Vertical Farming Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030
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The global vertical farming market is expected to
witness growth at a compounded annual growth rate (CAGR) of 24.0% during the
forecast period of 2022-2030.
Vertical farming involves the practice of growing
crops in vertically stacked layers in a controlled environment, usually in used
warehouses, skyscrapers, or shipping containers. Techniques such as aquaponics,
hydroponics, and aeroponics, and equipment including grow lights, sensors,
humidity controllers, coolers, etc., are utilized in the process.
Vertical farming ensures high yield with minimal
pesticides usage, less area requirement, and less water consumption. Unlike conventional
farming, vertical farming enables the production of high-quality fruits, and
vegetables, herbs, and flowers throughout the year with the negligible effect
of climate change and natural calamities such as droughts, floods, soil-related
diseases, etc.
Growth Drivers:
Factors primarily driving the growth of this market include: the burgeoning demand for food due to the ever-increasing global population; the increasing need for the adoption of environment-friendly production of fruits and vegetables; the rising prevalence of obesity and heart diseases among people worldwide; the soaring consumer concerns toward health; the growing demand for high-quality food: the increasing popularity of organic food; the surging awareness regarding the benefits of vertical farming including ease of crop monitoring and harvesting; the concerns regarding shrinking arable land globally; the rising adoption of technology-driven agriculture; the changes in the climate due to effects of global warming, and the escalating demand for sustainable agricultural ecosystems.
Additionally,
the rising trend, awareness, and adoption of precision farming techniques among
farmers are creating ample growth opportunities for the growth of the global
vertical farming market. Precision farming enables the farmers to maximize
yields, enhance time management, minimize water and chemical usage, improve
yield, and produce healthier crops. Due to this and the ever-increasing demand
for food, farmers and agriculturists are rapidly shifting toward precision
farming, opening new opportunities for growth for the global vertical farming
market.
Moreover,
the awareness regarding the advantages of using vertical farming is
spearheading across major parts of the globe. This includes the rate of
conservation and recycling of natural resources in vertical farming. Vertical
farms help reduce water usage by almost 90%, lift the dependence on the weather
as it allows farmers to achieve a consistent year-round crop production, helps
in attaining more yield in a small area, and eradicate the use of fertilizers
& pesticides. All these advantages of vertical farming are set to expand
the market size considerably in the forthcoming years.
Furthermore,
other factors such as the proliferating utilization of IoT sensors in crop
production; the rising concerns regarding pollution-free environment; the
emergence of next-generation, AI-powered vertical farming technologies; the
escalating investments in the vertical farming technology; the fast-paced
urbanization across the globe and, the growing cannabis cultivation through
vertical farming are expected to further augment the growth of the global
vertical farming market during the forecast period.
However,
factors such as the dearth of skilled workforce, technical know-how and awareness;
the requirement of high initial investments: and limitations on crop variety
are expected to hamper the growth of the global vertical farming market to a
certain extent during the forecast period.
Vertical
Farming Market Segmentation:
By Growth Type:
·
Hydroponics
·
Aeroponics
·
Aquaponics
By Structure:
·
Building-based vertical farm
·
Shipping container-based
vertical farm
By Crop Type:
·
Lettuce
·
Pepper
·
Broccoli
·
Cucumber
·
Spinach
·
Tomato
·
Strawberry
·
Pomegranate
·
Others
By Offerings:
·
Hardware
·
Software
·
Services
By Region:
·
North America
·
Europe
·
Asia Pacific
·
Latin America
· Middle East and Africa
Based on
offerings, the hardware segment captured the largest share of the global
vertical farming market in 2021. The segment is anticipated to retain its lead
further in the market during the forecast period of 2022-2030. The increasing
requirement of hardware components in vertical farming and the growing focus of
hardware manufacturers on developing advanced products for the market are
majorly ascribed to the high growth of this segment.
Based on growth
type, the hydroponics segment led the global vertical farming market in 2021.
The segment is poised to remain dominant throughout the forecast period of
2022-2030 due to the high hydroponics technique usage by commercial growers due
to its low setup cost, convenience, and higher return on investments (ROI). However,
the aeroponics segment is predicted to register the highest CAGR in the market
during the forecast period.
Based on crop
type, the lettuce segment acquired the largest share of the global vertical
farming market in 2021. The segment’s position is expected to remain the same
throughout the forecast period. The high demand for lettuce all year round, its
easy and quick cultivation, and the surging demand for nutritious and organic
vegetables across the globe are majorly attributed to the growth of the lettuce
segment.
Regional
Outlook:
The Asia
Pacific region accounted for the largest share of the global vertical farming
market in 2021, followed by North America and Europe. The region’s position is
expected to remain unchanged, and the region is expected to experience the
highest growth in the market during the forecast period. Factors mainly
attributable to the large share and high growth of this region include the presence
of the largest vertical farms across the globe; the increasing need to reduce
the dependency on imported food; the escalating awareness regarding the
importance of alternative farming, the rapidly expanding population base; the
growing number of vertical farming projects; the fast-paced urbanization; the
expanding operations of leading market players, and the propelling demand for
organic food in the region. India, China, Japan, South Korea, Australia, and
Taiwan are major contributors to the growth of the market in the region.
The North
American region acquired the second-largest share of the global vertical
farming market in 2021. The region is projected to remain in the same position
throughout the forecast period and witness robust growth owing to the growing
water level depletion; the presence of drought-stricken states; the rising
environmental concerns; the surging awareness among the consumers regarding
organic-based fresh food; the escalating technological investments in the agriculture
sector; the presence of well-established vertical farming players; the serious concerns
regarding food security and nutrition, and the increasing availability of
freshly harvested vegetables across retail outlets in the region.
The European region
is also anticipated to account for a major chunk of the global vertical farming
market during the forecast period. This can be attributed to the increasing
support from government agencies for the setting up of vertical farms to
overcome challenges of the ever-increasing population base and climate change: the
rapid expansion of the genetically-modified crop technology and the
proliferating adoption of nanotechnology and robotics for farming in the
region. Germany is the leading contributor to the vertical farming market in
the region.
Key Companies in
Vertical Farming Market:
·
Heliospectra AB
·
Infarm
·
Altius Farms
·
Intelligent Growth Solutions
·
4D BIOS INC.
·
Green Sense Farms
·
Agrilution
·
American Hydroponics
·
Urban Crop solutions
·
Signify
·
Freight Farms
·
AeroFarms
·
Sky Greens
·
Everlight Electronics
·
Vertical Farm Systems
·
bowery Farming
·
Agricool
·
Future Crops
·
Bright Farms
· Other Players