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India Vertical Farming Market

ID: MRFR/SEM/19166-HCR
200 Pages
Garvit Vyas
October 2025

India Vertical Farming Market Size, Share and Research Report By Component (Irrigation Components, Lighting, Sensors, Climate Control, Building Materials (Glass Greenhouse, Plastic Greenhouse), Others), By Structure (Building-based Vertical Farms, Container-based Vertical Farms), By Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics), By Application (Indoor, Outdoor) – India Industry Forecast Till 2035

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India Vertical Farming Market Summary

As per analysis, the India Vertical Farming Market is projected to grow from USD 0.79 Billion in 2025 to USD 4.27 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 18.58% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The India Vertical Farming Market is poised for substantial growth driven by technological advancements and increasing consumer demand for sustainable produce.

  • Hydroponics remains the largest segment, capitalizing on technological innovations to enhance crop yields.
  • Aeroponics is the fastest-growing segment, attracting interest due to its efficient use of water and nutrients.
  • LED lighting continues to dominate the market, providing energy-efficient solutions for indoor farming.
  • Government policies and rising consumer awareness of sustainability are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 0.654 (USD Billion)
2035 Market Size 4.27 (USD Billion)
CAGR (2025 - 2035) 18.58%

Major Players

AeroFarms (IN), UrbanKisaan (IN), Ninjacart (IN), AgriCool (IN), Oxygreens (IN), Sky Greens (IN), GreenSpire (IN), Farmizen (IN), Karma Farms (IN)

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Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
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India Vertical Farming Market Trends

The India Vertical Farming Market is currently experiencing a notable transformation, driven by a confluence of technological advancements and increasing urbanization. As cities expand, the demand for sustainable food production methods intensifies. Vertical farming, which utilizes innovative techniques such as hydroponics and aeroponics, appears to offer a viable solution to address food security challenges in densely populated areas. Furthermore, the Indian government has shown a commitment to promoting agricultural innovation, which may further bolster the growth of this sector. Initiatives aimed at enhancing agricultural productivity and sustainability are likely to create a conducive environment for vertical farming enterprises. In addition to government support, the rising awareness among consumers regarding the benefits of locally sourced and pesticide-free produce is influencing market dynamics. Urban dwellers are increasingly inclined towards fresh, nutritious food options, which vertical farming can provide. This trend suggests a shift in consumer preferences that aligns with the principles of sustainability and health. As the India Vertical Farming Market continues to evolve, it is poised to play a crucial role in shaping the future of agriculture in the country, potentially leading to a more resilient food system.

Technological Advancements in Farming Techniques

The India Vertical Farming Market is witnessing a surge in the adoption of advanced technologies such as automation and artificial intelligence. These innovations enhance operational efficiency and optimize resource utilization, which is crucial for maximizing yield in limited spaces. As technology continues to evolve, it is likely to further streamline processes, making vertical farming more accessible and profitable for Indian farmers.

Government Initiatives and Support

The Indian government is actively promoting vertical farming through various initiatives aimed at enhancing agricultural sustainability. Policies that encourage research and development in this sector may lead to increased investment and innovation. This support could potentially create a favorable regulatory environment, encouraging more entrepreneurs to enter the vertical farming space.

Consumer Demand for Sustainable Produce

There is a growing trend among Indian consumers towards seeking fresh, organic, and locally sourced food. This shift in consumer behavior is likely to drive the demand for vertical farming, as it aligns with the principles of sustainability and health. As awareness of the benefits of pesticide-free produce increases, vertical farming may become a preferred choice for urban populations.

India Vertical Farming Market Drivers

Government Policies and Incentives

The Indian government has been actively promoting vertical farming through various policies and incentives aimed at enhancing food security and sustainability. Initiatives such as the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) encourage the adoption of modern agricultural practices, including vertical farming. Financial support and subsidies for setting up vertical farms are becoming more common, which could potentially lower the entry barriers for new players in the India Vertical Farming Market. This supportive regulatory environment is likely to stimulate growth and innovation within the sector.

Urbanization and Space Constraints

Rapid urbanization in India is creating significant challenges related to food production and land availability. The India Vertical Farming Market is poised to address these challenges by utilizing vertical spaces in urban settings. As cities expand, the need for local food production becomes increasingly critical. Vertical farms can be established in underutilized spaces such as rooftops and abandoned buildings, thereby maximizing land use. This trend is expected to drive the growth of vertical farming, as urban consumers seek fresh produce that is locally sourced and sustainably grown.

Investment Opportunities and Funding

The India Vertical Farming Market is attracting significant investment from both domestic and international players. Venture capital firms and agritech startups are increasingly focusing on vertical farming as a viable business model. Reports indicate that investments in agritech, including vertical farming, have surged, with funding reaching over USD 1 billion in recent years. This influx of capital is likely to foster innovation and expansion within the sector, enabling the development of more efficient farming technologies and practices. As investors recognize the potential for high returns in this emerging market, the growth trajectory of vertical farming in India appears promising.

Technological Innovations in Hydroponics

The India Vertical Farming Market is experiencing a surge in technological innovations, particularly in hydroponics. This method allows for soil-less cultivation, which is particularly advantageous in urban areas where land is scarce. The integration of advanced sensors and automation systems enhances crop yield and reduces resource consumption. Reports indicate that hydroponic systems can yield up to 10 times more produce per square foot compared to traditional farming. As urbanization continues to rise in India, the demand for efficient farming solutions is likely to increase, positioning hydroponics as a key driver in the vertical farming sector.

Rising Consumer Awareness of Sustainability

There is a growing awareness among Indian consumers regarding the importance of sustainable agricultural practices. The India Vertical Farming Market is benefiting from this shift in consumer preferences, as more individuals seek out organic and sustainably produced food. Vertical farming, which often employs eco-friendly practices and reduces the carbon footprint associated with traditional farming, aligns well with these consumer values. Market data suggests that the demand for organic produce is increasing at a rate of approximately 20% annually, indicating a strong potential for vertical farming to capture this market segment.

Market Segment Insights

By Application: Hydroponics (Largest) vs. Aeroponics (Fastest-Growing)

In the India Vertical Farming Market, Hydroponics currently occupies the largest market share, widely appreciated for its efficiency in nutrient delivery and water usage. With a growing preference among urban agriculturalists and commercial growers, Hydroponics systems provide optimal growing conditions, contributing significantly to the vertical farming landscape. In contrast, Aeroponics is rapidly gaining traction among innovative growers, driven by its potential for higher yields and lower resource usage, which appeals to environmentally conscious farmers.

Agricultural Methods: Hydroponics (Dominant) vs. Aeroponics (Emerging)

Hydroponics continues to dominate the vertical farming space in India due to its established technology and extensive research backing. It allows crops to thrive in a controlled environment with minimal water usage and reduced pest issues. Meanwhile, Aeroponics is emerging as an innovative alternative, utilizing air or mist to deliver nutrients, leading to potentially greater growth rates. The adoption of Aeroponics is spurred by its lower resource needs and scalability, making it an attractive option for new vertical farms aiming to optimize space and outputs.

By Technology: LED Lighting (Largest) vs. Climate Control Systems (Fastest-Growing)

In the India Vertical Farming Market, the technology segment is witnessing diverse contributions from various values. LED Lighting holds the largest market share due to its energy efficiency and effectiveness in plant growth, making it a preferred choice among vertical farmers. On the other hand, Climate Control Systems are emerging as a significant player, characterized by their rapid adoption driven by the increasing need for precise environmental regulation in farming operations, which is crucial for optimizing crop yields.

Technology: LED Lighting (Dominant) vs. Climate Control Systems (Emerging)

LED Lighting technology dominates the Indian vertical farming landscape, being widely recognized for its versatility and low energy consumption. It provides optimal light spectra for various growth stages, enhancing plant health and yield. As energy costs rise, farmers increasingly favor LED solutions for their economic advantages. In contrast, Climate Control Systems are rapidly emerging in importance, enhancing the efficiency of vertical farms by automating temperature, humidity, and airflow. These systems are becoming indispensable as farmers quest for higher productivity and sustainable practices, creating a more favorable environment for plant growth and facilitating year-round farming.

By Crop Type: Leafy Greens (Largest) vs. Herbs (Fastest-Growing)

In the India Vertical Farming Market, leafy greens currently dominate the market share due to their high consumer preference and adaptability in various climatic conditions. They are not only popular among health-conscious consumers but also command a significant portion of sales in supermarkets and local markets. Additionally, herbs, while having a smaller market share, are emerging rapidly, driven by increasing demand from restaurants and the culinary sector, enhancing their visibility in the retail space. The growth trends for leafy greens remain robust, influenced by urbanization and a shift towards sustainable farming solutions. In contrast, herbs are witnessing the fastest growth, largely due to their versatility in cuisine and the rise of home gardening trends. Innovations in hydroponic and aeroponic techniques also play a crucial role in boosting the production and appeal of these crops in Indian vertical farms.

Leafy Greens: Dominant vs. Herbs: Emerging

Leafy greens, characterized by their nutritional richness and versatility, hold a dominant position in the Indian vertical farming market. Their cultivation strategies align well with vertical farming techniques, allowing year-round production that meets consumer demands while conserving resources. On the other hand, herbs are emerging rapidly, spurred by the growing interest in fresh and organic food options. They typically require less space and have quicker harvest cycles compared to traditional crops, making them ideal for vertical farming. The rising popularity of gourmet cuisine and health-focused diets is accelerating herb production, positioning them as a key player for innovation and market growth in the vertical farming landscape.

By End Use: Retail (Largest) vs. Home Gardening (Fastest-Growing)

In the India Vertical Farming Market, the segment distribution reveals that retail is the largest segment, capturing a significant portion of the market share. Retailers leverage vertical farming technologies to meet the growing demand for fresh produce in urban areas, thus dominating the sector. Home gardening, on the other hand, has emerged swiftly as a popular trend, especially in urban households where space is limited, making it the fastest-growing segment. This increase is driven by a surge in consumer interest in sustainable gardening and homegrown produce. The growth trends within these segments are compelling. Retailers are adopting advanced vertical farming solutions to enhance the freshness and availability of their products, catering to health-conscious consumers. Meanwhile, the rise of the home gardening segment is fueled by a cultural shift towards self-sustainability and organic produce among urban dwellers, further accelerated by digital platforms promoting urban gardening. As consumers increasingly seek quality and local produce options, both segments are expected to flourish in the coming years.

Retail (Dominant) vs. Research and Development (Emerging)

In the Indian context, the retail segment stands as the dominant force in the vertical farming market, appealing to consumers' increasing preference for fresh, locally sourced produce. Retailers are now integrating vertical farming into their supply chains, enhancing efficiency and reducing delivery times, thus solidifying their market presence. Conversely, the research and development segment is emerging rapidly, driven by the need for innovative solutions to improve crop yields and resource efficiency in vertical farming systems. This segment focuses on technological advancements and smart agriculture practices that support sustainable food production. The collaboration between universities, agricultural institutes, and industry players plays a pivotal role in this emerging landscape, showcasing the potential of R&D in shaping the future of urban agriculture and vertical farming solutions.

Get more detailed insights about India Vertical Farming Market

Regional Insights

North America : Innovation and Investment Hub

North America is witnessing a significant surge in the vertical farming market, driven by technological advancements and increasing urbanization. The region is characterized by a robust investment landscape, with the U.S. holding approximately 60% of the market share, followed by Canada at 25%. Regulatory support for sustainable agriculture practices is further catalyzing growth, as cities seek to enhance food security and reduce carbon footprints. Leading countries in this region include the United States and Canada, with key players like AeroFarms and FarmedHere spearheading innovation. The competitive landscape is marked by a mix of startups and established agricultural firms, all vying for market share. The presence of advanced technologies, such as hydroponics and aeroponics, is enhancing productivity and efficiency, making North America a focal point for vertical farming advancements.

Europe : Sustainable Agriculture Leader

Europe is emerging as a leader in the vertical farming market, driven by stringent regulations on food safety and sustainability. The region's market is primarily led by Germany, holding around 35% of the share, followed closely by the Netherlands at 30%. The European Union's Green Deal and various national initiatives are fostering innovation and investment in urban agriculture, making vertical farming a viable solution for food production in urban areas. Countries like Germany, the Netherlands, and France are at the forefront of this movement, with key players such as UrbanKisaan and AgriCool making significant strides. The competitive landscape is characterized by a blend of technology-driven startups and traditional agricultural firms adapting to new methods. The focus on reducing food miles and enhancing local food production is reshaping the agricultural landscape in Europe.

Asia-Pacific : Emerging Market Potential

The Asia-Pacific region is rapidly emerging as a significant player in the vertical farming market, driven by urbanization and food security concerns. India and China are the largest markets, with India holding approximately 40% of the market share, while China follows closely at 30%. Government initiatives aimed at promoting sustainable agriculture and reducing reliance on imports are key growth drivers in this region, fostering a favorable regulatory environment for vertical farming. India is witnessing a surge in local startups like UrbanKisaan and Oxygreens, which are leveraging technology to enhance agricultural productivity. The competitive landscape is diverse, with both domestic and international players vying for market share. The increasing demand for fresh produce in urban areas is propelling the growth of vertical farming, making it a crucial component of the region's agricultural strategy.

Middle East and Africa : Resource-Rich Opportunities

The Middle East and Africa region is witnessing a growing interest in vertical farming, driven by water scarcity and the need for food security. The UAE is the largest market, holding approximately 50% of the regional share, followed by South Africa at 20%. Government initiatives aimed at enhancing food production and sustainability are catalyzing growth, with significant investments in technology and infrastructure to support vertical farming practices. Countries like the UAE and South Africa are leading the charge, with key players such as GreenSpire and Ninjacart making notable contributions. The competitive landscape is evolving, with a mix of local startups and international firms entering the market. The focus on innovative farming solutions is reshaping the agricultural landscape in the region, addressing both environmental and economic challenges.

India Vertical Farming Market Regional Image

Key Players and Competitive Insights

The Vertical Farming Market in India is currently characterized by a dynamic competitive landscape, driven by increasing urbanization, a growing demand for fresh produce, and the need for sustainable agricultural practices. Key players such as AeroFarms (IN), UrbanKisaan (IN), and Ninjacart (IN) are at the forefront, each adopting distinct strategies to enhance their market positioning. AeroFarms (IN), known for its innovative aeroponic technology, focuses on maximizing yield while minimizing resource use, thereby appealing to environmentally conscious consumers. UrbanKisaan (IN) emphasizes local production and community engagement, which resonates well in urban settings, while Ninjacart (IN) leverages technology to streamline supply chains, ensuring fresh produce reaches consumers efficiently. Collectively, these strategies contribute to a competitive environment that prioritizes sustainability and efficiency.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to reduce costs and enhance responsiveness to market demands. The market structure appears moderately fragmented, with numerous players vying for market share, yet the influence of major companies is palpable. Their collective efforts in innovation and operational efficiency are likely to shape the future trajectory of the market, fostering a competitive atmosphere that encourages continuous improvement.

In December 2025, AeroFarms (IN) announced a partnership with a leading technology firm to integrate AI-driven analytics into its farming operations. This strategic move is expected to enhance crop monitoring and yield prediction, thereby optimizing resource allocation and improving overall productivity. The integration of AI signifies a shift towards more data-driven decision-making processes, which could set a new standard in the industry.

In November 2025, UrbanKisaan (IN) launched a new initiative aimed at expanding its urban farming network across multiple cities in India. This expansion is strategically important as it not only increases their market presence but also aligns with the growing trend of urban agriculture, catering to the rising demand for locally sourced food. By establishing more urban farms, UrbanKisaan (IN) is likely to strengthen its brand as a leader in sustainable urban farming solutions.

In October 2025, Ninjacart (IN) secured a $10M investment to enhance its logistics capabilities, focusing on cold chain technology. This investment is crucial as it allows Ninjacart (IN) to maintain the freshness of produce during transportation, thereby reducing spoilage and increasing customer satisfaction. The emphasis on logistics and supply chain reliability is becoming increasingly vital in the competitive landscape, where freshness is a key differentiator.

As of January 2026, current trends in the Vertical Farming Market indicate a strong focus on digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances among companies are shaping the competitive landscape, fostering innovation and collaboration. Looking ahead, it appears that competitive differentiation will increasingly hinge on technological advancements and supply chain reliability rather than merely price competition. Companies that prioritize innovation and sustainability are likely to emerge as leaders in this evolving market.

Key Companies in the India Vertical Farming Market include

Industry Developments

January 2023: AeroFarms, a company specializing in vertical farming, launched nine new community farms to provide an additional 2 tons of fresh food access to over 4,500 local students.

January 2022: Brio Hydroponics launched the 'Unnati' project aimed at drawing investment into the agricultural segment. The Unnati project entails an optimized commercial hydroponics initiative designed to advance hydroponic farming practices and encourage Foreign Direct Investment (FDI) in the agriculture sector.

Future Outlook

India Vertical Farming Market Future Outlook

The India Vertical Farming Market is poised for growth at 18.58% CAGR from 2025 to 2035, driven by urbanization, technological advancements, and sustainability initiatives.

New opportunities lie in:

  • Integration of AI-driven crop management systems
  • Development of modular vertical farming units
  • Partnerships with local grocery chains for fresh produce supply

By 2035, the market is expected to be a cornerstone of India's agricultural landscape.

Market Segmentation

India Vertical Farming Market End Use Outlook

  • Retail
  • Food Service
  • Home Gardening
  • Research and Development

India Vertical Farming Market Crop Type Outlook

  • Leafy Greens
  • Herbs
  • Fruits
  • Vegetables

India Vertical Farming Market Technology Outlook

  • LED Lighting
  • Climate Control Systems
  • Hydroponic Systems
  • Automation Technology

India Vertical Farming Market Application Outlook

  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil-based Cultivation

Report Scope

MARKET SIZE 20240.654(USD Billion)
MARKET SIZE 20250.79(USD Billion)
MARKET SIZE 20354.27(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)18.58% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledAeroFarms (IN), UrbanKisaan (IN), Ninjacart (IN), AgriCool (IN), Oxygreens (IN), Sky Greens (IN), GreenSpire (IN), Farmizen (IN), Karma Farms (IN)
Segments CoveredApplication, Technology, Crop Type, End Use
Key Market OpportunitiesGrowing urbanization and demand for fresh produce drive innovation in the India Vertical Farming Market.
Key Market DynamicsRising consumer demand for fresh produce drives innovation and investment in India's vertical farming sector.
Countries CoveredIndia

Market Highlights

Author
Garvit Vyas
Analyst

Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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FAQs

What is the current valuation of the India Vertical Farming Market?

As of 2024, the India Vertical Farming Market was valued at 0.654 USD Billion.

What is the projected market size for the India Vertical Farming Market by 2035?

The market is projected to reach 4.27 USD Billion by 2035.

What is the expected CAGR for the India Vertical Farming Market during the forecast period?

The expected CAGR for the India Vertical Farming Market from 2025 to 2035 is 18.58%.

Which segment is anticipated to have the highest valuation in the India Vertical Farming Market?

By 2035, the Hydroponic Systems segment is expected to reach 1.5 USD Billion.

What crop types are driving growth in the India Vertical Farming Market?

Leafy Greens are projected to dominate, with an expected valuation of 1.8 USD Billion by 2035.

Which technology segment is likely to see significant investment in the India Vertical Farming Market?

Automation Technology is anticipated to grow to 1.97 USD Billion by 2035.

Who are the key players in the India Vertical Farming Market?

Key players include AeroFarms, UrbanKisaan, Ninjacart, and AgriCool, among others.

What end-use segments are contributing to the growth of the India Vertical Farming Market?

The Retail segment is expected to reach 1.2 USD Billion by 2035, indicating strong consumer demand.

How does the Aquaponics segment compare to other segments in terms of market size?

Aquaponics is projected to grow to 0.6 USD Billion by 2035, which is lower than Hydroponics and Aeroponics.

What is the significance of climate control systems in the India Vertical Farming Market?

Climate Control Systems are expected to reach 0.75 USD Billion by 2035, highlighting their role in optimizing growth conditions.

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