Vertical Farming Market Size to Reach USD 42,304 Million by 2032 growing at 26.1% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

The global Vertical Farming Market size occupied USD 4,250 Million in 2022 and is projected to achieve a size of around USD 42,304 Million by 2032 rising with a CAGR of 26.1% during the forecasted years, as reported by Acumen Research & Consulting

The vertical farming market represents a transformative approach to agriculture, addressing traditional agricultural difficulties while providing creative solutions to fulfill the growing demand for food in an increasingly urbanized world. Vertical farming is a sophisticated agricultural practice that involves growing crops in vertically stacked layers or vertically inclined surfaces, frequently in controlled indoor environments. This method makes use of cutting-edge technology such as hydroponics, aeroponics, and modern LED lighting systems to provide ideal circumstances for plant growth. Among the major factors responsible for this astounding growth are the ever-increasing population and the need to meet their demand for quality food, the decrease in arable land due to growing urbanization and industrialization. Additionally, vertical farming is an advanced farming technique that has a minimal impact on climatic conditions affecting the crops grown, and it can yield more crops per square meter of area compared to traditional farming or greenhouses.

Vertical Farming Market Value

Vertical Farming Market Statistics

  • Global vertical farming market revenue accounted for USD 4,250 Million in 2022, with a 26.1% CAGR from 2023 to 2032
  • North America vertical farming market share occupied around 30% in 2022
  • Asia-Pacific vertical farming market growth is projected to attain over 27% CAGR from 2023 to 2032
  • By mechanism/channel, the hydrophonics sub-segment grabbed over 45% share in 2022
  • Among growing platform, the buildings military occupied over USD 2,677 million in revenue in 2022
  • Growth in urban population is a notable trend in vertical farming market

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Vertical Farming Market Dynamics

Vertical Farming Is Known For Its Efficient Water Usage and Resource Utilization Compared To Traditional Farming Practices

Vertical farming employs various mechanisms, including hydroponics, aeroponics, and aquaponics. Among these, hydroponics is the most preferred mechanism in vertical farming. This segment accounted for over half of the total market revenue in 2021, and its dominance is expected to continue during the forecast period. Hydroponics not only conserves water but is also less susceptible to pests and diseases. Moreover, soil alternatives like pumice enhance the efficiency, flexibility, and cost-effectiveness of the growing environment.

Rather than cultivating crops in open fields or greenhouses, some companies opt to stack and grow them in dark warehouses using UV lights. This approach conserves water and shortens the harvesting time. It allows year-round crop production in a controlled environment, unlike traditional farming, which relies on natural climatic conditions. Indoor crop cultivation provides precise control over the resources required by plants, ensuring consistent nutrient content. For example, UV lights or LEDs used in vertical farming can be adjusted based on the required light intensity for specific crops. These lights generate minimal heat compared to older filament bulbs and can be positioned closer to the plants for optimal light absorption.

In terms of growing platforms, the vertical farming market is segmented into buildings and shipping containers. Among these segments, the latter is the most dominant, accounting for approximately 63% of the total revenue in 2022. Companies like podponics, an advanced greenhouse company in Georgia, USA, estimate that each shipping container produces the same yield as an acre of traditional farmland.

Vertical Farming Market Segmentation

The global market has been categorized into growing mechanism/channel, growing platform, crop type, hardware components, and region.

  • By growing mechanism/channel segment includes hydroponics, aeroponics, and aquaponics
  • By growing platform industry is categorized into shipping containers, and buildings
  • The crop type segment categorized into greens, vine crops, fruits and flowers, herbs, strawberry, cannabis, tomatoes, and others
  • By hardware components segment industry includes lighting devices, sensor, climate control, irrigation, and others
  • By region, the market is classified into Asia-Pacific, Latin America, North America, Europe, and the MEA

Vertical Farming Market Share

According to the vertical farming market forecast, the hydroponics growing mechanism/channel segment is projected to dominate, holding the largest market share between 2023 and 2032.

In terms of growing platforms, shipping containers emerged as the market leader in 2022, and it is expected to maintain its leading position in the foreseeable future.

The vertical farming industry analysis indicates that the tomatoes crop type is experiencing substantial revenue growth during the projected period from 2023 to 2032.

Regarding hardware components, the climate control segment has consistently been the highest revenue-generating segment in recent years and is expected to continue its strong performance.

Vertical Farming Market Regional Outlook

North America is a notable market leader in vertical farming. Factors such as increased farmer awareness of alternative farming practices, the need to fulfill the demands of a fast growing population, achieving higher agricultural yields in limited available regions, and water conservation drive the region's leadership. It presently has the biggest market share and is anticipated to maintain this position in the near future.

The vertical farming sector in Europe is expanding rapidly. The region's emphasis on sustainable agriculture, local food production, and lessening the environmental impact of traditional farming has contributed to this expansion. Technological improvements and government backing also help to drive market growth. While Europe's market is now smaller than North America's, it is fast expanding.

Vertical farming is a growing market in Asia-Pacific. Because of population density, limited arable land, and the desire for high-quality, locally grown products, countries such as Japan, Singapore, and China are making significant investments in vertical farming. The Asia-Pacific market is expanding and will play an important role in the future of vertical farming.

Vertical Farming Market Players

Some prominent vertical farming companies covered in the industry includes Agrilution GmbH, AeroFarms, Everlight Electronics Co., Ltd, Brigth Farms, Green Sense Farms, LLC, AMHYDRO (American Hydroponics), Vertical Farm Systems, Illumitex Inc, 4D Bios Inc., and Urban Crop Solutions.

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Mr. Frank Wilson

Acumen Research and Consulting

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