North America Vertical Farming Market Outlook to 2030

North America Vertical Farming Market Overview

• The North America Vertical Farming Market was valued at USD 1.5 billion in 2023, driven by the growing demand for sustainable agricultural practices, the need for efficient urban farming solutions, and advancements in controlled environment agriculture technologies. Vertical farming offers a viable solution to the challenges of traditional farming, particularly in densely populated urban areas where space and resources are limited.

• Key players in the North America vertical farming market include AeroFarms, Plenty, Bowery Farming, Gotham Greens, and BrightFarms. These companies are recognized for their innovation in agricultural technologies, extensive production capacities, and significant investments in research and development aimed at improving the efficiency and scalability of vertical farming operations.
• Major cities driving the market include New York, San Francisco, and Chicago. New York's dominance is attributed to its high population density and strong demand for locally sourced fresh produce, San Francisco for its robust tech ecosystem that supports agricultural innovations, and Chicago for its ongoing efforts to integrate urban agriculture into city planning and food security strategies.
• In 2023, Plenty announced the opening of its largest vertical farm in Compton, California, with the capacity to produce over 4.5 million pounds of fresh produce annually. This USD 140 million facility is expected to revolutionize the local food supply chain by providing year-round access to fresh greens and herbs. This development underscores the growing investments in vertical farming infrastructure in North America, driven by the increasing demand for sustainable and locally sourced food products.

North America Vertical Farming Market Segmentation

• By Farm Type: The North America Vertical Farming Market is segmented by farm type into indoor vertical farms, outdoor vertical farms, and hybrid vertical farms. In 2023, indoor vertical farms dominated the market due to their ability to provide year-round production and control over environmental factors such as temperature, humidity, and light.

• By Crop Type: The market is segmented by crop type into leafy greens, fruits & vegetables, herbs. In 2023, leafy greens dominated the market, driven by the high consumer demand for fresh and nutritious salad greens. Leafy greens, including lettuce, spinach, and kale, are ideal for vertical farming due to their short growth cycles and high market value.

• By Region: The North America Vertical Farming Market is segmented by region into the USA and Canada. In 2023, the USA dominated the market due to its advanced agricultural infrastructure, high investment in agricultural technologies, and strong consumer demand for locally sourced food.

North America Vertical Farming Market Competitive Landscape

• Plenty: In August 2023, Plenty Unlimited Inc. began construction on a vertical indoor farming campus in Compton, California that will be one of the largest such operations in the world when completed. The multi-phase USD 300 million project will sit on 120 acres in the Meadowville Technology Park.
• Gotham Greens: In September 2023, Gotham Greens announced that it raised over USD 310 million in a Series E funding round, bringing its total financing to USD 440 million since the company was founded in 2009. The round was led by BMO Impact Investment Fund and Ares Management funds.

North America Vertical Farming Industry Analysis

North America Vertical Farming Market Growth Drivers

• Surge in Urbanization and Food Security Concerns
  The North America Vertical Farming Market is being driven by the rapid urbanization in major cities and the increasing concerns over food security. As urban populations continue to grow, the need for sustainable and efficient food production methods has become critical. Vertical farming offers a viable solution by enabling high-density food production within urban environments, reducing the dependency on rural agricultural lands and minimizing food transportation costs.
• Technological Advancements in Controlled Environment Agriculture (CEA)
  The adoption of advanced technologies in Controlled Environment Agriculture (CEA) is a significant growth driver for the vertical farming market. Technologies such as AI, IoT, and automated systems have enhanced the efficiency and productivity of vertical farms by optimizing growing conditions and reducing resource usage.
• Government Initiatives Supporting Urban Agriculture
  Government support through initiatives and subsidies is playing a crucial role in driving the growth of the vertical farming market in North America. In 2023, the U.S. Department of Agriculture (USDA) launched the Urban Agriculture and Innovative Production Program, which provided USD 50 million in grants to support urban farming projects, including vertical farming.

North America Vertical Farming Market Challenges

• Limited Crop Varieties Vertical: farming is currently more suited for the cultivation of certain types of crops, particularly leafy greens and herbs, due to their short growth cycles and high market value. In 2023, these crops accounted for over 70% of the total produce from vertical farms in North America. However, the limited variety of crops that can be efficiently grown in vertical farms remains a challenge.
• Energy Consumption and Environmental Impact: Vertical farming operations are heavily reliant on artificial lighting, climate control systems, and other technologies, leading to high energy consumption. In 2024, the energy demand for vertical farming in the U.S. was at 5,000 GWh, which has raised concerns about the environmental impact of these operations.

North America Vertical Farming Market Government Initiatives

• U.S. Urban Agriculture and Innovative Production (UAIP) Program, 2023
  The U.S. Department of Agriculture launched the Urban Agriculture and Innovative Production Program in 2023, providing USD 50 million in grants to support urban farming projects, including vertical farming. This program is aimed at promoting sustainable agricultural practices in urban areas, enhancing food security, and reducing food deserts across the United States. The UAIP program is a key driver for the adoption of vertical farming technologies, offering financial and technical support to urban farmers.
• Canadas Agricultural Clean Technology (ACT) Program, 2024
  In 2024, the Canadian government introduced the Agricultural Clean Technology Program, which allocated USD 165 million over five years to support the adoption of clean technologies in agriculture, including vertical farming. The ACT program focuses on reducing greenhouse gas emissions and improving energy efficiency in farming practices. Vertical farming operations in Canada are eligible for grants under this program to implement energy-efficient lighting, climate control systems, and other sustainable technologies, further driving the growth of the market.
• New York States Urban Agriculture Innovation Zone Initiative, 2023
  New York State launched the Urban Agriculture Innovation Zone Initiative in 2023, with a USD 25 million investment aimed at developing vertical farms in urban areas. The initiative focuses on transforming underutilized urban spaces into productive agricultural hubs, providing fresh produce to local communities, and creating jobs. The program also offers tax incentives and low-interest loans to businesses engaged in urban agriculture, making it easier for new vertical farming projects to get off the ground and thrive.

North America Vertical Farming Market Future Outlook

The North America Vertical Farming Market is expected to experience substantial growth from 2023 to 2028, driven by increasing consumer demand for locally sourced produce, advancements in agricultural technologies, and supportive government policies.

Future Market Trends

• Integration of Vertical Farms with Urban Infrastructure: Over the next five years, vertical farming will increasingly be integrated into urban infrastructure, with farms becoming a common feature of residential and commercial buildings. This trend will be particularly prominent in densely populated cities where space is limited. By 2028, it is expected that vertical farms will be seamlessly incorporated into the design of new urban developments, providing fresh produce directly to local communities and reducing the carbon footprint associated with food transportation.
• Adoption of Renewable Energy Sources: As concerns over energy consumption and environmental impact continue to grow, the vertical farming industry will increasingly adopt renewable energy sources such as solar and wind power. By 2028, a significant portion of vertical farms in North America will be powered entirely by renewable energy, reducing their carbon footprint and enhancing sustainability.