The global Vertical Farming market size is expected to be worth around US$ 31.15 billion by 2030, according to a new report by Vision Research Reports.
The global Vertical Farming market size was valued at US$ 3.89 billion in 2020 and is anticipated to grow at a CAGR of 23.10% during forecast period 2021 to 2030.
Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur the market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. Growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.
Vertical farming is effective in ensuring stability in crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over traditional farming techniques, such as less use of water, the lesser need for agrochemicals, and low dependence on agricultural labors. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.
Genetically modified organisms and environmental and health effects of pesticides and other non-natural substances that are used for increasing agricultural production have encouraged consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by around 5% in 2019, owing to increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990, the handlers and growers of organic products need to comply with the regulations.
Artificial lighting helps in extending the hours of natural daylight, which further increases the health, growth rate, and yield of the plants. Artificial lighting such as high-pressure sodium lighting and LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce a dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
The hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors such as high initial investment and fewer crop varieties are likely to restrain the market growth.
The lighting segment led the market and accounted for more than 43% of the global revenue in 2020. The high share of the lighting segment can be attributed to the dependence of vertical farms on artificial lighting. Artificial lights provide sufficient light intensities required for crop growth. The climate control segment is expected to register a high CAGR of around 25% between 2021 and 2028. Increasing adoption of hydroponic components by farmers to minimize the weight load and infrastructure needed to support the equipment is anticipated to drive the demand for hydroponic components.
Climate control is a kind of agriculture where plants are grown inside a greenhouse under a controlled environment that allows a grower to maintain and monitor the proper supply of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth. The main aim of climate control farming is to facilitate the protection and maintain optimum growth conditions throughout the development period of a crop. In many cases, climate-controlled farming is used to ensure that plants receive optimal nutrients for their growth.
Farming with the help of lighting technology ensures consistent plant growth by reducing the heat stress on the root zone and providing uniform lighting. The use of LED lighting technology acts as a supplementary light source to the sun and ensures increased productivity with minimum power usage. Sensors enable the comprehensive monitoring of the external environment and crop condition. Various sensors such as nutrient, humidity, and light sensors are used to monitor crop growth. Monitoring also enables the notification of changes and alerts.
Automation in vertical farming is aiming at minimizing time to market, reducing distribution, production, and environmental costs, and standardizing the high quality. IoT has become the mainstream technology that drives several industries such as transportation, manufacturing, and agriculture. The proliferation of IoT has revolutionized the agriculture industry.
The hydroponics segment registered a market share of more than 54% in 2020 and is expected to remain dominant between 2021 and 2028. Hydroponics is a popular growth mechanism due to low installation costs and ease of operations. It is a method of growing plants without soil, where the soil is replaced by a mineral solution inserted around the plant roots. Additionally, the hydroponics method removes the risk of soil organisms causing diseases. Growing awareness among consumers regarding the effects of pesticides is expected to boost the demand for hydroponics. Hydroponically-grown plants produce a greater yield than similar plants grown in soil because of proper control over the nutrients. Plant roots are submerged under the chemical solution and checked periodically to ensure that appropriate chemical composition is maintained for growth.
The aquaponics segment is anticipated to gain a significant market share over the forecast period. Aquaponics is the integration of hydroponics and aquaculture, which eliminates the need for harmful chemicals for cultivation. Plants such as lettuce, chives, peppers, kale, mint, cucumbers, and peas are grown through aquaponics. The water used in the aquaponics systems contains fish waste that becomes nutrient-rich and increases the crop production time. This creates a sustainable natural system, which eliminates the need for chemicals to produce food.
The aeroponics segment is anticipated to witness considerable growth over the forecast period. This system is similar to hydroponics as neither method uses soil to grow plants. However, in aeroponics, there is no need for a growing medium as roots of plants are hung in a dark chamber and sprayed with nutrient-rich solution periodically.
The tomatoes segment led the market and accounted for more than 23% of the global revenue in 2020. This high share is attributable to the high average demand for tomatoes in all regions compared to other crops such as lettuce, leafy greens, peppers, cucumbers, herbs, and so on. Some of the most commonly grown vegetables, herbs, and fruits across different regions include strawberry, lettuce, bell and chili peppers, tomato, cucumber, and leafy greens among others. One of the important factors behind growing any crop in vertical farming is to validate the economic viability of that crop, which ensures that the company is making a large amount of money from its cultivation.
Similarly, the time taken for crops to grow fully is one of the criteria because some vegetables like lettuce and mint grow fast, whereas herbs and some fruiting crops take more time to grow but can have higher margins than many other plants. As a farmer, it is imperative to make sure that we can sell what we grow, and production costs should not be too high. To make this decision, the kind of crops also plays a very vital role in the feasibility study of vertical farming. Lettuces have shown consistent demand globally that has enhanced its cultivation.
The shipping container segment dominated the industry in terms of revenue with a market share of 44.2% in 2020 and is expected to remain dominant between 2021 and 2028. This growth is attributed to the ability of the structure to help grow crops irrespective of the geographic location. One of the primary benefits of container-based farming is that container farms are easy to transport, and one doesn’t require a large piece of land or a dedicated building to start cultivating. Moreover, the price of shipping containers decreases with increased competition because the cost of acquiring used containers is relatively less, which allows other companies to enter the market space. However, low comparative output and antagonism between light, heat, and layout are some of the drawbacks of such kind of agriculture.
Factors such as growing technological advancements and increasing penetration of precision farming are anticipated to drive the shipping container segment over the forecast period. The building-based segment is widely accepted in Japan, China, and other Asian countries and it is the fastest-growing segment in terms of revenue owing to its growing acceptance in the region. Building-based farming helps in minimizing the cultivation cost and requires larger farming areas than single farming land, hence ensures food security.
Shipping container-based farming uses 95% less water than the traditional cultivation with drip irrigation. Shipping containers are easy to modify, stackable, durable, and can be recycled and refurbished at a lower cost. Additionally, the surplus availability of unused shipping containers across the globe also likely to influence the segment growth over the forecast period.
In terms of revenue, Asia Pacific dominated the market for vertical farming in 2020 with a share of approximately 39% and is expected to remain dominant between 2021 and 2028. Growing awareness regarding the importance of alternative farming, owing to less availability of fertile agricultural land and increasing population in the region, is the key factor anticipated to spur the demand.
Europe is anticipated to witness significant growth over the projected period owing to the growing expansion of genetically-modified crop technology. Furthermore, the increasing adoption of nanotechnology and robotics for farming enhances the regional market demand. The use of nanotechnology helps in improving food packaging and enhancing disease and pest control.
The European environment agency has carried out several initiatives to build vertical farms to overcome challenges of continuous population growth and climate change as well as produce food in an environmentally unfriendly way. This has resulted in growth opportunities for the market in the region.
Green Sense Farms, LLC
Everlight Electronics Co., Ltd.
Agrilution Systems GmbH
Growing Mechanism Outlook
Fruits, Vegetables, & Herbs Outlook
Bell & Chili Peppers
Leafy Greens (excluding Lettuce)
Middle East and Africa (MEA)
The Vertical Farming market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Vertical Farming market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Vertical Farming market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Vertical Farming market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Vertical Farming market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Vertical Farming capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Vertical Farming by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Vertical Farming market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Vertical Farming market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Vertical Farming market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Vertical Farming industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
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.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Vertical Farming market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Vertical Farming market. These factors have benefited the growth of the global market for Vertical Farming. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Vertical Farming. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Vertical Farming are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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