Vertical Farming Market Share

Global Vertical Farming Market Overview:

Vertical Farming Market Size was valued at USD 6.2 Billion in 2023. The vertical farming market industry is projected to grow from USD 7.48 Billion in 2024 to USD 33.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.62% during the forecast period (2024 - 2032). The growing population expands the market scope, and vertical farming is gaining popularity due to its higher yield than conventional farming are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Vertical Farming Market Trends

• 
  

  Vertical farming's advantages over conventional farming boost market growth.

  
  

Market CAGR for vertical farming is being driven by the advantages of vertical farming over conventional farming. Global agriculture is facing a number of challenges, including a lack of land to meet future food demand and the negative environmental consequences of global deforestation, like desertification and flooding, among others. Vertical farming, on the other hand, is expected to play a critical role in focusing on the growing food need while decreasing environmental effect compared to conventional farming due to its potential benefits. Vertical farming is a growth system designed to withstand weather and climate change.Vertical farming has the advantages of year-round crop production for both human and cattle consumption, consistent quality, and predictable output.

Vertical farming allows for faster growth cycles and harvests, allowing for more crops to be grown yearly in a much smaller space than a traditional farm. One of the highest-yielding farms in vertical farming yields nearly 350 times more crops per square yard than a normal farm.Vertical farms build a farm-to-table order-based system in urban areas, dramatically decreasing food packaging, waste, and fuel consumption used to transport food. Vertical farming is more productive and efficient than traditional farming, which is propelling market expansion.

Moreover, Vertical farming is becoming more popular, and systems such as vertical farms, aquaponics, hydroponics, recirculating aquaculture systems, glasshouses, and living space farming are largely performed without the usage of sunlight. Because of technical advancements and smart agriculture, high-tech growers are now using LED lights to raise crops. LED lights aid in the distribution of energy to the vast number of crops cultivated in tight and cramped spaces in vertical farms when sunshine is not available. These LED lights can help increase crop shelf life.

Vertical Farming Market Segment Insights:

Vertical Farming Component Insights

The Vertical Farming Market segmentation, based on type includes component irrigation component, lighting, sensor, climate control, building material, glass greenhouse, and plastic greenhouse. During the projection period, the climate control segment dominated the market. Farmers' increased adoption of hydroponic components to reduce the weight load and infrastructure required to sustain the equipment is expected to drive demand for hydroponic components. Climate control agriculture involves growing plants inside a glasshouse in a controlled climate that allows a producer to maintain and monitor the right supply of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth.

Vertical Farming Structure Insights

The Vertical Farming Market segmentation, based on structure, includes building-based vertical farms, container-based vertical farms. The container-based vertical farms segment dominated the market in 2022, accounting for around 53.32% of the market, and is predicted to stay dominant between 2022 and 2032. This expansion is ascribed to the structure's ability to assist in crop production regardless of geographic location. One of the key advantages of container farming is that it is easy to transport, and it does not require a large plot of ground or a dedicated facility to begin cultivating. Furthermore, as competition increases, the price of shipping containers falls since the cost of acquiring old containers is relatively low, allowing other enterprises to enter the market.

Vertical Farming Growth Mechanism Insights

The Vertical Farming Market segmentation, based on growth mechanism, includes hydroponics, aeroponics, aquaponics. In 2022, the hydroponics category held the biggest market share. 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 soil. Furthermore, the hydroponics technology eliminates the risk of soil organisms causing disease. Consumers' growing knowledge of the dangers of pesticides is projected to drive up demand for hydroponics.

Figure1: Vertical Farming Market, by Growth Mechanism, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Vertical Farming Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American vertical farming market area will dominate this market, rising demand for fresh and organic foods, technological advancements, and so forth. In order to meet future demand, the "USDA and the Department of Energy" convened a stakeholder workshop to promote vertical farming. The United States launched the "USAID HYDROPONIC GREEN FARMING INITIATIVE" (HGFI) to help Jordan's agriculture industry, which consumes 65% of the country's water supply.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Vertical Farming Market SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s vertical farming market accounts for the second-largest market share due to growing use of nanotechnology and robots in agriculture boosts regional market demand. Further, the German vertical farming market held the largest market share, and the UK vertical farming market was the fastest-growing market in the European region

The Asia-Pacific Vertical Farming Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to a lack of productive agricultural land and a rising population in the region is expected to drive demand. Moreover, China’s vertical farming market held the largest market share, and the Indian vertical farming market was the fastest-growing market in the Asia-Pacific region.

Vertical Farming Key Market Players & Competitive Insights

Leading market players are investing heavily in R&D to expand their product lines, which will help the vertical farming market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, vertical farmingindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global vertical farming industry to benefit clients and increase the market sector. In recent years, the vertical farming industry has offered some of the most significant advantages to medicine. Major players in the vertical farming market, including Everlight Electronics Co. Ltd. (Taiwan), Green Sense Farms, LLC (US), Agrilution (Germany), American Hydroponics (US), Vertical Farm Systems (Australia) and others, are attempting to increase market demand by investing in R&D operations.

BrightFarms is an indoor farming startup based in Irvington, New York. It grows and supplies stores with local, non-GMO, pesticide-free, and fresh salad greens. The fruits and vegetables are cultivated in computer-controlled hydroponic glasshouses. Ted Caplow and Paul Lightfoot created BrightFarms in 2010. BrightFarms had four glasshouses in Wilmington, Ohio, Rochelle, Illinois, Culpeper County, Virginia, and Bucks County, Pennsylvania as of 2019. In January 2020, the business will open its largest glasshouse, a 280,000-square-foot farm in Selinsgrove, Pennsylvania. In October 2020,  BrightFarms has raised USD 100 million to develop its indoor farming operations. Cox Enterprises led the investment round. The company intends to use this cash to expand its existing and retail farms. Furthermore, the organisation intends to grow its presence throughout the United States.

Illumitex is an American lighting firm that primarily produces and develops LED lights for indoor farming and vertical farming. Illumitex manufactures lights for the commercial and industrial markets, as well as digital horticulture solutions.[clarification required] The corporation is headquartered in Austin, Texas, and it operates production plants in Austin, China, and Malaysia. Matt Thomas, Dung Duong, and Paul Winberg founded Illumitex in 2005. Until they received finance in 2008, the company mainly went unnoticed. In February 2020, To improve FarmVisior Al, Illumitex Inc. established an Al platform based on computer vision technologies. To monitor and handle the farming environment, the platform uses augmented artificial intelligence and visualisation.

Key Companies in the vertical farming market include

• 
  

  Aerofarms (US)

  
  


• 
  

  Urban Crop (Belgium)

  
  


• 
  

  Illumitex, inc. (US)

  
  


• 
  

  Sky Greens (Singapore)

  
  


• 
  

  Koninklijke Philips N.V. (Netherlands)

  
  


• 
  

  Everlight Electronics Co., Ltd. (Taiwan)

  
  


• 
  

  Green Sense Farms, LLC (US)

  
  


• 
  

  Agrilution (Germany)

  
  


• 
  

  American Hydroponics (US)

  
  


• 
  

  Vertical Farm Systems (Australia)

  
  

Recent Industry News:

June 2023- Under the direction of the Agriculture & Forestry Ministry, vertical farming, a sort of agricultural practice that may generate up to 40 times more product than traditional farming methods, is now expanding quickly.

The Agriculture & Forestry Ministry wants to advance vertical farming, which will alter how people see agriculture, in response to the global decline in the amount of arable land and the climate issue.

Tomatoes, cucumbers, watermelons, peppers, eggplants, zucchini, melons, and strawberries may be readily grown underground (in the basements of residential buildings/ship hangars) without the requirement for daylight thanks to the vertical farming application that only uses LED lights.

The Ministry claimed that the second-largest unit for vertical agricultural production in the world is the Istanbul Indoor Vertical Agriculture Centre, where vertical agriculture is currently practiced at a depth of 30 meters on the eighth floor below the surface and in an area of 700 square meters. The Ministry also claimed that this technology will allow for the possibility of growing food in space or under the sea.

The government emphasized that this technology allows for the practice of vertical agriculture in urban areas as well. As a result, the market's supply will be balanced and there will be greater access to healthier food at lower costs.

February 2023- According to the official SPA, AeroFarms, an American corporation, and Saudi Arabia's Public Investment Fund (PIF) have agreed to form a company with a Riyadh headquarters and construct "indoor vertical farms" throughout the Middle East and North Africa.

By using "indoor vertical farming" methods, which grow more food in less area and use 95% less water than conventional farming, the arrangement intends to make the greatest use of natural resources.

According to SPA, "the partnership is expected to offer high-quality local crops throughout the year by using AeroFarms' smart farming technology," adding that AeroFarms would develop and run "several farms in the region during the next few years."

According to SPA, the first farm within the Kingdom produces 1.1 million kilograms of crops annually, making it the largest farm in the MENA area to use this technology.

The agreement with AeroFarms, according to Majed al-Assaf, the head of consumer goods & retail at the PIF's MENA investments section, intends to expand dependence on premium local products that will be produced using cutting-edge methods and sustainable practices.

Al-Assaf was reported by SPA as adding that the PIF aims to strengthen the development of the agriculture & food sector through the deal.

The co-founder & CEO of AeroFarms, David Rosenberg, stated that the company's mission is to grow the greatest crops in order to contribute to the development of solutions to the global agricultural problems.

In light of the difficulties the agriculture industry is now experiencing, such as the scarcity of fresh water and arable land, he said that the firm is "extremely excited" about its relationship with the PIF to construct the first vertical farm in the Kingdom.

A 2021 Alpen Capital GCC Food Industry research states that up to 90% of the food consumed in Middle Eastern nations is imported. The figures include Saudi Arabia & the UAE, two nations with booming economies.

Vertical Farming Market Segmentation:

Vertical Farming Market By Component Outlook

• 
  

  Irrigation Component

  
  


• 
  

  Lighting

  
  


• 
  

  Sensor

  
  


• 
  

  Climate Control

  
  


• 
  

  Building Material

  
  


• 
  

  Glass greenhouse

  
  


• 
  

  Plastic greenhouse

  
  

Vertical Farming Market By Structure Outlook

• 
  

  Building-based Vertical Farms

  
  


• 
  

  Container-based Vertical Farms

  
  

Vertical Farming Market By Growth Mechanism Outlook

• 
  

  Hydroponics

  
  


• 
  

  Aeroponics

  
  


• 
  

  Aquaponics

  
  

Vertical Farming Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• 
  

  Asia-Pacific

  
  
  
  
  • 
    

    China

    
    
  
  
  • 
    

    Japan

    
    
  
  
  • 
    

    India

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    South Korea

    
    
  
  
  • 
    

    Australia

    
    
  
  
  • 
    

    Rest of Asia-Pacific

    
    
  
  
  
  


• 
  

  Rest of the World

  
  




• 
  

  Middle East

  
  


• 
  

  Africa

  
  


• 
  

  Latin America