Vertical farming market seen topping $24 billion by 2030

The Business Research Company projects the vertical farming market will exceed $24 billion by 2030, driven by a 21% annual growth rate as demand rises for sustainable, resource-efficient food production. Irrigation components are expected to lead the category, while Asia-Pacific is forecast to be the largest regional market by 2030.

Why it matters: - Vertical farming is moving from a niche food-production model to a fast-growing agricultural technology market. - The sector’s growth reflects pressure to produce more food with less land, water and transportation. - Investors, equipment suppliers and indoor-farming operators are competing for a market projected to exceed $24 billion by 2030.

What happened: - The Business Research Company released its Vertical Farming Global Market Report 2026, covering market size, trends and forecasts for 2026-2035. - The report projects the vertical farming market will surpass $24 billion by 2030, growing at a 21% CAGR. - Signify N.V., formerly Philips Lighting N.V., was the top-performing company in global vertical farming sales in 2025 with a 1% market share. - AeroFarms, Osram AG, Bowery Farming Inc. and Plenty Unlimited Inc. each held a 1% share in 2025. - The top 10 companies together accounted for only 5% of total revenue in 2025, underscoring a fragmented market.

The details: - The report says entry barriers are moderate because controlled-environment farming requires sophisticated technology for crop cultivation and quality consistency. - Leading companies are competing through broader product lines, partnerships, distribution networks and ongoing innovation. - Modular, container-based vertical farming systems are a major trend because they improve space efficiency and support year-round production. - Growtainers introduced modular vertical farming solutions in October 2024. - Those systems combine LED lighting, hydroponics and automated monitoring to raise output and reduce costs and resource use. - Irrigation components are forecast to account for 25% of the market in 2030, worth about $6 billion. - The irrigation segment is benefiting from precision water delivery, automated nutrient dosing, recirculating systems and smart controllers tied to real-time environmental data. - The market also includes lighting, sensors, climate control, building materials and other components. - The report forecasts irrigation systems will add $4 billion in value from 2025 to 2030. - Lighting and sensors are each projected to add $3 billion, while climate control and building materials are each expected to add $2 billion. - Other components are projected to add $1 billion. - Asia-Pacific is expected to be the largest regional market by 2030, rising from $3 billion in 2025 to $7 billion at an 18% CAGR. - The U.S. market is projected to grow from $2 billion in 2025 to $4 billion by 2030 at a 16% CAGR.

Between the lines: - The report points to a market that is expanding quickly, but with limited concentration among the biggest players. - That mix suggests room for specialized suppliers, technology vendors and regional operators rather than one dominant platform. - The strongest demand drivers are practical rather than speculative: land constraints, consumer demand for pesticide-free produce and growing interest in localized food supply. - The emphasis on irrigation, lighting and automation shows that hardware and control systems remain central to vertical farming economics.

What's next: - The report expects broader adoption of stacked, controlled-environment systems as governments and businesses invest in food security and local production. - Continued gains are likely in LED lighting, automation, hydroponics and AI-based crop monitoring. - Asia-Pacific and the U.S. are set to remain major growth markets, with urbanization and investment patterns shaping demand. - More partnerships between retailers, food companies and vertical farms could help accelerate commercialization.

The bottom line: - Vertical farming is on track for rapid growth through 2030, but the market remains fragmented and technology-intensive, with irrigation, lighting and automation shaping the next phase of competition.