Vertical Farming Market Size, Share, Growth, and Industry Analysis, By Type (Hydroponics, Aeroponics and Others), By Application (Vegetable Cultivation, Fruit Planting and Others) and Regional insight and Forecast to 2033

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VERTICAL FARMING MARKET REPORT OVERVIEW

The global vertical farming market is poised for significant growth, starting at USD 16.12 billion in 2024, climbing to USD 22.62 billion in 2025, and projected to reach USD 339.54 billion by 2033, with a CAGR of 40.3%.

Vertical farming is a modern form of farming that seeks to grow crops in several layers, vertically if possible, being practiced mostly indoors. This technique enables the farmer to obtain higher yield per area through efficiency where food is grown in compact areas. It is used mostly when practicing normal crop growing would be impossible due to factors such as population density or lack of suitable soil.

COVID-19 IMPACT

Vertical Farming Industry Had a Positive Effect Due to Increased Focus on Local Food Production during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

This indeed was evident during the pandemic where supply chain for food transport, as well as food availability, were severely affected. Because of these challenges, there was a need to grow foods locally and vertically grown farm came into the picture. Some of the supply chain problems were managed thanks to vertical farms that can be established in the urban areas close to the consumers so that fresh and locally produced products are provided.

LATEST TRENDS

Integration of Advanced Technologies to Propel Market Growth

Thus, more and more vertical farms are integrating the use of artificial intelligence and machine learning to control growing environment, detect diseases in plants, determine crop yield estimates, and improve resource utilization. Comprehensive intervention management systems based on artificial intelligence could analyze signals from sensors, range temperature, humidity and light intensity, to optimize plant growth and environment.

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VERTICAL FARMING MARKET SEGMENTATION

By Type

Based on type the market can be categorized into Hydroponics, Aeroponics and Others.

• Hydroponics- Hydroponics is a method of growing plants and crop with out the use of soil, rather, the plant or crops are supported by a substrate and water supplemented with nutrients for plant roots. In this system, plants are secured to an inert growing environment like coconut coir, perlite, or vermiculite on which the physical support of the plant is hinged and the root ball is soaked in a water based nutrient solution.

• Aeroponics- Aeroponics is a type of hydroponics where plants are not planted in soil but are hanged mid-air; they get their nutrients in the form of a fine spray. The plants are allowed to stand in water and oxygen helps the roots of the plants to grow.

By Application

Based on application the market can be categorized into Vegetable Cultivation, Fruit Planting and Others.

• Vegetable Cultivation- Vegetables are one of the industries that benefit a lot from vertical farming in particular. This method allows plants to be planted in layers that will help in saving space thus smaller areas of land are needed.

• Fruit Planting- While vertical farming is most commonly linked to vegetables, there are a number of current trends for using it to grow specific types of fruits that can grow well under the conditions provided in a vertical farming system.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving factors

Increasing Urbanization to Drive Market Advancement

One of the key driving factors in the Vertical Farming market growth is Increasing Urbanization. As many people move into the cities to reside there, the consumption of food produced within the realms of the urban areas increases due to price convenience, food insecurity and scarcity of land. Vertical farming breaks the traditional method of farming and instead makes it possible to farm in small area such as roof tops, some deserted buildings or even warehouses. The general trend of urbanization backs the vertical farming in cities around the globe.

Sustainability and Environmental Concerns to Expand the Market

As a concept, vertical farming counters all those issues that normal farming practices pollute the environment, such as lack of water, poor soils, pesticides, and chemical fertilizers. Hydroponic or aeroponic methods, used by vertical farms, consume up to 90% less water compared to traditional farming methods. Thirdly, because the systems in vertical farming are closed systems, water and nutrient circulation can be reused and therefore minimize water usage and overuse.

Restraining Factor

High Initial Capital Investment Poses Potential Impediments to Market Growth

One of the biggest advantages of vertical farming is also the main drawback- the cost: special equipment, hydroponic or aeroponic systems, climate control systems, and artificial lighting systems are very expensive. It should however, be noted that the costs of installing such systems may be exorbitant for some compani epecially those that are small or start-up in nature. It is imperative for farmers to embrace new technologies such as AI, machine learning, and automation in order to increase crop yields, but there is always the question of capital outlay.

Technological Advancements To Create Opportunity for the Product in the Market

AI, robotics and automation in vertical farming systems increase productivity of the system as a whole for the following reasons. Planting, harvesting and monitoring are made automatic improving efficiency, cutting cost for labor and decreasing chances of errors by humans. Employing intelligent solutions in the farm can enhance the efficient use of resources, that in-turn will enhance the output from vertical farming systems.

Challenge

Operational and Maintenance Costs Could Be a Potential Challenge for Consumers

Represented by the use of artificial lighting, especially LEDs, vertical farming systems require heating, cooling, and humidity control. Electricity and total energy consumption is normally a vital factor in determining total cost of operations and may result to higher tariffs in some countries or regions-of-origin. This makes it hard to compare the cost of growing crops in vertical farm to that of conventional farming hence costing a lot.

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VERTICAL FARMING MARKET REGIONAL INSIGHTS

• North America

Nevertheless, the Asia Pacific region has claimed a larger market share than has North America, particularly the United States, which has a significant involvement in the vertical farming market. Today the U.S. has more of the vertical farms; however, the region tries to compete with traditional farming practices as they prove to be cheaper for most crops.

• Europe

Vertical farming is also expanding in Europe especially in Netherlands and Great Britain. That said, market in Europe is still emerging and is not at par with Asia Pacific region in terms of strength. Most European countries are already funding sustainability and solutions to urban farming but are rather limited than Asian countries.

• Asia

Asia Pacific has emerged as the most dominant region in the Vertical Farming market share due to a convergence of factors that propel its leadership in this dynamic industry. Japan, Singapore, and China of the Asia Pacific region’s countries have been fully investing in the Vertical farm A4-3 because of their high population density, small section of arable land and environmental condition.

KEY INDUSTRY PLAYERS

Key Players Transforming the Vertical Farming Landscape through Innovation and Global Strategy

Key enterprise players are shaping the Vertical Farming marketplace through strategic innovation and marketplace growth. He also stressed that through the increasing application of sensors, automation and AI, leading firms today in vertical farming are now aiming at the following: reducing labour costs as well. These technologies are useful in the accurate tracking of light, temperature, humidity and nutrient content of the environment, thus resulting in improved farming outcomes.

List of Top Vertical Farming Companies

• AeroFarms (U.S.)
• Gotham Greens (U.S.)
• Plenty (Bright Farms) (U.S.)
• Lufa Farms (Canada)
• Beijing IEDA Protected Horticulture (China)

INDUSTRIAL DEVELOPMENT

June 2023: The firm that Signify has partnered with Seimens which is a technology firm in the provision of IT services in vertical farming. It says that the aim is to control and monitor how processes such as climate, lighting and planting, and watering for 80 Acres farm; an Ohio based chain that grow crops in enclosed environments and supplies supermarkets and retailers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.