Vertical Farming: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Growing crops in vertical layers is known as “vertical farming.” It frequently uses soilless farming methods like hydroponics, aquaponics, and aeroponics as well as controlled-environment agriculture, which tries to optimize plant development.

Market Insights

The global vertical farming market was recorded as more than $2 billion in 2022 and anticipated to grow at a CAGR of more than 20% during the forecast period, which includes both the produce and component markets. Growing customer demand for locally sourced, environmentally friendly fruits and vegetables will support the development and promote the use of vertical farming systems around the world.

The components market is larger than the revenues from selling vertically farmed produce in 2022 (i.e., the produce market), despite the greater cost of production. However, the penetration of vertically farmed food will increase during the projected period as businesses seek to lower production costs, boost margins, improve farm efficiencies, and increase scale. By the conclusion of the projection period, the market will make significant CAPEX investments to achieve scale expansion.

Due to the quantity of operating vertical farms, North America and Europe combined owned the highest proportion of the vertical farming market. However, due to increased interest and investment in the region, APAC will experience the largest growth. Some of the markets with the fastest growth are China, Japan, and Singapore. MEA is another fast-growing area that has seen a boost in R&D spending and the development of vertical farms. During the projection period, a lack of water and land will be a major factor in the region’s adoption of CEA techniques, especially vertical farming.

Market Dynamics: Drivers

Pressure on Traditional Agricultural Practices

Growing population, climate change, and a lack of land and water availability place more strain on conventional agricultural methods, which is why vertical farming is becoming more and more popular.

Technological Advancements

Industry participants will invest and grow as a result of technological developments that can address the vertical farming industry’s cost and profitability challenges.

Market Dynamics: Challenges

High Cost

Operating and maintenance expenses for vertical farms are considerable. Although costs will decrease as a result of technological improvements, traditional agriculture, particularly greenhouse farming, will always have greater startup costs.

Market Segmentation

• Based on Type, the Global Vertical Farming market is segmented into
  • Produce
    • Herbs & Micogreens
    • Leafy Greens
    • Fruits & Vegetables
  • Components
    • Hardware and Technology Solutions
      • Lighting
      • Climate Control Systems
      • Irrigation & Fertigation Systems
      • Sensors
      • Material Handling Structure
    • Software and Platform
    • Crop Inputs
  • Based on Growing Technology Type, the Global Vertical Farming market is segmented into
    • Produce
      • Hydroponics
      • Aeroponics
      • Aquaponics
    • Based on Geography, the Global Vertical Farming market is segmented into
      • Asia-Pacific
      • North America
      • Europe
      • Latin America
      • Middle East & Africa
    • All market revenue has been given in US Dollar.

Historical Year: 2020-2021

Base Year: 2022

Estimated: 2023

Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Vertical Farming Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Vertical Farming Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Vertical Farming Market based on competitive benchmarking matrix?

What are the key results derived from the market surveys conducted during Global Vertical Farming Market study?