Global Vertical Farming Market – Industry Trends and Forecast to 2030

Global Vertical Farming Market, By Growth Mechanism (Hydroponics, Aeroponics, Terraponics, Aquaponics), Structure (Shipping Containers, Building Based), Type (Biopesticides, Biofertilizer, Biostimulants), Crop Type (Leafy Green, Pollinated Plants, Nutraceutical Plant), Application (Indoor, Outdoor), Offering (Hardware, Software Services), Component (Lighting System, Irrigation and Fertigation System, Climate Control, Sensors, Building Material, HVAC Systems, Shelves and Racks, Others), Fruits, Vegetables and Herbs (Bell and Chili peppers, Strawberry, Tomato, Lettuce, Cucumber, Herbs, Leafy Greens (excluding lettuce), Others) – Industry Trends and Forecast to 2030.

Vertical Farming Market Analysis and Size

Vertical farming is considered a highly sustainable and efficient way of producing food. For instance, Nordic Harvest uses 250 times less water than a traditional farm would require. Furthermore, vertical farming is less disruptive to native animals and plants because of its limited land usage, further protecting native wildlife and flora. As a result, the vertical farming market in North America and other regions, such as the Middle East, have higher record amounts. Venture capitalists, individual investors, governments, and financial institutions are among the sector's major investors today.

Data Bridge Market Research analyses that the vertical farming market is expected to reach USD 32.74 billion by 2030, which was USD 4.60 billion in 2022, registering a CAGR of 27.80% during the forecast period of 2023 to 2030. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Vertical Farming Market Scope and Segmentation

Market Definition

Vertical farming is the process of producing vegetables in layers that are mainly piled vertically. The technique may employ aeroponic, hydroponic, or soil-growing techniques. Vertical farms try to produce food in tough situations, such as those where arable land is unavailable or few. It is a technique for increasing food in water without using soil and mineral nutrition solutions. The main benefits of this process are that it minimizes soil-related cultivation problems such as illnesses, soil-borne pests, and insects.

Global Vertical Farming Market Dynamics

Drivers

• The increasing rate of population widens the market scope 

As a result of the increasing rate of population, which has changed consumer preferences for more healthy, organic, and environmentally friendly foods, the vertical farming industry has been developing in various ways across the globe. This has created several chances for vertical farming businesses. The market for organic farming, which naturally inclines to produce vegetables and fruits without pesticides and insecticides, is extremely dependent on vertical farming. Therefore, the increasing rate of population is expected to drive market growth.

• Growing popularity of vertical farming due to its better yield than the conventional one

The increasing popularity of vertical farming due to its better yield than conventional one is likely to propel the market growth during the forecast period. This is because vertical agriculture uses climate control, which continuously modifies humidity and temperature, and LED lighting. As a result, vertical farming yields are higher than conventional farming. Vertical farming also provides significant output benefits. It has been witnessed that vertical farming may surge agricultural output by 240 times, using 99 percent less land, zero pesticides, and 95% less water. As a result of all these factors, the market growth during the forecast period is enhanced.

 Opportunities

• Increasing adoption of advanced technology in vertical farming

With the increasing innovation in agricultural technology, the vertical farming industry is rising rapidly and attracting more individual and commercial attention. Numerous commercial growers are adopting these innovative and high capital expenditure technologies, such as advanced electronic traceability and hydroponic systems. Also, growers are investing in LEDs and other innovative lighting products in vertical farming to decrease their exposure to associated risks by careful monitoring. Hence, increasing adoption of advanced technology in vertical farming will help likely create lucrative market growth opportunities in upcoming years.

The increased demand for organic products among consumers, fueled by the improved standard of living and higher disposable income, paved the way for the development of vertical farming, wherein organic farming is practiced widely.

• Growing adoption of automation and digitization in vertical farming

The rising adoption of automation and digitization in vertical farming is expected to create ample opportunities for market growth in the projected period. Automation and digitization minimizes time, reduces environmental expenses, improves production and standardizes food quality. The Internet of things (IoT) has become the major technology in vertical farming, creating numerous market growth opportunities. The growth in the internet of things (IoT) has revolutionized the agriculture industry and boosted the market's growth.

Restraints/ Challenges

• Lack of practical knowledge

Lack of practical knowledge related to vertical farming among farmers is also a major factor expected to obstruct market growth. Lack of knowledge regarding using A.I.-based vertical farming among farmers is hampering the market growth. Artificial intelligence (A.I.) in vertical farming aids in managing the farmer's energy and create numerous opportunities to make farming more easy and sustainable.

• The high initial cost associated with vertical farming

The high initial cost of vertical farming will likely hinder market growth in the forecast period. Vertical farming is an expensive procedure because cost is a major factor in every step of this process, from locating the right facilities to choosing the best performing crops. Furthermore, the land prices alone significantly increase the upfront cost because land in the metropolitan areas is normally costly. Hence, these factors will obstruct market growth.

This vertical farming market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the vertical farming market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In 2022, Sky Urban Solutions Holding, which is the parent company of Sky Greens, announced signing an agreement with GEM, which is a Luxembourg-based private substitute investment group. This agreement offers Sky Urban a shared membership capacity of up to USD 50 million for 36 months.
• In 2022, AeroFarms decided to develop their business nationwide from the Northeast area to all whole food markets, particularly after seeing growing demand for their specialty green. AeroFarms will be the primary indoor farming company in the Whole Foods Market Global Planogram.
• In 2022, Singrow, a Singapore-headquartered agtech company, intended to develop across and beyond Asia and introduce its consumer concept brand Blooom. This company plans to surge its partner farm footprint to the Philippines, Hong Kong, Thailand, and the Middle East, beyond its present presence in Indonesia, China, and Singapore.

 Global Vertical Farming Market Scope

The vertical farming market is segmented on the basis of growth mechanism, structure, type, application, offering, component and fruits, vegetables and herbs. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Growth Mechanism

• Hydroponics
• Aeroponics
• Terraponics
• Aquaponics

Structure

• Shipping Containers
• Building Based

Type

• Bio pesticides
• Bio fertilizer
• Bio stimulants

 Crop Type

• Leafy Green
• Pollinated Plants
• Nutraceutical Plants

Application

• Indoor
• Outdoor

 Offering

• Hardware
• Lighting
•  Hydroponic
• Climate Control
• Sensors
• Software
• Services

Component

• Lighting System
• Irrigation and Fertigation System
• Climate Control
• Sensors
• Building Material
• HVAC systems
• Shelves and Racks
• Others

Fruits, Vegetables and Herbs

• Bell and Chili peppers
• Strawberry
• Tomato
• Lettuce
• Cucumber
• Herbs
• Leafy Greens (excluding lettuce)
• Others

 Vertical Farming Market Regional Analysis/Insights

The vertical farming market is analyzed and market size insights and trends are provided by country, growth mechanism, structure, type, application, offering, component and fruits, vegetables and herbs as referenced above.

The countries covered in the vertical farming market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominates the vertical farming market because of increasing population levels and augmented food demand within the region. Furthermore, the availability of labor at reasonable wages and the prevalence of enormous farmland areas will further increase the growth of the vertical farming market.

Europe is anticipated to be the fastest-growing region in the vertical farming market during the forecast period of 2023-2030 because of increasing technological advancements in this region. Moreover, the growing adoption of robotics and nanotechnology for farming are some other factors that will further increase the market growth,

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Vertical Farming Market Share Analysis

The vertical farming market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to vertical farming market.

Some of the major players operating in the vertical farming market are:

• Deere and Company (U.S.)
• CropMetrics LLC (Netherlands)
• Trimble Navigation Limited (Australia)
• CropX (U.S.)
• AgSmarts Inc (India)
• AgSense, LLC (India)
• AGCO Corporation (Austria)
• DICKEY-john (U.K.)
• Monsanto Company (Mexico)
• Ag Leader Technology (U.S.)
• Farmers Edge (U.S.)
• GEOSYS (U.S.)
• Granular (U.S.)
• Gro Intelligence (U.S.)
• Proagrica (U.K.)
• Fasal (India)
• AGEYE Technologies (U.S.)
• HelioPas AI (Germany)
• OneSoil (Belarus)