Demand for Vertical Farming in USA

Demand for Vertical Farming in USA 2025 to 2035

Demand for vertical farming in the USA is projected to grow from USD 1.98 billion in 2025 to approximately USD 12.03 billion by 2035, recording an absolute increase of USD 10.05 billion over the forecast period. This translates into a total growth of 507.58%, with demand forecast to expand at a compound annual growth rate (CAGR) of 19.8% between 2025 and 2035.

The scope for vertical farming in USA is expected to grow by 6.1 times during the same period, supported by increasing urban food production requirements, rising adoption of controlled environment agriculture, advancing LED lighting technologies, and expanding agricultural infrastructure throughout the USA.

Quick Stats for USA Vertical Farming Industry

• USA Vertical Farming Sales Value (2025): USD 1.98 billion
• USA Vertical Farming Forecast Value (2035): USD 12.03 billion
• USA Vertical Farming Forecast CAGR: 19.8%
• Leading Component in USA Vertical Farming Industry: Hardware (58.30%)
• Key Growth Regions in USA Vertical Farming Industry: West, Northeast, South, Midwest
• Regional Leadership: West holds the leading position in demand
• Key Players in USA Vertical Farming Industry: Intelligent Growth Solutions Limited, Signify Holding BV, iFarm Corporation, Freight Farms Incorporated, Argus Control Systems Limited, AeroFarms LLC, Gotham Greens Holdings LLC, Plenty Unlimited Incorporated, Bowery Farming Incorporated, Iron Ox Incorporated

The hardware segment is projected to account for 58.30% of vertical farming demand in 2025. Hardware applications are widely used in the USA for automated climate control systems, LED lighting installations, and hydroponic equipment where production efficiency, energy optimization, and proven performance remain essential for agricultural applications and food production optimization.

The hydroponics segment is expected to represent 64.20% of vertical farming demand in 2025. Hydroponics applications are fundamental to the industry because they provide the essential water efficiency capabilities, nutrient control properties, and cost-effective cultivation delivery required for leafy greens, herbs, microgreens, and specialty crops.

Between 2020 and 2025, vertical farming demand in the USA experienced rapid expansion, driven by increasing urban agriculture development and growing recognition of advanced cultivation requirements for food security and production optimization. The sector developed as agricultural producers and technology companies, especially in major metropolitan centers, recognized the need for specialized growing solutions and effective controlled environment systems to achieve production objectives while meeting food safety standards and regulatory requirements. Agricultural companies and technology manufacturers began emphasizing automation innovation and energy efficiency to maintain competitive advantages and operational effectiveness.

Between 2025 and 2030, demand for vertical farming in the USA is projected to expand from USD 1.98 billion to USD 5.12 billion, resulting in a value increase of USD 3.14 billion, which represents 31.24% of the total forecast growth for the decade. This phase of growth will be shaped by accelerating controlled environment agriculture adoption, rising automation technology advancement, and growing urban food production requirements for advanced agricultural systems across USA regions, particularly in areas where vertical farming infrastructure and food security development initiatives are accelerating system adoption. Increasing integration of artificial intelligence platforms and growing adoption of energy-efficient LED systems continue to drive demand.

Agricultural technology manufacturers and vertical farming suppliers are expanding their production capabilities to address the growing complexity of modern food production requirements and automation standards, with USA operations leading investments in conventional manufacturing enhancement methods and efficient cultivation optimization systems.

From 2030 to 2035, demand is forecast to grow from USD 5.12 billion to USD 12.03 billion, adding another USD 6.91 billion, which constitutes 68.76% of the overall ten-year expansion. This period is expected to be characterized by expansion of specialized urban agriculture applications, development of enhanced automation capabilities, and implementation of comprehensive vertical farming technology programs across different agricultural and food production sectors. The growing adoption of advanced AI systems and enhanced energy efficiency platforms, particularly in major metropolitan areas and agricultural operations, will drive demand for more sophisticated cultivation solutions and validated automated systems.

USA Vertical Farming Industry Key Takeaways

Metric	Value
USA Vertical Farming Sales Value (2025)	USD 1.98 billion
USA Vertical Farming Forecast Value (2035)	USD 12.03 billion
USA Vertical Farming Forecast CAGR (2025-2035)	19.8%

Why is the USA Vertical Farming Industry Growing?

The USA vertical farming industry is experiencing robust growth, primarily fueled by a parallel expansion in the broader urban agriculture sector. A significant surge in demand for both food security solutions and advanced controlled environment systems has created a larger base of agricultural producers, technology manufacturers, and food companies requiring reliable cultivation products. Furthermore, changing agricultural regulations and food safety standards mandate the use of efficient automated systems for optimal crop performance and food security optimization. This agriculture-driven demand establishes a consistent, production-based foundation. As new operators enter the vertical farming segment and existing agricultural practices are modernized, the need for standard-issue and specialized cultivation products forms a stable foundation for the industry's growth, ensuring a continuous stream of customers driven by production necessity and regulatory compliance.

Technological innovation serves as a powerful secondary engine for this growth. Modern vertical farming systems are no longer just basic growing facilities; they are advanced automated agricultural products. The rapid adoption of specialized LED technologies has become a major selling point, significantly reducing energy consumption and enhancing crop quality. Beyond traditional options, manufacturers are integrating advanced formulations for seamless incorporation with digitally conscious agricultural approaches, and compatibility with various automation requirements. These features, coupled with improvements in energy efficiency, system convenience, and product quality, are compelling both agricultural and technology operators to upgrade from basic growing systems, driving a cycle of replacement and premiumization within the industry.

The industry is benefiting from evolving agricultural dynamics and a heightened focus on food production experience. An increasing emphasis on food security, particularly exploration of advanced controlled environment technologies, is pushing demand for higher-quality, more diverse cultivation varieties. The segment has also expanded beyond traditional agricultural channels, with growing interest from the retail sector, food service applications, and even pharmaceutical growing units. This diversification, combined with the rise of specialized platforms that improve accessibility for all producers, ensures that suppliers can reach a wider audience than ever before. This confluence of efficiency, innovation, and accessibility creates a fertile ground for continued industry expansion.

Opportunity Pathways - Demand for Vertical Farming in the USA

The vertical farming industry in the USA is positioned for strong and steady expansion, growing from USD 1.98 billion in 2025 to USD 12.03 billion by 2035, reflecting a 20.5% CAGR. This growth is driven by the rising adoption of advanced, automated growing systems in urban agriculture, food production, and fresh food retail applications. Operators are seeking specialized cultivation solutions that maximize crop yield, energy efficiency, and operational performance amidst stringent food safety standards. Additionally, demand from local food production trends, fresh produce innovations, and urban development implementations strengthens opportunities for both high-performance LED formulations and integrated automation solutions. Suppliers focusing on energy-efficient lighting, climate control processing, and technical support stand to gain from evolving agricultural landscapes and producer expectations for system reliability, automation assurance, and operational documentation completeness.

• Pathway A - Urban Fresh Food Production Systems: Producers face escalating demand for reliable, cost-effective systems for the high-volume production of fresh leafy greens and herbs. Solutions targeting restaurant supply, grocery retail, and direct-to-consumer applications can achieve strong adoption through optimized energy efficiency, crop quality, and automated harvesting capabilities. Estimated revenue opportunity: USD 2.8-3.9 billion.
• Pathway B - Advanced LED Lighting Technologies: The agriculture industry requires increasingly sophisticated energy-efficient and spectrum-controlled lighting solutions. Collaborations with equipment manufacturers for integrated lighting systems (e.g., full-spectrum LEDs, growth optimization, automated control) can unlock long-term supply contracts and partnerships. Estimated revenue opportunity: USD 2.4-3.3 billion.
• Pathway C - Automation and Climate Control Systems: Growth in controlled environment agriculture, urban farming, and precision growing applications creates robust demand for IoT-enabled and AI-driven automation systems. Suppliers offering proven climate control platforms with exceptional performance monitoring and operational efficiency can build strategic relationships with top-tier agricultural operators. Estimated revenue opportunity: USD 2.1-2.9 billion.
• Pathway D - Hydroponic Equipment & Growing Media: Manufacturing requirements for water efficiency, nutrient precision, and scalable production are driving preference for specialized hydroponic systems in growing facilities, research centers, and commercial operations. Suppliers offering materials with exceptional nutrient delivery and water conservation can differentiate offerings and attract efficiency-focused organizations. Estimated revenue opportunity: USD 1.8-2.5 billion.
• Pathway E - Food Safety and Quality Control Systems: Critical applications in food production, quality assurance, and regulatory compliance require specialized monitoring configurations with advanced tracking capabilities, contamination prevention, and traceability features. Suppliers investing in food safety development for agricultural products can secure advantages in this demanding segment. Estimated revenue opportunity: USD 1.4-2.0 billion.
• Pathway F - Technical Service, Installation & Maintenance Support: Comprehensive support networks offering system design guidance, full installation documentation, and ongoing maintenance services create recurring partnership opportunities. Companies building strong technical service capabilities can capture ongoing relationships and enhance customer operational effectiveness. Estimated revenue opportunity: USD 1.1-1.6 billion.

Segmental Analysis

The industry is segmented by component, growing mechanism, and region. By component, the industry is divided into hardware, software, and services. In terms of growing mechanism, the industry is segmented into hydroponics, aeroponics, aquaponics, with hydroponics representing a key growth and innovation hub for agricultural technologies. Regionally, the industry is divided into West, Northeast, South, and Midwest.

Which Component of Vertical Farming Dominates in USA?

The hardware segment is projected to account for 58.30% of vertical farming demand in 2025, making it the leading component type across the sector. This dominance reflects the infrastructure requirements and capital investment needs of cultivation systems for existing agricultural facilities and urban farming applications where equipment reliability is optimized through established performance characteristics and integrated automation architecture.

In the USA, where substantial agricultural infrastructure requires technology integration without complete system redesign, hardware solutions provide practical pathways for production enhancement while maintaining cost preferences. Continuous innovations are improving automation capabilities, energy efficiency, and performance parameters, enabling agricultural operators to achieve high production standards while maximizing cost effectiveness.

• Capital compatibility and existing system integration make hardware the preferred component type for enhancing agricultural facilities and urban farming operations.
• Equipment reliability and performance demonstration track records are enhancing producer confidence and operational viability across large-scale adoption initiatives.

Which is the Most Preferred Growing Mechanism in USA in the Vertical Farming Sector?

Hydroponics are expected to represent 64.20% of vertical farming demand in 2025, reflecting the critical role of water-efficient growing systems requiring comprehensive cultivation solutions. Hydroponics operations including leafy greens projects, herb facilities, and microgreens systems generate consistent demand for technologies that support efficient water utilization and crop optimization.

Growing systems are widely adopted for hydroponic cultivation facilities due to significant water efficiency benefits and enhanced nutrient control capabilities. Their reliable, high-performance operation provides effective, cost-efficient agricultural production solutions, enhancing cultivation independence for farming operators.

• Water efficiency requirements and nutrient control operations drive substantial demand for specialized systems designed for hydroponic applications.
• Cultivation optimization and production efficiency demands create consistent agricultural performance requirements across major farming regions and growing facilities.

What are the Drivers, Restraints, and Key Trends in the USA Vertical Farming Industry?

The demand for vertical farming in the USA is advancing steadily due to increasing urban agriculture requirements and growing recognition of advanced automation necessity for food production compliance, with the West region serving as a key driver of innovation and agricultural advancement.

The sector faces challenges including energy consumption performance consistency optimization, system integration complexity, and ongoing concerns regarding operational cost considerations and technology variations.

Growth in Urban Agriculture Development and Food Production Expansion Programs

The enhancement of production standards, gaining particular significance through controlled environment trends and food security education campaigns, is enabling cultivation providers to achieve differentiation without prohibitive development costs, providing predictable demand patterns through agricultural requirements and producer preferences.

Enhanced production standards offering substantial opportunities for growing systems and integrated applications provide foundational dynamics while allowing providers to secure agricultural facility agreements and distribution partnerships.

Deployment of Advanced Automation Capabilities and High-Performance LED Systems

Modern cultivation providers and agricultural operators are establishing advanced automation networks and centralized control facilities that improve production efficiency through process standardization and energy analytics.

Integration of automation enhancement systems, high-performance lighting technology, and coordinated climate management enables more efficient growing operations across multiple farming regions.

Development of Artificial Intelligence Systems and Enhanced Crop Targeting Methods

The expansion of AI-driven agricultural systems and crop optimization is driving development of specialized cultivation systems with enhanced automation profiles, improved energy characteristics, and optimized production attributes that address current limitations and expand agricultural applications beyond traditional growing.

These specialized systems require sophisticated automation capabilities and performance expertise that exceed traditional farming requirements, creating specialized demand segments with differentiated production propositions. Producers are investing in crop targeting and automation optimization to serve emerging agricultural applications while supporting innovation in efficiency development and production engagement.

Analysis of USA Vertical Farming Demand by Key Regions

Region	CAGR (2025 to 2035)
West	21.80%
Northeast	20.70%
South	19.90%
Midwest	19.20%

The USA vertical farming industry is witnessing steady growth, supported by rising urban agriculture requirements, expanding controlled environment facility initiatives, and the deployment of advanced automation technologies across regions. West leads the nation with a 21.80% CAGR, reflecting a strong innovation-conscious base, substantial agricultural technology development, and established urban farming advancement facilities.

Why Does the West Region Lead Vertical Farming Demand?

Demand for vertical farming in West is projected to exhibit strong growth with a CAGR of 21.80% through 2035, driven by a strong innovation-conscious agricultural base, substantial urban farming development creating premium automation opportunities, and a concentration of technology advancement across California, Oregon, Washington, Nevada, and surrounding states.

Advanced agricultural technology programs and automation control initiatives are expanding cultivation adoption among producers, urban facilities, and agricultural suppliers pursuing production optimization, energy development, and specialized farming projects throughout major metropolitan hubs and technology corridors.

• Innovation consciousness base and urban infrastructure capabilities are requiring comprehensive automation strategies and energy solutions, driving demand for cultivation systems with demonstrated efficiency enhancement capabilities and permanent production assurance throughout diverse agricultural operations.
• Agricultural technology development and urban concentration are generating substantial cultivation demand across farming companies, producers, and automation suppliers serving agricultural applications and urban requirements.

Why Does the Northeast Region Demonstrate Strong Growth?

Demand for vertical farming in Northeast is projected to grow with a CAGR of 20.70% through 2035, supported by established urban agriculture presence, comprehensive food production development, and strong technology facilities across New York, Pennsylvania, Massachusetts, New Jersey, and surrounding states.

Established agricultural presence and technology leadership are supporting cultivation adoption throughout producer facilities, urban farming operations, and automation distribution centers serving efficiency enhancement and energy applications.

• Strong agricultural ecosystem and technology networks are enabling cultivation integration across energy producers, manufacturers, and automation suppliers pursuing advanced efficiency development and farming programs.
• Premium urban agriculture capabilities and production excellence are driving cultivation demand among leading producer corporations, agricultural centers, and specialized automation firms focused on efficiency enhancement, energy optimization, and technology development targeting farming applications and advanced urban operations.

What Factors Underpin Vertical Farming Demand in South Region?

Demand for vertical farming in South is forecast to advance with a CAGR of 19.90% through 2035, driven by expanding urban agriculture capabilities, growing automation investment, and increasing production consciousness across Texas, Florida, Georgia, North Carolina, and surrounding states.

Rising agricultural technology sector development and automation partnerships are supporting cultivation integration across energy producers, producer facilities, and automation distributors pursuing efficiency enhancement, urban expansion, and farming initiatives throughout expanding agricultural regions and metropolitan centers.

• Growing urban infrastructure and agricultural technology investment are creating opportunities for cultivation adoption across emerging automation hubs, producer facilities, and energy distribution centers in major metropolitan areas and agricultural corridors.
• Efficiency expansion and production growth are driving cultivation demand among agricultural operators seeking enhanced efficiency capabilities and participation in advanced automation programs.

What Boosts Consistent Demand in the Midwest Region?

Demand for vertical farming in Midwest is expected to expand with a CAGR of 19.20% through 2035, supported by automation manufacturing capabilities, agricultural infrastructure development, and growing producer efficiency presence across Illinois, Ohio, Wisconsin, Michigan, and surrounding states.

Production expertise and manufacturing capabilities are driving cultivation demand among automation producers, agricultural suppliers, and farming manufacturers serving cultivation production and efficiency applications.

• Growing automation development and manufacturing investment are supporting cultivation adoption across emerging production hubs, agricultural facilities, and producer centers pursuing efficiency enhancement and automation programs.
• Expanding agricultural infrastructure and automation integration are creating opportunities for cultivation utilization across energy suppliers, agricultural production facilities, and producer operations seeking efficiency cultivation production, automation support, and manufacturing capabilities throughout major agricultural regions and emerging producer automation centers.

Competitive Landscape of USA Vertical Farming Industry

USA vertical farming demand is defined by competition among established technology corporations, specialized automation companies, and integrated agricultural producers, with major cultivation operators maintaining significant influence through production resources and manufacturing capabilities. Companies are investing in cultivation advancement, automation optimization, energy efficiency technologies, and comprehensive performance services to deliver effective, reliable, and efficient agricultural solutions across USA farming and producer applications.

Intelligent Growth Solutions Limited dominates with a 14.20% share, offering comprehensive automation solutions including advanced equipment, efficiency enhancement technologies, and distribution services with a focus on agricultural applications, production consistency, and automation optimization across USA operations. The company continues investing in automation programs, distribution strategies, and cultivation innovation while expanding operational presence and advanced producer applications.

Signify Holding BV provides specialized automation solutions with emphasis on efficiency development and manufacturing excellence. iFarm Corporation focuses on premium cultivation development and agricultural applications. Freight Farms Incorporated emphasizes efficiency development and specialized producer equipment production. Argus Control Systems Limited offers automation technology solutions and professional efficiency support. AeroFarms LLC specializes in agricultural cultivation development and distribution programs.

Key Players in USA Vertical Farming Industry

• Intelligent Growth Solutions Limited
• Signify Holding BV
• iFarm Corporation
• Freight Farms Incorporated
• Argus Control Systems Limited
• AeroFarms LLC
• Gotham Greens Holdings LLC
• Plenty Unlimited Incorporated
• Bowery Farming Incorporated
• Iron Ox Incorporated
• Vertical Harvest Holdings LLC
• Green Sense Farms Holdings Incorporated
• AppHarvest Incorporated
• Kalera AS
• FreshBox Farms LLC

Scope of the Report

Item	Value
Quantitative Units	USD 12.03 billion
Component	Hardware, Software, Services
Growing Mechanism	Hydroponics, Aeroponics, Aquaponics, Others
Regions Covered	West, Northeast, South, Midwest
Key Companies Profiled	Intelligent Growth Solutions Limited, Signify Holding BV, iFarm Corporation, Freight Farms Incorporated, Argus Control Systems Limited, AeroFarms LLC, Gotham Greens Holdings LLC, Plenty Unlimited Incorporated, Bowery Farming Incorporated, Iron Ox Incorporated, Vertical Harvest Holdings LLC, Green Sense Farms Holdings Incorporated, AppHarvest Incorporated, Kalera AS, FreshBox Farms LLC
Additional Attributes	Sales by component and growing mechanism segment, regional demand trends across West, Northeast, South, and Midwest, competitive landscape with established technology corporations and automation suppliers, producer facility preferences for hardware versus software equipment, integration with agricultural facilities and advanced automation optimization policies particularly advanced in West region

USA Vertical Farming Industry by Segments

• Component :

  • Hardware
  • Software
  • Services

• Growing Mechanism :

  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Others

• Region :

  • West
  • Northeast
  • South
  • Midwest