Vertical Farming Market by Crop Type (Leafy Green, Pollinated Plant and Nutraceutical) by Structure (Building-based Vertical Farms and Container-based Vertical Farms), by Component (Hardware, Software and Service), by Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics) - Global Opportunity Analysis and Industry Forecast, 2022 – 2030 - Global Opportunity Analysis and Industry Forecast, 2022 – 2030
Industry: Agriculture | Publish Date: 25-Oct-2024 | No of Pages: 357 | No. of Tables: 202 | No. of Figures: 172 | Format: PDF | Report Code : AG196
Market Definition
The global Vertical Farming Market size was valued at USD 3.52 billion in 2021 and is predicted to reach USD 30.58 billion by 2030 with a CAGR of 24.6% from 2022 to 2030.
Vertical farming is a type of agriculture in which crops are produced vertically, rather than in horizontal rows. Crops grown in a vertical manner provide greater space, resulting in a higher crop yield per square foot of land used. This type of farming is mainly located in indoor areas where the farmers instead of using sunlight and rain, control the environmental conditions by using LED lighting. Thus, it is considered a highly efficient and sustainable way of producing food as plants are not grown directly in the soil outdoors.
Market Dynamics and Trends
Vertical framing does not depend on the natural environment for the production of crops rather it uses advanced technologies such as big data analytics, robotics, artificial intelligence (AI), and the internet of things (IoT) to control humidity and temperature so that the crops can be produced perfectly without any agronomic constrain. This is expected to support the growth of the vertical farming market. Also, vertical farming allows the farmers to produce crops with 70% to 95% less water than what is required for normal cultivation and the water used in this type of farming can be recycled. further boosting the market growth.
Moreover, the growing acceptance of vertical farming as a new sustainable method of cultivation by various governments is expected to further propel the vertical farming growth in the forecasted period. For instance, in May 2022, the UK government recognized the role of vertical farming in the 'Spring Showcase' event and further exhibited Intelligent Growth Solutions (IGS). The IGS team illustrated a virtual tour by showcasing a wide range of crops that can be grown in its precision-controlled scenarios. This included herbs, leafy greens, chilies, and others. Thus, such initiatives are expected to further encourage people to adopt vertical farming which will, in turn, boost the market growth.
The high initial cost of vertical farming along with the lack of skilled labor are factors that are expected to restrain the growth of the market during the forecast period. On the contrary, the growing use of robotics in vertical farming with visual inspection technology that can monitor plants, chart their growth, and can forecast the time when they can be harvested is expected to create ample growth opportunities for the market in the coming years.
Market Segmentations and Scope of the Study
The global vertical farming market report is segmented on the basis of crop type, structure, component, growth mechanism, and geography. On the basis of crop type, the market is divided into leafy green, pollinated plants, and nutraceutical plants. On the basis of structure, the market is segmented into building-based vertical farms and container-based vertical farms. On the basis of components, the market is bifurcated into hardware, software, and services. The hardware sub-segment is further bifurcated into lighting, hydroponics components, sensors, and climate control. On the basis of growth mechanism, the market is divided into hydroponics, aeroponics, and aquaponics. Geographic breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and Row.
Geographical analysis
Asia-Pacific held the predominant share of the vertical farming market in 2021 and is expected to continue its dominance during the forecast period. This is attributed to the factors such as the presence of a large population that demands alternative methods of farming with modern solutions that include robotics and AI to fulfill the requirement of food production and supplies, thereby boosting the market growth of the region. Moreover, various government initiatives to expand vertical farming are expected to drive the market in this region.
For instance, in September 2021, under the Merian Fund programme, the Chinese Academy of Sciences (CAS) collaborated with Dutch Research Council to grant two joint research projects on vertical farming. This collaboration is aimed at solving the challenges faced in vertical farming including the reduction of energy use and optimization of crop yield. These contributions will further include developing a digital twin system and optimization of energy-efficient growth conditions.
Moreover, in January 2022, The Indian Institute of Horticultural Research (IIHR), Bengaluru, announced to buy and distribute Arka Vertical Garden structures to individuals living in urban areas around the state in order to boost urban farming. The structure is excellent for producing vegetables in a safe and convenient manner to satisfy the needs of families by providing alternative solutions to farming. Thus, the growing R&D activities in the region further boost the growth of the market.
North America is expected to exhibit steady growth in the market during the forecast period, due to the presence of key market players such as Aerofarms and Bowery Farming of vertical farming in the region. For instance, in May 2022, Bowery Farming announced to launch a new vertical farm in Bethlehem, Pennsylvania. The farm consists of 100% renewable energy and a water recapture and filtration system that is designed to ensure the highest-quality food safety standards.
Also, in August 2021, Cargill announced to partner with AeroFarms for a research agreement that aims at improving cocoa bean yields and developing more climate-resilient farming practices. The companies planned to experiment with different indoor growing technologies such as aeroponics & hydroponics, irrigation, nutrition, plant space, and pruning to identify the optimal conditions for cocoa growth.
Competitive Landscape
The vertical farming market comprises various market players such as Aerofarms, InFarm, Jones Food Company, Swegreen, Sky Greens, Agricool, Future Crops, Freight Farms Inc, Grow Up Farms Ltd, and 4D Bios Inc. among others. These market players are adopting joint venture strategies and planning business expansion across various regions to maintain their dominance in the vertical farming industry.
For instance, in March 2022, Future Crops announced an investment led by Tencent to accelerate growth to develop an advanced vertical farming solution from cutting-edge technology. This high-tech farm grows fresh, clean, ultra-sustainable, high-quality crops at a competitive price. The company is shaping the future of the agriculture and food system, making it safer, more resilient, and more efficient with indoor farming techniques.
Also, in October 2021, Jones Food Company announced to launch the world’s biggest vertical farm called JFC2. JFC2 is expected to be three times bigger than its first farm JFC1, with a growing space of 148,000 sqft that can be utilized for the production of crops on a large scale.
KEY BENEFITS
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The vertical farming market report provides a quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.
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The study comprises a deep dive analysis of the vertical farming market trend including the current and future trends for depicting the prevalent investment pockets in the market.
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The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
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The competitive analysis of the market players along with their market share in the market.
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The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
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Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.
Vertical Farming Market Key Segments
By Crop Type
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Leafy Green
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Pollinated Plants
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Nutraceutical Plant
By Structure
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Building-based Vertical Farms
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Container-based Vertical Farms
By Component
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Hardware
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Lighting
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Hydroponics Components
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Sensors
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Climate Control
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Software
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Services
By Growth Mechanism
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Hydroponics
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Aeroponics
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Aquaponics
By Geography
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North America
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U.S.
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Canada
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Mexico
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Europe
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UK
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Germany
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France
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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India
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Japan
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South Korea
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Australia
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Rest of Asia-Pacific
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RoW
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UAE
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Saudi Arabia
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South Africa
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Brazil
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Remaining countries
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REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
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Analysis Period |
2021–2030 |
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Base Year Considered |
2021 |
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Forecast Period |
2022–2030 |
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Market Size Estimation |
Billion (USD) |
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Market Segmentation |
By Crop Type (Leafy Green, Pollinated Plants, Nutraceutical Plant) By Structure (Building-based Vertical Farms, Container-based Vertical Farms) By Component (Hardware, Software, Services) By Growth Mechanism (Hydroponics, Aeroponics, Aquaponics) |
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Geographical Segmentation |
North America (U.S., Canada, Mexico) Europe (UK, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific), RoW (UAE, Saudi Arabia, South Africa, Brazil, Remaining countries) |
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Companies Profiled |
Aerofarms, InFarm, Jones Food Company, Swegreen, Sky Greens, Agricool, Future Crops, Freight Farms, Inc., GrowUp Farms Ltd, 4D Bios Inc. |
KEY PLAYERS
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Aerofarms
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InFarm
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Jones Food Company
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Swegreen
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Sky Greens
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Agricool
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Future Crops
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Freight Farms, Inc.
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GrowUp Farms Ltd
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4D Bios Inc
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