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Vertical Farming Market by Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material and Others) and by Growth Mechanism (Hydroponics, Aeroponics and Aquaponics) - Global Opportunity Analysis and Industry Forecast, 2017-2025

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Pages: 126
Nov 2017 | 6891 Views
 
Author's : Akshay Jadhav
Tables: 42
Charts: 35
 

Vertical Farming Market Overview:

Global Vertical Farming Market was valued at $1,782 million in 2017, and is projected to reach $10,246 million by 2025, growing at a CAGR of 24.4% from 2017 to 2025.

Vertical farming is a non-traditional way of growing crops, which enables ease of harvesting, negligible effect of climate, high yield, minimal usage of pesticides, less area requirement, and less water consumption. It facilitates huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility. Vertical farming is an ideal solution to these concerns, as it consumes 90% less water than traditional farming and increases yield by nearly 70%. It is anticipated to play an important role in contributing to the urban food security, facilitating year-round production, and decreasing food miles.

Vertical farmers are looking for ways to minimize carbon footprint, such as low energy LED lights, which reduces energy consumption by as much as 80%. They use anaerobic digesters, which uses anaerobic bacteria to compost organic material. For instance, Mirai Corp in Japan, a 25,000 sq. foot facility, is the world’s largest indoor farm that uses nearly 45% less power, 95% less water, and 80% less food wastage as compared to outdoor fields. This farm produces nearly 10,000 lettuce head every day. Furthermore, Skygreens in Singapore was the first commercial vertical farm.

The demand for vertical farming is expected to increase rapidly during the forecast period, owing to various factors such as rise in popularity of organic food, increase in urban population, and decrease in arable land.

However, high initial investments and involvement of nascent technology hamper the market growth.

The key players profiled in the report include AeroFarm, FarmedHere, Illumitex, Inc., Koninklijke Philips N.V., Sky Green, Everlight Electronics, Green Sense Farms, American Hydroponics, Hort Americas and Agrilution.

Market Segmentation

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The global vertical farming market is segmented based on component, growth mechanism, and region. Based on component, the market is divided into irrigation component, lighting, sensor, climate control, building material and others. The building material is classified into glass greenhouse and plastic greenhouse. By growth mechanism, the market is categorized into hydroponics, aeroponics and hydroponics. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America Middle East and Africa (LAMEA).

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Increase in popularity of organic foods, limited arable land for traditional agriculture, high initial investment and developmental technologies along with rise in urban population are the significant factors that affect the growth of the global vertical farming market. These factors are anticipated to either drive or hamper the market growth.
Increase in popularity of organic food

Organic food refers to the products obtained through farming system that does not use synthetic fertilizers, pesticides, and growth regulators. In the present scenario, people across the globe have become increasingly aware about the source of food that they consume daily. This results in increased demand for organic food. For instance, in North America, the sale of organic food has witnessed significant growth over the past few years.

High Initial Investment

The global vertical farming market is expected to grow in the future, owing to increase in demand for crops and use of effective agriculture techniques. However, the adoption of vertical farming incurs heavy initial investment, which restrains the growth of the market. Moreover, high requirement for skilled workforce adds to the overall cost of cultivators. Aggregate vertical farming method is used to deliver the passive medium and nutrient solution into the plant root, which is more expensive than other agriculture methods. Moreover, farmers are not fully aware of the operational and technological benefits of complete vertical farming method, which acts as one of the key restraining factors for the market.

Increase in Urban Population

At present, nearly 54% of the world’s population resides in urban areas and is expected to reach 66% by 2050. The future cities are expected to produce their own food due to increase in global population and decrease in arable land. Vertical farming permits farmers to harvest fresh organic crops in ever-growing cities with additional advantages of high yield, pesticides, and low water requirement. Presently, food supplies from traditional farming are used by the urban population. These farmers use pesticides to achieve higher yield and use preservatives to keep the food fresh, as they deliver it to cities. However, rise in demand for fresh, local, and organic food has fueled the growth of the vertical farming market.

Key Benefits

  • This study comprises an analytical depiction of the global vertical farming market with current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the lucrative trends to gain a stronger foothold in the global vertical farming industry.
  • The report includes information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current market is quantitatively analyzed from 2017 to 2025 to highlight the financial competency of the global vertical farming market.
  • Porter’s Five Forces analysis illustrates the potency of the buyers and suppliers in this global market.

Vertical Farming Market Key Segments:

By Component

  • Irrigation Component
  • Lighting
  • Sensor
  • Climate Control
  • Building Material
    • Glass Greenhouse
    • Plastic Greenhouse
  • Others

By Growth Mechanism

  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Netherlands
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • Australia
    • Singapore
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa
 

Chapter: 1 INTRODUCTION

1.1. REPORT DESCRIPTION
1.2. KEY BENEFITS
1.3. RESEARCH METHODOLOGY

1.3.1. Primary research
1.3.2. Secondary research
1.3.3. Analyst tools and models
1.3.4. Market segmentation

Chapter: 2 EXECUTIVE SUMMARY

2.1. CXO PERSPECTIVE

Chapter: 3 MARKET OVERVIEW

3.1. MARKET DEFINITION AND SCOPE
3.2. KEY FINDINGS

3.2.1. Top winning strategies
3.2.2. Top investment pockets
3.2.3. Top impacting factors

3.3. PORTER’S FIVE FORCES

3.3.1. Bargaining power of suppliers
3.3.2. Bargaining power of buyers
3.3.3. Threat of substitutes
3.3.4. Threat of new entrants
3.3.5. Competitive rivalry

3.4. MARKET PLAYER POSITIONING, 2016
3.5. MARKET DYNAMICS

3.5.1. Drivers

3.5.1.1. Increase in popularity of organic foods
3.5.1.2. Limited arable land for traditional agriculture

3.5.2. Restraints

3.5.2.1. High initial investments
3.5.2.2. Technologies used are in the developmental phase

3.5.3. Opportunity

3.5.3.1. Increase in urban population

Chapter: 4 VERTICAL FARMING MARKET, BY COMPONENT

4.1. OVERVIEW
4.2. IRRIGATION COMPONENT

4.2.1. Key market trends
4.2.2. Key growth factors and opportunities
4.2.3. Market size and forecast

4.3. LIGHTING

4.3.1. Key market trends
4.3.2. Key growth factors and opportunities
4.3.3. Market size and forecast

4.4. SENSOR

4.4.1. Key market trends
4.4.2. Key growth factors and opportunities
4.4.3. Market size and forecast

4.5. CLIMATE CONTROL

4.5.1. Key market trends
4.5.2. Key growth factors and opportunities
4.5.3. Market size and forecast

4.6. BUILDING MATERIAL

4.6.1. Key market trends
4.6.2. Key growth factors and opportunities
4.6.3. Market size and forecast
4.6.4. Glass greenhouse
4.6.5. Plastic greenhouse

4.7. OTHERS

4.7.1. Key market trends
4.7.2. Key growth factors and opportunities
4.7.3. Market size and forecast

Chapter: 5 VERTICAL FARMING MARKET, BY GROWTH MECHANISM

5.1. OVERVIEW
5.2. HYDROPONICS

5.2.1. Key market trends
5.2.2. Key growth factors and opportunities
5.2.3. Market size and forecast

5.3. AEROPONICS

5.3.1. Key market trends
5.3.2. Key growth factors and opportunities
5.3.3. Market size and forecast

5.4. AQUAPONICS

5.4.1. Key market trends
5.4.2. Key growth factors and opportunities
5.4.3. Market size and forecast

Chapter: 6 VERTICAL FARMING MARKET, BY GEOGRAPHY

6.1. OVERVIEW
6.2. NORTH AMERICA

6.2.1. Key market trends
6.2.2. Key growth factors and opportunities
6.2.3. Market size and forecast, by component
6.2.4. Market size and forecast, by growth mechanism
6.2.5. Market size and forecast, by country

6.2.5.1. U.S.

6.2.5.1.1. Market size and forecast

6.2.5.2. Canada

6.2.5.2.1. Market size and forecast

6.2.5.3. Mexico

6.2.5.3.1. Market size and forecast

6.3. EUROPE

6.3.1. Key market trends
6.3.2. Key growth factors and opportunities
6.3.3. Market size and forecast, by component
6.3.4. Market size and forecast, by growth mechanism
6.3.5. Market size and forecast, by country

6.3.5.1. UK

6.3.5.1.1. Market size and forecast

6.3.5.2. Germany

6.3.5.2.1. Market size and forecast

6.3.5.3. France

6.3.5.3.1. Market size and forecast

6.3.5.4. Netherlands

6.3.5.4.1. Market size and forecast

6.3.5.5. Rest of Europe

6.3.5.5.1. Market size and forecast

6.4. ASIA-PACIFIC

6.4.1. Key market trends
6.4.2. Key growth factors and opportunities
6.4.3. Market size and forecast, by component
6.4.4. Market size and forecast, by growth mechanism
6.4.5. Market size and forecast, by country

6.4.5.1. China

6.4.5.1.1. Market size and forecast

6.4.5.2. Japan

6.4.5.2.1. Market size and forecast

6.4.5.3. India

6.4.5.3.1. Market size and forecast

6.4.5.4. Australia

6.4.5.4.1. Market size and forecast

6.4.5.5. Singapore

6.4.5.5.1. Market size and forecast

6.4.5.6. Rest of Asia-Pacific

6.4.5.6.1. Market size and forecast

6.5. LAMEA

6.5.1. Key market trends
6.5.2. Key growth factors and opportunities
6.5.3. Market size and forecast, by component
6.5.4. Market size and forecast, by growth mechanism
6.5.5. Market size and forecast, by region

6.5.5.1. Brazil

6.5.5.1.1. Market size and forecast

6.5.5.2. Saudi Arabia

6.5.5.2.1. Market size and forecast

6.5.5.3. South Africa

6.5.5.3.1. Market size and forecast

6.5.5.4. Rest of LAMEA

6.5.5.4.1. Market size and forecast

Chapter: 7 COMPANY PROFILES

7.1. AEROFARMS

7.1.1. Company overview
7.1.2. Company snapshot
7.1.3. Key strategies & developments

7.2. AGRILUTION

7.2.1. Overview
7.2.2. Key strategies & developments

7.3. AMERICAN HYDROPONICS

7.3.1. Overview

7.4. EVERLIGHT ELECTRONICS

7.4.1. Overview

7.5. FARMEDHERE

7.5.1. Overview
7.5.2. Recent developments

7.6. GREEN SENSE FARMS

7.6.1. Overview
7.6.2. Recent developments

7.7. HORT AMERICAS

7.7.1. Overview
7.7.2. Recent developments

7.8. ILLUMITEX

7.8.1. Overview
7.8.2. Recent developments

7.9. KONINKLIJKE PHILIPS N.V.

7.9.1. Overview
7.9.2. Business performance
7.9.3. Recent developments

7.10. SKY GREENS

7.10.1. Overview
7.10.2. Recent developments

LIST OF TABLES

TABLE 1. GLOBAL VERTICAL FARMING MARKET, BY COMPONENT, 2015-2025 ($MILLION)
TABLE 2. VERTICAL FARMING MARKET FOR IRRIGATION COMPONENT, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 3. VERTICAL FARMING MARKET FOR LIGHTING, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 4. VERTICAL FARMING MARKET FOR SENSOR, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 5. VERTICAL FARMING MARKET FOR CLIMATE CONTROL, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 6. VERTICAL FARMING MARKET FOR BUILDING MATERIAL, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 7. VARIOUS GLASSES AND THEIR SPECIFICATIONS
TABLE 8. VERTICAL FARMING MARKET FOR GLASS GREENHOUSE, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 9. VERTICAL FARMING MARKET FOR PLASTIC GREENHOUSE, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 10. VERTICAL FARMING MARKET FOR OTHERS, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 11. GLOBAL VERTICAL FARMING MARKET, BY GROWTH MECHANISM, 2015-2025 ($MILLION)
TABLE 12. VERTICAL FARMING MARKET FOR HYDROPONICS, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 13. VERTICAL FARMING MARKET FOR AEROPONICS, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 14. VERTICAL FARMING MARKET FOR AQUAPONICS, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 15. VERTICAL FARMING MARKET, BY GEOGRAPHY, 2015-2025 ($MILLION)
TABLE 16. NORTH AMERICA VERTICAL FARMING MARKET, BY COMPONENT, 2015-2025 ($MILLION)
TABLE 17. NORTH AMERICA VERTICAL FARMING MARKET, BY BUILDING MATERIAL, 2015-2025 ($MILLION)
TABLE 18. NORTH AMERICA VERTICAL FARMING MARKET, BY GROWING MECHANISM, 2015-2025 ($MILLION)
TABLE 19. NORTH AMERICA VERTICAL FARMING MARKET, BY COUNTRY, 2015- 2025 ($MILLION)
TABLE 20. EUROPE VERTICAL FARMING MARKET, BY COMPONENT, 2015-2025 ($MILLION)
TABLE 21. EUROPE VERTICAL FARMING MARKET, BY BUILDING MATERIAL, 2015-2025 ($MILLION)
TABLE 22. EUROPE VERTICAL FARMING MARKET, BY GROWTH MECHANISM, 2015-2025 ($MILLION)
TABLE 23. EUROPE VERTICAL FARMING MARKET, BY COUNTRY, 2015-2025 ($MILLION)
TABLE 24. ASIA-PACIFIC VERTICAL FARMING MARKET, BY COMPONENT, 2015-2025 ($MILLION)
TABLE 25. ASIA-PACIFIC VERTICAL FARMING MARKET, BY BUILDING MATERIAL, 2015-2025 ($MILLION)
TABLE 26. ASIA-PACIFIC VERTICAL FARMING MARKET, BY BUILDING MATERIAL, 2015-2025 ($MILLION)
TABLE 27. ASIA-PACIFIC VERTICAL FARMING MARKET, BY COUNTRY, 2017-2025 ($MILLION)
TABLE 28. ASIA-PACIFIC VERTICAL FARMING MARKET, BY COUNTRY, 2015-2025 ($MILLION)
TABLE 29. LAMEA VERTICAL FARMING MARKET, BY COMPONENT, 2015-2025 ($MILLION)
TABLE 30. LAMEA VERTICAL FARMING MARKET, BY BUILDING MATERIAL, 2015-2025 ($MILLION)
TABLE 31. LAMEA VERTICAL FARMING MARKET, BY GROWTH MECHANISM, 2015-2025 ($MILLION)
TABLE 32. LAMEA VERTICAL FARMING MARKET, BY COUNTRY, 2015-2025 ($MILLION)
TABLE 33. AEROFARMS: COMPANY SNAPSHOT
TABLE 34. AGRILUTION : COMPANY SNAPSHOT
TABLE 35. AMERICAN HYDROPONICS: COMPANY SNAPSHOT
TABLE 36. EVERLIGHT ELECTRONICS CO., LTD.: COMPANY SNAPSHOT
TABLE 37. FARMEDHERE : COMPANY SNAPSHOT
TABLE 38. GREEN SENSE FARMS : COMPANY SNAPSHOT
TABLE 39. HORT AMERICAS : COMPANY SNAPSHOT
TABLE 40. ILLUMITEX INC : COMPANY SNAPSHOT
TABLE 41. KONINKLIJE PHILIPS N.V. : COMPANY SNAPSHOT
TABLE 42. SKY GREENS: COMPANY SNAPSHOT

LIST OF FIGURES

FIGURE 1. VERTICAL FARMING MARKET SEGMENTATION
FIGURE 2. GLOBAL VERTICAL FARMING MARKET SNAPSHOT
FIGURE 3. TOP WINNING STRATEGIES, 2015-2017 (%)
FIGURE 4. STRATEGIC RANKING OF COMPANIES, 2015-2017
FIGURE 5. TOP INVESTMENT POCKETS
FIGURE 6. TOP IMPACTING FACTORS, 2016-2025
FIGURE 7. LOW-TO-MODERATE BARGAINING POWER OF SUPPLIERS
FIGURE 8. MODERATE-TO-HIGH BARGAINING POWER OF BUYERS
FIGURE 9. LOW THREAT OF SUBSTITUTES
FIGURE 10. MODERATE THREAT OF NEW ENTRANTS
FIGURE 11. MODERATE COMPETITIVE RIVALRY
FIGURE 12. KEY PLAYER POSITIONING, 2016
FIGURE 13. VERTICAL FARMING MARKET SHARE, BY GEOGRAPHY, 2016
FIGURE 14. U.S. VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 15. CANADA VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 16. MEXICO VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 17. UK VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 18. GERMANY VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 19. FRANCE VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 20. NETHERLANDS VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 21. REST OF EUROPE VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 22. CHINA VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 23. JAPAN VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 24. INDIA VERTICAL FARMING MARKET, 2017-2025 (MILLION)
FIGURE 25. AUSTRALIA VERTICAL FARMING MARKET, 2017-2025 (MILLION)
FIGURE 26. SINGAPORE VERTICAL FARMING MARKET, 2017-2025 (MILLION)
FIGURE 27. REST OF ASIA-PACIFIC VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 28. BRAZIL VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 29. SAUDI ARABIA VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 30. SOUTH AFRICA VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 31. SOUTH AFRICA VERTICAL FARMING MARKET, 2017-2025 ($MILLION)
FIGURE 32. EVERLIGHT ELECTRONICS: REVENUE, 2013-2015 ($MILLION)
FIGURE 33. PHILIPS: REVENUE 2014-2016, ($MILLION)
FIGURE 34. KONINKLIJE PHILIPS N.V: REVENUE SHARE BY SEGMENT, 2016 (%)
FIGURE 35. KONINKLIJE PHILIPS N.V: REVENUE SHARE BY GEOGRAPHY, 2016 (%)

 

Growth in population has fueled the demand for both more food and more land to grow food; however, availability of arable land is limited and expensive. Vertical farming is an innovative way to grow crop in cities without the need of soil, with minimum water usage and almost no need of pesticides. Crops grown through vertical farming are organic, environmentally safe, and healthy to consume.

Presently, nearly 54% of the world’s population resides in urban areas, and is expected to reach 66% by 2050. The future cities are expected to produce their own food due to increase in global population and limited area of arable land. Vertical farming permits farmers to harvest fresh organic crops in ever-growing cities with additional advantages such as high yield, pesticides, and low water requirement. Presently, food supplies from traditional farming is used by the urban population. These farmers use pesticides to achieve higher yield and use preservatives to extend shelf life of foods. Rise in demand for fresh, home-grown organic food has fueled the growth of the vertical farming market.

According to United Nations Population Division (2009), the global population is expected to increase from about 6.9 billion in 2010 to 9.2 billion in 2050. Presently, the growth rate of global population is nearly 80 million per annum. This is a major concern, as habitable area of Earth is limited to nearly 13 billion hectares. In 2008, the total arable area in the world was near about 4.88 billion hectares. The growth of the vertical farming market is driven by food security, adverse effects of farming on the ecosystem & climate, fitness & nutrition, and others. Moreover, shift from traditional agricultural techniques to vertical farming to cater to the increasing demand–supply gap boosts the market growth.

Hydroponics accounts for the majority of market share in the growth mechanism segment, owing to its capability to produce more nutritious eatables in less space consumption. Moreover, this growth mechanism uses 10 times less water than conventional agriculture. Aeroponics is anticipated to grow with a fast-paced rate in the forthcoming years.

North America is the second highest revenue contributor to the global vertical farming market, after Asia-Pacific. The market growth is attributed to factors such as alarming rate of water level depletion, presence of drought-stricken states, and increase in environmental concerns.

Key players in the vertical farming market are AeroFarm, FarmedHere, Illumitex, Inc., Koninklijke Philips N.V., Sky Green, Everlight Electronics, Green Sense Farms, American Hydroponics, Hort Americas, Agrilution, and others.

 

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