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
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
Vertical Farming Market Report Coverage
|Market||Vertical Farming Market|
|Vertical Farming Market Size 2021||USD 3,458 Million|
|Vertical Farming Market Forecast 2030||USD 25,778 Million|
|Vertical Farming Market CAGR During 2022 - 2030||25.3%|
|Vertical Farming Market Analysis Period||2018 - 2030|
|Vertical Farming Market Base Year||2021|
|Vertical Farming Market Forecast Data||2022 - 2030|
|Segments Covered||By Growing Mechanism/Channel, By Growing Platform, By Crop Type, By Hardware Components, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||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.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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
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
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
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
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
The Middle East & Africa
North America Holds Dominating Share of Vertical Farming Market
Currently, North America is the largest market for vertical farming and is expected to maintain its dominance throughout the forecast period. Rising awareness among farmers towards the importance of alternative methods of farming to meet the demand of a rapidly growing population, better crop yield in lesser available areas, and water conservation are the major factors attributing to the growth of the vertical farming market in this region.
Vertical Farming Market Players
Some of the top vertical farming market companies offered in the professional report include 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.
The estimated value of global vertical farming market in 2021 was accounted to be USD 3,458 Million.
The projected CAGR vertical farming market during the analysis period of 2022 to 2030 is 25.3%.
The prominent players of the global vertical farming market are 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.
North America held the dominating vertical farming during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for vertical farming during the analysis period of 2022 to 2030.
High yield compared to conventional farming is tied to vertical farming and advancement in lighting technologies drives the growth of global vertical farming market.
Based on growing mechanism/channel, hydroponics segment is expected to hold the maximum share vertical farming market.