Vertical Farming Technologies Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, The Netherlands, Japan, China, Canada - Size and Forecast 2024-2028

Vertical Farming Technologies Market Size 2024-2028

The vertical farming technologies market size is forecast to increase by USD 17.81 billion at a CAGR of 31.33% between 2023 and 2028.

• In the realm of agriculture, vertical farming technologies are gaining significant traction due to their potential to address labor cost concerns and promote water and energy savings. Technologies such as hydroponics, aeroponics, and nutrient film techniques are leading the charge in smart agriculture, enabling crops to thrive without soil. Harnessing the power of artificial intelligence and robotics, these systems optimize crop growth and reduce human intervention. Light-emitting diode (LED) lighting is another crucial component, providing the necessary spectrum for photosynthesis and minimizing energy consumption. Agricultural biotechnology and aquaponics, which combine plant and fish farming, further enhance efficiency and sustainability. Despite the high initial cost, the market is witnessing a rise in adoption due to the numerous benefits these technologies offer.

What will be the Size of the Vertical Farming Technologies Market During the Forecast Period?

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• The market encompasses the production of cultivated crops in controlled environments using innovative techniques such as hydroponics, aeroponics, and aquaponics. These advanced farming methods enable the growth of high-quality produce in compact, building-based, and shipping-container vertical farms, utilizing LED technology, automation, robotics, artificial intelligence, and data analysis. Nutritional values of the harvested produce remain optimal due to the precise control of climate conditions. This market experiences significant growth as it addresses the challenges of climate change, resource consumption, and agricultural productivity. Hydroponic systems, which do not require soil, offer water savings and reduced start-up costs. The market further expands with the integration of precision agriculture, enabling crop selection, pollination, and nutrient optimization.
• The adoption of these technologies contributes to the production of healthy, organic foods, addressing the increasing demand for sustainable agriculture. Crop types range from leafy greens and herbs to fruits and vegetables, catering to various consumer preferences. The environmental impact of vertical farming is minimal, making it an attractive alternative to traditional farming methods.

How is this Vertical Farming Technologies Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Hydroponics
  • Aeroponics
  • Aquaponics
• Type
  • Shipping container
  • Building-based
• Geography
  • Europe
  • APAC
    • China
    • Japan
  • North America
    • Canada
    • US
  • South America
  • Middle East and Africa

By Application Insights

• The hydroponics segment is estimated to witness significant growth during the forecast period. Vertical farming is a modern agricultural innovation, utilizing hydroponics, aeroponics, and nutrient-rich water instead of soil for cultivating crops. Hydroponics, a common vertical farming method, employs mineral nutrient solutions in water as the growing medium. This technology allows farming in areas with poor soil quality or those prone to drought and floods. The Nutrient Film Technique (NFT), a popular hydroponics method, maintains a constant nutrient solution flow, eliminating the need for timers.
• LED technology, automation, robotics, and artificial intelligence enhance the efficiency and productivity of vertical farms. These environmentally-friendly production systems offer high-quality produce, addressing food security concerns, and contributing to sustainable agriculture. With climate change, population density, and arable land depletion, vertical farming is a vital solution to environmental degradation and health-related issues. The integration of IoT, precision agriculture, and crop optimization further enhances the economic viability and labor efficiency of these systems.

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The Hydroponics segment was valued at USD 1.4 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Vertical farming technologies are gaining traction in Europe due to the increasing demand for fresh produce. This technology shields crops from pests, eliminating the requirement for pesticides. The market is poised for significant expansion, with start-ups actively seeking funding to expand facilities. Technological innovations, including LED lighting systems, hydroponics, aeroponics, and automation, contribute to sustainable agriculture, food security, and higher crop yields.

Additionally, urban agriculture and building-based vertical farms address population density and arable land constraints. Water usage and resource consumption are minimized through advanced irrigation, fertigation, and climate control systems. The market's growth is driven by factors such as food sustainability, nutrient bioavailability, and health-related issues. Key technologies include robotics, image analysis, precision agriculture, and the Internet of Things, ensuring high-quality produce and crop optimization.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Vertical Farming Technologies Industry?

• Growing focus on reducing labor costs for farming is the key driver of the market. Vertical farming technologies enable the cultivation of crops using advanced methods such as hydroponics, aeroponics, and aquaponics, which eliminate the need for soil. LED technology, automation, and robotics are integral components of these systems, ensuring optimal growing conditions and high nutritional values. Climate change and population density pose challenges to agricultural productivity and food security. Building-based and shipping-container vertical farms offer solutions by minimizing water usage, reducing environmental impact, and increasing crop yields. Automation technologies, including robotics, image analysis, and precision agriculture, streamline operations and enhance crop optimization. These systems address nutrient deficiencies, labor shortages, and historical data analysis, offering financial incentives and catering to the growing demand for healthy eating and organic foods.
• The integration of the Internet of Things and climate control systems further enhances the economic viability and sustainability of vertical farming. Crop types range from fruits, vegetables, herbs, and edible flowers, making it an environment-friendly and innovative solution for urban agriculture and food production.

What are the market trends shaping the Vertical Farming Technologies Industry?

• Growing inclination toward technologies that offer water-saving and energy-saving benefits is the upcoming market trend. Vertical farming technologies have gained traction in the AgriTech industry due to their resource-efficient and sustainable approach to cultivating crops. Hydroponics, aeroponics, and aquaponics are among the popular techniques used in these systems. LED technology plays a crucial role in vertical farming, minimizing power consumption while maximizing plant growth. The lighting system is programmed to provide the optimal wavelength and intensity for each crop growth phase. Automation, robotics, artificial intelligence, and the Internet of Things are integral to vertical farming. Automation technologies, such as robotic harvesting and image analysis, ensure precision agriculture and crop optimization. Climate control, irrigation, and fertigation systems maintain ideal growing conditions, addressing nutrient deficiencies and environmental degradation.
• Vertical farming caters to various crop types, including fruits, vegetables, herbs, and edible flowers. These building-based and shipping-container vertical farms offer high-quality produce, addressing food security concerns and population density challenges. The economic viability of vertical farming is further enhanced by financial incentives and changing food purchasing behavior. Sustainable agriculture, food sustainability, and health-related issues are driving the adoption of vertical farming. The technology's environmental impact is minimal, with reduced water usage and resource consumption. The use of controlled environments and advanced technologies ensures nutrient bioavailability and high crop yields. In summary, vertical farming technologies offer a resource-efficient and sustainable solution to traditional agriculture, addressing climate change, labor shortages, and groundwater depletion concerns.

What challenges does the Vertical Farming Technologies Industry face during its growth?

• High initial cost is a key challenge affecting the industry's growth. Vertical farming technologies enable cultivating crops in controlled environments using hydroponics, aeroponics, and aquaponics systems. These technologies utilize LED technology, automation, robotic harvesting, and artificial intelligence for nutrient control, crop optimization, and precision agriculture. The market's growth is influenced by climate change, food security, and sustainable agriculture. Building-based and shipping-container vertical farms use advanced lighting systems, irrigation, and fertigation for crop selection, pollination, and high-quality produce. However, the market faces challenges such as high initial investment, reliance on external inputs like electricity and fuel, and a labor shortage in automation technologies. In regions with ample arable land and a lower environmental impact, traditional farming remains economically viable.
• The market's growth is further influenced by the increasing demand for healthy eating, organic foods, and agricultural productivity. Technological innovation in LED grow lights, automation systems, and IoT-enabled crop optimization contribute to the market's financial incentives and food purchasing behavior. The market offers various crop categories, including fruits, vegetables, herbs, and edible flowers, catering to urban agriculture and environment-friendly production.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 4D Bios Inc.
• AeroFarms LLC
• Bowery Farming Inc.
• Eden Green Technology
• Freight Farms Inc.
• Gronska Stadsodling
• Grow Pod Solutions
• GrowUp Farms Ltd.
• Hort Americas LLC
• IGS Ltd.
• Indoor Urban Farming GmbH
• Koninklijke Philips N.V.
• Plenty Unlimited Inc.
• SANANBIO
• Sky Greens
• SPREAD Co. Ltd.
• Swegreens
• Urban Crop Solutions
• Vertical Farm Systems Pty Ltd
• Vertical Future Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Vertical farming is an innovative agricultural technique that involves cultivating crops in vertically stacked layers, utilizing minimal space and resources. This method has gained significant attention due to its potential to address various challenges in food production and sustainability. Hydroponics, aeroponics, and aquaponics are among the vertical farming technologies that have emerged as viable alternatives to traditional farming. Hydroponics involves growing plants in nutrient-rich water, while aeroponics uses mist or fog to supply nutrients to the plant roots. Aquaponics combines hydroponics with fish farming, creating a closed-loop system where fish waste provides nutrients for plant growth. LED technology plays a crucial role in vertical farming, providing optimal light conditions for plant growth.

Moreover, automation, robotics, and artificial intelligence are also integral components, ensuring efficient climate control, irrigation, and fertigation. Vertical farming offers numerous benefits, including higher nutritional values, reduced environmental impact, and increased crop yields. Climate change and population density are major drivers for the adoption of vertical farming, as it allows for food production in areas with limited arable land and reduces the need for extensive water usage. Sustainable agriculture and food security are key concerns in today's world, and vertical farming presents an environment-friendly production solution. Nutrient deficiencies and environmental degradation are minimized, and the use of the Internet of Things and precision agriculture enables crop optimization and high-quality produce.

Furthermore, vertical farming is not limited to building-based structures; shipping container farms and container-based farms have gained popularity due to their mobility and ease of setup. These innovative farming solutions offer financial incentives and address labor shortages, making them a viable option for various agricultural industries. Fruits, vegetables, herbs, edible flowers, and even crops for specific industries can be grown using vertical farming techniques. The economic viability of these farming methods is further enhanced by the potential for year-round production and the ability to grow crops in areas with harsh climates. The adoption of automation technologies, such as robotics, image analysis, and precision agriculture, enhances the efficiency and productivity of vertical farming.

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

• CAGR of the industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across Europe, APAC, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the market growth of industry companies

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