plants with mist in the air. As a result, aeroponic farming has a better potential for faster growth, improved nutrient absorption, and maximum efficiency. One of its biggest advantages is water conservation this method uses, for instance, according to Atlas Scientific (US), aeroponic farming uses 98% less water than traditional farming and 30% less than hydroponic systems. Moreover, technological advancements in automation and AI-driven monitoring improve precision and scalability, which makes aeroponic farming an attractive advancement for agritech and urban farming in the country.

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