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Urban Farming Market Size Outlook: How Fast Will Revenue Grow Through 2030?
The urban farming market has shown robust growth in its size over recent years. It is projected to expand from $173.18 billion in 2025 to $185.7 billion by 2026, at a compound annual growth rate (CAGR) of 7.2. Historically, this growth can be attributed to several factors including a rise in urban population density, the early adoption of community garden programs, increasing awareness regarding the reduction of food miles, the initial development of hydroponic systems, and a growing demand for fresh local produce.
The urban farming market is anticipated to show significant expansion over the next few years. It is projected to reach $242.68 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.9. This growth during the forecast period is attributable to the increasing number of commercial indoor farming projects, a heightened preference for sustainable food systems, the wider adoption of modular farming technologies, growing investment in urban agri-startups, and an elevated focus on local food security initiatives. Prominent trends expected in this period include the rising adoption of rooftop and vertical farming, an increasing demand for localized fresh food production, the expansion of community-based urban agriculture initiatives, the greater use of compact modular farming systems, and the expanding popularity of organic and chemical-free urban produce.
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Urban Farming Market Development Factors: Which Trends Are Supporting Demand?
The scarcity of agricultural land is expected to drive the growth of the urban farming market in the coming years. Farmland availability refers to the extent of land resources that are accessible, suitable, and legally permissible for agricultural production to sustain food supply and rural livelihoods. The diminishing availability of farmland is primarily influenced by rapid urbanization, which converts fertile agricultural land into residential, industrial, and infrastructural uses, thereby reducing the area dedicated to cultivation and disrupting the balance between land demand and agricultural productivity. The urban farming market utilizes limited urban spaces for food production, thereby alleviating the pressure on conventional farmland and contributing to more sustainable and localized food systems. For instance, in December 2023, according to the GOV.UK, a UK-based government department, in 2023, the total utilized agricultural area in the UK fell by 2.3, totaling just over 17.0 million hectares. Therefore, the decreasing availability of farmland is propelling the urban farming market.
Urban Farming Market Segment Breakdown: Which Categories Generate The Most Revenue?
The urban farming market covered in this report is segmented –
1) By Type: Aquaponics, Hydroponics, Aeroponics, Other Types
2) By Structure: Indoor, Outdoor
3) By Crop Type: Non-Food Crops, Food Crops
4) By Application: Commercial, Agriculture, Other Applications
Subsegments:
1) By Aquaponics: Recirculating Aquaponics Systems, Media-based Aquaponics Systems
2) By Hydroponics: Nutrient Film Technique (NFT), Deep Water Culture (DWC), Ebb And Flow Systems, Wick Systems
3) By Aeroponics: High-Pressure Aeroponic Systems, Low-Pressure Aeroponic Systems
4) By Other Types: Vertical Farming, Rooftop Farming, Container Farming
Urban Farming Market Trends Reshaping Industry Growth
Major companies operating in the urban farming market are concentrating on developing technologically advanced solutions, such as smart vertical farms with AgriTech firms, in a push for food security to meet various critical industry demands. A smart vertical farm integrated with an AgriTech firm improves food security by maximizing urban crop production, optimizing resources, utilizing IoT for monitoring, and providing fresh produce locally throughout the year. For instance, in February 2024, Masdar City, a UAE-based renewable energy company, inaugurated a smart vertical farm in collaboration with the agri-tech firm Madar Farms. This initiative is part of a broader effort to enhance food security in the UAE. This partnership aims to foster self-sufficiency in food production by deploying innovative farming technologies that are well-suited to the UAE’s arid climate. The smart vertical farm is specifically designed to cultivate leafy greens and other produce while using less water than traditional farming methods, thereby addressing both food and water security challenges within the region. This undertaking aligns with the UAE’s National Food Security Strategy, which emphasizes sustainable agricultural practices and local food production to reduce reliance on imports. The project also represents a component of Masdar’s ongoing commitment to sustainability and innovation in urban living.
Urban Farming Market Competitive Analysis Of Major Industry Participants
Major companies operating in the urban farming market are Infarm, Richel Group, UrbanFarmers AG, Plenty Unlimited Inc., Bowery Farming, Dalsem, Certhon, Aerofarms, Pasona, Plantagon International AB, Agrilution GmbH, BrightFarms Inc., Square Roots Urban Growers Inc., Brooklyn Grange Farm, Green Spirit Farm, Urban Crop Solutions, American Hydroponics, Sky Greens, GrowUP Urban Farms, Edenworks Inc., Garden Fresh Farms Inc, Metropolitan Farms, General Hydroponics, Green Sense Farms LLC, Eden Green Technology, Gotham Greens, Mirai Co. Ltd., SproutsIO Inc., Spread Co. Ltd, Harnois Greenhouses
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Urban Farming Market Regional Outlook: Where Are The Largest Opportunities Located?
North America was the largest region in the urban farming market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the urban farming market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.