Vertical Farming Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Component (Platforms, Containers, LEDs, Others), By Mechanism (Aeroponics, Hydroponics, Aquaponics), And By Geography - Forecasts From 2022 To 2027
- Published : Nov 2022
- Report Code : KSI061610430
- Pages : 135
The vertical farming market is projected to witness a CAGR of 20.05% during the forecast period to reach a total market size of US$15.495 billion by 2027, increasing from US$4.313 billion in 2020.
Vertical farming is the urban agricultural practice of growing food crops in vertically stacked layers, on vertically inclined surfaces, or integrated into other structures. Growing demand for pesticide-free food products owing to rising health concerns and an increasing population is facilitating investment in the research and development of modern agriculture methods. Vertical farming is practiced in a closed environment, which makes it easier to monitor pests and diseases. The increasing need for food to feed the population will increase the demand for vertical farming since it is possible to grow fruits and vegetables all year by giving the plant appropriate nutrition, temperature, and light, among other aspects.
The rising global population, urbanization, and increased demand for organic products are some of the key factors driving the market’s growth.
The close proximity to the point of end consumption and the reduced dependence on water and other natural resources is further expected to boost the market growth. Furthermore, various government initiatives are being taken to promote the adoption of vertical farming practices globally. However, the high initial cost and the limited range of products that can be manufactured using the vertical farming method are the major challenges that the market is expected to face during the forecast period.
Increasing demand for organic food products is boosting the demand for vertical farming solutions
Vertical farming is a revolutionary approach in agricultural practices which has enabled the production of high quantities of nutritious and quality fresh food and does not involve the use of pesticides and fungicides. Recently, the growing health issues among people globally have shifted consumers’ attention towards changing their lifestyle patterns and food habits. Thus, the resultant increase in consumer awareness regarding the health hazards of chemically produced fruits and vegetables has led to an increased demand for pesticide-free food, which has further led to a rise in the adoption of organic farming practices, which is a major factor driving the growth of the vertical farming market globally.
In vertical farming, hydroponic and aeroponics, are the two main production processes encompassing the use of nutrient-rich solutions to feed the plant.
As per the International Federation of Organic Agriculture Movements (IFOAM) in Europe, organic retail sales in 2016 accounted for €30.7 billion with a 12% annual growth rate of organic retail sales, whereas the percentage of organic land accounted for only 6.7%. Thus, the growing organic market due to the higher demand for organically produced products will further increase the adoption of vertical farming methods.
The growth mechanism is an important aspect of vertical farming
By growth mechanism, the vertical market is segmented into aeroponics, hydroponics, and aquaponics. These are the modern agriculture systems that utilize nutrient-rich water rather than soil for plant nourishment. Moreover, it does not require fertile land to be effective, which is further fueling its adoption. The use of hydroponics is increasing because of growing investment and its ability to increase crop yields without releasing nutrition pollution into the environment. Similarly, less water, fertilizer, and pesticide usage in aeroponics growth mechanisms are increasingly gaining popularity, which is driving its adoption, while the relatively low maintenance of aquaponics systems is fueling its growth.
North America remains a key market for vertical farming solutions, while the Asia Pacific region will witness the fastest growth over the forecast period
By geography, the vertical farming market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America held a significant market share owing to the presence of well-established companies and the rapid adoption of advanced technology. Increasing investment by major market players due to the rising popularity of the efficacy of vertical farming will boost the demand for vertical farming solutions. The Asia-Pacific (APAC) region is projected to witness substantial growth in the coming years. Rising demand for organic food products and an increasing population are the major factors driving the demand for vertical farming solutions in the APAC region over the forecast period.
- In March 2021, AeroFarms has established a research and development collaboration with Hortifrut to expand vertical farming technology into the lucrative $39.8 billion berry sector, lowering its reliance on revenue from leafy greens.
- In November 2021, UP Vertical Farms is a forward-thinking new indoor farm launched by Oppy, it is Canada's first touchless, high-density indoor vertical farm for cultivating customizable baby leafy greens. Fresh Green Farms founded the firm, which launched the first phase of operations in the spring of 2022, with the objective of becoming the world's largest and most sustainable vertical farm by 2023.
- Plantcube is a product from Agrilution Gmbh that brings the theory of vertical farming into the home. Herbs, salad greens, and leafy vegetables thrive well in the completely automated cabinet. The system is simple to use and is automatically managed by the Agrilution Cloud; it gives information on the growth process as well as harvesting and maintenance instructions.
Vertical Farming Market Scope:
|Market Size Value in 2020||US$4.313 billion|
|Market Size Value in 2027||US$15.495 billion|
|Growth Rate||CAGR of 20.05% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Component, Mechanism, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Agrilution Gmbh, Aerofarms, Plenty Unlimited Inc., Grow Pod Solutions, Grodan B.V., Koninklijke Philips N.V, Sky Greens, UrbanKisaan, Kroptek, ENLITE ENERGY INC|
|Customization Scope||Free report customization with purchase|
- By Component
- By Mechanism
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. VERTICAL FARMING MARKET, BY COMPONENT
6. VERTICAL FARMING MARKET, BY MECHANISM
7. VERTICAL FARMING MARKET, BY GEOGRAPHY
7.2. North America
7.2.1. United States
7.3. South America
7.4.1. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. United Arab Emirates
7.6. Asia Pacific
7.6.5. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Agrilution Gmbh
9.3. Plenty Unlimited Inc.
9.4. Grow Pod Solutions
9.5. Grodan B.V.
9.6. Koninklijke Philips N.V
9.7. Sky Greens
9.10. ENLITE ENERGY INC
Plenty Unlimited Inc.
Grow Pod Solutions
Koninklijke Philips N.V
ENLITE ENERGY INC
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|ASEAN Vertical Farming Market Size: Share & Report, 2022 - 2027||Mar 2020|
|Canada Vertical Farming Market Size, Share & Analysis, 2022 - 2027||Mar 2020|
|China Vertical Farming Market Share: Industry Report, 2022 - 2027||Mar 2020|
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|U.S. Vertical Farming Market Trends: Size & Share. 2022 - 2027||Mar 2020|