Vertical Farming Market

According to the IMARC Group, the global market size of vertical farming was approximately US$ 4.6 Billion in 2022. This can be attributed to several factors, such as the inflating popularity of indoor farming practices, the growing consumer concerns toward the presence of chemical additives in conventional food crops, the rising need for better food security with the expanding population levels, etc.

We expect the global vertical farming market to exhibit a CAGR of 23% during 2023-2028.

Vertical farming is highly profitable as it can facilitate year-round crop production irrespective of the weather conditions, climatic or seasonal challenges. Usage of this technique can also produce ample quantities of crops in limited spaces. Various farmers are introducing vertical farming closer to urban areas, where there is a shortage of arable land, to create a local, stable, and sustainable year-round food supply. In addition to this, vertical farming involves hydroponic solution in crop cultivation that reduces the water needs to only 10% of what is needed in conventional methods. Moreover, vertical farming provides higher productivity, reduced resource consumption, lesser use of pesticides, better food safety, etc., thereby is expected to gain immense traction in the future over traditional agricultural practices.

Vertical farming has a huge scope around the world pertaining the high-quality agricultural produce, enhanced energy efficiency, limited land and water requirements, reduced labor costs, etc. In the current times, the increasing demand for organic food products, especially fruits and vegetables, is augmenting the adoption of vertical farming methods that minimize the use of pesticides and insecticides. Additionally, the widespread adoption of environmental-friendly farming practices will continue to drive the vertical farming market in the coming years.

The United States accounts for the largest market for vertical farming across the globe. The country accounts for 30-35% of the total global production. Using vertical farming, fruits and vegetables are majorly grown in the country. Some of the key products produced from vertical farming include herbs, lettuce, spinach, tomato, kale, strawberry, cucumber, bell and chilli peppers, etc. Apart from these crops, ornamentals and perennial flowers are also cultivated using vertical farming.

The rising adoption of robotics and automation that deliver effective and efficient operations within vertical farms and help in cost reduction is expected to create lucrative growth opportunities for the vertical farming market. Moreover, several technological advancements in farming sensors, monitoring, and regulating devices will continue to drive the market growth in the coming years. Additionally, various farmers are introducing indoor facilities closer to urban areas to create a local, stable, and sustainable year-round food supply, which is further expected to augment the demand for vertical farming methods over the forecast period.

The vertical farming market is trending across different locations. According to the IMARC Group, the global market for vertical farming stood at US$ 4.6 Billion in the year 2022. The ongoing development of high-tech and automated greenhouse facilities is positively influencing the market growth. Moreover, the widespread adoption of eco-friendly farming practices that eliminate wastewater by recycling throughout the operation, save energy, reduce risks in the food supply chain, etc., is also propelling the market growth. Additionally, the increasing demand for organic farming practices for minimizing the use of chemical pesticides will continue to augment the product demand in the forecast period.

The sudden outbreak of the COVID-19 pandemic had led to the implementation of stringent lockdown regulations across several nations resulting in temporary halt in various agricultural activities and non-availability of migrant labor, thereby negatively impacting the global market for vertical farming.

The rising adoption of vertical farming over traditional farming practices for crop cultivation on arid lands, mountains, unfertile lands, etc., as it is sustainable and has lower water and energy requirements, is primarily driving the global vertical farming market.

Based on the component, the global vertical farming market can be segmented into irrigation component, lighting, sensor, climate control, building material, others. Currently, lighting holds the majority of the total market share.

Based on the structure, the global vertical farming market has been divided into building-based vertical farms and container-based vertical farms, where container-based vertical farms currently exhibit a clear dominance in the market.

Based on the growth mechanism, the global vertical farming market can be categorized into hydroponics, aeroponics, and aquaponics. Among these, hydroponics account for the largest market share.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where Asia-Pacific currently dominates the global market.

Some of the major players in the global vertical farming market include AeroFarms, Agrilution Systems GmbH, AmHydro, Everlight Electronics Co. Ltd., Freight Farms Inc., Grönska Stadsodling, Heliospectra AB, Jones Food Company Limited, Koninklijke Philips N.V., OSRAM GmbH (ams-OSRAM AG), Signify N.V., Urban Crop Solutions, and Vertical Farm Systems Pty Ltd.