Vertical Farming Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Vertical Farming Market Size accounted for USD 3,458 Million in 2021 and is estimated to achieve a market size of USD 25,778 Million by 2030 growing at a CAGR of 25.3% from 2022 to 2030. The increased acceptance of environmentally friendly fruit and vegetable cultivation is driving the rise of the vertical farming market. Furthermore, increased demand for genetically engineered seeds, together with rising customer demands for organic and specialized products, would boost vertical farming market growth over the anticipated timeframe.

Vertical Farming Market Report Key Highlights

• Global vertical farming market revenue intended to gain USD 25,778 million by 2030 with a CAGR of 25.3% from 2022 to 2030
• North America region led with more than 36% of vertical farming market share in 2021
• According to studies, there are over 2,000 vertical farming in the United States cultivating products such as herbs, lettuce, and berries.
• Asia-Pacific vertical farming market growth will observe strongest CAGR from 2022 to 2030
• By growing mechanism/channel, hydroponics segment generated about 46% market share in 2021
• By hardware components, the lightening devices engaged more than 39% of the total market share in 2021
• High yield compared to conventional farming is tied to vertical farming, drives the vertical farming market size

The United Nations projects that the global population will raise to around 9.6 billion by 2050 and over 86% of this population will reside in cities. Looking at the current day situation, where people have already begun to shift from rural to urban areas in search of better living, the predictions from United Nations certainly hold true. The bulging population in cities would create a huge demand for quality food. The decrease in agricultural activities due to the shift from rural to the urban area would form a huge demand-supply gap to meet the food demand. Vertical farming, which is capable to grow quality and fresh food in lesser available land and low water could be a viable solution to this problem. Vertical farming is an advanced technique of farming to grow greens, herbs, etc. with the help of artificial lights and a controlled environment in an enclosed infrastructure. For growing cities, these urban farms offer easy access to fresh and nutritious food around the year.

Global Vertical Farming Market Trends

Market Drivers

• High yield compared to conventional farming is tied to vertical farming
• Advancement in Lighting technologies in farming
• Significantly raise the popularity of organic vegetables
• Optimum utilization of vertical space & balanced energy utilization

Market Restraints

• A scarcity of technically skilled labor
• High start-up costs

Market Opportunities

• Growth in urban population
• Increasing demand for agricultural monitoring systems

Vertical Farming Market Report Coverage

Some of the major factors driving the growth of this market include the availability of farm fresh within the reach of the urban population, availability of organic produce with negligible or no use of insecticides and pesticides, rapidly increasing population and lesser available arable land, increased year-round production, and protection from adverse climatic conditions among others.

Vertical farming includes growing mechanisms such as hydroponics and aeroponics technology which consumes around 70% less water as compared to traditional farming techniques. Urban waste such as sewage water can be recycled and used for vertical farms and sewage sludge can be converted to topsoil. However, the high cost associated with setting up a vertical farm in a building in an urban area, considering the ever-swelling real estate sector, is one of the major factors restricting the growth of the vertical farming market. Another major limitation of vertical farms is that they can grow only a limited variety of fruits and veggies.

Vertical Farming Market Segmentation                                                                                                       

The worldwide vertical farming market segmentation is based on the growing mechanism/channel, growing platform, crop type, hardware components, and geography.

Vertical Farming Market By Growing Mechanism/Channel

• Hydroponics
• Aeroponics
• Aquaponics

According to a vertical farming industry analysis, the hydroponics segment had the highest market share in 2021. Due to the rising need for safe and healthy food, hydroponics is expected to rise rapidly. Hydroponics is gaining popularity as a result of new developments to increase the flavor and endurance of vegetables and fruits. The reduced water usage and increased output capacity stimulate the demand for these farming methods.

Vertical Farming Market By Growing Platform

• Shipping Containers
• Buildings

In terms of growing platforms, the shipping container segment was the dominant segment in 2021. This expansion is ascribed to the structure's capacity to assist in crop production regardless of location. One of the key advantages of container farming is that it is easily transportable, and it does not necessitate a large plot of ground or a specialized facility to begin cultivating. The shipping container segment is expected to be driven by factors including increasing technical improvements and rapid expansion of precision farming throughout the projected period.

Vertical Farming Market By Crop Type

• Greens
• Vine Crops
• Fruits and Flowers
• Herbs
• Strawberry
• Cannabis
• Tomatoes
• Others

According to the vertical farming market forecast, the tomato category is predicted to increase substantially in the market over the next several years. This growth can be attributed to the large demand for tomatoes in all regions, as opposed to leafy greens, peppers, lettuce, cucumbers, herbs, as well as other products. Strawberries, tomato, lettuce, bell and chile peppers, cucumber, & leafy greens are among the most regularly grown veggies, herbs, as well as fruits in various locales.

Vertical Farming Market By Hardware Components

• Lighting Devices
• Sensor
• Climate Control
• Irrigation
• Others

In terms of hardware components, the climate control segment is expected to increase rapidly in the market over the next few years. Climate control agriculture entails cultivating plants inside a greenhouse in a regulated climate that enables a producer to regulate and monitor the right amount of lighting, CO2, moisture, humidity, pH values, and minerals for growing crops. The primary goal of climate control agriculture is to improve crop protection and sustain optimal growth circumstances throughout the crop's development period. Climate-controlled agriculture is frequently employed to guarantee that plants receive adequate growth-promoting nutrients.

Vertical Farming Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)