Vertical Farming Market Size (2023 - 2030)

The global vertical farming market size is to reach USD 17.65 billion by 2030 from 3.65 billion in 2022. The market is predicted to grow with a CAGR of 24.8% throughout the timeframe period.

Vertical farming helps in producing organic foods that are grown without the use of pesticides, and artificial fertilizers, and transgenic organisms. Vertical farming techniques control features like the amount of light, environmental factors like gases, humidity, temperature, etc., and irrigation factors that include the application of fertilizers and other soil products.

MARKET DRIVERS

Organic foods adoption is fostering booming the vertical farming market growth. Further, the population in urban areas is rising, and focusing on producing ecological and organic fruits and vegetables urges the growth in vertical farming. Adopting nanotechnology and robotics is snowballing for farming augments the market growth globally.

The awareness concerning the significance of alternative farming due to the less availability of fertile agricultural land and growing population drives the market growth.

MARKET RESTRAINTS

However, participation in developing technologies and high-initial investments hinder the vertical farming market.

VERTICAL FARMING MARKET REPORT COVERAGE

Segmentation Analysis

The global Vertical Farming Market has been segmented and sub-segmented based on the growth type, structure, crop type, and offerings.

Vertical Farming Market - By Growth Type

• Hydroponics
• Aeroponics
• Aquaponics

By growth type, the hydroponics segment is dominating the vertical farming market. Plants are grown in an inorganic fake underlayer or water, in the hydroponics segment. The hydroponics system's efficiency in general. The plant growth that is affected due to certain conditions like weather, etc, can be governed using hydroponics. As the installation cost is low and ease of operation as the hydroponics segment is the most favored.

The aquaponics segment is said to have quick growth in the vertical farming market. Aquaponics is a mixed combination of both fish farming or aquaculture and hydroponics that creates a closed-loop system producing a variety of crops effortlessly.

Vertical Farming Market - By Structure

• Building-based vertical farm
• Shipping container-based vertical farm

By structure, shipping container-based are scheduled to hold the most prominent CAGR throughout the forecast period. The segment provides advantages that allow the crops to grow without restrictions of geographic locations. Benefits like easy portability and less space needed for crop cultivation.

Vertical Farming Market - By Crop Type

• Lettuce
• Pepper
• Broccoli
• Cucumber
• Spinach
• Tomato
• Strawberry
• Pomegranate
• Others

Vertical Farming Market - By Offerings

• Hardware
  • Lighting
  • Hydroponics Components
  • Climate Control
  • Sensors
• Software
• Services

By offerings, the hardware segment retains its dominance across the period. In the hardware segment, the lighting sub-segment is said to lead the offering vertical farming market. Artificial lights pretend light intensity is required for growing crops. The confidence of vertical farming systems on artificial lighting systems.

Climate control is expected to record the highest CAGR during the timeline period. The demand for unseasonal foods throughout the year is booming in the climate control offerings segment.

The sensors systems allow complete monitoring and provide the same ecosystem to the crops as the exterior environment and conditions. The sensors segment results in constant growth across the period.

Regional Analysis

North America is projected to significantly contribute the major share in the global vertical farming market. The demand for rich-quality, fresh and organic food activities for the development of vertical farms across developed economies like the U.S.

For instance, in February 2022, McCain Foods Ltd. circulated a considerable investment in a commercial vertical agriculture operation, TruLeaf Sustainable Agriculture in Canada. The company aids to extend its growth in the agri-food sector by providing fresh and nutritional food.

Europe has backed second place in the vertical farming market. Germany, Netherlands, Spain, and France are contributing a major share to the vertical farming market growth. Several key players are inspiring the clients to choose a home farming system. For example, the AgriCool company of France plans to change its potential customers into farming to extend pesticide-free farming.

The European environment agency has carried out several initiatives to construct vertical farms to beat the challenges of steady population growth and climatic changes along with producing food in an environmentally unfriendly way.

However, the Asia-Pacific market for vertical farming is exhibiting appreciable growth. Vertical farming methods are expected to have reliable growth in developing economies due to the growth in the adoption of advanced solutions to boost the rising demand for food. Japan is said to lead the vertical farming market.

Latin American market is said to achieve constant and continuous growth. The growth in LATAM owes to shifting food consumption habits for a more organic green leaf diet. The above-mentioned factors help in stimulating the growing demand.

The availability of fertile land in the Middle East and Africa is less and the increasing lack of water is likely to foster the vertical farming market. Introducing fresh food from abroad in the food industry is likely to have maximum investments in the region, mounting the vertical farming market demand. In Africa, the urban population is surging, and the commercialization of indoor farming is hiking which drives the market growth.

Vertical Farming Market Key Players

The major vendor involved in the global vertical farming market includes:

1. Signify (Netherlands)
2. Osram (Germany)
3. Freight Farms (US)
4. AeroFarms (US)
5. sky Greens (Singapore)
6. Spread (Japan)
7. Plenty (US)
8. Valoya (Finland)
9. Everlight Electronics (Taiwan)
10. Heliospectra AB (Sweden)
11. Green Sense Farms (US)
12. Agrilution (Germany)
13. American Hydroponics (US)
14. Urban Crop solutions (Belgium)
15. Vertical Farm Systems (Australia)
16. bowery Farming (US)
17. Agricool (France)
18. Sananbio (US)
19. Growpod Solutions (US)
20. Infarm (Germany)
21. Altius Farms (US)
22. Intelligent Growth Solutions (Scotland)
23. 4D BIOS INC (US)
24. Future Crops (Netherlands)
25. Bright Farms (US)
26. Swegreen (Sweden)
27. Vertical Future Ltd (UK)

Recent Market Developments

• On September 23, 2022, OSRAM disclosed the upcoming schedule