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Report Description

Report Description

Forecast Period

2026-2030

Market Size (2024)

USD 62.21 Million

Market Size (2030)

USD 200.14 Million

CAGR (2025-2030)

21.50%

Fastest Growing Segment

Indoor

Largest Market

North India

 

Market Overview

India Vertical Farming Market was valued at USD 62.21 million in 2024 and is expected to reach USD 200.14 million by 2030 with a CAGR of 21.50% during the forecast period. The India vertical farming market is experiencing rapid growth, driven by the increasing demand for sustainable farming practices and the need to address challenges such as limited arable land and water scarcity. With a growing population and rising urbanization, there is a pressing need for innovative farming solutions that can meet the demands for fresh, healthy produce in urban areas. Vertical farming, which utilizes stacked layers or vertically inclined surfaces to grow crops, is emerging as an ideal solution to maximize space and optimize resource usage, including water and nutrients. The market is further supported by technological advancements, such as hydroponics, aeroponics, and automation, which improve yield, reduce waste, and ensure consistent crop production.

Additionally, the Indian government is increasingly recognizing the potential of vertical farming, offering incentives and support for the adoption of agri-tech solutions. As consumer preferences shift towards organic, locally grown produce and the need for food security intensifies, the vertical farming market in India is poised for significant expansion, with key regions like North India leading the way.

Key Market Drivers

Rising Urbanization and Limited Agricultural Land

India’s rapidly growing urban population and limited availability of arable land are significant drivers of the vertical farming market. With over 1.3 billion people, India is experiencing increasing urban migration, leading to overcrowded cities with limited space for traditional farming. Vertical farming, which involves growing crops in stacked layers or vertically inclined surfaces, offers a sustainable solution to address this issue by utilizing minimal space to maximize crop production. Urban areas, especially large metropolitan cities like Delhi, Mumbai, and Bengaluru, are prime locations for vertical farming as they are surrounded by increasing food demand but have little room for conventional agriculture. By integrating vertical farming into urban environments, food production can be localized, reducing transportation costs and carbon emissions. This trend is particularly important as it helps India meet its growing food requirements while tackling land scarcity and urbanization challenges. According to the Ministry of Agriculture, in past years, the urbanization rate of 1.34% in 2021 has increased by 1.5% year-on-year basis. Since 2010-2021 urbanization increased by 19.6%.

Technological Advancements and Automation

Technological advancements and automation are accelerating the growth of vertical farming in India. The integration of IoT (Internet of Things), artificial intelligence (AI), and precision farming techniques is enabling highly efficient farming practices within controlled environments. Vertical farms can use sensors, climate control systems, and automated irrigation to optimize growing conditions for crops, leading to higher yields and reduced resource usage such as water and energy. The use of automation also allows for more cost-effective operations, reducing the need for manual labor. With the potential for precision agriculture to ensure consistent crop production, minimize waste, and reduce environmental impact, vertical farming is increasingly seen as a viable and sustainable agricultural solution in India. Moreover, innovations such as hydroponics and aeroponics are further improving yields while utilizing fewer resources, which makes vertical farming an attractive option for both entrepreneurs and investors looking to invest in the future of agriculture.

Monitoring systems in vertical farms use sensors to collect data on environmental conditions, including temperature, humidity, and light intensity. This data can be used to optimize plant growth, reduce water consumption, and improve crop yields. According to Ministry of Agriculture, in India, the vertical farming market share has increased by 24.6% in recent years because of advancements in the technology mentioned above.

India Vertical Farming Market

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Key Market Challenges

High Initial Investment and Operational Costs

One of the major challenges facing the vertical farming market in India is the high initial investment required for setting up the infrastructure, including specialized equipment, climate control systems, and LED lighting. While vertical farming offers long-term sustainability and cost savings, the upfront cost can be a significant barrier, especially for small-scale farmers or startups. The cost of technology, including automated systems for irrigation, lighting, and monitoring, adds to the financial strain. Additionally, operating and maintaining these systems can incur high ongoing costs for energy, particularly in areas where electricity is expensive or unreliable. This presents a major obstacle to the widespread adoption of vertical farming, especially in a price-sensitive market like India, where many farmers still rely on traditional farming methods due to their lower initial costs.

Lack of Awareness and Skilled Workforce

Another challenge for the vertical farming market in India is the lack of awareness and a skilled workforce. While vertical farming offers numerous benefits, including space efficiency and sustainability, many farmers and stakeholders in India are unfamiliar with these new farming methods. There is a significant knowledge gap in the country when it comes to advanced farming techniques like hydroponics, aeroponics, and climate-controlled environments. Furthermore, the need for specialized skills in managing automated systems and high-tech farming equipment adds complexity. As a result, there is a shortage of trained professionals who can manage vertical farms efficiently, impacting the scalability of the sector. Bridging this gap through education, training programs, and awareness campaigns is essential for the continued growth of vertical farming in India.

Key Market Trends

Shift Toward Sustainable and Organic Farming

A key trend in India’s vertical farming market is the increasing shift towards sustainable and organic farming practices. With growing concerns over chemical fertilizers, pesticides, and their negative impact on both the environment and human health, consumers are becoming more interested in locally grown, chemical-free produce. Vertical farms provide an ideal environment for organic farming, as they use fewer chemicals and pesticides, offering fresher, healthier produce to consumers. Additionally, vertical farming's controlled environment enables the efficient use of resources such as water and nutrients, contributing to sustainability. As consumer demand for organic produce rises in India, particularly in urban areas where health-conscious lifestyles are more prevalent, vertical farming is becoming a popular choice among farmers looking to align with this demand. This trend toward sustainability is likely to drive the market forward in the coming years.

Government Support and Investment in Agricultural Innovation

The Indian government has increasingly recognized the potential of vertical farming and is offering support through various initiatives to promote agricultural innovation and sustainability. Several government schemes are encouraging the adoption of modern farming practices, including vertical farming, by providing subsidies, tax incentives, and funding for research and development. Government-backed programs focusing on promoting agri-tech startups and innovations are also paving the way for increased investment in vertical farming technologies. Furthermore, initiatives aimed at reducing the environmental impact of conventional agriculture, such as water conservation and reducing dependency on chemical fertilizers, are driving interest in vertical farming solutions. As the government continues to promote the adoption of advanced agricultural technologies, vertical farming is likely to receive further support, facilitating its growth and development across India.

Segmental Insights

Growth Mechanics Insights

Based on growth mechanics, Hydroponics has emerged as the dominant growth mechanism in India's vertical farming market due to its efficient use of water and resources, along with its ability to produce high yields in limited space. As India faces growing challenges related to water scarcity and environmental sustainability, hydroponics offers a solution by using up to 90% less water compared to traditional farming, as it relies on a water-based, nutrient-rich solution rather than soil. This method ensures that crops receive precise amounts of water and nutrients, minimizing waste and optimizing growth. Additionally, hydroponics supports space efficiency, allowing for the cultivation of crops in stacked layers or vertically inclined planes, which is especially advantageous in urban areas where land is scarce. This vertical farming approach enables year-round crop production, regardless of external weather conditions, while maximizing space and increasing yield. Hydroponics also allows for precise control over growing conditions, leading to faster growth and higher productivity, making it an attractive option for farmers in India seeking to overcome land and resource limitations. Consequently, the advantages of water conservation, space efficiency, and enhanced yield make hydroponics the leading mechanism driving the growth of vertical farming in India.

India Vertical Farming Market

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Regional Insights

Based on the region, North India is the largest market for vertical farming in the country, driven by several factors that make the region a key hub for this growing agricultural trend. States like Punjab, Haryana, Uttar Pradesh, and Himachal Pradesh are witnessing an increasing adoption of vertical farming due to their agricultural prominence and the region's focus on advancing agricultural practices. With large urban centers such as Delhi and Chandigarh, North India is seeing a rise in demand for fresh, organic produce in metropolitan areas, creating a need for innovative farming solutions like vertical farming. The region's growing awareness about sustainable farming practices, water scarcity, and the need for efficient land usage further contribute to the popularity of vertical farming. Additionally, government support, technological advancements, and the increasing inclination of farmers and startups towards high-tech farming solutions have bolstered vertical farming initiatives in this region. As a result, North India continues to lead the market, benefiting from its agricultural infrastructure, urban population, and increasing focus on food security and sustainability.

Recent Developments

  • In November 2021, the Indian Institute of Technology (IIT) Delhi set up a vertical farm with the capacity to grow up to 5,000 plants. The farm is equipped with advanced sensors and automation systems to optimize crop growth and minimize resource usage.
  • In February 2021, the Indian startup, Clover Venture, announced plans to set up a 50,000 sq. ft vertical farm in Bangalore. The farm is expected to have a production capacity of over 3,500 kg of leafy greens per month.
  • In 2020, the Indian agtech startup, Arya Collateral, announced plans to launch a vertical farming venture to produce high-value crops, such as exotic fruits and herbs.

Key Market Players

  • Sky Green Pvt. Ltd.
  • Edible Routes Pvt. Ltd.
  • Future Farms Pvt. Ltd.
  • Letcetra Agritech Pvt. Ltd.
  • Living Greens Organics

By Structure

By Growth Mechanics

By Application

By End User

By Region

  • Building Based Vertical Farms
  • Container Based Vertical Farms
  • Rack Based Vertical Farms
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Indoor
  • Outdoor
  • Retail
  • Food Service
  • Residential
  • Institutional
  • North India
  • South India
  • East India
  • West India

 

Report Scope:

In this report, the India Vertical Farming Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Vertical Farming Market, By Structure:

o   Building Based Vertical Farms

o   Container Based Vertical Farms

o   Rack Based Vertical Farms

  • India Vertical Farming Market, By Growth Mechanics:

o   Hydroponics

o   Aeroponics

o   Aquaponics

  • India Vertical Farming Market, By Application:

o   Indoor

o   Outdoor

  • India Vertical Farming Market, By End User:

o   Retail

o   Food Service

o   Residential

o   Institutional

  • India Vertical Farming Market, By Region:

o   North India

o   South India

o   East India

o   West India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Vertical Farming Market.

Available Customizations:

India Vertical Farming Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Vertical Farming Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1.    1.    Service Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, and Trends

4.    Voice of Customer

5.    India Vertical Farming Market Outlook

5.1.  Market Size & Forecast

5.1.1.     By Value

5.2.  Market Share & Forecast

5.2.1.     By Structure (Building Based Vertical Farms, Container Based Vertical Farms, Rack Based Vertical Farms)

5.2.2.     By Growth Mechanics (Hydroponics, Aeroponics, Aquaponics)

5.2.3.     By Application (Indoor, Outdoor)

5.2.4.     By End User (Retail, Food Service, Residential, Institutional)

5.2.5.     By Region

5.2.6.     By Company (2024)

5.3.  Market Map

6.    North India Vertical Farming Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value

6.2.  Market Share & Forecast

6.2.1.     By Structure

6.2.2.     By Growth Mechanics

6.2.3.     By Application

6.2.4.     By End User

7.    East India Vertical Farming Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value

7.2.  Market Share & Forecast

7.2.1.     By Structure

7.2.2.     By Growth Mechanics

7.2.3.     By Application

7.2.4.     By End User

8.    West India Vertical Farming Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Structure

8.2.2.     By Growth Mechanics

8.2.3.     By Application

8.2.4.     By End User

9.    South India Vertical Farming Market Outlook

9.1.  Market Size & Forecast

9.1.1.     By Value

9.2.  Market Share & Forecast

9.2.1.     By Structure

9.2.2.     By Growth Mechanics

9.2.3.     By Application

9.2.4.     By End User

10.  Market Dynamics

10.1.              Drivers

10.2.              Challenges

11.  Market Trends & Developments

11.1.              Merger & Acquisition (If Any)

11.2.              Product Launches (If Any)

11.3.              Recent Developments

12.  Porters Five Forces Analysis

12.1.              Competition in the Industry

12.2.              Potential of New Entrants

12.3.              Power of Suppliers

12.4.              Power of Customers

12.5.              Threat of Substitute Products/Services

13.  Competitive Landscape

13.1.              Sky Green Pvt. Ltd.

13.1.1.  Business Overview

13.1.2.  Company Snapshot

13.1.3.  Products & Services

13.1.4.  Financials (As Reported)

13.1.5.  Recent Developments

13.1.6.  Key Personnel Details

13.1.7.  SWOT Analysis

13.2.              Edible Routes Pvt. Ltd.

13.3.              Future Farms Pvt. Ltd.

13.4.              Letcetra Agritech Pvt. Ltd.

13.5.              Living Greens Organics

14.  Strategic Recommendations

15.  About Us & Disclaimer

 

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the India Vertical Farming Market was estimated to be USD 62.21 million in 2024.

Sky Green Pvt. Ltd., Edible Routes Pvt. Ltd., Future Farms Pvt. Ltd., Letcetra Agritech Pvt. Ltd. are some of the key players operating in the India Vertical Farming Market.

High initial investment and operational costs and lack of awareness and skilled workforce are some of the major challenges faced by the India Vertical Farming Market in the upcoming years.

Rising urbanization and limited agricultural land and technological advancements and automation are the major drivers for the India Vertical Farming Market.

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