Global Vertical Farming Market - Industry Analysis, Growth, Demand, Share, & Forecast To 2027

The name itself indicates that vertical farming is one type of agricultural farming in which the crops are grown in systematic and vertically align stacked layers, rather than growing them traditionally or in a horizontal way. Growing crops vertically saves space and results in a higher crop yield per square foot of land used. Vertical farms are typically found indoors, such as in a warehouse and old buildings where they can regulate the environmental conditions necessary for plants to thrive. Water covers over 70% of the globe, yet just 2.5% of it is fresh. Only 1% of freshwater is readily available, while agriculture consumes 70% of it globally. The factors like the temperature, fertigation-nutrient material, pH, humidity and lightning etc. are well-maintained 24/7 in vertical farming. That's why many farmers see vertical farming as having a lot in common with greenhouse farming.

According to the report title “Global Vertical Farming Market Outlook, 2027”, published by Actual Market Research, The global vertical farming market size was valued at USD 4125 million in 2021 and is expected to expand at a CAGR of more than 21.5% from 2021 to 2027. The increasing water scarcity and loss of arable land across the globe are the main drivers pushing the vertical farming market. This is because; the vertical farming method uses more than 90-95% less water & soil. Hence, the demand for organic food products is likely to boost the vertical farming technology in the forecast period. This farming method's main purpose is to maximize crop output in a small environment. Global food production is being revolutionized by vertical farming. However, when compared to conventional agriculture, the amount of chemicals utilized in vertical farming is substantially reduced. Traditional agriculture consumes more than 90% of the chemicals used in vertical farming.

The vertical farming market is classified by growth mechanism into three types i.e. hydroponics, aeroponics & aquaponics. Hydroponics is the cultivation of plants in water (sand or gravel) with added nutrients but without the soil. The hydroponics market uses 95% less water and more than 90% less land and gives 100 times more crops produced as compared to traditional farming. The hydroponics market has more than half of the market share in terms of value. Aeroponics is the technique in which the plants are grown with suspended roots in the air and nutrients delivered in a fine mist form. The environment is kept free from outside contact or pest or any disease in order to grow more quickly and healthier plants. Aeroponics is the fastest-growing mechanism in the forecast period. Aquaponics is the addition of aquaculture and hydroponics systems. It is one type of recirculating environment. The food is provided to the fish as an input factor. Then, the waste materials of the fish which are rich in ammonia are passed to the biofiltration tank. The nitrifying bacteria convert into suitable forms by which plants can consume the nutrients and the rest clean water is reintroduced into the tank.

Vertical farming is categorized into two parts by structure form. The Building-based vertical farms are frequently housed in abandoned city buildings, such as Chicago's "The Plant" vertical farm, which was built in an old pork-packing plant. Vertical farms also use architectural construction, such as the new multi-storey vertical farm attached to an existing vehicle parking structure in downtown Jackson Hole, Wyoming. These vertical farms make use of 40-foot shipping containers, which are normally used to transport goods around the world. Several companies are converting shipping containers into self-contained vertical farms, complete with LED lights, drip irrigation systems, and vertically stacked shelves for starting and growing a wide range of plants. These self-contained units feature computer-controlled growth management systems that allow users to remotely monitor all systems from a smartphone or computer.

Vertical farming uses the components like LED lights for the important photosynthesis process. The HVAC system (heating, ventilation and cooling) is also installed in vertical farming. The atmosphere or environment must be well maintained every minute for better output. The sensors and other irrigation & fertigation systems are also crucial. The lighting segment has the highest market share among all components. The majorly produced crops in the vertical farming are lettuce, tomatoes, chili peppers, bell, herbs, strawberries, cucumbers and other leafy greens. The tomatoes are produced in a huge amount of quantity. One of the criteria is the time it takes for crops to fully mature, because some vegetables, such as lettuce and mint, grow quickly, whereas herbs and some fruiting crops take longer to mature but can have better returns than many other plants.

By region, the vertical farming market is divided into North America, Asia-pacific, Europe, South America and Middle East & Africa. North America vertical farming is the market leader in the vertical farming market in 2021. Bowery farming, AeroFarms, and Freight Farms like the top emerging players are located in the US. The emerging demand for organic food and less availability of arable land in Asia-pacific leads to the fastest market growth in the forecast period. Asia-Pacific vertical farming market is expected to grow with the highest CAGR. One of the water-stressed countries-Saudi Arabia adopted hydroponics farming to boost the prospects of sustainable agriculture. The East African country named Rwanda has also adopted and started the aeroponics method to grow crops. The world's population is projected to reach 9.7 billion people by 2050, attempting to make feeding them a huge challenge. Every day, we lose arable land as a result of industrial development and urbanisation. Scientists reported in 2015 that the Earth had lost one-third of its arable land over the previous 40 years. So in order to fulfil the food demand, this is one the significant way if it is done properly.

Rising challenges of land availability for food production as per the growing demand are the primary factor boosting the global market growth. The scarcity of arable land has been raised by increasing urbanization, global population, limited water supplies, and ongoing climate change. Vertical farming offers a high yield in comparison with traditional agriculture. It has been found that vertical farming produces 240 times more crop yield while using 99% less land, 95% less water, and zero chemicals. With this help, farmers can yield more crops despite more significant operating costs, resulting in more income. In vertical farms, crops are replanted repeatedly without following crop rotations. Therefore, no area for agriculture is required. As vertical farming does not require much space, they are preferable and can be positioned in cities. Thus, all these factors force us to adopt effective traditional agriculture alternatives. Vertical farms have appeared as a resourceful alternative for growing high-quality crops. These farms can be used for producing selective food plats while reducing the burden of traditional agriculture. Similarly, the system uses collected transpiration, which is expected to lower water pressure.

Also, vertical farming market has been extending in all segments and across different regions due to the increasing populations and the increasing per capita incomes of people, which has shifted people's demands towards more organic, health, and environment-friendly foodstuffs. The rising awareness among people on what they eat and increased focus on health issues have driven the market for organic farming, which tends to produce such fruits and vegetables without using insecticides and pesticides and is high in nutrition value. Vertical farming at home has given rise to this market where people are interested in producing farm products in small quantities in their homes using vertically stacked structures and low assets for self-consumption.

 Factors restricting the market growth are a lack of technically skilled workers, limited crop types, and the increasing need for high capital investment. Vertical farming needs technical solutions such as cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponics, and aeroponic systems. To use these advanced systems, a knowledgeable and skillful workforce is essential. Climate management is the major challenge in vertical farming. Maintaining the cooling, dehumidification, and heating is required to manage the temperature and humidity of the grow space.

Integrating robotics and artificial intelligence across farms enables tracking the development of plants from irrigation to harvesting, the latest trend in the vertical farming market. Robots help to move farms vertically from one location to another. Artificial intelligence-powered tools and applications help control the temperature, light, and water required for the plants.

COVID-19 Impact:
The vertical farming market was more affected by the building-based structure because the Covid-19 pandemic forced the closure or partial closure of industries, warehouses, enterprises, and educational institutions around the world. In addition, the climate change and future water scarcity, this method has become a viable option for countries such as Germany, the Netherlands, France, the United Kingdom, Egypt, Israel, UAE, Japan, Taiwan, Singapore, South Korea, Saudi Arabia, the United States, Canada, and now Mexico. Moreover, the electronics and semiconductor-related industries were also disrupted during the pandemic which resulted in the slowdown of the growth of hydroponics components like LED lights, sensors and HVAC systems etc. As a result, the big investors are providing venture capital funding to the new startups or companies to boost the vertical farming market.

Major Companies present in the market:
AeroFarms, Agrilution, American Hydroponics, Sky Greens, Freight Farms, GP Solutions, Inc., Farm.One, Inc., Pentair Aquatic Eco-systems Inc., NutraPonics Canada Corporation, Nelson and Pade, Inc., ECF Farmsystems GmbH, Signify Holding, Heliospectra AB, Lumigrow, Inc., OSRAM GmbH., Crop One Holdings, Plenty Unlimited Inc., Urban Crop Solutions, Brightfarms, Inc., Aponic Limited

Considered in this report
• Geography: Global
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Global Vertical Farming Market with its value and forecast along with its segments
• Region & country wise vertical farming market analysis
• Application wise vertical farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report
• North America (US, Canada, Mexico)
• Europe (Germany, UK, France, Italy, Spain, Netherlands)
• Asia-Pacific (China, Japan, Taiwan, Singapore, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

Based on Growth Mechanism of vertical farming in the report:
• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type of vertical farming in the report:
• Building based-vertical farming
• Shipping based-vertical farming

Based on hydroponics components of vertical farming in the report:
• Lighting
• Climate Control (HVAC)
• Sensors
• Other Hydroponic Components (Irrigation & fertigation system)

Based on application type in the report:
• Indoor-vertical farming
• Outdoor-vertical farming

Based on crop type in the report:
• Tomatoes
• Bell & Chili peppers
• Lettuce
• Herbs
• Leafy Greens (excluding lettuce)
• Strawberry
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Keywords: global vertical farming market size, herbal, botanical, Skyscraper farming, Agricultural techniques, Vertical Farming Market In Middle East, Vertical farming component, farming equipment, Tomato Lettuce vertical farming, Bell & Chili, food & beverage, market demand of vertical farming, hydroponics, aeroponics, aquaponics, shipping container vertical farming, top vertical farming countries, top vertical farming companies, top hydroponics farming by countries, North America, South America, Europe, Middle East, Africa, Asia, Asia-Pacific, China, Japan, India, Australia, USA, Canada, Mexico, UK, Italy, France, Germany, Russia, Spain, Netherland, Sweden, Spain, Brazil, Argentina, Columbia, UAE, Saudi Arabia, South Africa, South Korea.

This report would help you answer the following questions:
1. At what rate the global vertical farming market will grow in forecast period?
2. What are the growth mechanisms of vertical farming?
3. What are the major reasons which lead to demand for vertical farming?
4. Which type of structure has the highest demand for vertical farming in the market?
5. What is the impact of COVID-19 on the global vertical farming market?
6. Which type of crop has huge market share?

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