Vertical Farming Market Report 2025 (Global Edition)

Global Vertical Farming Market Report 2025 Market Size Split by Type (Hydroponics, Aquaponics, Aeroponics), by Component (Lighting Devices, Hydroponic Components, Climate Control Devices, Sensing Dev...

Vertical Farming Market Report Description

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Impact of Tariff Trumph on Agriculture Industry

In 2025, global agricultural trade is under major strain following President Trump’s Liberation Day Tariffs, which introduced steep duties to correct trade imbalances. Tariffs now range from 10% on imports from allies like Japan to as high as 46% on Vietnamese goods and 34% on Chinese agricultural products, with a blanket 25% on agri-machinery, fertilizers, and processed foods. This has significantly raised input costs for U.S. farmers and triggered retaliatory tariffs from key partners like China, the EU, and Brazil. China’s countermeasures up to 120% on U.S. exports like soybeans, pork, and dairy—have already slashed Q1 soybean exports by 19.7%. Canada and others have also tightened import rules, compounding uncertainty.

Key agriculture sectors are struggling. Row crop farmers face slumping export prices and higher input costs, leading many to explore alternative crops and new markets in South Asia and Africa. Dairy and pork producers are dealing with oversupply and weak demand, especially from China and the EU. Fruit and vegetable growers are hit by increased spoilage and packaging costs, while food processors are seeing a 10–14% rise in unit costs due to equipment and material tariffs. Logistics firms, meanwhile, are grappling with slower exports and rising warehousing needs, pushing them to revamp inland routes and distribution strategies.

China, while not the largest exporter of agricultural goods to the U.S., is a key supplier of specific inputs like agrochemicals, additives, seafood, and processed foods. Many of these goods are also routed through intermediaries in Asia, so tariffs aimed at China disrupt broader global supply chains. U.S. agribusinesses are seeing input costs rise by up to 22%, complicating seasonal planning and tightening margins. While some are turning to alternate sourcing from India, Latin America, or Southeast Asia, challenges like logistics and compliance slow the transition.

To adapt, agribusinesses are increasingly relying on market research. It helps identify lower-risk suppliers, monitor input costs, optimize fragmented supply chains, and understand shifting consumer behaviors. Firms are also tracking regulatory changes and running scenario planning models to anticipate disruptions. Major companies are responding by reshoring supply chains, investing in local operations, and realigning exports toward tariff-exempt markets. The most resilient players are those using real-time data and strategic foresight to reconfigure operations and maintain competitiveness amid ongoing trade volatility.

Vertical Farming Market Insights Video

Competitive Landscape of the Vertical Farming Market

The vertical farming industry is quite competitive worldwide. This is explained by the fact that players in the value chain are continuously conducting research and development and launching new technologies. In addition, prominent entities are implementing several commercial expansion tactics to enhance their market share both domestically and internationally. with significant market changes such as the introduction of new products, contracts, mergers and acquisitions, increased investment levels, and cooperation with other organizations.

Top Companies Market Share in Vertical Farming Industry: (In no particular order of Rank)

• AeroFarms (US)
• Plenty Unlimited Inc. (US)
• Urban Crop Solutions (Europe)
• Heliospectra AB (Sweden)
• BrightFarms (US)
• Freight Farms (US)
• Everlight Electronics (Taiwan)
• Valoya (Finland)
• OSRAM Light AG (Germany)
• Sky Greens (Singapore)
• Hort Americas
• Spread (Japan)
• Others
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Insights of the Vertical Farming Market

Which region dominate the Vertical Farming market in 2024?

According to Cognitive Market Research, the largest shareholder in the worldwide Vertical Farming market, North America is expected to grow at a compound annual growth rate (CAGR) of XX% throughout the forecast period. One of the key areas for the expansion and development of the global vertical farming industry is North America. across North America, alternative farming methods are highly valued, which leads to a higher rate of vertical farming adoption across the continent. Because vertical farming and food production can produce high-quality, nutritious, and fresh crops close to metropolitan centers where highly perishable commodities are transported to market fast, it is an appropriate solution to the region's food requirement. Additionally, because a majority of the world's top vertical farming firms, like AeroFarms, Squareroot, and American Hydroponics, are based there, it is anticipated that North America will lead the worldwide vertical farming market.

Which region is expanding at the faster CAGR?

According to Cognitive Market Research, Asia-Pacific has the world's largest population, with nations like India contributing to the increased demand for food in these areas. The Asia-Pacific region's vertical farming market is anticipated to be driven by this. Considering the reliance of the Asia-Pacific region's nations on agriculture, the worldwide market for vertical farming is significant. In the nations that make up this region, a sizable portion of the population works mostly in agriculture. In response to growing urbanization and a rise in the number of abandoned farms, several nations have embraced modern agricultural methods. The farming and agricultural industries depend on these methods to maintain, expand, and enhance output.

Furthermore, the region's agriculture sector, which saw remarkable growth over the past few years, is an essential contributor to the region's overall GDP. Additionally, India is one of the world's top producers of food, feeding about XX% of the world's population. These factors are expected to drive the growth of the Asia-Pacific market.

•    For Instance: On Nov 22, 2021 – Signify launched a virtual center of excellence for sustainable urban vegetable farming in Singapore and Asia. The center will provide profound research insights and advanced lighting solutions for growers in Singapore and Asia.

https://www.agribusinessglobal.com/agtech/signify-launches-virtual-center-of-excellence-for-sustainable-urban-vegetable-farming-in-singapore/

The current report Scope analyzes Vertical Farming Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

Vertical Farming Market Analysis

Based on the type, the global vertical farming market is divided into hydroponics, Aquaponics, and Aeroponics.

One of the main growing techniques utilized in vertical farms is hydroponics. Plants are grown in a nutrient solution without soil in a hydroponic system. Plant roots are submerged in liquid solutions containing various nutrients in hydroponic systems. Sand and gravel are utilized as alternatives to soil to keep the roots of the plants healthy. This consequently makes it possible for plants to absorb and concentrate on macronutrients, or the nutrients needed in big quantities. Nutrients are more easily accessible for growth and health when they are absorbed into the roots of the plant through water, as opposed to being taken up from the soil. Vertical hydroponic farming is ideal for urban farming in a compact, controlled environment since it uses the tried-and-true ideas and practices of greenhouse production rather than traditional farming methods, which need more space.

Hydroponics and aquaculture are combined to create aquaponics. Aquaponics is the evolution of hydroponics, combining the cultivation of plants with the use of aquatic creatures to support their growth. The natural aquatic organisms work together to help the plants concentrate on taking in nutrients and natural elements without the need for soil. 

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Vertical Farming Industry. Request a Free Sample PDF!

Based on the Components, the global vertical farming market is categorized into Lighting Devices, Hydroponic Components, Climate Control Devices, Sensing Devices, and Others. Out of these, lighting devices are anticipated to dominate the global market during the forecast period.

High-pressure sodium (HPS) lights are employed in the majority of conventional indoor vertical farming operations in place of sunlight. But for several reasons, light-emitting diodes (LEDs), are revolutionizing controlled growth methods in the farming industry. The ability of LED lighting to convert electricity into light has improved recently, leading to the creation of more productive controlled environment agriculture (CEA) farms. Because they are affordable, LED lights can be used as the only light source in CEA vertical farms and as a supplemental light source in greenhouses. The latest developments in full adjustable spectrum LED lights allow for the customization of plant light through the modification of parameters including duration, light intensity, wavelength, and timing of illumination. As a result, the farmers can adjust to a particular setting that meets the requirements of the plant crop species.

Additionally, several businesses are attempting to break into the market by introducing goods with cutting-edge technology and growing their LED light company internationally in response to the noticeable move towards vertical farming. During the forecast period, the demand for vertical farming is expected to rise due to all of these factors.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Author's Detail

Pratik Shirsath

Research Associate at Cognitive Market Research

LinkedIn

Profile

Pratik Shirsath is an accomplished Research Analyst with extensive expertise in the agriculture sector, bringing over one years of experience in market research and analysis. Pratik specializes in secondary research, competitive benchmarking, and data-driven insights that empower organizations to make strategic decisions and achieve their goals.

In his current role, Pratik leads research projects focused on the agriculture sector, driving initiatives that identify emerging market trends, assess competitive landscapes, and uncover growth opportunities. His proficiency in designing effective research methodologies and translating complex data into actionable strategies has consistently supported his organization’s objectives.

Pratik's dedication to delivering high-quality research and his in-depth knowledge of the agriculture industry have made him a trusted resource for his team and stakeholders. Passionate about innovation and sustainability in agriculture, he remains committed to advancing his expertise to navigate the evolving challenges and opportunities in the sector.

Author's Conclusion