According to our new research study on “Vertical Farming Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Growth Mechanism and Component,” the market is projected to reach US$ 19,864.8 million by 2028 from US$ 4,300.2 million in 2021; it is estimated to grow at a CAGR of 24.4% from 2021 to 2028.
Over the years, the vertical farming market has picked up significant momentum. The rising awareness pertaining to the benefits of vertical farming is a key factor driving this growth. Since vertical farming is independent of weather, it allows farmers to achieve a consistent annual crop production without having to worry about adverse weather conditions. Moreover, it enables them to yield more in a small area. Compared to conventional farming, vertical farming yields ~240-times greater while requiring 99% less land and 98% less water. The emergence of next-generation, AI-powered vertical farming technologies that can help reduce the consumption of land and water further is boosting the growth of this market substantially. Moreover, increasing demand for sustainable agricultural ecosystems will continue to boost the demand for vertical farming in the coming years. Technological advancements have enabled the use of controlled environmental resources and agriculturally unsuitable sites, mainly skyscrapers, shipping containers, and vacant warehouses. Ascending focus on recapturing evaporated water and recycling products, in a bid to reduce wastage, is also projected to augment the vertical farming market proliferation in the coming years.
The vertical farming market is experiencing significant traction across the world due to the mounting demand for food, propelled by the rising global population. Since it uses 90% less water, requires less space, and yields more crops in shorter periods, compared to conventional farming, its demand is increasing at a significant rate. In this technique, the cultivation of fruits and vegetables is not restricted to seasonal cycles, as the requisite atmospheric conditions can be created at farming sites. However, the high initial investment cost is a hindrance to the growth trajectory of the vertical farming market. Nevertheless, the increasing demand for organic food, coupled with the rising adoption of veganism across the world, is anticipated to boost the global vertical farming market during the forecast period.
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Vertical farming is one of the modern farming practices wherein the plants are cultivated in a closed environment without the use of soil. Crops are grown in artificial conditions with controlled temperature, humidity, and lights, among other parameters. Nutrients required for the growth of plants are added to water and are circulated or sprayed on the roots of the plants. The vertical farming consists of three techniques—hydroponics, aquaponics, and aeroponics. Moreover, with advancements in technologies, vertical farming operators are now deploying artificial intelligence (AI) and the Internet of Things (IoT) in farms for improving the overall efficiency of various operations.
The vertical farming market is experiencing significant traction across the world due to the mounting demand for food, propelled by the rising global population. Since it uses 90% less water, requires less space, and yields more crops in shorter periods, compared to conventional farming, its demand is increasing at a significant rate. In this technique, the cultivation of fruits and vegetables is not restricted to seasonal cycles, as the requisite atmospheric conditions can be created at farming sites. However, the high initial investment cost is a hindrance to the growth trajectory of the vertical farming market. Nevertheless, the increasing demand for organic food, coupled with the rising adoption of veganism across the world, is anticipated to boost the global vertical farming market during the forecast period.
Vertical farming is one of the modern farming practices, wherein the plants are cultivated in a closed environment without the use of soil. Crops are grown in an artificial condition, where atmospheric parameters, such as temperature, humidity, and lights, are controlled. Nutrients required for the growth of plants are integrated in water and are circulated or sprayed on the roots of the plants. The vertical farming consists of three techniques that are hydroponics, aquaponics, and aeroponics. Moreover, with the advancement in technologies, vertical farming operators are now deploying AI and IoT systems in farms for improving the overall efficiency of various operations.
The farming and agriculture industry is leveraging the potential of AI considerably. Key market players are monitoring the requisite environment for plant development, including soil, water, light exposure, and crop yield data. They are now able to track and control plant development using various advanced technologies, such as AI-powered tools and robotics. The advanced climate-controlled vertical farming setup consists of AI-powered robots, which control water consumption, temperature, and lighting and produce 720 acres worth of fruit and vegetable yields in just 2 acres of farmland. Favorable conditions are being created manually with the use of LED panels to replicate sunlight for the optimal development of crops. Such innovations in modern farming that leverage the advantages of AI and robotics are anticipated to provide lucrative growth opportunities for players in the vertical farming market space.
Governments across the world imposed various containment measures to control the spread of COVID-19. While in several countries the governments imposed complete lockdown, other countries experienced partial lockdown, and businesses were allowed to operate with various regulations. The production facilities were halted due to the shortage of workers in the vertical farming sector. Long-term decline in manufacturing, travel bans, and facility shutdown kept the workers away from factories for prolonged periods.This led to the shortage of equipment such as sensors and lighting required in the vertical agriculture market, decelerating the growth of the vertical farming market in 2020. The pandemic has also led to limitations on the availability of agricultural laborers and disruptions in international supply chains. However, the negative impact of COVID-19 on the electronics and semiconductors industries is expected to last for a short span, and the market is anticipated to observe a high demand in 2021, as economies have begun reopening and containment measures are being relaxed since the start of this year. The vertical farming market is also anticipated to witness significant growth due to the rise in urban agriculture as the means of addressing local food shortage during the post-pandemic period.
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The global vertical farming industry was significantly impacted by the COVID-19 outbreak as the government across the globe imposed various containment measures owing to the outbreak of COVID-19. While in some countries the governments imposed complete lockdown, while some countries experienced partial lockdown and businesses were allowed to operate with various regulations. The production facilities were halted, owing to the slowdown and unavailability of the workforce creating a shortage of workers in vertical farming sector. Long-term decline in manufacturing utilization, and travel bans and facility closures as a result of the COVID-19 outbreak kept workers out of their factories. This led to the shortage of equipment such as sensors, and lighting, among others required in the vertical agriculture market resulting in a slowdown in the growth of the vertical farming market in 2020. The pandemic has also limited agricultural laborers access and disrupted international supply chains. However, the negative impact of COVID-19 on the electronics and semiconductor industries was expected to last for a short period, and the market is anticipated to observe a high demand in 2021 as economies reopened and containment measures were relaxed. The vertical farming market is also anticipated to witness a significant growth due to the rise in urban agriculture as a means of addressing localized food shortages during the post-pandemic period
Key Findings of Study:
On the basis of geography, the vertical farming market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). North America led the market in 2020, followed by Europe. The region is likely to continue to be the highest revenue generator in the global vertical farming market during the forecast period, with the US and Canada each holding sizable market shares. These countries have heavily invested in modern agricultural practices, resulting in elevated adoption of vertical farming techniques. Moreover, North American countries have been highly responsive toward implementing the latest technologies, which is driving the integration of IoT and AI in vertical farming. Rising awareness regarding the benefits of this farming method and surge in its use for cultivating medicinal herbs and plants are aiding the growth of the vertical farming market in this region.
Over the years, the vertical farming market has picked up significant momentum. The rising awareness pertaining to the benefits of vertical farming is a key factor driving this growth. Since vertical farming is independent of weather, it allows farmers to achieve a consistent annual crop production without having to worry about adverse weather conditions. Moreover, it enables them to yield more in a small area. Compared to conventional farming, vertical farming yields ~240-times greater while requiring 99% less land and 98% less water. The emergence of next-generation, AI-powered vertical farming technologies that can help reduce the consumption of land and water further is boosting the growth of this market substantially. Moreover, increasing demand for sustainable agricultural ecosystems will continue to boost the demand for vertical farming in the coming years. Technological advancements have enabled the use of controlled environmental resources and agriculturally unsuitable sites, mainly skyscrapers, shipping containers, and vacant warehouses. Ascending focus on recapturing evaporated water and recycling products, in a bid to reduce wastage, is also projected to augment the vertical farming market proliferation in the coming years.
Agrilution Systems GmbH; Aerofarms, LLC; Eden Green Technology; Elevate; iFarm; OSRAM; Plenty Unlimited Inc.; Square Mile Farms Ltd.; Sky Greens; and Vertical Farm Systems are among the major companies operating in the vertical farming market.
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The global vertical farming market has been analyzed on the basis of growth mechanism, component, and geography. On basis of growth mechanism, the market is segmented into hydroponics, aeroponics, and aquaponics. Based on component, the market is segmented into lighting, sensor, climate control, irrigation component, building material, and others. In terms of geography, the vertical farming market is primarily segmented into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM).
Most of the market initiatives were observed in North American region, which have a high potential of market-related products, solutions, and services. Few of the important market initiatives from the industry are mentioned below:
AeroFarms announced it has started construction of world largest and most technologically advanced aeroponic indoor vertical farm at Danville-Pittsylvania County, Mid-Atlantic region, US. The company will be deploying its Model 5 farm at the farm.
Plenty has announced the addition of 17 new Safeway locations in Northern California, bringing the total number of locations stocking Plenty produce in the region to 53. The new Albertsons-owned locations, which include Safeway and Vons, are part of a multi-year deal between the two corporations to expand Plenty produce to over 430 Albertsons-owned stores across California. Plenty is the first indoor, vertically farmed vegetables available to these buyers, with the new store sites predominantly in smaller communities.
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