Vertical Farming Market by Key Players, Industry Trends and Size, Forecast Analysis by 2024
- ehteshampeerzade
- Nov 9, 2020
- 3 min read
Market Highlights
The global vertical farming market is presumed to reach approximately USD 6 billion by the end of 2022. The market is set to surge ahead at 21% CAGR during the forecast period (2016-2022). Vertical farming involves growing produce in vertically stacked layers using soil, hydroponic or aeroponic growing methods. Vertical farms strive to produce food in challenging environments. This type of farming uses controlled environment agriculture (CEA) technology, producing food through skyscraper, shipping container, and vertically stacked layers. It is also known as indoor farming or urban farming, which is witnessing widespread adoption across the globe. Moreover, it offers various benefits such as low water requirement, low transportation cost, and reduced washing and processing of produce making it ideal for larger adoption across the globe.
The increased use of Internet of Things (IoT) sensors to produce crops, will act as a major impetus in the market growth over the appraisal period. The sensors obtain information, storing it on the cloud and then analyze the information to perform the subsequent actions. The increasing automation in agriculture and growing use of big data & predictive analytics, to maximize yields, are also projected to drive the market to a large extent.
Market Boosters and Key Barriers
Vertical farming is touted to be a revolutionary approach that helps in producing food and medicinal plants in vertically stacked layers such as in a used warehouse, skyscraper, or shipping container. This type of farming leads to production of a huge quantity of nutritious and quality fresh food without needing high water usage, favorable weather, high soil fertility, and skilled labor. It also ensures consistency in crop production, in addition to climate control, and protects against external environmental factors like pests, diseases, or predator attacks.
The vertical farming industry is expected to have a lucrative future as the popularity of organic food seems to be on the rise across various regions in the world. In addition, given the vertically stacked structure, these farms don’t require any additional construction activity and land. In addition, it helps bring down the need for machines during conventional farming. Therefore, balanced energy utilization and optimum use of vertical space stimulate market growth for vertical farming.
With that said, the market has its fair share of challenges, in the form of high initial investment required for setting an indoor vertical structure. But, the surge in urban population combined with increased adoption of technology-driven agriculture offers a host of lucrative growth opportunities to players in the vertical farming market.
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Regional Outlook
The global market is regionally segmented into North America, Europe, Asia Pacific (APAC) and the Rest of the World.
North America ahead of other regions with the largest market share
Globally, North America has claimed the largest market share on the back of increasing population, employment generation and adoption of new technological solutions. Furthermore, the popularity of organic foods and decreasing arable land in the region has been instrumental in the market growth.
On the other hand, APAC is expected to observe a substantial growth rate over the forecast period due to the presence of countries such as China and Japan that generate considerable revenue. Growing urbanization, less fertile land and increasing investments for developing vertical farming systems have catapulted the growth of the market in the region.
In Europe, the adoption of vertical farming is growing owing to various initiatives taken by the European Environment Agency (EEA). EEA is focusing on building vertical farms to curb the challenges like climate change, population growth, and also address challenges of producing food using environmental-friendly ways.
Segmentation:
The worldwide vertical farming industry has been segmented depending on technology, structure, and crop type.
The technology-based segments in the vertical farming market are hydroponics, aquaponics, and aeroponics.
The global vertical farming market, with respect to the structure, is considered for indoor vertical farming and outdoor vertical farming. The indoor vertical farming segment consists of building-based vertical farming and shipping containers vertical farming.
The crop types mentioned in the report are lettuce, tomato, strawberries, leafy vegetables, herbs, and others.
Significant Companies
Illumitex, Inc. (US), Sky Greens (Singapore), Koninklijke Philips N.V. (Netherlands), Aerofarms (US), Urban Crop (Belgium), Agrilution (Germany), American Hydroponics (US), Green Sense Farms, LLC (US), Everlight Electronics Co., Ltd. (Taiwan), Vertical Farm Systems (Australia), are few significant companies competing in the worldwide vertical farming market.
Latest News
October 2019
Gordon Food Service and Square Roots have together launched the latter’s vertical farms onsite in Michigan. This partnership also helps Square Roots to elevate its Next-Gen Farmer Training Program, which is an all-paid entrepreneurial-meets-agricultural program teaching about the agricultural aspects of indoor vertical farming.
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