The vertical farming market recorded a notable revenue share in the market in 2021 and is set to be worth more than USD 31.15 billion by the end of 2030. It is poised to grow at a healthy CAGR of 25.2% from 2021 to 2030.
The report contains 150+ pages with detailed analysis. The market report also covers the estimated market sizes and trends for different countries across major regions, globally.
The vertical farming refers to the process of producing crops in layers that are piled vertically. It frequently integrates soilless farming techniques including hydroponics, aquaponics, and aeroponics, as well as controlled-environment agriculture, which tries to optimize plant development. Buildings, shipping containers, tunnels, and abandoned mine shafts are some of the usual structures used to host vertical farming systems.
The rise in popularity of organic food, optimum use of vertical space and balanced energy use, convenience of crop monitoring and harvesting, and decrease in arable land are all key factors influencing the vertical farming market growth. However, the market’s expansion is hampered by large initial investments and the use of new technology. Despite this, the expanding urban population and increased use of new technology-driven agriculture are likely to present profitable growth possibilities for vertical farming market players.
This is due to the increasing adoption of environmentally friendly fruit and vegetable producing methods. The demand for urban agriculture has surged as the global population has grown at a rapid pace. The organic foods are thought to be more nutritious as compared to conventional foods. The consumer food buying behavior is a major component that drives the demand for organic food, and it is critical for producers, suppliers, and government agencies to develop effective marketing tactics.
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Growth Factors
In the vertical farming industry, the implementation of harvesting robots, greenhouse roof washers and automated seed planters has been instrumental in reducing operational costs and increasing revenue. The automated movement of plants is becoming increasingly common. It includes the seeding, transplanting, harvesting, packaging, and cleaning unit tasks which, in turn, boost the demand for vertical farming. The primary factor that will have a positive effect on the vertical farming market in the coming years is the rapidly increasing global population and the demand for higher agricultural yields on limited arable land.
For example, according to the Food & Agricultural Organization (FAO), by 2050, urban regions worldwide are expected to hold about 70 percent of the global population, which will place pressure on agricultural productivity to increase in the coming years. This method has numerous advantages over traditional farming, such as less reliance on soil fertility, low water usage, and regulated weather conditions through agrochemicals, which during the forecast spell will turn the entire agro-business. In addition, its capacity to produce fruits, vegetables and herbs of high quality throughout the year would further increase product development in the near term.
Report Highlights
- Based on the growth, the hydroponics segment is expected to have a significant revenue share because it is frequently used in vertical farming, which includes growing plants in soil-free nutritional solution.
- Based on the type, the biopesticides segment is expected to have a significant revenue share owing to the increased use of microbial pesticides that aid in the control of a wide range of pests, despite the fact that each active component is relatively specific to its target pest.
Market Dynamics
Drivers
Integration of advanced technologies
The internet of things, smart and linked gadgets, drones, smartphone apps, and other technologies provide real-time information to the vertical farming producer. It is challenging to manually manage timely information about crop health and the environment. Crop production technology that is based on automation and information technology is effective.
Restraints
Lack of technically skilled workforce
The cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponic, and aeroponic systems are all frequently used in vertical farming. A skilled and knowledgeable personnel is required to run this sophisticated equipment. Vertical farming, like many other industries, has been harmed by a lack of skilled labor on a global scale. Furthermore, the majority of farmers enter this market with inefficient and costly systems. Vertical farms must stay current on several elements of farming in order to survive and remain competitive on the market.
Opportunities
Rising need for independent farming technique
With the global population expanding and global food markets changing, more robust agricultural farming methods need to be brought closer to metropolitan areas. A new sort of farming technology known as vertical farming has lately emerged as a viable agricultural answer. In contrast to traditional agricultural methods, the technique takes up less space and uses regulated transpiration. The vertical farming market is projected to increase as a result of this.
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Challenges
Climate and weather conditions
In vertical farming, the most difficult problem is climate control. The temperature and humidity of the grow room must be controlled by maintaining cooling, dehumidification, and heating. The primary source of heat in vertical farming is lighting, which is followed by motors that run fans, pumps, and automation. Because vertical farms are meant to work at all hours of the day and night throughout the year, cooling is essential to remove the heat created inside the vertical farm 24 hours a day, 7 days a week, and all year. However, the producers face a significant issue in regulating the circulation of conditioned air throughout the vertical farm in order to create a consistent growing environment.
Regional Snapshot
North America is the largest segment for vertical farming market in terms of region. Vertical farms are being constructed in industrialized countries such as the U.S in response to rising demand for high-quality, organic, and fresh food.
Asia-Pacific region is the fastest growing region in the vertical farming market. The loss of fertile land for traditional agriculture in nations such as India, China, and several Asian countries is likely to improve market growth potential. Because of the increased adoption of technological solutions to maximize growing food demand, vertical farming techniques are predicted to grow steadily in developing countries.
Leading competitors contending in global Vertical farming market are as follows:
- 4D Bios Inc
- Illumitex Inc
- Urban Crop Solutions
- Koninklijke Philips N.V.
- AMHYDRO (American Hydroponics)
- AeroFarms
- Agrilution
- Everlight Electronics Co., Ltd
- Hort Americas
- Others
Recent Market Developments:
- In year 2018, The leading player Fluence was awarded the Canadian Cannabis Awards as the best lighting firm of 2018 by OSRAM. The award will support the firm achieve universal recognition in lighting horticulture.
Major Market Segments Covered:
By Growth Mechanism
- Hydroponics
- Terraponics
- Aeroponics
- Aquaponics
By Component
- Lighting
- Climate Control
- Sensor
- Irrigation
- Others
By Fruits, Vegetables & Herbs
- Bell & Chili peppers
- Strawberry
- Tomato
- Lettuce
- Cucumber
- Herbs
- Leafy Greens (excluding lettuce)
- Others
By Structure
- Shipping Container
- Building-based
By Geography
- North America
-
- U.S.
- Canada
-
- Europe
-
- Germany
- France
- United Kingdom
- Rest of Europe
-
- Asia Pacific
-
- China
- Japan
- India
- Southeast Asia
- Rest of Asia Pacific
-
- Latin America
-
- Brazil
- Rest of Latin America
-
- Middle East & Africa (MEA)
-
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
-
Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or the Asia Pacific.
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