Vertical Farming System or Module Market Size, Share, Growth, and Industry Analysis, By Type (Aeroponics, Hydroponics, Aquaponics and Others), By Application (Vegetables, Flowers, Plants and Others) Forecast to 2027

Updated On: 29 April 2024

REPORT OVERVIEW

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The global Vertical Farming System or Module Market size was USD 3543.71 million in 2021. As per our research, the market is projected to touch USD 6355.1 million by 2027, exhibiting a CAGR of 10.22% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering with the Vertical Farming System or Module Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Vertical farming is the practice of producing food and medicine in vertically stacked layers, vertically sloping surfaces and/or integrated into other structures instead of farming vegetables and food on a single level, such as in a field or a greenhouse. Through this method, foods are produced in vertically stacked layers commonly integrated into other structures such as a skyscraper, shipping containers, or used warehouses. The modern ideas of vertical farming are focused on controlling all environmental factors by utilizing indoor farming techniques and controlled-environment agriculture (CEA) technology. The artificial control of light, temperature, humidity, and gases makes producing foods & vegetables indoors possible. The primary goal of vertical farming is to increase the production of crops in a controlled space.

COVID-19 Impact: Imposed Restrictions in the Economy Resulted in Decline in the Market

The COVID-19 problem has had an impact on the global economy, causing a strict lockdown and a halt to day-to-day activities in every industry. With the limits imposed by the government, the panic scenario has had a negative influence on the industries. This has resulted in a market drop as well; there was a direct and indirect impact from numerous sectors performing Vertical Farming System or Module. With the revival of the market following COVID-19, we are seeing a recovery of the market where the blanks are restructured with product innovation and investments into R&D activities to develop advanced technologies to meet advanced requirements, which will project a proposed increase in the Vertical Farming System or Module market share in the forecasted period.

LATEST TRENDS

"Growing Demand for Sustainable Agriculture Fueling Growth in Vertical Farming System or Module Market "

 A prominent trend in the Vertical Farming System or Module Market is the surging demand for sustainable agricultural practices. The cause of this trend lies in mounting global concerns about the environmental repercussions of conventional farming methods, including excessive water usage, soil degradation, long-distance transportation, and carbon emissions. As a result, consumers are increasingly prioritizing sustainable, locally sourced, and pesticide-free produce, prompting governments and businesses to seek eco-friendly agricultural solutions. The rapid expansion of the vertical farming industry. Vertical farming systems and modules, with their resource-efficient design, minimal use of water, and ability to operate year-round in controlled environments, offer a compelling solution to meet the growing demand for sustainable agriculture. This alignment with sustainability goals is driving substantial investments and growth within the vertical farming sector as it aims to address pressing environmental concerns while satisfying the desires of conscientious consumers.

SEGMENTATION

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• By Type

Based on Type Vertical Farming System or Module Market is classified as Aeroponics, Hydroponics, Aquaponics and Others.

• By application

Based on application Vertical Farming System or Module Market is classified as Vegetables, Flowers, Plants and Others.

DRIVING FACTOR

"Increasing Urbanization and Land Scarcity Driving the Vertical Farming System or Module Market"

One major driving factor propelling the Vertical Farming System or Module Market is the relentless rise in urbanization and the consequential scarcity of arable land. This trend stems from the fact that more people around the world are migrating to urban areas in search of better economic opportunities and improved living standards. As cities expand, they devour vast tracts of farmland, leaving limited acreage available for traditional agriculture. This diminishing land resource poses a critical challenge for ensuring food security in urban centers. Urbanization is the cause, as it reduces the available land for conventional farming practices. The effect is the booming interest in and adoption of vertical farming systems and modules, which maximize food production in limited urban spaces. These systems utilize advanced technologies such as hydroponics, aeroponics, and LED lighting to cultivate crops in stacked layers or modular units within controlled indoor environments. Moreover, vertical farms operate year-round, independent of external weather conditions, ensuring a consistent and reliable food supply. This reduces the dependence on long-distance transportation of perishable goods, lowering associated carbon emissions and enhancing food freshness. As a result, vertical farming not only mitigates the land scarcity issue but also aligns with sustainability goals by reducing the environmental footprint of food production in urban areas. Given these advantages, the increasing urbanization trend acts as a catalyst for the adoption of vertical farming solutions, driving investments and innovations in the industry. It ultimately transforms urban landscapes into hubs of efficient, sustainable, and localized food production, making the Vertical Farming System or Module Market a vital player in the future of agriculture and food security.

"Growing Awareness of Food Safety and Traceability Fueling Vertical Farming System or Module Market Growth "

The cause of the significant growth in the Vertical Farming System or Module Market is the increasing awareness and prioritization of food safety and traceability by consumers and regulatory authorities. This heightened awareness is a direct response to concerns over foodborne illnesses, chemical residues, and the desire for healthier, environmentally responsible food options. As consumers seek safer and more transparent food sources, the effect is a rising demand for food produced within controlled environments like vertical farms. These farms offer a controlled, sterile environment that reduces the need for harmful pesticides and herbicides, effectively minimizing contamination risks and chemical residues on crops. Furthermore, vertical farms often employ advanced monitoring and tracking technologies, providing rigorous traceability from seed to table. This alignment with consumer safety and transparency preferences is driving increased adoption of vertical farming solutions and contributing significantly to the growth of the Vertical Farming System or Module Market.

RESTRAINNG FACTORS

"High Initial Capital Costs and Operational Expenses Impacting Market Growth"

One major restraining factor in the Vertical Farming System or Module Market is the significant initial capital investment required to establish and operate vertical farming facilities, coupled with ongoing operational expenses. The complex infrastructure needed for vertical farming, including controlled environment systems, specialized lighting, automation equipment, and advanced monitoring technologies. These capital-intensive components result in a substantial financial barrier to entry for many potential growers, which effects the upfront costs which can deter smaller businesses and startups from entering the market and limit the scalability of vertical farming operations. Additionally, the operational expenses, including energy costs for artificial lighting and climate control, can be high, impacting the profitability and competitiveness of vertical farming compared to conventional agriculture. While technology advancements and economies of scale are gradually reducing these costs, they remain a significant challenge for widespread adoption and growth in the Vertical Farming System or Module Market.

REGIONAL INSIGHT

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"Asia Pacific Expected to Hold Major Share of Vertical Farming System or Module Market"

Based on region, the global Vertical Farming System or Module Market is classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa, where Asia Pacific is dominating the global market and is expected to dominate during the forecast period owing to the population growth, urbanization, and a desire for safe and high-quality produce. Countries like Japan and Singapore are leaders in vertical farming technology adoption. In Asia, there's a focus on staple crops like rice and a strong interest in advanced automation and robotics for vertical farming operations.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of Market"

The Vertical Farming System or Module Market is extremely competitive and consists of various global and regional players. Global market is majorly driven by the top manufacturers, which holds higher share of the market. Major players are involved in strategizing various plans such as mergers and acquisitions, partnerships, introduction of new and enhanced products, along with joint ventures. The report is an extensive research of a list of market players who contribute towards the expansion of the market. The information is a collusion of latest technological developments, trends, production lines mergers and acquisitions, market study and others. Other factors such as regional wise analysis and segment wise analysis are also considered to understand the market share, product growth, revenue growth and others during the forecasted period.

List of market players Profiled:

• Green Living Technologies (U.S.)
• UPGROWN FARMING CO (U.S.)
• Smart Grow System (U.S.)
• Urban Crop Solutions (Belgium)
• VertiCrop (U.S.)
• CityCrop (Greece)
• Nihon Advanced Agri CO (Japan)
• Modular Farm Co (Australia)
• 10 Mile Farms (U.S.)
• Vertical Farm Systems (Australia)
• Metropolis Farms (U.S.)
• V-Farm (U.K.)
• TruLeaf (Cananda)
• HOVE International (U.S.)

REPORT COVERAGE:

The SWOT analysis and information on future developments are covered in the study. The research report includes a study of a number of factors that promote market growth. This section also covers the range of numerous market categories and applications that could potentially affect the market in the future. The specifics are based on current trends and historical turning points. The state of the market's components and its potential growth areas over the following years. The paper discusses market segmentation information, including subjective and quantitative research, as well as the impact of financial and strategy opinions. Additionally, the research disseminates data on national and regional assessments that take into account the dominant forces of supply and demand that are influencing market growth. The competitive environment, including market shares of significant competitors, is detailed in the report along with fresh research methodology and player strategies for the anticipated time.