USD 6.88 billion
Vertical Farming Market Size, Share, Growth Analysis, By Growth Mechanism(Hydroponics, Aeroponics), By Structure(Building-based Vertical Farms, and Shipping Container-based Vertical Farms), By Offering(Hydroponic Components, Climate Control, Sensors)), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45I2097 |
Region:
Global |
Published Date: August, 2024
Pages:
197
|Tables:
60
|Figures:
75
Vertical Farming Market Insights
Vertical Farming Market size was valued at USD 6.88 Billion in 2022 and is poised to grow from USD 8.27 Billion in 2023 to USD 36.04 Billion by 2031, at a CAGR of 20.2% over the forecast period (2024–2031).
Vertical farming method is mostly used to grow crops in layers that are loaded vertically rather than on a single surface, such as field or greenhouse, as in a typical farm. The key factors driving market expansion anticipated to happen over the projected period are advances in light-emitting diode (LED) technology, a shortage of arable land, and increased urbanization. Moreover, innovations such as robotic harvesting and new vertical conveyor systems in vertical farming automation make operational success possible with reduced labor costs but improved overall profitability and operational effectiveness. In addition, two key reasons attributed to the growing demand for vertically farmed crops include a higher nutritional value in crops produced in vertical systems and changing weather patterns of conventional agricultural operations. A kind of farming in which crops are grown indoors, in vertically piled layers, in highly controlled environments, with advanced hydroponics and aeroponics to optimize crop growth and the efficiency of resources.
Market Snapshot - 2024–2031
Global Market Size
Largest Segment
Hydroponics
Fastest Growth
Aeroponics
Growth Rate
20.2% CAGR
Global Vertical Farming Market ($ Bn)
Country Share for North America Region (%)
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Vertical Farming Market Segmental Analysis
The Global Vertical Farming Market is segmented into growth mechanism, structure, offering, and region. Depending on the growth mechanism, the market is classified into hydroponics and aeroponics. By structure, it is categorized into building-based and shipping container-based. According to the offering, the market is divided into hydroponic components, climate control, and sensors. Region wise, it is analyzed across North America, Latin America, Asia-Pacific, Europe, and Middle East & Africa.
Vertical Farming Market Analysis By Type
The vertical farming market was dominated by hydroponics as of 2023, and this technology is predicted to grow at the fastest rate conceivable. Hydroponic gardening produces nearly no waste and requires 90% less water than traditional soil-based growing. It is expected that the growing demand for healthy, secure food will push hydroponics to the sector's forefront. Moreover, reducing carbon emissions and eliminating the chance of soil organisms spreading disease enhances the sustainability of food.
The aeroponics industry, on the other hand, is anticipated to grow since this technique uses air as a medium and increases the amount of oxygen available to the roots of plants, thereby accelerating their growth. This method allows for the delivery of flavorful, fresh food and maximizes growth without the need for pesticides.
Forecasts indicate that more vertical farms will be employed around the country to provide consumers with healthful, fresh food.
Vertical Farming Market Analysis By Structure
Building-based vertical farms, which are increasingly common in new construction projects and structures, hold the largest market share. Since encouraging the creation of farms is the aim of modern urban building initiatives. The building-based construction not only supports agricultural development but also makes efficient automation and air circulation possible. Consequently, a low compound annual growth rate (CAGR) is predicted for the projection period.
Companies have been able to create areas of vertical farming inside shipping containers, with a variety of cultivated plants using drip irrigation systems, LED lighting, and vertically stacked shelves. All the systems can be monitored and controlled remotely from a computer or mobile device Management through a growth management system connected to the shipping containers. Shipping containers are therefore more in demand than ones used for buildings. These facts suggest the shipping-container vertical farm category is expected to grow at the fastest rate feasible throughout the forecast period.
Global Vertical Farming Market By Growth Mechanism
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Vertical Farming Market Regional Insights
North America is expected to contribute significantly to the growth of the vertical farming business and held the greatest market share in 2023. This is a result of the presence of big vertical farms in states such as Canada and the US. In a similar spirit, the region's growing use of automation and advanced technologies in agriculture encourages pesticide-free, year-round food production. The number of people living in cities in countries, including the US and Canada is increasing, which raises the need for high-quality organic food that is produced using major agricultural techniques.
Asia Pacific is predicted to grow at the fastest CAGR during the projection period. The Asia-Pacific market is growing, therefore it's no surprise that resilient and sustainable food production techniques are becoming more popular. The region's acute water shortage and growing food prices from the large populations of China, India, and Japan are expected to create enormous new market opportunities. The region's increasing vulnerability to the consequences of global warming resulted in less rain, crop failure, climate change, and other environmental and socioeconomic issues. Asia Pacific is therefore witnessing an increase in the demand for innovative farming techniques to deal with these problems.
Global Vertical Farming Market By Region
- Largest
- Fastest
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Vertical Farming Market Dynamics
Vertical Farming Market Drivers
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Growing Food Demand Driving Market Growth
Global need for food is being driven by population growth, which is expanding the vertical farming sector. It makes crop production easier in cramped locations, which promotes its development into cities. Increased public awareness of sustainable practices contributes to the growth as well. It uses less labor, less water, and better utilizes the area provided.
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Technological Advancements Drive Market Expansion
Artificial lighting and advanced IoT sensors, which make vertical farming more accessible, are the two key developments driving the industry's expansion. Its broad use is encouraged by the fact that it makes indoor plant development easier. LED lighting helps vertical farms by utilizing controlled growing and nutrition systems that don't require sunshine or rain.
Vertical Farming Market Restraints
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High Initial Expense Impeding Growth in Market
The growing practice of vertical farming offers a significant opportunity for sustainable agriculture. This presents a significant barrier to investments in modern farming practices. Infrastructure, equipment, and technological upfront investments are necessary for the development of vertical farming systems. Affirm a financial investment because installing climate control systems and efficient LED lighting management is necessary for the construction of vertical agricultural structures.
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Considerable Energy Consumption for Indoor Environment Maintenance
The natural growing conditions for plants are preserved by the artificial lighting and climate control systems utilized in vertical farming techniques. This increases the unnecessary electricity used by LED lighting and HVAC systems, which drives up running costs. This reliance on a constant supply of energy limits the potential for market expansion.
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Vertical Farming Market Competitive Landscape
Companies, including VertiVegies, AeroFarms, Freight Farms, Inc., Plenty Unlimited Inc., Urban Crop Solutions, and Sky Greens provide a range of vertical farming techniques. These companies are focused on developing operational and environmentally beneficial agricultural solutions. To expand their operations globally, the market players use a variety of tactics, such as alliances, mergers, acquisitions, and collaborations. The report offers insights into market trends and discusses noteworthy developments in the industry.
Vertical Farming Market Top Player’s Company Profiles
- Sky Greens
- Plenty
- FarmOne
- Freight Farms
- Modular Farms Co.
- General Hydroponics
- American Hydroponics
- Illumitex
- Everlight Electronics
- AeroFarms
- BrightFarms
- Green Sense Farms
- Growtainer
- Signify Holding B.V.
- Vertical Farm Systems
- Heliospectra AB
Recent Developments
- March 2024: Vertical Future (VF) and the World Green Economy Organization (WGEO) joined forces to accomplish shared sustainability objectives. As a technologically advanced advocate for resource-conserving agriculture, VF backs WGEO's goal of promoting a green economy as the most effective path to global wealth and security.
- November 2023: Urban Crop Solutions has released advanced vertical farming technology, Research Indoor Farm Solutions, in Limburgerhof, Germany. A plant like this would speed up several sustainable agricultural practices. By combining their expertise, it wants to develop some more eco-friendly and user-friendly solutions for agriculture.
- June 2023: The partnership between Freight Farms and Local Line was established to give each farming business the right tools for success. One can establish a profitable agricultural business by forming a business partnership with Local Line and Freight Farms.
Vertical Farming Key Market Trends
-
Integrating Robotics and AI in Farming Operations to Promote Growth
These "vertical farming robots" represent a small group of automated technologies designed to make many agricultural management, cultivation, and harvesting tasks easier. Among them can be cited robotic arms, drones, and conveyors. These advanced robotic tools employ computer vision and machine learning to do precise tasks including crop health monitoring, precision seed sowing, and efficient crop harvesting.
Vertical Farming Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global vertical farming industry is driven by growing demands for food and sustainability in farming methods. Other factors responsible are technological innovations such as robotic harvesting and vertical conveyor systems that drive this increase. Hydroponics holds the largest market presently, while in terms of growth, it is the aeroponics segment. North America holds the maximum market share, but the Asia-Pacific region is surging forward. One key trend is that most people have started opting for more sustainable farming and are getting attracted to eco-friendly solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 6.88 Billion |
| Market size value in 2031 | USD 36.04 Billion |
| Growth Rate | 20.2% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Vertical Farming Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Vertical Farming Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Vertical Farming Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Vertical Farming Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Vertical Farming Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Vertical Farming Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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