Vertical Farming Market
Vertical Farming Market Size, Share & Trends Analysis Report By Offering, By Growing Mechanism, By Fruits, Vegetables & Herbs, By Structure (Shipping Container, Building-based), By Region, And Segment Forecasts, 2023 - 2031
The global vertical farming market size was estimated at USD 5.95 billion in 2022 and is expected to reach USD 30.15 billion in 2031. An old warehouse, a skyscraper, or a shipping container are just a few examples of places where vertical farming is practiced. Organic foods are thought to be more wholesome, safe, and environmentally friendly than conventional foods. Consumer food purchasing habits are a significant element influencing the demand for organic food, and producers, governments, and suppliers must take this into account to successfully implement marketing tactics.Consumer health issues including obesity and heart disease are very common. Traditional growers are being compelled to use alternative farming techniques by the growing groundwater shortage and changing climate circumstances. Along with the previously listed issues, rising customer concerns about their health are projected to boost industry demand.
Market Growth
The preference of customers for organic products, a decline in the amount of arable land, and an increase in the demand for high-quality land are the main drivers of the worldwide vertical farming market. The forecasted rise of the worldwide vertical farming market would be further fueled by the increased crop production brought on by the rising population, consumers' growing health concerns, and rising urbanization. The use of much less water decreased exposure to pesticides and diseases, and the ability to produce more with less land under cultivation and immunity to weather are just a few of the amazing advantages that vertical farming offers. The sum of these elements is causing a global increase in demand for vertical farming. Some of the key drivers behind market expansion are rising urbanization, autonomous agriculture methods, and rising food quality demand. The need for food has increased as a result of these circumstances. With an increasing population, the need for food is anticipated to increase significantly by 2030. With the use of the vertical farming technique, consumers can now cultivate their own produce in a warehouse or multi-story structure.
Market Dynamics
Market Drivers
Some of the most important and significant factors that will probably contribute to the growth of the vertical farming market include the increasing adoption of federal agricultural policy programmes in emerging economies, rising levels of food consumption worldwide along with a growing population, an increase in trade activities like exporting grains and oilseeds, and the introduction of new and highly sophisticated technology. The growth of vertical farming, where organic farming is widely practiced, has been facilitated by the rise in consumer demand for organic products, which has been propelled by an improved standard of living and greater disposable income. Future growth in crop production needs as a result of rising consumer demand for healthy products is anticipated to fuel the market for vertical farming. High-capital-outlay technologies, like sophisticated hydroponic systems and electronic traceability systems, are being adopted by many commercial producers.
Market Restraints
In the aforementioned anticipated projection period, the market for vertical farming will likely be constrained by a lack of technical expertise, a lack of experienced labor, and a growing demand for large capital investments. The biggest and most urgent obstacles to market expansion will be the marketing and distribution of new items as well as rising workloads.
Market Opportunities
The popularity of organic food products is rising as people's awareness of their health increases. Farmers all around the nation are switching to organic farming, as a result, improving the outlook for the market. A variety of projects are also being launched by the government to strengthen the nation's current agricultural infrastructure. In order to boost exports, it is also giving farmers financial aid for selling and shipping agricultural products. It's anticipated that these activities would have a big impact. By 2050, there will be an even greater demand for food to feed the world's growing population, which has sparked the market for vertical farming to expand. To bring innovations and technological advancements to this particular industry, money is being invested in the market.
|
Report Attribute |
Details |
|
Projected Market Value (2031) |
30.15 Billion |
|
Estimated Market Value (2022) |
5.95 Billion |
|
Base Year |
2022 |
|
Forecast Years |
2023 - 2031 |
|
Segments Covered |
Structure Outlook, Offering Outlook, Growing Mechanism Outlook, Fruits, Vegetables, & Herbs Outlook, By Regional Outlook |
|
Forecast Units |
Value (USD Billion), and Volume (Units) |
|
Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
|
Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
|
Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
|
Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Competitive Landscape
- Ag Leader Technology (US),
- Monsanto Company (Mexico),
- Deere & Company (US),
- CropMetrics LLC (Netherlands),
- Trimble Navigation Limited (Australia),
- CropX (US),
- AgSmarts Inc (India),
- AgSense, LLC (India),
- AGCO Corporation (Austria),
- DICKEY-john (U.K.),
- Farmers Edge (US),
- GEOSYS (US),
- Granular (US),
- Gro Intelligence (US),
- Proagrica (UK) (Belarus)
these are some of the main market players of the Vertical Farming Market.
Regional Analysis
In terms of geography, Asia-Pacific is anticipated to lead the market during the projected period due to customer preferences for organic foods and a quick rise in the urban population. Furthermore, the expansion of the vertical farming industry in this region is being fueled by the increase in agricultural production annually brought on by the expanding population and expanding use of new technology.
The forecast period is expected to see tremendous growth in Europe as a result of the increased use of genetically modified crops. Additionally, the regional market demand is increased by the growing use of nanotechnology and robots in agriculture. The usage of nanotechnology aids in enhancing disease and pest management as well as improving food packaging. In North America, the US market was dominant. Growing awareness of issues related to nutrition and food security is anticipated to create a number of fresh chances for the business to thrive. It is projected that the United States will contribute significantly to creating a favorable environment for future food production.
Report Description
Offering Insight
With over 52.0% of the market share in 2022, the lighting segment was the market leader. The significant market share of the lighting segment can be due to vertical farms' reliance on artificial lighting. The necessary light intensities for crop growth are provided by artificial lights. Climate control is a type of farming where plants are raised in greenhouses in a controlled environment. This type of farming enables a producer to manage and monitor the ideal levels of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth. By minimizing heat stress on the root zone and supplying uniform lighting, farming with the aid of lighting technology assures continuous plant growth. The adoption of LED lighting technology enables higher productivity with less power consumption by acting as a supplement to the sun's light source. Sensors allow for thorough monitoring of the crop condition and surrounding environment. Crop growth is observed using a variety of sensors, including nutrition sensors, humidity sensors, and light sensors.
Structure Insight
In 2022, the shipping container segment had a market share of approximately 53.20%, and it is anticipated that this position will hold during the forecast period. The ability of the structure to support crop development regardless of location is credited with this growth. One of the main advantages of container-based farming is that it doesn't require a huge plot of land or a dedicated structure to begin producing. Container farms are also portable. The shipping container market is expected to rise throughout the forecast period as a result of factors including expanding technical development and the rising adoption of precision farming.
Growing Mechanism Insight
Due to the significant usage of the aeroponics growth mechanism in vertical farming and its capacity for extensive planting, which is not offered by the other growth mechanisms, the aeroponics segment is anticipated to develop at a higher CAGR over the projected period. This method's low susceptibility to pests and diseases and friendliness to the environment also contribute to the market growth of this niche. Over 65.0% of the market's revenue was accounted for by the hydroponics segment in 2022, and this dominance is anticipated to continue over the forecast period. Due to its inexpensive installation costs and simplicity of use, hydroponics is a widely used growth method.
Fruit, Vegetables, & Herbs Insight
In 2022, the tomato sector dominated the market and accounted for about 35.0% of worldwide sales. In comparison to other crops like lettuce, leafy greens, peppers, cucumbers, herbs, and so on, tomatoes have a higher average demand across all regions, which is what is responsible for their significant market share. Strawberries, lettuce, bell and chili peppers, tomato, cucumber, and leafy greens are a few of the vegetables, herbs, and fruits that are most frequently grown in different parts of the world. Similar to how certain vegetables, like lettuce and mint, develop quickly, others, like some fruiting crops, take longer to grow but can have better margins than many other plants, which is the length of time it takes for crops to mature.
Recent Development
- Brazil will get "AGXTEND," a cutting-edge platform for digital agricultural solutions, in 2021 thanks to CNH Industrial. The organization offers the highest standards at every stage of the crop cycle for the benefit of all types and profiles of farmers. The customer pays for the services rendered rather than the equipment when using the monitoring and management solutions, which are based on soil diagnosis and drone photos.
- In order to assist Mexican farmers in meeting the expanding worldwide need for digital solutions in a sustainable way, Bayer Crop Science and Prospera will work together in April 2020. The strategic alliance offers data insights and AI to greenhouse vegetable growers for better outcomes and sustainability.
Segmentations :
Structure Outlook
- Shipping Container
- Building-based
Offering Outlook
- Lighting
- Hydroponic Components
- Climate Control
- Sensors
Growing Mechanism Outlook
- Hydroponics
- Aeroponics
- Aquaponics
Fruits, Vegetables, & Herbs Outlook
- Tomato
- Lettuce
- Bell & Chili Peppers
- Strawberry
- Cucumber
- Leafy Greens (excluding lettuce)
- Herbs
- Others
By Regional Outlook
- North America
- Europe
- Asia-Pacific
- South America
- The Middle East and Africa
FAQ’s
What are the market dynamics for vertical farming
The increasing adoption of environmentally friendly methods for producing fruits and vegetables is one of the major drivers fueling the growth of the vertical farming market. The demand for urban agriculture has also increased as a result of the enormous rise in world population.
What size is the market for vertical farming
The global vertical farming market size was estimated at USD 5.95 billion in 2022 and is expected to reach USD 30.15 billion in 2031.
What is the market growth for vertical farming
The global vertical farming market is expected to grow at a compound annual growth from 2023 to 2031 to reach USD 30.15 billion by 2031
Which industry held the biggest market share for vertical farming
Asia-Pacific is anticipated to lead the market during the projected period due to customer preferences for organic foods and a quick rise in the urban population.
Who are the major companies in the market for vertical farming
Ag Leader Technology (US), Monsanto Company (Mexico), Deere & Company (US), CropMetrics LLC (Netherlands), Trimble Navigation Limited (Australia).
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
