The global Vertical Farming market size was reached at USD 4.39 billion in 2021 and it is expected to hit around USD 27.30 billion by 2030, growing at a CAGR of 26.08% between 2022 to 2030.
Vertical farming is a modern farming method that involves the cultivation of crops in vertically stacked layers using artificial lighting and environmental control technologies. The main idea behind vertical farming is to maximize crop yields while minimizing the use of land, water, and energy.In traditional agriculture, crops are grown horizontally in large fields, which can be limited by factors such as climate, soil quality, and water availability. In contrast, vertical farming allows for the year-round production of crops in a controlled environment, without the need for soil or sunlight.Vertical farming can be done indoors, such as in buildings, warehouses, or shipping containers, or outdoors, such as on vertical trellises or walls. This technology has gained popularity in recent years due to its potential to revolutionize the way we produce food, particularly in urban areas where space is limited and the demand for fresh produce is high.
The global vertical farming market includes various components such as lighting, hydroponics systems, climate control systems, sensors, and others. The market is driven by factors such as increasing demand for high-quality food, growing urbanization, decreasing availability of arable land, and technological advancements in farming techniques.
Vertical Farming Market Dynamics
The global vertical farming market has been witnessing significant growth in recent years, driven by various factors. One of the key drivers of the market is the increasing demand for food due to the growing global population. Vertical farming offers a highly efficient and sustainable method of food production, as it allows crops to be grown in controlled environments without the need for soil or large amounts of water. This makes it an attractive solution to address the challenges of traditional agriculture, such as limited land availability and climate change.
Another driver of the vertical farming market is the increasing awareness about the benefits of locally grown and fresh produce. With consumers becoming more health-conscious and environmentally aware, there is a growing demand for fresh and locally sourced fruits and vegetables. Vertical farming provides a means of producing such food in urban areas, closer to where the consumers are, reducing the need for long-distance transportation and associated carbon emissions.
However, the vertical farming market also faces certain restraints, such as high initial capital investments and operational costs. The cost of setting up and running a vertical farm can be high, which may limit the adoption of the technology by small and medium-sized enterprises. In addition, the lack of standardization and regulatory frameworks for vertical farming practices may hinder the growth of the market.
Besides these limitations, there are potential for expansion in the vertical farming business. The growing use of automation and artificial intelligence in vertical farming is opportunity for this market. These technologies can increase crop production's efficiency and accuracy, resulting in developed yields and cheaper costs.
Also, there are opportunities for vertical farming to penetrate new markets and geographical areas because to the growing trend of urbanisation and the rising demand for locally sourced food. It is predicted that the vertical farming sector will expand and play an important role in the future of sustainable food production as technology continues to develop and mature.
Impact of COVID - 19
Due to the ongoing COVID-19 pandemic, many industries, especially the food and beverage industry have faced unforeseen hurdles. The COVID-19 pandemic has had a significant impact on the global economy, and the vertical farming market has not been immune to this impact. The pandemic has disrupted supply chains, caused labor shortages, and led to changes in consumer behaviour, all of which have affected the vertical farming industry in different ways. An important effect of the pandemic on the vertical farming business has been the rise in demand for fresh, locally grown food. Many consumers have turned to local food sources to ensure a consistent supply of fresh fruits and vegetables due to disruptions in international trade and transportation. This has led to increased interest in vertical farming as a way to produce food locally and sustainably.
However, the pandemic has also presented challenges for vertical farming companies, particularly in terms of labor and supply chain disruptions. With travel restrictions and social distancing measures in place, many vertical farming companies have struggled to maintain their workforce and ensure a steady supply of inputs such as seeds, fertilizers, and other materials.
Despite these challenges, the long-term outlook for the vertical farming market remains positive, as the demand for locally grown, fresh produce is expected to continue to grow. Many vertical farming companies have also adapted to the challenges of the pandemic by implementing new safety protocols, leveraging technology to automate processes, and exploring new business models such as direct-to-consumer sales.
Report Scope of the Vertical Farming Market
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Attribute
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Details
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Market Size in 2021
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USD 4.39 billion
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Estimated Market Size in 2030
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USD 27.30 billion
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CAGR Growth Rate
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26.08% CAGR
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Base Year
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2021
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Forecast Years
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2022-2030
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Segmentation
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by Component, by Growing Mechanism, by Crop Category
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Major Regions Covered
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- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
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Key Market Players
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Urban Crop Solutions, Agrilution, AeroFarms, Hort Americas, HELIOSPECTRA AB, Freight Farms, Everlight Electronics Co., Ltd, Brightfarms Inc., Signify Holding, Sky Greens, AmHydro, Vertical Farm Systems, Bowery Farming, Green Sense Farms Holdings, Illumitex Inc., SPREAD Co., Ltd., Koninklijke Philips N.V.,
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Report coverage
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Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
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Vertical Farming Market: Segmentation
Vertical Farming market can be segmented by Component, such as Lighting, Climate Control, Sensor, Irrigation, Others. Lighting, Climate Control is the largest segment in the market and accounted for more than 45% of the total revenue in 2021. Lighting holds a large share of the market due to the dependence of vertical farms on artificial lighting. Artificial lights proviide the sufficient light intensity required for crop growth. LED lighting systems are increasingly in demand to reduce operational costs and minimize power consumption. LED lighting systems generate less heat than conventional light sources, which makes them perfect for agriculture.
By Structure, the market is segmented into Building-Based Vertical Farm, Shipping-Container Vertical Farm. Shipping-Container is the largest segment in terms of revenue, with a share of more than 54% in 2021 and is expected to continue its dominant during the forecast period. Over the forecast period, factors such as budding technological advances and penetration of precision farming are expected to drive the shipping container segment. Due to its increasing acceptance in Japan, China, and other Asian countries, the building-based segment is the fastest-growing segment by revenue.
Crop type: Vertical farming can be used to grow a wide range of crops, including Fruits, Vegetables, & Herbs, Flowers & Ornamentals and Others. Fruits, Vegetables, & Herbs is the largest segment in the vertical farming market, which includes tomato, lettuce, bell & chili peppers, strawberry, cucumber, leafy greens (excluding lettuce), herbs, others. The tomato segment has captured revenue share of around 24.9% of the global fruit’s vegetables, & herbs revenue in 2021. The flowers and ornamentals segment is expected to grow at a significant CAGR through the forecast period. The market is expected to grow due to the increase in the usage of flowers and ornamentals for aesthetic and decorative purposes.
Growing Mechanism: Vertical farming can be carried out using different methods such as hydroponics, aeroponics, aquaponics. Due to the increased use of AI in neurology, which enables higher accuracy, better patient care, and high increased demand for healthy and safe food, the hydroponics segment held the largest share in 2021. The rising innovations to improve flavors and sustainability of fruits and vegetables drive hydroponics growth. The growing innovations to expand flavors and sustainability of fruits & vegetables drive hydroponics growth. The aeroponics segment is predicted to observer significant growth over the forecast period.
Regional Analysis
The Asia-Pacific region dominates the global Vertical farming market, accounting for more than 32% share of the total revenue Asia Pacific is expected to witness the highest growth in the vertical farming market during the forecast period due to the increasing population, rising demand for food, and the need to reduce the environmental impact of agriculture. China, Japan, and Singapore are some of the key countries driving the growth of the vertical farming market in Asia Pacific.
North America is another leading segment in this market due to increasing adoption of vertical farming technology and the presence of major players in this region. The US and Canada are the key countries driving the growth of the vertical farming market in North America. Europe is also expected to witness significant growth in the vertical farming market due to the increasing demand for fresh and pesticide-free food and the rising adoption of smart farming practices.
Competitive Landscape
Freight Farms, AeroFarms, GP Solutions, Bowery Farming are some of the leaders in Vertical farming.
List of Key Players in Global Vertical Farming Market:
- Urban Crop Solutions
- Agrilution
- AeroFarms
- Hort Americas
- HELIOSPECTRA AB
- Freight Farms
- Everlight Electronics Co., Ltd
- Brightfarms Inc.
- Signify Holding
- Sky Greens
- AmHydro
- Vertical Farm Systems
- Green Sense Farms Holdings
- Illumitex Inc.
- SPREAD Co., Ltd.
- Koninklijke Philips N.V.
- Segment Covered in the Report:
By Component
- Lighting
- Climate Control
- Sensor
- Irrigation
- Others
By Structure
- Building-Based Vertical Farm
- Shipping-Container Vertical Farm
By Growing Mechanism
- Hydroponics
- Aeroponics
- Aquaponics
By Crop Type
- Fruits Vegetables, & Herbs
- Tomato
- Lettuce
- bell & chili peppers
- strawberry
- cucumber
- leafy greens (excluding lettuce)
- herbs
- others
- Flowers & Ornamentals
- Perennials
- Annuals
- Ornamentals
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Frequently Asked Questions (FAQs):
What is the size of Vertical Farming market?
The global Vertical Farming market size was worth USD 4.39 billion in 2021 and is expected to grow to USD 27.30 billion by 2030.
What will be the CAGR of global Vertical Farming market?
The Vertical Farming market is expected to drive growth at a CAGR of 26.08% from 2022 to 2030.
Who are the major players operating in the Vertical Farming market?
Urban Crop Solutions, Agrilution, AeroFarms, Hort Americas, HELIOSPECTRA AB, Freight Farms, Everlight Electronics Co., Ltd, Brightfarms Inc., Signify Holding, Sky Greens, AmHydro, Vertical Farm Systems, Bowery Farming, Green Sense Farms Holdings, Illumitex Inc., SPREAD Co., Ltd., Koninklijke Philips N.V., are the major players operating in the Vertical Farming market.
Which region will lead the global Vertical Farming market?
Asia Pacific dominated the global Vertical Farming market in 2021.