The global vertical farming market is predicted to grow at 21.4% CAGR during the forecast period with the market size reaching USD 8.8 billion by 2024. The major factor fueling the growth of the market include increasing awareness regarding the consumption of high-quality food products, increasing demand for food-based on no herbicide and pesticide, limited agricultural land space. In addition. adoption of independent farming techniques with a focus on vegetables and fruits also supports the growth of the vertical farming market, globally.
Insight by Offering
Based on offering, the vertical farming market is categorized into hardware and software. 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. hold the largest share in the market. Hardware segment is further categorized into climate control, lighting, sensors, and hydroponic components. The climate control vertical farming market is further categorized into air purification, ventilation fans, and others; and vertical farming lighting market is categorized into grow light reflectors, grow light ballasts, grow lights.
Among the hardware components, the sensors market is segmented into PH sensors, nutrient sensors, crop sensors, CO2 sensors, temperature sensors, and others; and hydroponic components market is categorized into meters and solutions, pumps and irrigation, water filters, and others.
Insight by Growth Mechanism
Different growth mechanism for vertical farming includes aeroponics, hydroponics, and aquaponics. Among all, hydroponics hold the largest share in the vertical farming market. However, the aquaponics based vertical farming market is anticipated to grow at the fastest rate during the forecast period.
Insight by Structure
Based on the structure, the vertical farming market is segmented into building-based and shipping container vertical farms. Building based vertical farms hold the larger share in the market and the category is also anticipated to grow at the faster rate during the forecast period.
Insight by Crop Type
Based on crop type, the vertical farming market is categorized into broccoli, pepper, tomato, spinach, cucumber, lettuce, and others. Lettuce is the most grown crop in vertical farm and the demand for vertical farm products is anticipated to be the highest for this crop type during the forecast period.
The increasing awareness regarding the consumption of high-quality food products, increasing demand for food-based on no herbicide and pesticide, limited agricultural land space are the key factors leading to the growth in the vertical farming market, globally. The vertical farm helps to increase the productivity of crops by growing them in a limited space and climate-controlled environment. The technological advancements in the lighting industry have significantly supported the growth of the industry. With the use of artificial lights including grow lights the production of fruits and vegetables increases manifold.
Increasing urbanization and development of smart cities also supporting the production of vegetables and fruits in the vertical farms. With the increasing population especially in the developing economies the has significantly increased the burden on the agriculture sector. This has increased the demand for food security in these countries, thus supporting the demand for agriculture through the vertical farm.
Key challenges faced by the vertical farming industry players is the high initial investments required for setting up vertical farm and production on a large scale in these farms. Also, a limited number of crops can be grown as of now successfully in vertical farms, thus hindering the growth of the market, globally.
Geographically, North America is the largest vertical farming market, due to the technological advancements, increasing research and development and increasing demand for no or low herbicide and pesticide-based crops. Moreover, increasing awareness among farmers, an increasing number of independent farmers producing crops in minimum space is also supporting the growth of the market in the region. Similarly, owing to the limited land space and the huge investment for vertical farming techniques, the demand for these farms is also increasing considerable in the second largest vertical farm market, among all regions, Europe.
Asia-Pacific vertical farming market is anticipated to grow at the fastest rate during the forecast period. The large population base, increasing the development of smart cities, increasing urbanization are the key factors leading to the adoption of vertical farming in the different countries of these countries. The increasing urbanization and increasing population in the countries such as China and India are creating huge stress on agriculture sector to fulfill the needs of consumers. Building based vertical farms are increasingly being popular and are anticipated to gain more traction in the coming years to overcome the burden on the agriculture sector and to ensure food security.
Market players in the vertical farming industry are focusing on the advancements for the providing controlled environment in the buildings to support conditions as close to nature. AeroFarms, Urban Crop Solutions, Sky Greens, agrilution GmbH, Vertical Farm Systems, Green Sense Farms, LLC, Everlight Electronics Co., Ltd., Illumitex, Inc., Koninklijke Philips N.V., and American Hydroponics are some of the key players offering solutions in the vertical farming industry.
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