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Global Vertical Farming Market, By Growth mechanism (Aeroponics, hydroponics, and Aquaponic), By Structures (Building-based, and shipping container), Offering (Hardware (Hydroponics, Climate control, lighting, sensor), and Software & Services), By and By Region (North America, Europe, Asia Pacific, South America, and the Middle East & Africa)-Global Forecast to 2030.
What is Vertical Farming?
Vertical farming is like a greenhouse where metal reflectors and artificial lighting enhance natural sunlight. The main purpose of vertical farming is to maximize crops in a limited space. Using Controlled Environment Agriculture technology, this modern idea uses indoor farming techniques. Food and pharmaceuticals can be produced indoors by artificially controlling temperature, light, humidity and gases. Vertical farming has improved the ability to cultivate several yields using controlled environment technology. Vertical farming involves less land and thus reduces the challenges of declining arable land. This type of farming includes enhanced efficiency, low water wastage, resistance to weather, food security and environmental conservation.Growth Driver
Advances in Light Emitting Diode (LED) Technology
Growers can cut their agricultural costs by using light-emitting diodes (LEDs), which are now affordable and efficient. As a result, new advancements in LED technology are assisting the vertical farming market’s growth. Artificial lighting is a requirement for indoor agricultural applications. Due to increased efficiency and longer life, LED prices have fallen sharply in recent years. This has led to improved returns on investments (ROIs) for producers and a rise in profitable vertical farm installations. Horticulture farmers prefer LED top lighting and inter-lighting systems to other technologies because they are full-spectrum and can be used for various applications.Cannabis cultivation by Vertical Farming
The cannabis industry is growing rapidly after many US states have legalized medicinal and recreational cannabis. With the rapid growth in demand for cannabis, the supply side has begun to develop businesses in various ways to achieve that goal. According to current production scenarios, growing cannabis on a vertical farm can be costly. There are several factors to consider for cannabis grown on a sunless medium. For example, the heat emitted by a high-pressure sodium lamp (HPS) can damage the product. Therefore, LEDs operating at much lower temperatures can solve excessive heat dissipation. Organizations developing through vertical cultivation have noticed huge outcomes as far as efficiency.Restrains
Lack of skilled labor and technical know-how, limited Variety of crops
Vertical farming regularly includes advanced arrangements such as sensors, cameras, artificial intelligence, automated systems, aeroponics, aquaponics, and hydroponics. Knowledge and a skilled workforce are essential to operating these advanced systems. Machine and computer maintenance also requires technically well-trained people with all the modernization know-how. The absence of a talented labor force has impacted various areas worldwide, and vertical farming isn’t a special case. Most farmers also dare to enter this market with inefficient and costly systems. To stay competitive in the market, vertical farming must be up-to-date on various aspects of agriculture.Pre-Covid-19 impact on the global Vertical Farming market
During the pre-COVID-19 period, vertical farming was rising. The agricultural practice of increasing food crops in vertical, inclined surfaces, vertically stacked and integrated with the other structures. The key profits of vertical farming include raised crop production, protection of crops from strict climatic conditions, and efficient resource use. The growing demand for pesticide-free food is the main driver of the vertical farming market. Other factors like upgrading irrigation techniques, progressive plant breeding, and the development of synthetic nitrogen fertilizers are boosting the growth of the global vertical farming market.Covid-19 impact on the global Vertical Farming market
For providers of lighting solutions for producers in vertical agriculture, the COVID-19 pandemic disrupted the entire supply chain for LED lighting, from upstream chip production to packaging and lighting OEMs. However, it has different effects on different units in the supply chain. On the one hand, LED wafer and chip manufacturers are less affected by the pandemic, as they still have high stocks due to the oversupply in 2019. Many chip manufacturers still have products from last year in stock that can supply materials required for LED chips, such as sapphire substrate, and others may become scarce if the work delay continues. Therefore, the price of LED chips is expected to increase.Post-Covid-19 impact on the global Vertical Farming market
In the post-COVID period, investors focused on their business attractiveness because vertical farming offered organic vegetables and fruits while consuming less water per unit of land area than conventional farming. They enhance production capacity or short supply chain systems shown to be more robust during a covid emergency. Thus, during the COVID-19 pandemic, the vertical farming market substantially impacted the growth rate. However, the vertical farming market will increase outstanding growth post-Covid.Growth Mechanism Segmental Analysis
Based on the Growth Mechanism, the global Vertical Farming market is segmented into Aeroponics, Hydroponics, and Aquaponics. The hydroponics segment captured the largest market share in 2021 and is likely to grow critically during the forecast period 2022-2030. The hydroponics mechanism costs less, is easier to set up than the aeroponics and aquaponics mechanism, and has a higher return on investment. The hydroponics mechanism recycles the most water with the least waste, making it the most water-efficient farming method.Structures Segmental Analysis
The global vertical farming market is categorized into Building-based and shipping containers based on the structures. The Shipping Container segment holds the largest market share in 2021 and is expected to grow significantly during the forecast period, 2021-2030. Building-based and shipping container-based vertical farming is growing due to reduced farming lands. Furthermore, building-based and shipping-based vertical farming is growing with technological advancement and less use of farming equipment.Offering segmental Analysis
Based on the offering, the global vertical farming market is categorized into hardware (Hydroponics Components, Climate Control, Lighting, sensors) and Software and services. The Hardware segment accounted for the largest market percentage in 2021 and is expected to generate a sizeable revenue during the forecast period, 2022-2030. Growing demand for vertical farming has increased the production of farming equipment such as hydroponics components, climate control, lighting, and sensors.Regional segmental Analysis
The global vertical farming market is characterized by North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America has the largest market share in 2021 and is estimated to grow significantly from 2022 to 2030. Significant growth is expected for the Asia-Pacific region due to developing countries and most of the country’s agricultural economies. Additionally, market growth is expected from changing food patterns and government initiatives to promote vertical farming further.Competitor Analysis
Companies include Aero Farms, Plenty Unlimited Inc., Signify Holding, Urban Crop Solution, Voeks, Inc., Amhydro, Iframe Kalera As, Grow Pod Solutions, Lettuce Grow Ltd., Bowery Farming, Freight Farms Inc., Autogrow, OSRAM GmbH are the key players in the global vertical farming market. Key Stakeholders- Market research and consulting firms
- Industry associations
- Global vertical farming manufacturing firm
- Global vertical farming providers
- Regulatory bodies
- Suppliers
- Retailers
- In November 2021, The Signify (PHILIPS) established a virtual Center of Excellence for smarter, more sustainable urban vegetable farming in Singapore and Asia. The center will deliver profound research insights and advanced lighting solutions for growers in Singapore and Asia.
- In March 2021, Signify generated the Philips GreenPower LED toplighting force. It is expanding its Philips GreenPower LED toplighting products range, supplying growers with a new range for light-loving crops. The product supports growers in optimizing growth predictability, improving crop quality, and increasing yield.
Scope of the Report
| Report Attribute | Details |
|---|---|
| Market Size Value in 2020 | USD 3.2 billion |
| The revenue forecast in 2027 | USD 12.292 Billion |
| Growth Rate | CAGR of 21.2% from 2020 to 2027. |
| Historical data | 2017-2019 |
| Forecast period | 2021 – 2027 |
| Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Key companies Profiled | Aero farms, Plenty Unlimited Inc., Signify Holding, Urban Crop Solution, Voeks, Inc., Amhydro, Iframe Kalera As, Grow Pod Solutions, Lettuce Grow Ltd., Bowery Farming, Freight Farms Inc., Autogrow, OSRAM GmbH’s |
Market Modelling
By Growth Mechanism- Aeroponics
- Hydroponics
- Aquaponics
- Building-based
- Shipping Container
- Hardware
- Hydroponics components
- Climate control
- Lighting
- Sensors
- Software and services
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
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Report Content
- Research Strategic Development
1.1. Market Modelling
1.2. Product Analysis
1.3. Market Trend and Economic Factors Analysis
1.4. Market Segmental Analysis
1.5. Geographical Mapping
1.6. Country Wise Segregation
- Research Methodology
2.1. Identification of Target Market
2.2. Data Acquisition
2.3. Refining of Data/ Data Transformations
2.4. Data Validation through Primary Techniques
2.5. Exploratory Data Analysis
2.6. Graphical Techniques/Analysis
2.7. Quantitative Techniques/Analysis
2.8. Visual Result/Presentation
- Executive Summary
- Market Insights
4.1. Supply Chain Analysis
4.2. Economic Factor Analysis
4.2.1. Drivers
4.2.2. Trends
4.2.3. Opportunities
4.2.4. Challenges
4.3. Technological Landscape
4.4. Competitors & Product Analysis
4.5. Regulatory Framework
4.6. Company market share analysis, 2022
4.7. Porter’s Five forces analysis
4.8. Price point analysis
4.9. New Investment Analysis
4.10.PESTEL Analysis
4.11.Pre Covid-19 Impact
4.12.Covid-19 Impact
4.13.Post Covid-19 Impact
- Global Vertical Farming Market, 2017-2030
5.1. Market size & Forecast, 2017-2030
5.1.1. Demand
5.1.1.1. By Value (USD Billion)
5.2. Market Share & Forecast, 2017-2030
5.2.1. By Growth Mechanism
5.2.1.1. Aeroponics
5.2.1.2. Hydroponics
5.2.1.3. Aquaponics
5.2.2. By Structures
5.2.2.1. Building-based
5.2.2.2. Shipping Container
5.2.3. By Offering
5.2.3.1. Hardware
5.2.3.2. Hydroponics
5.2.3.3. Climate Control
5.2.3.4. Lighting
5.2.3.5. Sensors
5.2.3.6. Software and Services
5.2.4. By Region
5.2.4.1. North America
5.2.4.2. Europe
5.2.4.3. Asia Pacific
5.2.4.4. The Middle East & Africa
5.2.4.5. South America
- North America Vertical Farming Market, 2017-2030
6.1. North America Vertical Farming Market size & Forecast, 2017-2030
6.1.1. Demand
6.1.1.1. By Value (USD Billion)
6.2. North America Vertical Farming Market Share & Forecast, 2017-2030
6.2.1. By Growth Mechanism
6.2.1.1. Aeroponics
6.2.1.2. Hydroponics
6.2.1.3. Aquaponics
6.2.2. By Structures
6.2.2.1. Building-based
6.2.2.2. Shipping Container
6.2.3. By Offering
6.2.3.1. Hardware
6.2.3.2. Hydroponics
6.2.3.3. Climate Control
6.2.3.4. Lighting
6.2.3.5. Sensors
6.2.3.6. Software and Services
6.2.4. By Country
6.2.4.1. US
6.2.4.2. Canada
6.2.4.3. Mexico
- Europe Vertical Farming Market, 2017-2030
7.1. Europe Vertical Farming Market size & Forecast, 2017-2030
7.1.1. Demand
7.1.1.1. By Value (USD Billion)
7.2. Europe Vertical Farming Market Share & Forecast, 2017-2030
7.2.1. By Growth Mechanism
7.2.1.1. Aeroponics
7.2.1.2. Hydroponics
7.2.1.3. Aquaponics
7.2.2. By Structures
7.2.2.1. Building-based
7.2.2.2. Shipping Container
7.2.3. By Offering
7.2.3.1. Hardware
7.2.3.2. Hydroponics
7.2.3.3. Climate Control
7.2.3.4. Lighting
7.2.3.5. Sensors
7.2.3.6. Software and Services
7.2.4. By Country
7.2.4.1. Germany
7.2.4.2. UK
7.2.4.3. France
7.2.4.4. Italy
7.2.4.5. Rest of Europe
- Asia Pacific Vertical Farming Market, 2017-2030
8.1. Asia Pacific Vertical Farming Market size & Forecast, 2017-2030
8.1.1. Demand
8.1.1.1. By Value (USD Billion)
8.2. Asia Pacific Vertical Farming Market Share & Forecast, 2017-2030
8.2.1. By Growth Mechanism
8.2.1.1. Aeroponics
8.2.1.2. Hydroponics
8.2.1.3. Aquaponics
8.2.2. By Structures
8.2.2.1. Building-based
8.2.2.2. Shipping Container
8.2.3. By Offering
8.2.3.1. Hardware
8.2.3.2. Hydroponics
8.2.3.3. Climate Control
8.2.3.4. Lighting
8.2.3.5. Sensors
8.2.3.6. Software and Services
8.2.4. By Country
8.2.4.1. China
8.2.4.2. India
8.2.4.3. Japan
8.2.4.4. Australia
8.2.4.5. Rest of Asia pacific
- The Middle East & Africa Vertical Farming Market, 2017-2030
9.1. The Middle East & Africa Vertical Farming Market size & Forecast, 2017-2030
9.1.1. Demand
9.1.1.1. By Value (USD Billion)
9.2. The Middle East & Africa Vertical Farming Market Share & Forecast, 2017-2030
9.2.1. By Growth Mechanism
9.2.1.1. Aeroponics
9.2.1.2. Hydroponics
9.2.1.3. Aquaponics
9.2.2. By Structures
9.2.2.1. Building-based
9.2.2.2. Shipping Container
9.2.3. By Offering
9.2.3.1. Hardware
9.2.3.2. Hydroponics
9.2.3.3. Climate Control
9.2.3.4. Lighting
9.2.3.5. Sensors
9.2.3.6. Software and Services
9.2.4. By Country
9.2.4.1. Saudi Arabia
9.2.4.2. UAE
9.2.4.3. South Africa
9.2.4.4. Rest of The Middle East & Africa
- South America Vertical Farming Market, 2017-2030
10.1. South America Vertical Farming Market size & Forecast, 2017-2030
10.1.1. Demand
10.1.1.1. By Value (USD Billion)
10.2. South America Vertical Farming Market Share & Forecast, 2017-2030
10.2.1. By Growth Mechanism
10.2.1.1. Aeroponics
10.2.1.2. Hydroponics
10.2.1.3. Aquaponics
10.2.2. By Structures
10.2.2.1. Building-based
10.2.2.2. Shipping Container
10.2.3. By Offering
10.2.3.1. Hardware
10.2.3.2. Hydroponics
10.2.3.3. Climate Control
10.2.3.4. Lighting
10.2.3.5. Sensors
10.2.3.6. Software and Services
10.2.4. By Country
10.2.4.1. Brazil
10.2.4.2. Argentina
10.2.4.3. Rest of South America
- Competitor Analysis
11.1. Company Description
11.2. Financial Analysis
11.3. Key Products
11.4. Key Management Personnel
11.5. Contact Address
11.6. SWOT Analysis
11.7. Company profile
11.7.1. Aero farms
11.7.2. Plenty Unlimited Inc.
11.7.3. Signify Holding
11.7.4. Urban Crop Solution
11.7.5. Voeks, Inc.
11.7.6. Amhydro
11.7.7. Ifarm Kalera As
11.7.8. Grow Pod Solutions
11.7.9. Lettus Grow Ltd.
11.7.10. Bowery Farming
11.7.11. Freight Farms Inc.
11.7.12. Autogrow
11.7.13. OSRAM GmbH’s
11.7.14. Other Prominent Players.
Frequently Asked Questions (FAQ):
Vertical farming is like a greenhouse where metal reflectors and artificial lighting enhance natural sunlight. The main goal of vertical farming is to maximize crops in a limited space.
The global vertical farming market is estimated to reach USD 22.61 billion by 2030 with a CAGR of 10.2% over the forecast period 2022-2030, and it was valued at USD 11.2 billion in 2022.
The increasing use of vertical farming, rising hydroponics, and advancements in LED technology are assisting the vertical farming markets. These are the major factors restoring the growth of the global vertical farming market.
For providers of lighting solutions for producers in vertical agriculture, the COVID-19 pandemic disrupted the entire supply chain for LED lighting from upstream chip production to packaging and lighting OEMs.
North America captured the largest market share in 2021 and is estimated to grow significantly from 2022 to 2030.
Companies include Aero farms, Plenty Unlimited Inc., Signify Holding, Urban Crop Solution, Voeks, Inc., Amhydro, Iframe Kalera As, Grow Pod Solutions, Lettuce Grow Ltd., Bowery Farming, Freight Farms Inc., Autogrow, OSRAM GmbH’s are the key players in the global vertical farming market.
