Vertical Farming Market

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.

Competition Analysis

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.

Covid-19 Impact Analysis

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

• This study comprises analytical depiction of the global vertical farming market size along with the current trends and future estimations to depict the imminent investment pockets.
• The overall vertical farming market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current vertical farming market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and the vertical farming market share of key vendors.
• The report includes the vertical farming industry trends and the market share of key vendors.

 Vertical Farming Market Report Highlights