Industry Overview
The European vertical farming market is predicted to grow at 21.6% CAGR during the forecast period with the market size reaching USD 2,298.3 million by 2024.
The Vertical farming technique helps the manufacturers in producing crops in vertically stacked columns and rows. The technique utilizes the controlled-environment agriculture (CEA) technology that helps in controlling humidity, nutrients, gases, temperature, and light. This technique causes less ecological influence and enables the manufacturer to utilize reduced water and energy than the customary farms. The manufacturers can efficiently utilize their resources and produce significantly more food with minimum consumption of land.
Market Segmentation
Insight by Offering
Hardware and software are the offerings provided by the vertical farming market. Of both the categories, the demand for hardware is larger in the market and is also anticipated to grow at a higher CAGR during the forecast period. The hardware type is further segmented into lighting, hydroponics component, climate control, and sensors. Lighting type is further segmented as grow lights, grow light reflectors and grow light ballasts. Similarly, the hydroponics component is further segmented as pumps and irrigation, meters and solutions, water filtration and others. The climate control hardware type is further categorized as ventilation fans, air purification, and others. Additionally, the sensors are further categorized as temperature sensors, CO2 sensors, nutrient sensor, PH sensor, crop sensors, and others.
Insight by Growth Mechanism
On the basis of growth mechanism, the European vertical farming market is categorized into aeroponics, hydroponics, and aquaponics. Of all, hydroponics holds the largest share in the European vertical farming market.
Insight by Structure
Based on the structure, the European vertical farming market is categorized into building-based vertical farms and shipping container vertical farms. The technique is largely used for growing several crops such as lettuce, pepper, broccoli, cucumber, spinach, tomato, and others.
Insight by Crop Type
The vertical farming helps in producing the perfect arrangement of lettuce varieties and growing formulas that help in enhancing the quality and yields of crop. With the implementation of precise growing, formulas will help the manufacturers to achieve an increased yield on their investments. The technique is excessively used in Europe to grow lettuce varieties in order to the efficiency of crop production in a farm. This technique is also helping the manufacturers to effectively lessen radiations and transport associated costs.
Industry Dynamics
Growth Drivers
The increasing demand for environmentally friendly production of fresh fruits and vegetables with no use of pesticides is driving the demand for the vertical farming market in Europe. The consumption of organic food is helping people to lessen their symptoms if they are suffering from allergies to foods or chemicals. The demand for organic foods is increasing as it provides more nutrients such as antioxidants than those of conventionally grown counterparts.
Challenges
The high initial investments in vertical farming and limitations on the variety of crops grown are the major restraints observed in the growth of the vertical farming market in Europe.
EUROPE VERTICAL FARMING MARKET HIGHLIGHT
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Geography Insight
Europe is the second-largest vertical farming market after North America as the technique is satisfying the needs of the urban population. The technique aims at delivering the crops where the consumption of this product is highly focused. The demand for vertical farming is increasing enormously in order to satisfy the demand for an enhanced urban population. The swelling ecological and cost-effective pressure to develop products such as lettuce in the location near to the residing place of end customers is expected to further strengthen the demand of this market in Europe.
Competitive Insight
Some of the key players operating in the European vertical farming market are AeroFarms, Gotham Greens, Bright Farms Inc., Vertical Harvest, Home Town Farms, Infinite Harvest Inc., Lufa Farms Inc., Beijing IEDA Protected Horticulture Co., Ltd., Farmed Here LLC, Garden Fresh Farms CSA, Metropolitan Farms, Green Sense Farms, and Green Spirit Farms.
PRIMARY RESEARCH INTERVIEWS – BREAKDOWN
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