Vertical Farming Market Size, Share & Segmentation by Structure, (Shipping Container, Building-based), by Component, (Hardware, Software, Services), by Growing Mechanism, (Hydroponics, Aeroponics, Aquaponics), by Crop Category, (Fruits Vegetables, & Herbs, Flowers & Ornamentals, Others), by Region and Global Forecast 2024-2031

Vertical Farming Market Report Scope & Overview:

The Vertical Farming Market size was valued at USD 6.87 Billion in 2023 and is expected to grow to USD 30.0 Billion by 2030 and grow at a CAGR of 20.23 % over the forecast period of 2024-2031.

The practice of growing plants on vertical stacks, such as in a disused warehouse, a skyscraper, or a shipping container, is known as vertical farming. In that, the crops are grown by using aeroponics, and hydroponic under a controlled environment.

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Organic food is thought to be more wholesome, safe, and environmentally beneficial. Consumer food purchasing habits are a vital factor influencing organic food demand, making it critical for producers, lawmakers, and suppliers to implement successful marketing methods. Additionally, traditional growers have been forced to switch to other farming practices due to the growing groundwater shortage and changing climatic circumstances. The aforementioned difficulties, as well as rising consumer health concerns, are projected to drive industry demand.

Indoor farming, as opposed to traditional farming, may produce crops all year round, improving yield. Furthermore, indoor farming may protect crops from adverse weather conditions by employing techniques such as controlled environment agricultural technology, in which facilities use artificial environmental control, light regulation, and fertigation.

Market Dynamics

Drivers

• Continuously changing climate conditions and decreasing the source of groundwater.

• Growing demand of consumers towards chemical-free and good quality food.

• Consistently increasing the population.

• Rapidly growing used of nanotechnology and robots in agriculture.

The advantage of vertical farming is that it is not weather-dependent, allowing it to grow crops all year round without having to worry about how bad weather would affect the yield's quality and profile. High-quality fruit is ensured by farming in a protected, carefully supervised, and regulated setting, which also gives growers repeatable, programmable output. Additionally, vertical farming successfully shortens harvest times and boosts volume without sacrificing the produce's unwavering quality or flavor. This makes it easier for the growers to firmly agree to the delivery schedules and offtake agreements that their clients desire. Additionally, variations in temperature and rainfall patterns may result in lower agricultural output across a number of nations worldwide. with the erratic nature of the world's weather patterns.

Restrains

• Initial investment is high and also has a high maintenance cost.

Opportunities

• The protection of crops from sudden climatic changes, and growing them under controlled environmental conditions.

• Rapid increasing technology and urbanization are creating more growth for vertical farming.

Challenges

• Many of the farmers lack knowledge about vertical farming.

• Artificially maintenance of temperature, CO2 humidity, sunlight, and water is the challenge.

Light, space, CO2, and water are things that are naturally present and necessary for plants to develop. However, with vertical farming all these necessities must be provided externally at a certain cost, for example, all the structures must be lit with electricity to grow the plants. However, the price of power is so high that a profit cannot be made between the cost of building and the electricity payment. Furthermore, no matter how big the facility is, vertical farms use the same amount of energy per plant, thus a well-equipped system is necessary. It is extremely difficult for cultivators to run vertical farms on a large scale since managing large-scale operations also requires management and maintenance personnel, which could negatively impact their profitability.

Impact Of covid-19

Covid-19 is having a positive impact on vertical farming because, in the Covid period people are preferring to eat healthy food, and chemical-free food that’s in the demand for vertical farming is consistently increasing.

the pandemic has grown to be a big concern for farmers all over the world, restricting the availability of agricultural laborers and leading to problems with the global supply chains. These elements contributed to the development of the trends in vertical farming. Due to the increased interest in urban gardening as a way of reducing mental stress and alleviating localized food shortages, the vertical farming sector has seen profitable expansion throughout the epidemic.

Impact of the Russia-Ukraine War

The ongoing conflict between Russia and Ukraine has had a significant impact on various industries, including the vertical farming market.

The war has led to an increased demand for locally-grown produce. With the disruption of trade routes and the uncertainty of imports, many consumers are turning to vertical farming as a way to ensure a steady supply of fresh fruits and vegetables. This has led to a surge in investment in the vertical farming industry, as entrepreneurs and investors recognize the potential for growth in this market.

the war has also had negative effects on the vertical farming market. The conflict has led to a shortage of resources, including water and electricity, which are essential for vertical farming operations. Additionally, the instability in the region has made it difficult for companies to secure funding and attract investors, which has slowed the growth of the industry. The vertical farming market remains a promising area for investment and growth. As the conflict in Ukraine continues, it is likely that the demand for locally grown produce will only increase, making vertical farming an attractive option for investors and entrepreneurs alike. With the right resources and support, the vertical farming industry has the potential to thrive in the face of adversity.

The Impact of Recession on the Vertical Farming Market

The current economic downturn has had a significant impact on the vertical farming market. The demand for fresh produce has decreased, leading to a decrease in revenue for vertical farming companies. despite these challenges, the vertical farming industry has shown resilience and adaptability. Many companies have pivoted their business models to focus on supplying produce to local communities and grocery stores, rather than relying on large-scale commercial contracts. the pandemic has highlighted the importance of food security and the need for locally sourced, sustainable produce. This has led to increased interest in vertical farming as a viable solution for meeting these needs. As the economy begins to recover, it is likely that the vertical farming market will continue to grow and evolve. Companies that are able to innovate and adapt to changing market conditions will be well-positioned to succeed in this dynamic industry.

Key Market Segmentation

By Structure

• Shipping Container

• Building-based

By Component

• Hardware

• Software

• Services

By Growing Mechanism

• Hydroponics

• Aeroponics

• Aquaponics

By Crop Category

• Fruits Vegetables, & Herbs

• Flowers & Ornamentals

• Others

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Regional Analysis

Asia Pacific dominated the vertical farming market in terms of revenue, and it is anticipated that it would continue. A growing understanding of the value of alternative farming as a result of a lack of productive agricultural land and an increasing population in the area is the key factor anticipated to boost demand. Europe is expected to grow significantly during the projection period as a result of the increased use of genetically modified crops. Demand in the regional market is further increased by the expanding use of nanotechnology and robots in agriculture. Nanotechnology is utilized to improve food packaging as well as disease and insect management.

The European Environment Agency has undertaken a number of initiatives to construct vertical farms in an effort to address the problems of ongoing population increase, climate change, and unsustainable food production. The market demand in the area has increased as a result. The demand in Africa is expected to increase because of the expanding urban population and the commercialization of indoor farming. However, it is anticipated that the area market will not expand due to a lack of funding for the construction of contemporary vertical farms and limited access to water and land. Vertically piled wooden boxes and sack gardens are a couple of the models used in the region to address these issues. In the regional analysis study of the regions of North America, Europe, Asia Pacific middle east, and Africa.

REGIONAL COVERAGE:

North America

• USA

• Canada

• Mexico

Europe

• Germany

• UK

• France

• Italy

• Spain

• The Netherlands

• Rest of Europe

Asia-Pacific

• Japan

• South Korea

• China

• India

• Australia

• Rest of Asia-Pacific

The Middle East & Africa

• Israel

• UAE

• South Africa

• Rest of the Middle East & Africa

Latin America

• Brazil

• Argentina

• Rest of Latin America

KEY PLAYERS:

The major players in the market are Agrilution GmbH, Aerofarm, Brightfarms Inc., Everlight Electronics Co., Ltd., Freight Farms, GrowUp Urban Farms Ltd., Green Sense Farms, LLC, Vertical Farm Systems, 4D BIOS INC., HORT AMERICAS, ILLUMITEX INC., KONINKLIJKE PHILIPS N.V., and others in the final report.

Everlight Electronics Co., Ltd​​​​​​​-Company Financial Analysis

Recent Developments:

In order to pool their knowledge and increase their skills in networking, autonomous systems, integrated machine vision and machine learning technologies, and plant interaction tracking at the most sophisticated levels, Aero Farms and Nokia Bell Labs formed a partnership in August 2021.

As part of a project with the World Wildlife Fund (WWF) and St. Louis Controlled Environment Agriculture Coalition (STLCEA) to demonstrate cutting-edge methods to reduce the environmental impact of indoor vertical farming, Aero Farms announced in August 2021 that it would expand to the Middle West region.

In July 2021, MineARC Systems, a world leader in creating and supplying controlled environments, and Heliospectra AB, a pioneer in intelligent lighting technology for vertical farming, announced a new seller alliance. In the Australian market, the business will represent Heliospectra's industry-leading LED lighting and lighting control systems.

Osram introduced Osconiq S 5050 in June 2021, broadening its horticulture product line. Used white LEDs are a major issue that is addressed, leading to cheaper energy costs and more effective illumination for indoor farmers.