Vertical Farming Market Size, Industry Trends Report | 2031

Report Description

Vertical Farming Market Outlook

The global vertical farming market size was valued at USD 5.87 Billion in 2022 and is likely reach to USD 38.38 Billion by 2031, expanding at a CAGR of 23.2% during the forecast period, 2023–2031. The growth of the market is accredited to the increasing adoption rate of environmentally-protected production of vegetables and fruits.

The process of producing food in a vertically stacked-layer in spaces including skyscraper, used warehouse, or shipping container is called vertical farming. The demand for urban agriculture has increased due to unpredicted growth of the global population and continuous shrinking of land areas for cultivation.

Organic foods are considered as key sources for nutritious, healthier, safer, and more environmental friendly products. The rising demand for organic food is largely influenced by food purchasing behavior of consumers, which is very crucial for policymakers, producers, and suppliers to execute successful marketing strategies.

Unlike conventional farming methods, indoor farming is able to produce crops throughout the year, which increases productivity. Moreover, indoor farming protects crops from unpredicted weather conditions by using techniques,

for instance, controlled environment agriculture technology, where the facilities use artificial environmental control, fertigation, and control of light.

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The acceptance of the vertical cultivation technique enables consumers to grow crops in a multi-story building or warehouse. The COVID-19 outbreak has largely affected the supply chain method of vertical farming. The pandemic had a negative impact on the systematic functioning of various industries all over the globe.

With the closure of the catering, restaurant, and hospitality industries in most parts of the globe, the food service industry also faced severe consequences abruptly.? Meanwhile, companies started using the e-commerce platform for sales to customers.

The rising demand for organic products in consumers, boosted by the better standard of living and higher disposable income, have shown way for the development of vertical farming.

Market Trends, Drivers, Restraints, and Opportunities

• Changing climatic conditions and growing depletion of groundwater for crops cultivation have urged conventional growers to adopt alternate farming methods. This is expected to boost the market growth in the coming years.
• Rising consumer concerns toward healthy foods and growing number of health-conscious population across the globe are key factors elevating the market growth.
• Growing demand for independent agriculture technique, high-quality food, and increasing urbanization are some of the critical factors responsible for the growth of the vertical farming methods.
• Favorable government policies encouraging the development of advanced vertical cultivation technique are expected to accelerate market growth.
• Growing awareness for vertical cultivation among consumers as well as farmers is expected to create key opportunities for the market growth.

Scope of Vertical Farming Market Report                         

The report on the global vertical farming market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Vertical Farming Market Segment Insights

Container shipping segment is expected to grow at a rapid pace

Based on structures, the global vertical farming market is bifurcated into container shipping and building-based. The container shipping segment accounted for a key share of the market and is expected to grow at a rapid pace in the coming years owing to ability of the structure to help grow crops irrespective of different geographic locations.

However, the building-based segment is anticipated to register a high growth rate during the forecast period due to the facility to grow crops at a set temperature and at one place.

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Lighting segment is projected to expand at a considerable CAGR

On the basis of offerings, the market is segmented into hydroponic components, lighting, climate control, and sensors. The lighting segment is projected to expand at a considerable CAGR due to the dependency of vertical farmers on artificial lighting.

On the other hand, the climate control segment is anticipated to hold a considerable market share during the forecast period as it facilitate the shielding and manage optimum growth conditions throughout the development period of a crop.

Hydroponics segment is estimated to exhibit robust growth

In terms of growing mechanisms, the vertical farming market is segregated into aeroponics, hydroponics, and aquaponics. The hydroponics segment is estimated to exhibit robust growth during the projected period owing to low installation costs and ease of operations.

Meanwhile, the aeroponics segment is anticipated to account for a major share of the market in the coming years as it creates a sustainable natural system, which eliminates the need for chemicals to produce food.

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Tomato segment is expected to register a high CAGR

On the basis of fruits, vegetables, & herbs, the market is divided into lettuce, tomato, bell & chili peppers, cucumber, strawberry, leafy greens, herbs, and others. The tomato segment is expected to register a high CAGR during the forecast period due to high average demand for tomatoes worldwide as compared to other crops.

Alternately, the lettuce segment is anticipated to represent a substantial growth rate as the production cost is not higher as compared to other crops.

Vertical Farming Market Regional Outlook

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the global vertical farming market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

The market of Asia Pacific held a large share of the market in 2019 and is anticipated to constitute a key market share in the coming years due to increasing awareness regarding the significance of alternative farming, less availability of fertile agricultural land, and increasing population in the region.

On the other hand, the market of North America is likely to account for a major market share during the forecast period due to high investments on the farming sector.

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