Urban Farming Market Size, Share, Growth, Trends, and Global Industry Analysis: By Crop Type (Food Crops and Non- Food Crops), By Farming (Indoor Farming, Outdoor Farming), By Growing Medium (Hydroponics, Aquaponics, and Aeroponics), By Farm Type (Commercial, Community, Home Gardens, Corporate, Others) and Region Forecast 2020-2031

Urban Farming Market size was valued at US$ 124.3 billion in 2024 and is expected to reach US$ 323.4 billion by 2031, growing at a significant CAGR of 10.2% from 2025-2031. Moreover, the U.S. Global Urban Farming Market is projected to grow at significant CAGR over the forecast period. Urban farming refers to the practice of cultivating, processing, and distributing food in urban areas through various methods such as vertical farming, hydroponics, aquaponics, and rooftop farming. It encompasses small-scale community gardens, commercial urban farms, and high-tech indoor agriculture solutions aimed at enhancing food security, sustainability, and local economic development. Urban farming integrates modern agricultural technologies and sustainable practices to optimize space utilization and reduce dependency on traditional rural farming.

The market has witnessed significant growth due to increasing global urbanization, rising concerns about food security, and the demand for fresh, locally sourced produce. The market is driven by advancements in hydroponics and vertical farming technologies, enabling efficient crop production in limited urban spaces. Government initiatives promoting sustainable agriculture, along with the rising adoption of controlled-environment agriculture (CEA), are further accelerating market expansion.

Facts & Figures

• In fact, 95% Less Water Usage - Hydroponic and aeroponic farming techniques in urban agriculture use up to 95% less water compared to traditional soil-based farming.
• By utilizing aeroponic technology, Aero Farms has achieved crop yields up to 390 times higher per square foot compared to traditional agriculture.
• Up to 40% Faster Growth - Crops grown in controlled-environment agriculture (CEA), such as hydroponics and vertical farming, can grow 30–40% faster due to optimized lighting, nutrients, and climate conditions.

Key Developments:

• In March 2025, the Saudi Ministry of Environment, Water, and Agriculture introduced an urban vertical farm project aimed at providing fresh, locally grown food in markets and retail stores across the Kingdom, as reported by the Saudi Press Agency. This initiative, the first of its kind in the region, seeks to enhance food security and sustainability by integrating vertical farming into urban retail spaces. Over the next five years, the ministry plans to establish 600 to 1,000 farms within the retail system, ensuring greater access to fresh, homegrown produce for consumers across Saudi Arabia.
• In February 2025, Brooklyn, home to the highest concentration of over 2,500 urban farming spaces mapped across New York City, is at the forefront of a green revolution in urban agriculture. The launch of the NYC Urban Agriculture Data Explorer Hub marks a significant step toward sustainable urban living by providing an interactive platform to explore and engage with the city’s green spaces. More than just a mapping tool, this hub offers valuable insights into urban farming, fostering greater community involvement and advancing sustainable food production across New York City.

Urban Farming Market segmentation:

Based on the crop type:

• Food Crops
• Non- Food Crops

Food crops lead the urban farming market, driven by the rising consumer demand for fresh, locally grown, and pesticide-free produce. Increased awareness of health consciousness and a shift towards organic and sustainable food sources, urban farms are focusing on cultivating vegetables, fruits, and herbs using advanced techniques such as hydroponics and vertical farming. The growing urban population and concerns over food security have further accelerated the adoption of urban farming for food crop production. Additionally, government initiatives promoting urban agriculture to reduce dependency on imports and enhance local food resilience are reinforcing the dominance of food crops in the market.

Based on the farming:

• Indoor Farming
• Outdoor Farming

Indoor farming holds the largest share in the urban farming market, driven by its ability to produce high yields in controlled environments, regardless of external climatic conditions. Advanced technologies such as hydroponics, aeroponics, and vertical farming have enabled efficient crop cultivation with minimal land and water usage. The increasing demand for pesticide-free and organic produce has further fuelled the adoption of indoor farming, especially in densely populated urban areas. Additionally, innovations in artificial intelligence, IoT-based monitoring systems, and LED lighting have improved efficiency and scalability, making indoor farming the preferred choice for sustainable food production in urban settings.

Based on the growing medium:

• Hydroponics
• Aquaponics
• Aeroponics

Hydroponics dominates the urban farming market due to its high efficiency, resource optimization, and ability to grow crops in soil-less environments. This method enables faster plant growth and higher yields by providing precise nutrient control, making it ideal for urban settings with limited space. The rising demand for organic and pesticide-free food has further accelerated the adoption of hydroponic systems, especially in vertical farming. Additionally, advancements in automation, LED lighting, and AI-driven monitoring have enhanced productivity and sustainability. Governments and private investors are increasingly supporting hydroponic farming as a solution to food security challenges, reinforcing its market leadership.

Based on the farm type:

• Commercial
• Community
• Home Gardens
• Corporate
• Others

Commercial farming holds the largest share in the urban farming market, driven by the rising demand for large-scale, sustainable food production in urban areas. Businesses and startups are investing heavily in high-tech solutions such as vertical farming, hydroponics, and automated greenhouse systems to maximize yield and efficiency. The growing consumer preference for fresh, pesticide-free produce has further accelerated the expansion of commercial urban farms. Additionally, government incentives and corporate partnerships are supporting large-scale urban agriculture projects, making commercial farming the dominant segment. Innovations in AI-driven monitoring, IoT-based automation, and renewable energy integration continue to enhance productivity and profitability.