The US vertical farming market is flourishing, with analysts predicting a surge in value from £3.4 billion in 2023 to £7.8 billion by 2033, representing a compound annual growth rate (CAGR) of around 10.3%. This growth is being driven by a combination of factors, including increasing urbanisation, consumer demand for sustainably produced food, and technological advancements in vertical farming practices.
Technology at the Forefront
A key driver of market expansion is the increasing adoption of automation and advanced technology within vertical farming. Systems are incorporating artificial intelligence, Internet of Things (IoT) sensors, and robotics to optimise growth conditions, automate tasks like planting and harvesting, and reduce resource consumption. This shift is leading to greater efficiency, higher crop yields, and lower labour costs.
Sustainable Solutions Gain Traction
Sustainability is another driving force. As businesses aim to reduce their environmental impact and meet consumer demand for ethical products, the use of sustainable practices and renewable energy sources is becoming increasingly common in vertical farms.
Market Segmentation: Unpacking the Growth
The market can be segmented by structure, growing mechanism, and crop type.
By Structure: The shipping container segment is currently the largest and is expected to maintain its dominance throughout the forecast period. The versatility and durability of shipping containers are driving their adoption beyond traditional freight transport, creating opportunities for innovative uses like vertical farming.
By Growing Mechanism: Hydroponics, which involves growing plants without soil, is the dominant growing mechanism. This sector is seeing a rise in vertical farming systems, where stacked growing layers maximise yields in urban environments. The demand for high-quality, sustainable produce is driving this trend.
By Crop Type: The fruits, vegetables, and herbs segment holds the largest market share and is projected to retain its lead. A growing preference for locally grown, organic produce, driven by health and environmental concerns, is fuelling the development of urban and vertical farming solutions.
Leading the Way: AeroFarms
AeroFarms, a leading player in the vertical farming space, is a Danville, Virginia-based company that uses a unique aeroponics method, growing vegetables without soil. Their focus on indoor vertical farming and integration of artificial intelligence and plant biology are key to their success.
Competitive Landscape: A Thriving Industry
The market is home to a number of prominent players, including:
AeroFarms
Plenty Unlimited Inc.
Bowery Farming
BrightFarms
Gotham Greens
Vertical Harvest
Lufa Farms
One
Freight Farms
80 Acres Farms
Square Roots
Urban Produce
Crop One Holdings
Jones Food Company
Green Sense Farms
Edenworks
Local Roots Farms
Infinite Harvest
Urban Crop Solutions
Pure Green Farms
These companies are actively shaping the industry, driving innovation, and expanding the reach of vertical farming.
Looking Ahead: A Promising Future
The US vertical farming market is well-positioned for continued growth in the years to come. The increasing focus on sustainable agriculture, coupled with advancements in technology, will continue to drive investment and innovation in this exciting sector. As consumer demand for locally sourced, fresh produce rises, vertical farming is poised to play a significant role in reshaping the future of food production.