Vertical Farming Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030

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