Vertical Farming Market By Growth Type (Hydroponics, Aeroponics, and Aquaponics), By Structure(Building-based vertical farm, and Shipping container-based vertical farm), By Crop Type(Lettuce, Pepper, Broccoli, Cucumber, Spinach, Tomato, Strawberry, Pomegranate, and Others), By Offerings (Hardware, Software, and Services), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and America – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data and Forecasts 2021 – 2028

Vertical Farming Market Overview

Vertical farming is a way of preparing food in vertically stacked layers, such as in a skyscraper, a used factory, or a shipping container. Modern vertical farming concepts use indoor farming methods and controlled-environment agriculture (CEA) technologies to regulate all environmental conditions.LED lights and climate control are used in vertical farming, with temperature and humidity constantly adjusted. It provides a year-round source of fresh, pesticide-free, locally grown veggies, allowing for greater control over the growing circumstances. Furthermore, vertical farming provides a large yield benefit. Vertical farming has been discovered to produce 240 times greater agricultural production with 99 percent less land, 95 percent less water, and zero chemicals. This means that, despite higher running expenses, vertical farms produce more crops and earn more money. Vertical farms allow crops to be transplanted repeatedly without having to adhere to agricultural rotations. Apart from that, this sort of farming is an excellent option when a huge space for agriculture is unavailable. Furthermore, vertical farming systems are preferred and can be located in cities because they do not require much space. Vertical farms are also well positioned to boost food supply chain resilience by diversifying local food production because they can be placed anywhere and do not require as much land or water as regular farms.

However, technical solutions such as cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponic, and aeroponic systems are frequently used in vertical farming. A skilled and knowledgeable personnel is required to run these modern technologies. Vertical farming is not immune to the effects of a lack of competent labour in several industries throughout the world. Furthermore, the majority of farmers enter this market with systems that are inefficient in terms of design and are pricey. Vertical farms must stay current on all elements of farming in order to stay competitive in the market.

Market Size

According to Business Intelligence Insights “ The global Vertical Farming Market " is expected to grow from USD 2981.80 billion in 2021 to USD 11265.90 billion by 2028, at a CAGR of 24.80% during the forecast period 2021-2028

Covid -19 Impact Analysis

The presence of the Covid-19 epidemic is being used to forecast the vertical farming market's expansion. The Covid-19 pandemic forced the closure or partial closure of factories, warehouses, enterprises, and educational institutions around the world. Other lockdown tactics included stringent social distance rules, restricted travel, and limited access to public spaces, restaurants, theme parks, movie theatres, and shopping malls. Supply chain operations and logistics-related services were disrupted in almost every industry throughout the world. The vertical farming sector has also been hampered by limited consumer and corporate spending, lockdown measures, and supply chain interruptions. Due to the closure of many SMEs, logistical interruptions, lockdowns, and other issues caused by the Covid-19 epidemic, the market is declining.The pandemic has forced governments around the world to redirect their attention and resources to the health-care sector. In addition, end-user demand decreased dramatically in 2020.

Market Dynamics

• Drivers
  • High Yield Associated With Vertical Farming Over Conventional Farming.
  • Reduced Environmental Impact From Agriculture by Adoption of Vertical Farming.
• Restraints
  • Lack of Technically Skilled Workforce and Limited Crop Types.
  • Maintenance of Temperature, Humidity, and Air Circulation in a Vertical Farm.

Segmentation Insights

By Growth Type:

Hydroponics category dominated the market with major share of the market.

On the basis of growth type, during the forecast period, the hydroponics category held the biggest revenue share in the worldwide vertical farming market. Due to increased urbanization and migration, the amount of land available for agricultural use has decreased. According to the United Nations Convention to Combat Desertification (UNCCD), urbanization will result in the loss of vast swaths of prime agricultural land. As a result, demand for alternative agricultural technologies such as hydroponics, which are less reliant on land availability and can be implemented in small spaces, is likely to rise.

By Structure:

Shipping container-based category dominated the market with major share of the market.

On the basis of structure,during the forecast period, the shipping container-based segment is expected to account for a greater revenue share. Crops can be grown in shipping containers in a highly controlled and restricted environment, regardless of external climate conditions. Demand for shipping containers is likely to rise as deserts and rainfall patterns change rapidly. Another key element that is projected to enhance demand for shipping containers for vertical farming is the ease with which they can be transported and the reduced reliance on groundwater.

By Growth Type

• Hydroponics
• Aeroponics
• Aquaponics

By Structure

• Building-based vertical farm
• Shipping container-based vertical farm

By Crop Type

• Lettuce
• Pepper
• Broccoli
• Cucumber
• Spinach
• Tomato
• Strawberry
• Pomegranate
• Others

By Offerings

• Hardware
• Software
• Services

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • UAE
  • South Africa
  • Rest of Middle East and Africa (MEA)

Key Players

• Signify (Netherlands)
• Osram (Germany)
• Freight Farms (US)
• AeroFarms (US)
• sky Greens (Singapore)
• Spread (Japan)
• Plenty (US)
• Valoya (Finland)
• Everlight Electronics (Taiwan)
• Heliospectra AB (Sweden)

Regional Insights

North America dominated the market with more than 28% of the market share

During the projection period, Europe had a higher revenue share than other regional markets in the worldwide vertical farming market. Europe has been in the forefront of developing superior vertical farming systems. Another factor projected to contribute to market revenue growth is the expanding development of greenhouse agriculture in nations in the area. Sustainable and alternative farming techniques are promoted by the European Union (EU).

However, Due to a lack of water and harsh climatic conditions, the Middle East and Africa are predicted to grow rapidly during the forecast period, causing an increase in demand for adopting innovative farming practices in various countries within the region. A major increase in demand for creative approaches to alternative farming techniques has resulted from the growth of new businesses, expanding relationships with foreign and domestic industries, and rising economic and political stability in the region. Large international corporations from developed countries are forming relationships and making significant investments that will help the market flourish.

Table

Report Attributes	Details
Market Size Value in 2021	USD 2981.80 billion
Market Size Value in 2028	USD 11265.90 billion
Growth Rate	+ 24.80%
Base Year	2021
Forecast Period	2021-2028
Historical Data	2018-2020
Forecast Units	(USD Billion)
Countries Covered	North America: U.S and Canada Europe: Germany, France, Italy, U.K, Spain, Russia, Rest of Europe APAC: China, Japan, South Korea, India, Australia, South East Asia, Rest of Asia Pacific Latin America: Brazil, Mexico Middle East And Africa: Saudi Arab, South Africa, UAE
Segments Covered	By Growth Type, By Structure, By Crop Type, By Offerings, By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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