Report Code: A01957 | Pages: 264 | Sep 2021 | 84986 Views | ||
Author(s) : Asavari P , Supradip B | Tables: 132 | Charts: 61 |
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Pandemic disrupted the entire world and affected many industries.
Get detailed COVID-19 impact analysis on the Vertical Farming Market
Request Now !The vertical farming market size was valued at $3.24 billion in 2020, and is projected to reach $24.11 billion by 2030, registering a CAGR of 22.9%.
The building-based structure segment has been positively impacted by the emergence of COVID-19 pandemic.
Vertical agriculture involves stacking farms vertically. This has enabled small land to be utilized for more production. It is a nontraditional method of crop cultivation that enables easy harvesting, a negligible effect of climate, high yield, minimal pesticides usage, less area requirement, and less water consumption. For instance, one hectare of vertical farming is equivalent to nine hectares of traditional outdoor farming and saves nearly 200 tons of water every day.
The significant factors impacting the vertical farming market growth include rise in popularity of organic food, optimum use of vertical space and balanced energy utilization, ease of crop monitoring and harvesting, and decrease in arable land. However, high initial investments and involvement of nascent technology hamper the market growth. Nonetheless, growing urban population and surge in adoption of technology driven agriculture are expected to provide lucrative growth opportunities to the vertical farming market players.
In 2020, the vertical hydroponics segment accounted for the highest share of USD 1,329. Also, the vertical hydroponics dominates the growth mechanism segment in the global vertical farming market share. The aeroponics segment, however is expected to have the highest CAGR of 24.0% throughout the forecast period. Furthermore, among various components used in vertical farming, the climate control component segment is expected to grow at a significant CAGR of 26.6%, due to rise in concerns among growers to restrict the influence of climate, which causes crop yield loss.
By region, the vertical farming market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major share of the global market in 2020 and is expected to dominate the market in terms of revenue during the forecast period. The region experiences an upsurge in demand for organic food; for instance, it consumes over 75% of all vegetables across the globe. The change in preference of consumers, followed by the rise in pollution, food scandals, and increase in distaste is majorly driving the growth of indoor farming and organic food in the region. The region is the home to some of the largest indoor vertical farms across the globe.
North America accounts for the second-largest share of the global vertical farming market revenue and is expected to grow rapidly during the forecast period. The market growth is attributed to factors such as alarming rate of water level depletion, the presence of drought-stricken states, and an increase in environmental concerns. The latest trend is nano-farms. For instance, on October 6, 2018, Living Greens Farm constructed 60,000 square feet of stacked growing space and is also capable of producing 3 million heads of high-quality lettuce.
Top Impacting Factors
As per the vertical farming market outlook, rise in popularity of organic food, optimal use of vertical space and balanced energy utilization, ease of crop monitoring and harvesting, and decrease in arable land are the major factors influencing the vertical farming market growth. High initial investments and involvement of emerging technology, however hamper the market growth. Nonetheless, the rise in the urban population and increased adoption of technology- driven agriculture provide lucrative vertical farming market opportunities to the players.
Competitive analysis and profiles of the major vertical farming market players such as 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd., Hort Americas, Illumitex Inc., Koninklijke Philips N.V., Urban Crop Solutions, and Sky Greens. Market players have adopted various strategies such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the vertical farming industry.
The global electronics and semiconductor industry has had significant impact by the COVID-19 outbreak. The production facilities have been halted, owing to the slowdown and unavailability of the workforce across the globe which has also created a shortage of workers in vertical farming sector. The COVID-19 outbreak has resulted in a significant and long-term decline in manufacturing utilization, and travel bans & facility closures have kept workers out of their factories due to which electronics required in a vertical agriculture facility such as sensors, lighting, among others has resulted in a slowdown in the growth of the vertical farming market in 2020.
However, the negative impact of COVID-19 on the electronics and semiconductor industries was expected to last for a short period, and by early 2021 the market anticipated to observe a strong efficiency, along with the high demand for these systems during the post-pandemic period.
On the other hand, the pandemic has become a major concern for farmers across the globe, limiting agricultural laborers access and causing to issues related with the international supply chains. These factors assisted in the growth of the vertical farming trends. The vertical farming market has experienced lucrative growth during the pandemic due to the rise in interest in urban agriculture as a means of relieving mental stress as well as addressing localized food shortages.
Key Benefits For Stakeholders
Vertical Farming Market Report Highlights
Aspects | Details |
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By Structure |
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BY Growth mechnism |
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By Component |
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By Region |
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Key Market Players | 4D BIOS INC., AEROFARMS, AGRILUTION, AMHYDRO (AMERICAN HYDROPONICS), EVERLIGHT ELECTRONICS CO., LTD., HORT AMERICAS, ILLUMITEX INC., KONINKLIJKE PHILIPS N.V., URBAN CROP SOLUTIONS, SKY GREENS |
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Vertical farming is a revolutionary approach used to produce food in vertically stacked layers such as in a skyscraper, used warehouse, or shipping container. It facilitates huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility. Moreover, it enables reliable yield and consistency along with climate control, and no effects of external environment factors such as disease, pest, or predator attacks.
The growth of the vertical farming market is driven by factors such as rise in trend of using organic foods (healthy food without pesticides), optimum use of vertical space, and minimal impact of weather on yield. Increase in population leads to rise in demand–supply gap for food. Thus, the need for alternative farming techniques such as vertical farming is expected to increase in the near future. In addition, upsurge in per capita income in developing countries and occupational changes along with the globalization have changed the food preferences. Such trends have led toward the demand for new innovations in agriculture and need for such innovations to be integrated with the main stream agriculture.
The key players profiled in the report include 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd., Hort Americas, Illumitex Inc., Koninklijke Philips N.V., Urban Crop Solutions, and Sky Greens. These majpr market players further adopt various startegies such as product launch, agreements, partnership among others to increase the market demand. For instance, AeroFarms launched new culinary standard for flavor and freshness named Dream Greens, which are locally grown, pesticide free, non-GMO products, and offer consistent quality and availability year-round. The blends of baby greens feature consumer favorites such as baby kale and arugula, and some spicier newcomers including ruby streaks and baby watercress.
A. The Vertical Farming Market is estimated to grow at a CAGR of 22.9% from 2021 to 2030.
A. The Vertical Farming Market is projected to reach $24.11 billion by 2030
A. To get the latest version of sample report
A. Rise in popularity of organic food, optimal use of vertical space and balanced energy utilization, ease of crop monitoring and harvesting, and decrease in arable land are the major factors influencing the vertical farming market growth.
A. The key players profiled in the Vertical Farming Market include 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd., Hort Americas, Illumitex Inc and many more.
A. On the basis of top growing big corporations, we select top 10 players.
A. The Vertical Farming Market is segmented on the basis of Structure, Growth Mechanism, Component and region.
A. The key growth strategies of Vertical Farming Market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
A. A. By mechanism, it is fragmented into hydroponics, aeroponics, and aquaponics
A. By mechanism type, the aeroponics segment is anticipated to witness highest growth rate during the forecast period.
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