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Status : Published Published On : Jan, 2021 Report Code : VRSME9052 Industry : Semiconductor & Electronics Available Format : Page : 144
2022
2030

Global Vertical Farming Market – Analysis and Forecast (2022-2030)

Industry Insights by Offering (Hardware (Climate Control (Air Purification, Ventilation Fans, and Others) Lighting (Grow Light Reflectors, Grow Light Ballasts, Grow Lights), Sensors (PH Sensors, Nutrient Sensors, Crop Sensors, CO2 Sensors, Temperature Sensors, and Others), and Hydroponic Component (Meters and Solutions, Pumps and Irrigation, Water Filters, and Others), and Software) by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), by Structure (Building-Based, and Shipping Container),by Crop Type (Broccoli, Pepper, Tomato, Spinach, Cucumber, Lettuce, and Others)

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Industry Overview

The market for vertical farming is expected to reach $10.8 billion by 2030, expanding at a 20.4% CAGR over the forecast period Currently the 2021 market is $ 3.4 billion. The growing consumer knowledge of the benefits of consuming high-quality food items, the rising consumer demand for food made without pesticides and herbicides, and a lack of available agricultural land are the main drivers of the market's expansion. Moreover, the adoption of independent farming methods with an emphasis on fruits and vegetables contributes to the expansion of the vertical farming business, globally.

Vertical Farming Market Highlights

Market Segmentation

Insight by Offering

The vertical farming market is divided into hardware and software, based on the offer. Of the two categories, the market's demand for hardware is higher and is projected to increase at a higher CAGR throughout the forecast period. Thus, this category holds a larger share in the market. The hardware part is further divided into components for hydroponic systems, sensors, lighting, and climate control.

Insight by Growth Mechanism

Aeroponics, aquaponics, and hydroponics are three different types of vertical farming growth mechanisms. Among these, the hydroponics category accounts for the largest market share. However, it is projected that over the forecast period, the aquaponics-based vertical farming market will expand at the highest rate.

Insight by Structure

The vertical farming market is divided into building-based and shipping container vertical farms, depending on the structure. Building-based vertical farms now have a bigger market share, and during the forecast period, the category is also expected to expand more quickly.

Insight by Crop Type

The vertical farming market is categorized into broccoli, tomato, pepper, spinach, lettuce, cucumber, and others, based on crop type. The crop that is grown most frequently on vertical farms is lettuce, and during the forecast period, the category is expected to witness significant growth.

Vertical Farming Market Report Coverage

Report Metric

Details

Historical Period

2018–2021

Base Year Considered

2021

Forecast Period

2022 - 2030

Market Size in 2021

$3.4 Billion

Revenue Forecast in 2030

$10.8 Billion

Growth Rate

CAGR 20.4%

Segments Covered in the Report

By Offering, By Growth Mechanism, By Structure, By Crop Type.

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and the Rest of the World

 

Industry Dynamics

Growth Drivers

The primary drivers of the growth of the vertical farming market globally are the rising demand for food free from herbicides and pesticides, the increasing awareness of the consumption of high-quality food items, and the restricted amount of agricultural land space. By growing crops in a constrained space and climate-controlled environment, the vertical farm aids in increasing crop output. The lighting industry's technological development has made a substantial contribution to its expansion. The yield of fruits and vegetables increases significantly with the use of artificial lighting, especially grow lights.

The production of fruits and vegetables on vertical farms is supported by the growing urbanization and the creation of smart cities. The strain on the agriculture sector has greatly increased with the rising population, particularly in developing economies. As a result, there is a greater need for food security in these nations, which supports the need for agriculture and vertical farming.

Challenges

The high initial setup costs necessary for setting up vertical farms and the production on a big scale in these farms are the main problems faced by industry participants in vertical farming. Additionally, only a few crops can currently be successfully cultivated on vertical farms, which limits the market's ability to grow internationally.

Geographic Overview

Due to technical developments, more research and development, and rising consumer demand for crops with little to no herbicide and pesticide use, North America is the region with the largest vertical farming market. Additionally, growing farmer knowledge and an increase in independent farmers growing commodities in small spaces are both contributing to the expansion of the market in the area.

Similar to this, the demand for these farms is growing significantly in Europe, the second-largest vertical farm industry among all regions, due to the limited land space and high investment required for vertical farming techniques.

On the other hand, the vertical farming market in APAC is predicted to expand at the quickest rate throughout the forecast period. The enormous population bases, expanding smart city development, and growing urbanization are the main driving forces for the implementation of vertical farming in the region. In nations like China and India, where urbanization and population growth are on the rise, the agricultural sector is under tremendous pressure to meet consumer demand. In order to alleviate the pressure on the agricultural sector and to assure food security, vertical farms located in buildings are becoming more and more well-liked and are expected to gather momentum in the future years.

Competitive Insight

Market participants in the vertical farming sector are concentrating on innovations for creating controlled environments in buildings to support circumstances as similar to nature as possible. Some of the major companies providing solutions in the vertical farming sector include AeroFarms, Sky Greens, Urban Crop Solutions, Vertical Farm Systems, agrilution GmbH, Green Sense Farms LLC, Koninklijke Philips N.V., Illumitex Inc., Everlight Electronics Co. Ltd., and American Hydroponics.

Recent Development by Key Players

In August 2021, Cargill Partnered with the vertical farming leader AeroFarms aiming to improve cocoa bean yields and develop more climate-resilient farming practices. Together, the two organizations will experiment with different indoor growing technologies, including aeroponics and hydroponics, light, carbon dioxide, irrigation, and nutrients, to identify the optimal conditions for cocoa tree growth.

In August 2021, AeroFarms announced that it would expand to the Middle West region as part of a project with the World Wildlife Fund (WWF) and St. Louis Controlled Environment Agriculture Coalition (STLCEA) to demonstrate innovative strategies to minimize the environmental footprint of indoor vertical farming.

In July 2021, Heliospectra AB, a world leader in intelligent lighting technology for vertical farming, announced a new seller partnership with MineARC Systems, a global leader in manufacturing and supplying controlled environments. The company will represent Heliospectra’s market-leading LED lighting and lighting control solutions in the Australian market.

In June 2021, Osram expanded its horticulture portfolio with the launch of Osconiq S 5050. It addresses a key problem of using white LEDs resulting in lower energy costs and more efficient lighting for indoor farmers.

PRIMARY RESEARCH INTERVIEWS - BREAKDOWN

Vertical Farming Market Analysis

Source: VynZ Research

The Vertical Farming Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2022–2030.

Segments Covered in the Report

  • By Offering
    • Hardware
      • Climate Control
        • Air Purification
        • Ventilation Fans
        • Others
      • Lighting
        • Grow Light Reflectors
        • Grow Light Ballasts
        • Grow Lights
      • Sensors
        • PH Sensors
        • Nutrient Sensors
        • Crop Sensors
        • CO2 Sensors
        • Temperature Sensors
        • Others
      • Hydroponic Component
        • Meters and Solutions
        • Pumps and Irrigation
        • Water Filters
        • Others
    • Software
  • By Growth Mechanism
    • Aeroponics
    • Hydroponics
    • Aquaponics
  • By Structure
    • Building-Based
    • Shipping Container
  • By Crop Type
    • Broccoli
    • Pepper
    • Tomato
    • Spinach
    • Cucumber
    • Lettuce
    • Others

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • U.K.
    • France
    • Netherlands
    • Sweden        
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • Singapore
    • Taiwan
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

Prominently cultivated crops in Vertical Farming?

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.

Growth drivers for Vertical farming Market?

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.

Fastest growing market and drivers?

Asia-Pacific vertical farming market�is anticipated to grow at the fastest rate during the forecast period(2021-2027). 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.

Major Players in Vertical Farming Market?

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.

Growth rate and forcasted market size of Vertical Farming Market?

The global vertical farming market is predicted to grow at 20.4% CAGR during the forecast period with the market size reaching USD 9.8 billion by 2027.
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