PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1850991
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1850991
The vertical farming market reached USD 3.94 billion in 2025 and is forecast to grow at a 10.8% CAGR, hitting USD 6.59 billion by 2030.

The expansion rate signals that industry growth now depends on technology-driven efficiency rather than aggressive capacity build-outs. Market consolidation during 2024 underscored this shift, with large, venture-backed operators unable to cover high operating costs despite substantial fundraising. Artificial-intelligence-enabled climate control advanced LED lighting, and modular warehouse conversions are lowering energy use and shortening project timelines, giving disciplined players a cost advantage. Federal grants for urban agriculture, state-level drought regulations that favor water-frugal systems, and premium retail demand for pesticide-free produce together sustain a solid demand outlook. The competitive intensity remains moderate because the largest five firms hold less than half of the total revenue, allowing regional specialists to flourish.
Year-round, pesticide-free food now earns premium shelf prices, and sensory studies from the University of Copenhagen show taste parity with organic field crops, lifting consumer acceptance. Gotham Greens sells premium leafy greens through more than 850 Northeast supermarkets and maintains profitability by pairing local freshness with brand trust. Large grocers deepen supply contracts at 80 Acres Farms, for example, supplies 316 Midwestern stores, shipping 10 million servings annually. Corporate cafeterias echo retail momentum; AeroFarms renewed its Costco fresh-produce program in 2025.
Cities now treat vertical farms as critical food security assets. Gotham Greens' 210,000-square-foot Monroe, Georgia greenhouse places 90% of U.S. consumers within a one-day truck reach, strengthening cold-chain resilience. AutoStore and OnePointOne's Arizona site delivers crops in 15 days from seed to shelf using high-density robotics. New York State approved a 385,000-square-foot "GigaFarm" that will output 8 million lb of produce yearly while operating at carbon-negative status.
A typical multilevel farm costs about USD 1,000 per ft2 to build, and electricity accounts for up to 40% of monthly expenses. Bowery Farming and Plenty both filed for bankruptcy after raising more than USD 1.6 billion combined, underlining the risk when cost reductions lag scale-up. Dynamic lighting tied to wholesale power prices can trim bills by up to 18%. Operators such as Gotham Greens remain profitable by choosing low-cost power locations and standardizing designs across 13 facilities.
Other drivers and restraints analyzed in the detailed report include:
For complete list of drivers and restraints, kindly check the Table Of Contents.
Hydroponics held 68.0% of the vertical farming market revenue in 2024, supported by mature supply chains and proven designs. Aeroponics, though representing a smaller base, will log an 18.4% CAGR to 2030 as 95% water-efficiency targets catch regulators' attention in drought zones. The IoT nutrient sensors sharpen dosing accuracy across both systems, helping close the cost gap.
Precision imaging now notifies growers of nutrient stress within hours, further reducing waste. Operators, therefore, compete less on growth medium and more on integrated software that orchestrates lighting, fertigation, and harvesting.
The United States Vertical Farming Market Report is Segmented by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), by Structure (Building-Based Vertical Farms, Shipping-Container Farms, and More), and by Crop Type (Leafy Greens, Herbs and Microgreens, and More). The Market Forecasts are Provided in Terms of Value (USD).