Vertical Farming Industry Overview
The global vertical farming market size was valued at USD 4.34 billion in 2021 and is expected to reach USD 33.02 billion by 2030, registering a CAGR of 25.5% from 2022 to 2030.
The market growth is attributed to the growing adoption of environment-friendly production of fruits and vegetables. The unprecedented growth of the global population has increased the demand for urban agriculture.
Gather more insights about the market drivers, restrains and growth of the Global Vertical Farming market
Vertical farming is the practice of producing food in vertically stacked layers such as in a used warehouse, skyscraper, or shipping container. Organic foods are perceived as healthier, nutritious, safer, and more environmentally friendly. A critical factor that influences the demand for organic food is the food purchasing behavior of consumers, which is essential for producers, policymakers, and suppliers to implement successful marketing strategies.
Obesity and heart diseases are prevalent, health-related issues among consumers. Furthermore, the growing depletion of groundwater and changing climatic conditions have urged traditional growers to adopt alternate farming methods. Increasing consumer concerns toward health and the abovementioned factors are likely to elevate the industry demand.
Unlike traditional farming, indoor farming can produce crops throughout the year, which results in increased productivity. Furthermore, indoor farming can protect crops from extreme weather conditions through the usage of techniques such as the controlled environment agriculture technology, where the facilities use artificial environmental control, control of light, and fertigation.
Increasing demand for high-quality food, independent agriculture technique, and growing urbanization are some of the critical factors responsible for market growth. These factors have increased the requirement for food. Demand for food is expected to witness significant growth with a growing population by 2030. The adoption of the vertical cultivation technique allows the consumers to grow crops in a warehouse or a multi-story building.
Vertical Farming Market Segmentation
Based on the Structure Insights, the market is segmented into Shipping Container and Building-based.
The shipping container segment dominated the market with a share of over 50.0% in 2021 and is expected to remain dominant over the forecast period.
Factors such as growing technological advancements and increasing penetration of precision farming are anticipated to drive the shipping container segment over the forecast period.
Based on the Offering Insights, the market is segmented into Lighting, Hydroponic Components, Climate Control and Sensors.
The lighting segment led the market and accounted for more than 40.0% in 2021. The large share of the lighting segment can be attributed to the dependence of vertical farms on artificial lighting.
The climate control segment is expected to register the highest CAGR of 27.0% over the forecast period.
Increasing adoption of hydroponic components by farmers to minimize the weight load and infrastructure needed to support the equipment is anticipated to drive the demand for hydroponic components.
Based on Growing Mechanism Insights, the market is segmented into Hydroponics, Aeroponics and Aquaponics.
The hydroponics segment held the largest revenue share of more than 50.0% in 2021 and is expected to remain dominant over the forecast period.
The aquaponics segment is anticipated to gain a significant market share over the forecast period. Aquaponics is the integration of hydroponics and aquaculture, which eliminates the need for harmful chemicals for cultivation.
The aeroponics segment is anticipated to witness considerable growth over the forecast period.
Based on Fruits, Vegetables, & Herbs Insights, the market is segmented into Tomato, Lettuce, Bell & Chili Peppers, Strawberry, Cucumber, Leafy Greens (excluding lettuce), Herbs and Others.
The tomato segment led the market and accounted for more than 20.0% share of the global revenue in 2021.
This large share is attributed to the high average demand for tomatoes in all regions compared to other crops such as lettuce, leafy greens, peppers, cucumbers, herbs, and so on.
Based on the Vertical Farming Regional Insights, the market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa (MEA)
Asia Pacific dominated the market in 2021 with a revenue share of over 35.0% and is expected to remain dominant over the forecast period. 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. Furthermore, the increasing adoption of nanotechnology and robotics for farming enhances the regional market demand.
Market Share Insights:
January 2022: Plenty Unlimited Inc. secured USD 400 million in a Series E funding round. The funding will support Plenty growth, including the proliferation of technology platforms to sell crop farms to partners directly.
February 2020: Urban Crop Solutions collaborated with CropKing to enhance its service offerings.
Key Companies Profile:
The players are investing in R&D for product innovation and enhancement. They are also utilizing the improved database of the customers, products, and processes to achieve the requisite transformation necessary for sustaining in this highly competitive market.
Some prominent players in the global vertical farming market include
Illumitex, Inc. (U.S.)
American Hydroponics (U.S.)
Everlight Electronics Co., Ltd.
GrowUp Urban Farms Ltd.
Green Sense Farms, LLC
Vertical Farm Systems
Order a free sample PDF of the Vertical Farming Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.
Company Name: Grand View Research, Inc.
Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.
Email: Send Email
Address:Grand View Research, Inc. 201 Spear Street 1100 San Francisco, CA 94105, United States
City: San Francisco
Country: United States