Vertical Farming Market Expected to Reach New Heights by 2029

NORTHBROOK, Ill. - May 20, 2026 - PRLog -- The global vertical farming industry 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. Agriculture IoT and AI technology, high urbanization, and a push for the necessity of vertical farming by consumers are prominent drivers for the vertical farming market. These factors include; scarcity of land especially one that is suitable for cultivation, climatic change, and an increasing demand for fresh and organically grown fruits and vegetables. Thus, more governments' support and investment and the concerns about food security, driving the vertical farming industry.

Hardware segment to account for the largest market share in the forecasted year.

The hardware segment is claimed to have the biggest share in the vertical farm industry owing to their role as a necessity for managing climate for plant crops. This segment consists of the lighting, water and nutrient supply, environmental control and other instruments, which are important in the hydroponic system. Amongst these, the most profound has been observed in the area of lighting; LED lighting systems are crucial in providing the right light intensities needed for the growth of plants while conserving energy to the maximum. Additionally, an advanced means for controlling climate parameters such as temperature, humidity and CO2 level ensures optimum growing conditions all year round. Therefore, with the fresh food and local, sustainable products gaining interest constantly, the hardware solutions market should also continue to rise steadily thus confirming the key role played by the hardware segment on the vertical farming industry.

Building-based vertical farms likely to dominate the overall market between 2024 and 2029.

There are several reasons why the building based vertical farm structures has been made to dominant the main actors of the overall vertical farm industry. First of all, they allow being placed in any location no matter what climatic conditions in this area or outside are. This makes them particularly adequate for any country or part of the world that faces issues of conventional farming such as deserts or cities. Second of all, high efficiency is peculiar to the building-based VFs because those constructions may fit the use of water, space, and energies in the best way. Such farms can therefore be able to generate more yields per unit of area and this is because of vertical stacking.

For more info: https://www.marketsandmarkets.com/Market-Reports/vertical-farming-market-221795343.html