Vertical Farming Market: Emerging Opportunities, Trends and Forecast Analysis (2023-2029)

Vertical Farming Market was valued at USD 22.19 Billion in 2022, and it is expected to reach USD 15.78 Billion by 2029, exhibiting a CAGR of 18.6 % during the forecast period (2023-2029)

Vertical farming is the process of producing crops in layers that are vertically stacked. Controlled-environment agriculture, which tries to maximize plant development, and soilless farming techniques such as hydroponics, aquaponics, and aeroponics are frequently used. Buildings, shipping containers, tunnels, and abandoned mine shafts are popular structures used to host vertical farming systems. There is approximately 30 hectares (74 acres) of functioning vertical farms in the globe as of 2020. The primary benefit of using vertical farming technology is improved crop output with a less unit area of land need. Another sought-after advantage is the enhanced capacity to cultivate a wider range of crops at once because crops do not share the same plots of land while growing. Furthermore, because crops are grown indoors, they are less susceptible to weather disturbances, resulting in less crop losses due to extreme or unexpected weather events. Vertical farming is less disruptive to native plants and animals due to its limited land use, resulting in further protection of the indigenous flora and wildlife.To know about the Research Methodology :- Request Free Sample Report

As a result, vertical farming market in North America and other regions of the world, such as the Middle East, have raised record amounts. Venture capitalists, governments, financial institutions, and individual investors are among the sector's primary investors today. When compared to traditional farms, vertical farming technologies face economic challenges due to high start-up costs. A "hypothetical 10 storey vertical farm" in Victoria, Australia, would cost nearly 850 times more per square metre of fertile land than a regular farm in rural Victoria. Vertical farms also have high energy requirements owing to the usage of supplemental lighting such as LEDs. Furthermore, if nonrenewable energy is utilised to satisfy these energy demands, vertical farms may pollute the environment more than ordinary farms or greenhouses.
Research Methodology
The research report highly depends on both primary and secondary data sources. The research process involves the investigation of various factors affecting the vertical farming market, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

This data is combined and added with detailed inputs and analysis, and presented in the report. Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics; market size estimations; market forecasts; market breakdown; and data triangulation. Bottom-up technique is widely employed in the whole market engineering process, along with multiple data triangulation methodologies, to perform market estimation and forecasting for the overall vertical farming market segments and sub-segments covered in this research.
Vertical Farming Market Dynamics
Vertical farming reduces the environmental impact of agriculture: Vertical farming is critical to minimising agriculture's environmental effect. It minimises the quantity of water needed to grow the same or more crops. It also eliminates the need of herbicides and pesticides in agricultural production and reduces the requirement for transportation. The entire vertical farming procedure is carried out in an organic manner. It considerably reduces the use of chemicals and provides natural alternatives such as the use of fish in the aquaponics growth mechanism of vertical farming to produce nutrient-rich waste for plants. Furthermore, because vertical farming is done in a controlled atmosphere, they are immune to any form of deadly bug, removing the need for pesticides. Vertical farming ensures safe and high-quality products for its customers by avoiding pest management methods such as burning fields, grass, or garbage. This, in turn, is projected to open up new potential for vertical farming market participants.

Vertical farming has a higher yield than conventional farming: Vertical farming use LED lighting and climate control, which constantly adjusts temperature and humidity. It provides a year-round source of fresh, pesticide-free, locally grown veggies, allowing for more control over the growing environment of the plants. Furthermore, vertical farming provides a large production benefit. Vertical farming has been shown to produce 240 times greater agricultural production while utilising 99% less land, 95% less water, and zero pesticides. This means that vertical farms produce more crops despite higher running expenses, resulting in more profits. Crops in vertical farms are replanted repeatedly without regard for crop rotations. Aside from that, this sort of farming is an excellent option when there is a lack of available land for agriculture. Vertical farming systems are ideal and may be located in cities since they do not require much area. Furthermore, because vertical farms can be implemented anywhere and use less land and water than traditional farms, they are perfectly positioned to boost food supply chain resilience by diversifying local food production.

Temperature, Humidity, and Air Circulation Control in a Vertical Farm: The most difficult difficulty in vertical farming is climate management. To control the temperature and humidity of the grow space, it is necessary to maintain cooling, dehumidification, and heating. The largest source of heat in vertical farming is lighting, followed by motors used to power fans, pumps, and automation. Because vertical farms are meant to run day and night throughout the year, cooling is necessary 24 hours a day, 365 days a year to remove the heat created within the vertical farm. Maintaining the circulation of conditioned air all through the vertical farm to provide a homogeneous growth environment, on the other hand, is a huge difficulty for the farmers.

Limited crop types and a lack of technically skilled labour: Cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponic, and aeroponic systems are frequently used in vertical farming. A qualified and skilled crew is required to run these modern technologies. The global shortage of trained labour has impacted several industries, including vertical farming. Furthermore, the majority of farmers enter this market with systems that are inefficient in terms of design and are pricey. Vertical farms must stay current on all elements of farming in order to survive and remain competitive in the market.
Vertical Farming Market Segment Analysis
Based on Structure, the shipping container segment dominated the vertical farming market in 2022 with a share of more than 50.0% and is likely to maintain its dominance during the forecast period. This expansion is ascribed to the structure's capacity to assist in crop production regardless of geographic location. One of the key advantages of container farming is that it is easy to move, and it does not require a huge plot of ground or a dedicated facility to begin growing. Furthermore, as competition increases, the price of shipping containers falls since the cost of obtaining old containers is very low, allowing additional enterprises to enter the market. However, some disadvantages of such systems include poor comparative productivity and antagonism between light, heat, and layout.

The shipping container market is expected to be driven by factors such as rising technical improvements and increased penetration of precision farming during the forecast period. The building-based category is generally recognised in Japan, China, and other Asian nations, and it is the fastest-growing revenue segment in the area as a result of its expanding popularity. Building-based farming reduces cultivation costs and necessitates greater agricultural fields than single farming land, assuring food security. Shipping container farming utilises 95% less water than standard drip irrigation crops. Shipping containers are simple to alter, stackable, and long-lasting, and they can be recycled and repaired at a minimal cost. Furthermore, the global oversupply of underutilised shipping containers is expected to have an impact on category growth.

Based on Growing Mechanism, the hydroponics segment had the highest revenue share of more than 50.0% in 2022 and is expected to maintain its dominance all through the forecast period. Because of its inexpensive installation costs and ease of use, hydroponics is a popular growth method. It is a method of growing plants without soil in which a mineral solution is put around the plant roots in place of dirt. Furthermore, the hydroponics technology eliminates the possibility of soil organisms causing illness. Consumers' growing knowledge of the dangers of pesticides is projected to drive up demand for hydroponics. Because of good nutrient management, hydroponically grown plants provide a higher yield than comparable soil-grown plants. In addition, plant roots are submerged under the chemical solution and checked periodically to ensure that appropriate chemical composition is maintained for growth.

Over the forecast period, the aquaponics segment is expected to earn a large market share. The Aquaponics is the combination of hydroponics with aquaculture that avoids the need of toxic chemicals in agriculture. Aquaponics is used to cultivate plants such as lettuce, chives, peppers, kale, mint, cucumbers, and peas. Aquaponics water contains fish excrement, which becomes nutrient-rich and extends crop production time. This produces a natural, sustainable system that removes the need for chemicals in food production. Over the forecast period, the aeroponics segment is expected to increase significantly. Because neither approach needs soil to produce plants, this technology is akin to hydroponics. A growth medium is not required in aeroponics since plant roots are hanging in the air.
Vertical Farming Market Regional Insights
With over 2000 farms, North America dominates the Vertical Farming Market and is expected to develop at a CAGR of 14.5% over the forecast period. Increasing demand for fresh and organic food, technological progress, and so forth. The "USDA and the Department of Energy" hosted a stakeholder workshop to promote vertical farming in order to fulfil future demand. The US government launched the "USAID HYDROPONIC GREEN FARMING INITIATIVE" (HGFI) to assist Jordan's agricultural sector, which utilises 65% of the country's water supply.

Asia-Pacific is the world's second largest vertical farming market, with a CAGR of 8.2% expected during the forecast period. With a growing population and more than 65% of the inhabitants in this region using conventional agriculture methods, the region's food need will not be supplied in the future. Consumer preference shifts, soil deterioration The Indian government announced the "Pradhan Mantri Krishi Sinchai Yojana" (PMKSY) with a $7.7 billion investment to enhance the irrigation industry. As a result, the global agricultural industry is seen as the "Future of Agriculture."

Europe is expected to experience significant growth over the forecast period as genetically modified agricultural technology expands. Furthermore, the growing use of nanotechnology and robots in agriculture boosts regional market demand. The use of nanotechnology aids in the improvement of food packaging as well as illness and insect management. The European Environment Agency has launched many programmes to develop vertical farms in order to address the difficulties of ongoing population increase and climate change, as well as to produce food in an environmentally responsible manner. As a result, market demand in the region has increased.

Demand in Africa is expected to be driven by the expanding urban population and the commercialization of indoor farming. However, a lack of financial resources to construct contemporary vertical farms, as well as restricted access to water and land, are projected to impede regional market growth. Vertically piled wooden boxes and sack gardens are two concepts used in the region to overcome such obstacles.
Report Scope:
The Vertical Farming Market research report includes product categorization, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The study discusses the worldwide market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and constraints on market demand during the forecast period. The research also outlines market potential on a global scale. The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of significant Vertical Farming Market firms in terms of production bases and technologies. The more precise research also contains the key application areas of market and consumption, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an analysis of the industry chain relationship. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and application.
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Vertical Farming Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 22.19 Bn.


Forecast Period 2023 to 2029 CAGR:
18.6%
Market Size in 2029:
US $ 15.78 Bn.


 Segments Covered:
by Growth Mechanism
Hydroponic
Aeroponic
Aquaponic


by Structure
Building based structure
Container based structure


by Application
Indoor
Outdoor



Vertical Farming Market, by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Vertical Farming Market Key Players
1. AeroFarms
2. Plenty
3. Green Spirit Farms
4. Bowery farming
5. BrightFarms
6. Gotham Greens
7. Iron Ox
8. Infarm
9. Agricool
10. CropOne
11. Illumitex
12. PodPonics
13. Surna
14. Freght Farms
15. Voeks Inc
16. Signify
17. Osram
18. Freight Farms
19. Sky Greens
20. Spread
21. Valoya
22. Everlight Electronics
23. Heliospectra AB
24. Green Sense Farms
25. Agrilution
26. American Hydroponics
27. Urban Crop solutions
28. Vertical Farm Systems
Frequently Asked Questions:
1. Which region has the largest share in Vertical Farming Market?
Ans: North-America held the largest share in 2022.

2. What is the growth rate of the Vertical Farming Market?
Ans: The Vertical Farming Market is growing at a CAGR of 18.6 % during the forecasting period 2023-2029.

3. What segments are covered in Vertical Farming Market?
Ans: Vertical Farming Market is segmented into growth mechanism, structure,application.

4. Who are the key players in Vertical Farming Market?
Ans:AeroFarms,Plenty, Green Spirit Farms, Bowery farming, BrightFarms, Gotham Greens, Iron Ox, Infarm, Agricool, CropOne, Illumitex, PodPonics, Surna, Freght Farms, Voeks Inc

5. What is the study period of this market?
Ans: The Verticle Farming Market is studied from 2022 to 2029.