The Vertical Farming market was estimated at around USD 4.3 billion in 2021, growing at a CAGR of nearly 23% during 2022-2030. The market is projected to reach approximately USD 33 billion by 2030.
The practice of growing food in vertical stacks, such as in a disused warehouse, a skyscraper, or a shipping container, is known as vertical farming. Organic food is thought to be more wholesome, safe, and environmentally beneficial. Consumer food purchasing habits are a significant component that affects the demand for organic food, making it crucial for producers, legislators, and suppliers to execute effective marketing strategies. Consumers frequently experience health problems related to obesity and heart disease. Additionally, traditional growers have been forced to switch to alternative farming practices due to the growing groundwater shortage and changing climatic circumstances. The issues listed above, and growing consumer health concerns are likely to boost industry demand.
Contrary to traditional farming, indoor farming may grow crops all year round, increasing output. Furthermore, by using techniques like controlled environment agriculture technology, where facilities use artificial environmental control, regulation of light, and fertigation, indoor farming can shield crops from extreme weather conditions. Some of the key drivers behind market expansion are rising urbanization, autonomous agriculture methods, and rising food quality demand. The need for food has increased as a result of these circumstances. With an increasing population, the need for food is anticipated to increase significantly by 2030. With the use of the vertical farming technique, consumers can now cultivate their own produce in a warehouse or multi-story structure.
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Vertical Farming Market: COVID – 19 Impact Analysis
Since the demand for high-quality products has been reduced to general food products as a result of the new coronavirus or Covid 19 pandemic, the vertical farming sector has been badly impacted. Companies in this sector have experienced staffing shortages, stockpiles, and forced closures. Lockdowns in many nations have severely slowed the vertical farming industry's poor growth pace and increased demand for structures and equipment. The effects of COVID 19 are readily apparent in the fact that the majority of the major players are required to close their primary production facilities and make personnel reductions. However, once the lockdown limitations are lifted, it is anticipated that the market would undoubtedly resume its upward trend. The post-lockdown period is anticipated to be quite profitable for the vertical farming business. With increasing investments being made by the general public for agricultural objectives, the component-by-component market is anticipated to offer the highest returns.
Increasing population to accelerate the market’s growth
Because of growing populations and rising per capita incomes, which have changed consumer preferences for more organic, healthy, and environmentally friendly foods, the vertical farming industry has been expanding in a variety of ways across all market segments and geographical areas. This has created a market for vertical farming businesses. The market for organic farming, which naturally tends to produce such fruits and vegetables without the use of insecticides and pesticides and are high in nutritional content, has been pushed by people's growing awareness of what they eat and increased focus on health issues. This industry, where people are interested in producing agricultural products in tiny quantities in their houses, has grown thanks to vertical farming.
Better yield than conventional one
Because it uses climate control, which constantly modifies temperature and humidity, and LED lighting, vertical farming yields are higher than those from conventional farming. It gives one access all year long to locally grown vegetables that are fresh and free of pesticides, giving one more control over the plants' growing environment. Vertical farming also offers significant output advantages. It has been demonstrated that vertical farming may increase agricultural output by 240 times while using 99% less land, 95% less water, and zero pesticides. This indicates that despite having greater operating costs, vertical farms yield more crops, which generates higher revenues. In vertical farms, crops are continually replanted without consideration for crop rotations. In addition, this type of farming is a great choice when there is a dearth of agriculturally suitable land. Since vertical farming systems don't need a lot of space, they can be set up in urban areas. Vertical farms are also well-positioned to increase food supply chain resilience by diversifying local food production because they can be set up anywhere and consume less land and water than regular farms.
The Vertical Farming market is segmented into the Structure, and Growth Mechanism. Based on Structure and with a market share of more than 50% in 2021, the shipping container category dominated the vertical farming market and is anticipated to continue dominating during the forecast period. This growth is attributed to the building's ability to support crop production regardless of location. One of the main benefits of container farming is that it is portable and doesn't need a sizable piece of land or a special facility to start growing. Additionally, as competition grows, shipping container prices decrease since it is very inexpensive to acquire used containers, allowing more businesses to enter the market. Poor comparative productivity and conflict between light, heat, and layout are two drawbacks of such systems.
By growth mechanism, the hydroponics segment is anticipated to dominate the market with more than 50% in 2021 during the projection period. Hydroponics is a well-liked growth technique due to its low installation costs and simplicity of use. It is a technique for growing plants that substitutes a mineral solution for soil around the plant roots. Additionally, the hydroponics method reduces the risk of sickness due to soil organisms. Demand for hydroponics is expected to increase as consumers become more aware of the risks associated with pesticides. Plants grown hydroponically offer a better yield than equivalent soil-grown plants due to good nutrient control. Additionally, plant roots are immersed in the chemical solution and monitored on a regular basis to make sure
Report Scope
Attribute | Description |
---|---|
Base Year | 2021 |
Forecast period | 2022-2030 |
Report Coverage | Revenue estimation and forecast, company profile, competitive landscape, growth factors, and recent trends |
Regional scope | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Market Size(unit) | USD Billion |
CAGR (2022 to 2030) | 6.9% |
Segments Covered |
By Structure |
Regional Landscape
Throughout the projection period, Asia-Pacific is expected to remain one of the most alluring markets, and this region accounts for the majority revenue share in the market. With a revenue share of over 37% in 2021, Asia Pacific dominated the market, and it is anticipated that it will continue to do so throughout the projected period. The main reason projected to drive demand is growing awareness of the value of alternative farming due to a lack of productive agricultural land and an escalating population in the area. Due to the increased use of genetically modified crops, Europe is predicted to experience significant growth during the forecast timeframe. Additionally, the growing use of nanotechnology and robots in agriculture increases regional market demand. Nanotechnology is used to enhance disease and pest management, as well as food packaging. To address issues, the European Environment Agency has launched a number of projects to construct vertical farms.
The global Vertical Farming market is segmented as follows:
By Structure
By Growth Mechanism
By Region/Geography
1. Introduction
1.1. Objectives of the Study
1.2. Market Definition
1.3. Research Scope
2. Research Methodology and Assumptions
3. Executive Summary
4. Premium Insights
4.1. Porter’s Five Forces Analysis
4.2. Value Chain Analysis
4.3. Top Investment Pockets
4.3.1. Market Attractiveness Analysis By Structure
4.3.2. Market Attractiveness Analysis By Growth Mechanism
4.4. Industry Trends
5. Market Dynamics
5.1. Market Evaluation
5.2. Drivers
5.2.1. Increasing population to accelerate the market’s growth
5.2.2. Better yield than conventional ones
5.3. Restrains
5.3.1. Availability of substitute materials would hamper the market
5.4. Opportunities
5.4.1. Increasing Urbanization
6. Global Vertical Farming Market Analysis and Forecast, By Structure
6.1. Segment Overview
6.2. Shipping Container
6.3. Building Based
7. Global Vertical Farming Market Analysis and Forecast, By Growth Mechanism
7.1. Segment Overview
7.2. Hydroponics
7.3. Aeroponics
7.4. Aquaponics
8. Global Vertical Farming Market Analysis and Forecast, By Regional Analysis
8.1. Segment Overview
8.2. North America
8.2.1. U.S.
8.2.2. Canada
8.2.3. Mexico
8.3. Europe
8.3.1. Germany
8.3.2. France
8.3.3. U.K.
8.3.4. Italy
8.3.5. Spain
8.3.6. Rest of Europe
8.4. Asia-Pacific
8.4.1. Japan
8.4.2. China
8.4.3. India
8.4.4. Australia
8.4.5. South Korea
8.4.6. Rest of Asia-Pacific
8.5. South America
8.5.1. Brazil
8.5.2. Argentina
8.5.3. Rest of South America
8.6. Middle East and Africa
8.6.1. UAE
8.6.2. South Africa
8.6.3. Egypt
8.6.4. Kuwait
8.6.5. Saudi Arabia
8.6.6. Rest of Middle East & Africa
9. Global Vertical Farming Market-Competitive Landscape
9.1. Overview
9.2. Market Share of Key Players in the Vertical Farming market
9.2.1. Global Company Market Share
9.2.2. North America Company Market Share
9.2.3. Europe Company Market Share
9.2.4. APAC Company Market Share
9.3. Competitive Situations and Trends
9.3.1. Structure Launches and Developments
9.3.2. Partnerships, Collaborations, and Agreements
9.3.3. Mergers & Acquisitions
9.3.4. Expansions
10. Company Profiles
10.1. Aerofarms
10.1.1. Business Overview
10.1.2. Company Snapshot
10.1.3. Company Market Share Analysis
10.1.4. Company Growth Mechanism Portfolio
10.1.5. Recent Developments
10.1.6. SWOT Analysis
10.2. Urban Crop
10.2.1. Business Overview
10.2.2. Company Snapshot
10.2.3. Company Market Share Analysis
10.2.4. Company Growth Mechanism Portfolio
10.2.5. Recent Developments
10.2.6. SWOT Analysis
10.3. Illumitex inc.
10.3.1. Business Overview
10.3.2. Company Snapshot
10.3.3. Company Market Share Analysis
10.3.4. Company Growth Mechanism Portfolio
10.3.5. Recent Developments
10.3.6. SWOT Analysis
10.4. Sky Greens
10.4.1. Business Overview
10.4.2. Company Snapshot
10.4.3. Company Market Share Analysis
10.4.4. Company Growth Mechanism Portfolio
10.4.5. Recent Developments
10.4.6. SWOT Analysis
10.5. Koninklijke Philips N.V.
10.5.1. Business Overview
10.5.2. Company Snapshot
10.5.3. Company Market Share Analysis
10.5.4. Company Growth Mechanism Portfolio
10.5.5. Recent Developments
10.5.6. SWOT Analysis
10.6. Everlight Electronics Co., Ltd.
10.6.1. Business Overview
10.6.2. Company Snapshot
10.6.3. Company Market Share Analysis
10.6.4. Company Growth Mechanism Portfolio
10.6.5. Recent Developments
10.6.6. SWOT Analysis
10.7. Green Sense Farms, LLC
10.7.1. Business Overview
10.7.2. Company Snapshot
10.7.3. Company Market Share Analysis
10.7.4. Company Growth Mechanism Portfolio
10.7.5. Recent Developments
10.7.6. SWOT Analysis
10.8. Agrilution
10.8.1. Business Overview
10.8.2. Company Snapshot
10.8.3. Company Market Share Analysis
10.8.4. Company Growth Mechanism Portfolio
10.8.5. Recent Developments
10.8.6. SWOT Analysis
10.9. American Hydroponics
10.9.1. Business Overview
10.9.2. Company Snapshot
10.9.3. Company Market Share Analysis
10.9.4. Company Growth Mechanism Portfolio
10.9.5. Recent Developments
10.9.6. SWOT Analysis
10.10. Vertical Farm Systems
10.10.1. Business Overview
10.10.2. Company Snapshot
10.10.3. Company Market Share Analysis
10.10.4. Company Growth Mechanism Portfolio
10.10.5. Recent Developments
10.10.6. SWOT Analysis
List of Table
1. Global Vertical Farming Market, By Structure, 2022-2030(USD Billion)
2. Global Shipping Container Vertical Farming Market, By Region, 2022-2030(USD Billion)
3. Global Building based Vertical Farming Market, By Region, 2022-2030(USD Billion)
4. Global Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
5. Global Hydroponics Vertical Farming Market, By Region, 2022-2030(USD Billion)
6. Global Aeroponics Vertical Farming Market, By Region, 2022-2030(USD Billion)
7. Global Aquaponics Vertical Farming Market, By Region, 2022-2030(USD Billion)
8. Global Medical Vertical Farming Market, By Region, 2022-2030(USD Billion)
9. Global Others Vertical Farming Market, By Region, 2022-2030(USD Billion)
10. Global Vertical Farming Market, By Region, 2022-2030(USD Billion)
11. Global Vertical Farming Market, By North America, 2022-2030(USD Billion)
12. North America Vertical Farming Market, By Structure, 2022-2030(USD Billion)
13. North America Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
14. U.S. Vertical Farming Market, By Structure, 2022-2030(USD Billion)
15. U.S. Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
16. Canada Vertical Farming Market, By Structure, 2022-2030(USD Billion)
17. Canada Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
18. Mexico Vertical Farming Market, By Structure, 2022-2030(USD Billion)
19. Mexico Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
20. Europe Vertical Farming Market, By Structure, 2022-2030(USD Billion)
21. Europe Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
22. Germany Vertical Farming Market, By Structure, 2022-2030(USD Billion)
23. Germany Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
24. France Vertical Farming Market, By Structure, 2022-2030(USD Billion)
25. France Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
26. U.K. Vertical Farming Market, By Structure, 2022-2030(USD Billion)
27. U.K. Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
28. Italy Vertical Farming Market, By Structure, 2022-2030(USD Billion)
29. Italy Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
30. Spain Vertical Farming Market, By Structure, 2022-2030(USD Billion)
31. Spain Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
32. Rest of Europe Vertical Farming Market, By Structure, 2022-2030(USD Billion)
33. Rest of Europe Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
34. Asia Pacific Vertical Farming Market, By Structure, 2022-2030(USD Billion)
35. Asia Pacific Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
36. Japan Vertical Farming Market, By Structure, 2022-2030(USD Billion)
37. Japan Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
38. China Vertical Farming Market, By Structure, 2022-2030(USD Billion)
39. China Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
40. India Vertical Farming Market, By Structure, 2022-2030(USD Billion)
41. India Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
42. Australia Vertical Farming Market, By Structure, 2022-2030(USD Billion)
43. Australia Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
44. South Korea Vertical Farming Market, By Structure, 2022-2030(USD Billion)
45. South Korea Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
46. Rest of Asia-Pacific Vertical Farming Market, By Structure, 2022-2030(USD Billion)
47. Rest of Asia-Pacific Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
48. South America Vertical Farming Market, By Structure, 2022-2030(USD Billion)
49. South America Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
50. Brazil Vertical Farming Market, By Structure, 2022-2030(USD Billion)
51. Brazil Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
52. Argentina Vertical Farming Market, By Structure, 2022-2030(USD Billion)
53. Argentina Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
54. Rest of Latin America Vertical Farming Market, By Structure, 2022-2030(USD Billion)
55. Rest of Latin America Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
56. Middle East and Africa Vertical Farming Market, By Structure, 2022-2030(USD Billion)
57. Middle East and Africa Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
58. UAE Vertical Farming Market, By Structure, 2022-2030(USD Billion)
59. UAE Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
60. South Africa Vertical Farming Market, By Structure, 2022-2030(USD Billion)
61. South Africa Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
62. Egypt Vertical Farming Market, By Structure, 2022-2030(USD Billion)
63. Egypt Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
64. Kuwait Vertical Farming Market, By Structure, 2022-2030(USD Billion)
65. Kuwait Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
66. Saudi Arabia Vertical Farming Market, By Structure, 2022-2030(USD Billion)
67. Saudi Arabia Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
68. Rest of Middle East Vertical Farming Market, By Structure, 2022-2030(USD Billion)
69. Rest of Middle East Vertical Farming Market, By Growth Mechanism, 2022-2030(USD Billion)
List of Figures
1. Global Vertical Farming Market Segmentation
2. Vertical Farming Market: Research Methodology
3. Market Size Estimation Methodology: Bottom-Up Approach
4. Market Size Estimation Methodology: Top-Down Approach
5. Data Triangulation
6. Porter’s Five Forces Analysis
7. Value Chain Analysis
8. Global Vertical Farming Market Attractiveness Analysis By Structure
9. Global Vertical Farming Market Attractiveness Analysis By Growth Mechanism
10. Global Vertical Farming Market Attractiveness Analysis By Region
11. Global Vertical Farming Market: Dynamics
12. Global Vertical Farming Market Share By Structure(2022 & 2030)
13. Global Vertical Farming Market Share By Growth Mechanism(2022 & 2030)
14. Global Vertical Farming Market Share by Regions (2022 & 2030)
15. Global Vertical Farming Market Share by Company (2021)
By Structure
By Growth Mechanism
By Region/Geography
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