The Global Vertical Farming Market was valued at USD 2.5 bn in 2020 and is expected to reach USD 9.6 bn by 2027, with a growing CAGR of 21.2% during the forecast period.
Vertical farming is the practice of growing crops in vertically stacked layers. The practice can use soil, hydroponic, or aeroponic developing methods. Vertical farms try to produce food in tough environments, like in which arable land is rare or unavailable. The technique allows mountainside towns, deserts, and cities to develop exclusive kinds of fruits and vegetables through the usage of skyscraper-like designs and precision agriculture methods.
The increasing technological advancements such as Internet of Things (IoT), smart and connected devices, drones, and mobile application is expected to propel the vertical farming industry growth during the forecast period. The technological advancements provide the vertical farming producer with real time information. The timely information about crop health and environment is very difficult to manage manually. Thus, the integration of advance technology with vertical farming accelerates the demand of the vertical farming market growth. For instance, Plenty Unlimited Inc. based in Francisco has integrated its farming with modern technologies such big data, IoT, climate control, and machine learning with crop science.
In addition to this, the increasing demand for organic and superior-quality foodstuff has shifted the production ability of the vertical farming companies and provided a base to ensure high-quality and quantity approved production to meet the increasing demands. Apart from this people have also started to grow fruits and vegetables indoors and thus given the concept of indoor vertical farming. Thus, proliferating the demand for vertical farming market during the forecast period.
By Growth Mechanism
Based on the growth mechanism, the hydroponics segment of vertical farming industry held the largest market share of over 54% in 2020 and is expected to remain dominant during the forecast period owing to the low installation costs and ease of operations
Based on the growth mechanism, the vertical farming industry has been segmented into aeroponics, hydroponics, and aquaponics. The hydroponics segment in vertical farming held the largest market share of more than 54% in 2020 and is expected to remain dominant during the forecast period owing to the low installation costs and ease of operations. It is a method of growing plants without soil, where the soil is replaced by a mineral solution inserted around the plant roots. Moreover, the hydroponics technique eliminates the risk of soil organisms causing diseases. Increasing awareness among consumers regarding the effects of pesticides is predicted to fuel the demand for hydroponics segment in vertical farming market.
Based on the component, the lighting segment is expected to show their dominance during the forecast period owing to the dependence of vertical farms on artificial lighting
Based on the component, the vertical farming industry is segmented into lighting, climate control, sensors, and others. The lighting segment in vertical farming held the largest market share of more than 43% of the global revenue in 2020 and is expected to show their dominance during the forecast period owing to the dependence of vertical farms on artificial lighting. Artificial lights provide sufficient light intensities required for crop growth. Thus, proliferating the segment growth of vertical farming market during the forecast period.
Based on region, the Asia Pacific region held the largest market share of over 39% in 2020 and is expected to show their dominance during the forecast period
The Asia Pacific region held the largest market share of more than 39% in 2020 and is expected to show their dominance during the forecast period owing to the increasing population size. For instance, according to the report published by the United Nation (World Population Prospects), 2021, the population of Asia is projected at around 4.68 Bn. Moreover, the increasing demand for alternate farming techniques in the region owing to the less availability of fertile agriculture land proliferating the growth of the vertical farming market during the forecast period.
The report also provides an in-depth analysis of vertical farming market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Vertical Farming Market Analysis:
The COVID-19 pandemic has impacted the various industries such as oil & gas, retail, manufacturing, and, others due to the strict lockdown imposed by the government across the globe. The disruption in the supply chain of product and services impacted the market growth of the various industries. Similarly, the pandemic has negatively impacted the vertical farming industry since the demand for high-quality products has now been restricted to general food products and the vertical farming companies have faced shortages in personnel, accumulated stocks, and forced shutdowns. Moreover, the vertical farming is totally dependent upon the artificial lighting and the LED lighting market is significantly impacted due to the pandemic. For instance, COVID-19 pandemic disrupted the LED lighting market. The key players, such as Acuity Brands Lighting and Signify Holdings, incurred revenue losses owing to a decline in demand, disruption in supply and distribution.
*Note: A detailed analysis is specific to the vertical farming market will be provided in the report
The report also provides an in-depth analysis of key trends in the vertical farming market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
Ask for free product review call with the author
Share your specific research requirements for a customized report
Request for due diligence and consumer centric studies
Request for study updates, segment specific and country level reports
Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping:
Regional Market Analysis: