Vertical Farming Market by Product and Geography - Forecast and Analysis 2022-2026

Vertical Farming Market Forecast 2022-2026 

The vertical farming market share is expected to increase to USD 6.49 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 16.55%. The market is a rapidly growing industry that aims to cultivate plants in vertically stacked layers. This innovative method of farming allows for year-round production and reduces the need for large areas of land. Vertical farms use advanced technologies such as hydroponics or aeroponics to provide nutrients and water to the plants. Vertical farms use advanced technologies such as hydroponics or aeroponics to provide nutrients and water to the plants.

Vertical Farming Market Size and Forecast

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Overview of the Market

The vertical framing market overview includes comprehensive market trends and analysis, with a focus on growth analysis and forecasting. Market research and growth assessments contribute to a thorough market analysis and report, providing insights into dynamic trends that shape the market's trajectory. Emphasizing market growth and forecasting, this overview offers a holistic understanding of the vertical framing industry, addressing the evolving trends that influence the market's growth and trends.

Over 75% of vertical farming operations use hydroponic systems for cultivation. It is highly efficient as it requires less water, eliminates the need for pesticides, and reduces transportation costs. The global market is projected to reach billions of dollars in value by the year 2027.

Growth Drivers and Market Trends

Key Driver

The need to meet the rising demand for food products is one of the key drivers propelling the market. It offers a revolutionary approach to producing high quantities of food products without depending on favorable climatic conditions. Moreover, the food demand is increasing with population growth. Significantly, technologies used can be used with various farming systems in multi-level designs and provide more area than single-level systems. This, in turn, helps increase the crop yield and offers a high-profit agricultural activity for the end-users. Hence, the maximum crop yield and minimum overhead offered are expected to meet the growing demand for food products and can influence the market during the forecast period. 

Types of Vertical Farming Systems

Systems revolutionize agriculture, addressing challenges posed by urbanization and climate change. Hydroponics, aeroponics, and aquaponics stand out as key types, facilitating efficient food production in limited spaces. In Singapore, ventures like Sky Greens showcase the adoption of farming, emphasizing awareness of sustainable practices. Aerofarms in Japan employ advanced growth mechanisms, utilizing controlled lighting, climate control, and sensors to optimize crop cultivation. These systems reduce reliance on pesticides, providing healthier options for consumers. As awareness grows, farming vertically proves instrumental in meeting the demands of a rapidly urbanizing world, where innovative approaches to agriculture are essential for sustainable and resource-efficient food production.

Technology and Innovations in Vertical Farming

Technology and innovations redefine crop production, creating exciting growth opportunities worldwide. Led lighting, a game-changer, is increasingly popular, offering efficient energy use and precise control over plant growth. Companies like Signify Holding invest in expansion, with the Asia Pacific, South Africa, and France emerging as key markets.

Urban Crop Solutions and American Hydroponics showcase the opportunity in strawberries and cucumbers, respectively, utilizing advanced systems. Investments from companies like Hort Americas in the Netherlands underscore the global appeal. With continuous advancements, it not only addresses the challenge of urbanization but also provides sustainable market opportunities, making it a transformative force in modern agriculture.

Key Trends

Growing demand for smart advanced technologies with automated systems is one of the key trends fueling market development. Automated technologies help end-users make farming more economical and energy-efficient. Simultaneously automated technologies help reduce manual intervention in farming operations, thereby providing more cost benefits to the end-users.  For instance, automated hydroponic technology is being used. Also, autonomous robotics technology is being integrated with hydroponic systems to enhance operations. The system ensures uniformity and rapidity during planting, watering, and harvesting. Hence, these factors are expected to propel the market during the forecast period. 

Future Outlook and Potential Developments

The future outlook for the market is promising, with potential developments reshaping agriculture globally. Vertical farms can achieve water savings of up to 95% compared to traditional agriculture methods. By 2023, it is estimated that vertical farming will account for more than 15% of all leafy greens consumed globally. Advantages like optimized water usage, reduced energy consumption, and the ability to control climate conditions make a revolutionary approach. Particularly in regions with limited arable land or challenging weather conditions, such as Taiwan, Latin America, and Italy, techniques are gaining popularity.

The hydroponics segment, integrating efficient water usage, is making a significant presence, while climate control systems enhance quality and yield. The lettuce segment holds the largest market share in the industry, accounting for approximately 40%. Countries like Spain embrace for waste reduction and pest control. The globe is witnessing a shift towards sustainable farming, leveraging the advantages of vertical environments to overcome traditional constraints and transform the future of agriculture.

Challenges and Opportunities in the Market

The limitations in the market is one of the major market restraints hindering growth. Farming is suitable for growing only a few varieties of vegetables and fruits. In view of this, farmers can grow only limited types of fruits and vegetables. Furthermore, farming vertically does not provide calorie-rich foods as they require high food security.  Domesticated grain crops such as wheat, barley, corn, and rice are mainly produced using traditional farming methods. Similarly, calorie-rich root crops can grow well only with outdoor farming methods. Hence, the limitations can affect the market during the forecast period. 

This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Key Players in the Vertical Farming Industry

The market report analyzes the market's competitive landscape and offers information on several market companies, including:

• AS GIRI AND AQUA LLP
• Bowery Farming Inc.
• Dream Harvest Farming Company LLC
• Eataly Net USA LLC
• Elevate Farms
• Hortifrut SA
• Kalera Inc.
• Nordic Harvest AS
• Plenty Unlimited Inc.
• SPREAD Co. Ltd.
• Triton Foodworks
• Upward Enterprises Inc.
• URBAN GREEN FATE FARMS
• UrbanKisaan
• Vertical Harvest
• Vertical Roots
• Village Farms International Inc.

This statistical study of the market encompasses successful business strategies deployed by the key companies. The market is fragmented and the companies are deploying growth strategies such as mergers and acquisitions to compete in the market.

Product Insights and News

• Agrilution.com - The company offers Plantcube services which is a self-contained system focused entirely on growing leafy greens, herbs, and microgreens at an optimum temperature with automatic watering, thus plants grow 2 to 3 times faster, contain up to 30 x more nutrients, and have a more intense flavor.
• Freightfarms.com - The company offers GREENERY S which is a vertical hydroponic farm built entirely inside a shipping container, thus containing freight farms provided with high-efficiency light-emitting diode to provide light wavelengths with strategic light schedules and power levels to stimulate faster plant growth and development.

The market forecast report offers in-depth insights into key company profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Regional Landscape of the Market

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43% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for the market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The increasing population and low availability of fertile land will facilitate market development in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for companies, which will assist in creating efficient business plans.

The market is experiencing notable advancements globally, with regions like Israel, Sweden, Australia, Argentina, Brazil, Mexico, Indonesia, Saudi Arabia, the United States, South Korea, the Philippines, and Thailand embracing innovative farming techniques. Companies like Heliospectra AB, Nokia, and others contribute expertise in the introduction of state-of-the-art technologies, including sensor-based systems and LED lighting. The adoption in diverse climates, from warehouse setups to outdoor environments, signifies a global shift towards sustainable agricultural practices. Countries like Israel showcase prowess in precision agriculture, while the United States focuses on nutritional advancements. This interconnected market, marked by developments in various regions, is fostering efficient harvests and transforming the future of agriculture on a global scale.

The booming market in regions like Russia and Asia is fueled by precision farming and escalating consumer demand. Companies like InFarm utilize IoT examples, integrating precision agriculture components to enhance output. Walmart's revenue share underscores market growth, while challenges such as soil quality and aquaculture demand highlight the need for innovative solutions. Sources like Mint and Asian markets contribute to the overall result, shaping the dynamic landscape of vertical framing.

What are the Revenue-generating Product Segments in the Market?

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Vertical framing market segmentation addresses the diverse ways people engage in sustainable agriculture. From indoor farming in Virginia to urban farming in the U.K., innovative approaches like greenhouse automation redefine productivity. The global market share reflects a growing interest in sustainable practices, with indoor solutions gaining prominence in the quest for efficient and environmentally friendly agricultural innovation.

The market share growth by the tomato segment will be significant during the forecast period. One of the essential factors behind growing crops such as tomatoes is to validate the economic viability of that crop, as it ensures that the company will make a large amount of money from its cultivation. Tomatoes are popular in the food and beverage industry and are used in abundance in hotels, restaurants, and fast-food outlets worldwide. In addition, the fast-food business is growing across the world, propelling the demand for tomatoes. Hence, increasing demand for tomatoes is expected to increase the demand for growing tomatoes during the forecast period.

Market Analyst Overview

The market is driven by rising urbanization and the growing Organic food demand necessitating local food production due to limited land resources. Advanced technology, including Internet of Things IoT, Nano-farming, and Greenhouse roof washers is transforming agriculture, with Asia Pacific, particularly China, witnessing significant growth. The market addresses challenges such as the decline in land resources, reduced water supply, rapid urbanization, and changing climatic conditions.

The market caters to diverse industries, including the nutraceutical and biopharmaceutical sectors, aided by innovations like harvesting robots and automatic seed planters. Despite challenges such as high startup costs and limited crop varieties, vertical farming offers economic growth opportunities and technological advancements, with diverse models like building-based and shipping container-based farms meeting the demand for lettuce, leafy vegetables, and other crop types. This presents opportunities for companies like Agrify Corporation and Greenlight Cannabis to cater to the expanding nutraceutical, cosmetic, and medicinal industries.

Market Value Chain Analysis

Our market growth analysis report provides extensive information on the value chain analysis for the market, which companies can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help companies drive costs and enhance customer services during the forecast period.

Vertical Farming Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 16.55%
Market growth 2022-2026	USD 6.49 billion
Market structure	Fragmented
YoY growth (%)	15.98
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 43%
Key consumer countries	US, Canada, China, India, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	AS GIRI AND AQUA LLP, Bowery Farming Inc., Dream Harvest Farming Company LLC, Eataly Net USA LLC, Elevate Farms, Hortifrut SA, Kalera Inc., Nordic Harvest AS, Plenty Unlimited Inc., SPREAD Co. Ltd., Triton Foodworks, Upward Enterprises Inc., URBAN GREEN FATE FARMS, UrbanKisaan, Vertical Harvest, Vertical Roots, and Village Farms International Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive market growth during the next five years
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The market growth and trends of the industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on companies
• Comprehensive details of factors that will challenge the growth of market companies

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