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Released October 16, 2025 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--Vertical farming, once seen as the next frontier in urban agriculture, now stands at a crossroads as it is caught between sustaining operations and confronting a potential decline. Initially viewed as a high-tech solution to global food insecurity and urbanization pressures, the sector now struggles with high energy costs and limited profitability.
Vertical farming grows crops in vertically stacked layers under controlled environments, offering the potential for climate-resilient food production even in regions with extreme weather. Through technologies like hydroponics, aeroponics and aquaponics, vertical farming enables soilless cultivation and can deliver 10-20 times higher yields per acre for certain crops while utilizing about 98% less water compared to traditional open-field farming. Over the past decade, urban population growth and consumer demand for fresh, pesticide-free produce have driven the adoption of vertical farming systems. However, the initial surge in enthusiasm has given way to practical assessments of long-term viability, scalability and profitability.
While vertical farming remains a suitable model for localized, resource-efficient production, it continues to grapple with high investment costs and heavy energy use. As per the European, electricity accounts for about 60% of total operating costs, leaving fewer than 30% of vertical farming ventures profitable. Moreover, the sector's focus remains largely limited to high-value, fast-growing, lightweight crops such as leafy greens and herbs, while many staples like root vegetables are still unsuitable for vertical systems.
Ongoing research aims to address these limitations through advancements in crop genetics, lighting efficiency, nutrient management and pest control. Yet, as noted by the U.S. Department of Agriculture' Agricultural Research Service, expertise in maximizing yields under controlled-environment systems is still lacking.
Industrial Info is tracking 42 active capital-spending projects, worth more than US$1.3 billion, which are geared at vertical farms across the globe. About 63% of the spending is aimed at grassroot developments while plant expansions account for 27% of the total investment. North America, Europe and Asia account for the majority of spending with a market share of 90%. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a list of detailed project reports.
By country, the U.S. accounts for the highest spending of more than US $437 million. Sweden follows with more than US$173 million in potential investments, and the United Arab Emirates has potential investments of more than US$150 million. Other countries driving potential investments include the U.K., Canada, Australia, Norway and Ireland.
Key players in the market are Cox Enterprises (Georgia, U.S.), Wa3Rm AB (Skane, Sweden), and International Holding Company P.J.S.C. (Abu Dhabi, United Arab Emirates), with an aggregate spending of more than US$523 million. As the leading investor, Cox Enterprises is investing in expansion projects in a phased manner for its indoor vertical greenhouses situated in the states of Georgia and Illinois. Subscribers can click here for a list of related project reports.
Overall, 81% of the spending is in the planning phase, with 3% being engineered, and 16% under construction. A majority of the projects are expected to be completed by August 2029, and the remaining by October 2030.
Notably, about 32% of the total investment is facing a slippage of 1 to 2 years and 35% is facing a slippage of more than two years.
Vertical farming is standing at a critical juncture--no longer an emerging trend, yet not in complete decline. Steady demand for fresh, locally produced and traceable food continues to attract investment, but the sector's long-term success hinges on achieving economic and operational viability.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Vertical farming grows crops in vertically stacked layers under controlled environments, offering the potential for climate-resilient food production even in regions with extreme weather. Through technologies like hydroponics, aeroponics and aquaponics, vertical farming enables soilless cultivation and can deliver 10-20 times higher yields per acre for certain crops while utilizing about 98% less water compared to traditional open-field farming. Over the past decade, urban population growth and consumer demand for fresh, pesticide-free produce have driven the adoption of vertical farming systems. However, the initial surge in enthusiasm has given way to practical assessments of long-term viability, scalability and profitability.
While vertical farming remains a suitable model for localized, resource-efficient production, it continues to grapple with high investment costs and heavy energy use. As per the European, electricity accounts for about 60% of total operating costs, leaving fewer than 30% of vertical farming ventures profitable. Moreover, the sector's focus remains largely limited to high-value, fast-growing, lightweight crops such as leafy greens and herbs, while many staples like root vegetables are still unsuitable for vertical systems.
Ongoing research aims to address these limitations through advancements in crop genetics, lighting efficiency, nutrient management and pest control. Yet, as noted by the U.S. Department of Agriculture' Agricultural Research Service, expertise in maximizing yields under controlled-environment systems is still lacking.
Industrial Info is tracking 42 active capital-spending projects, worth more than US$1.3 billion, which are geared at vertical farms across the globe. About 63% of the spending is aimed at grassroot developments while plant expansions account for 27% of the total investment. North America, Europe and Asia account for the majority of spending with a market share of 90%. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for a list of detailed project reports.
By country, the U.S. accounts for the highest spending of more than US $437 million. Sweden follows with more than US$173 million in potential investments, and the United Arab Emirates has potential investments of more than US$150 million. Other countries driving potential investments include the U.K., Canada, Australia, Norway and Ireland.
Key players in the market are Cox Enterprises (Georgia, U.S.), Wa3Rm AB (Skane, Sweden), and International Holding Company P.J.S.C. (Abu Dhabi, United Arab Emirates), with an aggregate spending of more than US$523 million. As the leading investor, Cox Enterprises is investing in expansion projects in a phased manner for its indoor vertical greenhouses situated in the states of Georgia and Illinois. Subscribers can click here for a list of related project reports.
Overall, 81% of the spending is in the planning phase, with 3% being engineered, and 16% under construction. A majority of the projects are expected to be completed by August 2029, and the remaining by October 2030.
Notably, about 32% of the total investment is facing a slippage of 1 to 2 years and 35% is facing a slippage of more than two years.
Vertical farming is standing at a critical juncture--no longer an emerging trend, yet not in complete decline. Steady demand for fresh, locally produced and traceable food continues to attract investment, but the sector's long-term success hinges on achieving economic and operational viability.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
