DELRAY BEACH, Fla., April 10, 2025 /PRNewswire/ — The US vertical farming market is on a significant growth trajectory, valued at USD 1.11 billion in 2024 and projected to reach USD 2.55 billion by 2029, according to a new report by MarketsandMarkets™.
This growth is forecasted to occur at a compound annual growth rate (CAGR) of 18.2% during the period.
Several factors driving the US vertical farming market include decreasing arable land, an increasing consumer demand for local pesticide-free produce, and advancements in hydroponic, aeroponic, and aquaponic technology capabilities.
Additionally, rising investments in controlled environment agriculture (CEA) combined with a growing adoption of automation and artificial intelligence in farming solutions are expected to further bolster market expansion.
The demand for climate-resilient farming systems, coupled with government support for sustainable and urban farming initiatives, is likely to stimulate market growth across the United States.
Building-based vertical farms are anticipated to dominate the US vertical farming market from 2024 to 2029.
These farms can operate in various locations without environmental constraints, making them particularly advantageous in urban areas where fertile land is scarce.
Through vertical stacking, these farms utilize space efficiently, resulting in higher crop yields per unit area compared to conventional farming methods.
Building-based vertical farming leverages automated systems along with AI-driven climate control and precise water and nutrient distribution, leading to reduced waste overall.
The smart technology employed in these facilities allows for year-round food production, contributing to food security objectives and sustainability efforts.
The growing need for locally sourced fresh produce has positioned building-based vertical farms as a practical and efficient solution for modern agriculture in America.
In terms of farming mechanisms, aeroponics is projected to exhibit the highest CAGR within the US vertical farming market from 2024 to 2029.
This method delivers superior productivity while conserving resources.
Unlike hydroponics or soil-based systems, aeroponic farming relies on mists in the air to nourish plants.
As a result, aeroponics offers faster growth potential, improved nutrient absorption, and overall maximum operational efficiency.
A significant advantage of this method is its water-saving capability; according to Atlas Scientific, aeroponic farming utilizes 98% less water than traditional farming and 30% less than hydroponic systems.
Technological advancements in automation and AI-assisted monitoring enhance precision and scalability, making aeroponics an attractive advancement for the agriculture and urban farming sectors in the U.S.
The decreasing availability of arable land, exacerbated by urbanization, and the growing preference for locally sourced fresh produce are expected to fuel demand for vertical farming solutions in the U.S.
The United States will likely lead the vertical farming industry in North America, bolstered by robust investment opportunities, cutting-edge farming technologies, and an increasing consumer inclination towards fresh, locally cultivated products.
The expansion of urban areas alongside diminishing arable fields has intensified the shift toward vertical farming, particularly in regions where traditional farming is no longer feasible.
For instance, the US Department of Agriculture (USDA) reported that the number of farms in the U.S. reached 1.88 million in 2024, marking an 8% decline from the 2.04 million noted in the 2017 Census of Agriculture.
Moreover, farmland acreage decreased to 876 million acres in 2024, representing a 3% reduction from the 900 million acres reported in 2017.
The limited availability of traditional agricultural land has made vertical farming increasingly appealing, as this method allows for food production in urban settings with enhanced efficiency and less reliance on environmentally sensitive land.
Key players in the vertical farming sector include Signify Holding (Netherlands), Freight Farms (U.S.), AeroFarms (U.S.), Sky Greens (Singapore), Spread (Japan), Plenty (U.S.), Valoya (Finland), Everlight Electronics (Taiwan), and Heliospectra AB (Sweden).
In conclusion, the U.S. vertical farming market is poised for substantial growth, driven by factors such as reduced arable land, technology-driven efficiency, and rising consumer demand for sustainability-focused solutions.
For additional insights, interested parties can access a detailed Table of Content on the MarketsandMarkets website.
The report also highlights that MarketsandMarkets™ has been recognized among America’s Best Management Consulting Firms by Forbes, emphasizing their commitment to providing comprehensive market research and consulting services.
As the global focus on innovative agricultural solutions intensifies, vertical farming presents a viable roadmap for addressing food security and sustainability challenges in the years to come.
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