Vertical Farming Market-By Growth Mechanism (Hydroponics, Aeroponics, And Aquaponics), By Structure (Building And Shipping Container), By Component (Irrigation System, Lighting, Sensor, Climate Control, Building Material, And Others), By Application (Indoor And Outdoor), and By Region - Global Opportunity Analysis and Industry Forecast, 2020 – 2030

Vertical farming is a comprehensive proceed towards food production and medicinal plants production in vertically stacked layers. It provides huge quality fresh and nutritious food without relying on favourable weather, high water usage, skilled labour, little space and high soil fertility. Moreover, it provides a favourable environmental condition for the growing of fruits, vegetables and non-edible plants along with to ensure sustainability by addressing food security issues. With the rapid advancements in technology and the implementation of artificial intelligence in various industries are responsible for an increased rate of urbanization. That’s why; vertical farming has been advanced on the basis of its potential to provide large populations concentrated in urban areas with locally grown food and demands of an ever-growing worldwide population. Attributed to challenges and costs of transporting fresh crops to larger cities, urban farmers have realized the potential in utilizing existing square meters in tall city buildings and producing crops locally. This process is profitable for many organizations such as Corporate Social Responsibility (CSR) through sustainable agricultural practices include the use of controlled-environment agriculture technology and indoor farming techniques. The vertical farming market was expected at USD 3.89 billion in 2020 and will register to a CAGR of 23.6% during the forecast period.

Market Segmentation:

Based on the growth mechanism, the global vertical farming market is segmented into hydroponics, aeroponics, and aquaponics. Depending on the structures, the market is categorised as building and shipping container. On the basis of component, the global market is divided into irrigation system, lighting, sensor, climate control, building material, and others. By the application, the market is segmented into indoor and outdoor. On the basis of region, vertical farming market is segmented into North America, Europe, Asia-Pacific, and RoW.

Market Dynamics and Factors:

An increasing demand for high-quality food, without pesticides, independent farming technique with no impact of climatic conditions and possible to grow vegetables & fruits in a limited space; are the major drivers for the growth of the global vertical farming market. In addition, it reduces the intervention of machines required during conventional farming. Thus, the optimum use of vertical space and balanced energy utilization are some of the other factors which will drive the market during forecast time. Conversely, high initial investment is required for setting the vertical structure, lighting and irrigation systems are responsible to restrain the market growth.  Additionally, the technologies used in this farming enables to keep track of plants growth and harvesting are also boosting the growth of market during the next coming years. On the rather hand, the expansion in urban population and surge in adoption of technology driven agriculture are creating immense opportunities for the market growth during forecast timeframe. However, the high initial investment, lack of technical skills and limitations on variety of crops grown are considered to be the challenge for market in upcoming years.

Geographic Analysis:

North America dominates the largest share for the growth of the global vertical farming market. The dominant position in the market is attributed to high demand for organic food, presence of large number of project entrepreneur and Research & Development centres in the region. Additionally, Asia pacific is expected to fastest growing regional market, owing to rising demand of organic food, shortage of the rain and government initiatives for the subsidies during the forecast time frame.  Moreover, growing awareness towards to alternative farming with less availability of fertile agricultural land and increasing population are the main factor expected to spur the industry demand. Europe holds the significant regional market which is attributed to the availability of water in central and southern regions, genetically modified crop technology, and requirement of ensuring urban food security. In addition, an acceptance of nanotechnology and robotics will support in improving food packaging and crop life from pest and other diseases which turn into fuel the market in future. Furthermore, regions across ROW are projected to witness stable growth of the market over the upcoming.

Competitive Scenario:

The key players of global vertical farming markets are 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd, Hort Americas, Illumitex Inc., Koninklijke Philips N.V., Sky Greens, Green Sense Farms, Urban Crop Solutions Inc., Vertical Farm Systems, and Spread Co. Ltd.

Vertical Farming Market Report Scope