The global vertical farming market size is expected to reach USD 33.02 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 25.5% from 2022 to 2030. Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions.
Vertical Farming Market Report Highlights
- The escalating production of biopharmaceutical products is anticipated to drive the market
- In terms of structure, the building-based segment is expected to register a significant CAGR of 27.8% over the projected period
- Based on offering, the climate control segment is expected to witness high growth over the forecast period as the growth of crops can be controlled by monitoring and adjusting the concentrations of minerals
- By growing mechanism, the aeroponics segment is expected to observe considerable growth over the forecast period as the aeroponics facilitate fast growth in plants (under normal conditions)
- The North American regional market is expected to witness significant growth over the forecast period owing to the expansion of small-scale, commercial vertical farms
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As the global population projected to exceed 9 billion by 2050, and two-thirds of population expected to live in urban areas, vertical agriculture could help increase food production and expand agricultural operations. Big benefit is sustainability. Also It uses less water, climate-resilient, and no agricultural runoff. harvest won’t get affected by extreme weather events like hurricanes, droughts or floods, unlike outdoor farming as crops are safe and sound in a highly-controlled environment and we could save 30% of harvests that are lost each year due to spoilage. High energy bills and labour costs might impact the growth of the market. The growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.
Vertical farming is effective in ensuring stability in crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over the traditional farming technique, such as less use of water, the lesser need for agrochemicals, and low dependence on agricultural labor. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.
Genetically modified organisms and the environmental and health effects of pesticides and other non-natural substances that are used for increasing agricultural production have encouraged consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by around 5% in 2019 owing to the increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990, the handlers and growers of organic products need to comply with the regulations.
Artificial lighting helps in extending the hours of natural daylight, which further increases the health, growth rate, and yield of the plants. Artificial lighting such as high-pressure sodium lighting and LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce a dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
A hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors such as high initial investment and fewer crop varieties are likely to restrain the market growth.
Vertical Farming Market Insights By Geographical Regions:
Asia Pacific dominated the market with a revenue share of over 35.0%. Growing awareness regarding the importance of alternative farming owing to less availability of fertile agricultural land and increasing population in the region is the key factor anticipated to spur the demand. Europe is anticipated to witness significant growth over the projected period owing to the growing expansion of genetically modified crop technology. The growing urban population and commercialization of indoor farming are anticipated to drive the demand in Africa. However, the lack of financial resources to build modern vertical farms and limited access to water and land are expected to restrain the regional market growth.
Industry Insights By Major Competitors:
Key market players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. The players are investing in R&D for product innovation and enhancement. The market is primarily dominated by lighting providers accounting for a major share. Some prominent players in the global vertical farming market include:
- AeroFarms (U.S.)
- Illumitex, Inc. (U.S.)
- American Hydroponics (U.S.)
- Agrilution GmbH
- Brightfarms Inc.
- Everlight Electronics Co., Ltd.
- Freight Farms
- GrowUp Urban Farms Ltd.
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Vertical Farming Market Segmentation
Grand View Research has segmented the global vertical farming market based on structure, offering, growing mechanism, fruits, vegetables, & herbs, and region:
Vertical Farming Structure Outlook (Revenue, USD Million, 2017 – 2030)
- Shipping Container
- Building-based
Vertical Farming Offering Outlook (Revenue, USD Million, 2017 – 2030)
- Lighting
- Hydroponic Components
- Climate Control
- Sensors
Vertical Farming Growing Mechanism Outlook (Revenue, USD Million, 2017 – 2030)
- Hydroponics
- Aeroponics
- Aquaponics
Vertical Farming Fruits, Vegetables, & Herbs Outlook (Revenue, USD Million, 2017- 2030)
- Tomato
- Lettuce
- Bell & Chili Peppers
- Strawberry
- Cucumber
- Leafy Greens (excluding lettuce)
- Herbs
- Others
Vertical Farming Regional Outlook (Revenue, USD Million, 2017 – 2030)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Asia Pacific
- China
- Japan
- India
- Singapore
- South Korea
- South America
- Brazil
- Middle East and Africa (MEA)
List of Key Players of Vertical Farming Market
- AeroFarms (U.S.)
- Illumitex, Inc. (U.S.)
- American Hydroponics (U.S.)
- Agrilution GmbH
- Brightfarms Inc.
- Everlight Electronics Co., Ltd.
- Freight Farms
- GrowUp Urban Farms Ltd.
- Green Sense Farms, LLC
- Vertical Farm Systems
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
Grand View Research employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecast possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation that looks market from three different perspectives.