U.S. Vertical Farming Industry Projected to Hit $2.55 Billion by 2029

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.

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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.

Decreasing arable land due to the rise of urbanization and growing demand for local fresh produce to drive the market in the US.

The US will dominate the vertical farming market in North America because it possesses robust investment opportunities together with state-of-the-art farming technologies along with rising consumer preference for fresh locally cultivated products. The rise of urbanized populated areas along with depleted arable land fields has propelled the transition to vertical farming solutions for locations where traditional farming remains impossible. For instance, according to the US Department of Agriculture (USDA), the farm count in the US reached 1.88 million in 2024 after a decrease of 8% from the 2.04 million reported in the 2017 Census of Agriculture. Farmland acreage decreased to 876 million acres in 2024 representing a 3% reduction from 900 million acres since 2017. The limited availability of traditional agricultural land has led to vertical farming becoming more popular as this method allows food production in urban areas with improved efficiency and decreased dependence on environmentally sensitive land.

Key Players

The key companies in the vertical farming ecosystem include Signify Holding (Netherlands), Freight Farms (US), AeroFarms (US), Sky Greens (Singapore), Spread (Japan), Plenty (US), Valoya (Finland), Everlight Electronics (Taiwan), and Heliospectra AB (Sweden).