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North America Vertical Farming Market - Industry Size, Opportunity, Growth, Demand, & Forecast To 2027

North America Vertical Farming Market - Industry Size, Opportunity, Growth, Demand, & Forecast To 2027

Actual Market Research 06-06-2022 83 Pages Figures : 20 Tables : 27 Region : North America Category : Food & Beverages Agriculture

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1. Broan Inc.

2. Heliospectra AB

3. AeroFarms

4. American Hydroponics

5. Sky Greens

More...

In vertical farming, crops are majorly grown indoors under an artificial lighting and temperature control setup. Vertical farming technology significantly uses less water and pesticides compared to traditional agriculture. Being indoors, crops are not subject to seasons or any climate changes. Due to that, vertical farming gives high productivity year-round. Lettuces, tomatoes, and green crops can commonly be produced from vertical farming. For North America, increasing demand for organic food, growing regional urbanization, and shrinking fertile lands drive the vertical farming market. Arable land accounts for more than 25% of the total land in North America. 

However, this ratio is projected to decrease due to constant industrial development across the region. To overcome these threats, vertical farming can be an optimal option. The vertical farming market has gained significant momentum across the North American region. There has been a prominent rise in new manufacturers and start-ups offering innovative products at a competitive price. In addition, emerging businesses across the region are rapidly adopting enhancements in technologies such as artificial intelligence (AI), robotics, intelligent monitoring, and advanced sensors. For instance, Plenty Unlimited Inc. (a San Francisco agricultural-technical start-up) has constructed climate-controlled vertical farms with a higher investment of USD 400 million. The startup uses AI robots to control lighting, temperature and watering for the plants. They also monitor growth patterns for the crops.

According to the report titled "North America Vertical Farming Market Outlook, 2027", published by Actual Research, the vertical farming market is anticipated to grow at an 18.37% CAGR from 2022–2027. The rising awareness about the benefits of vertical farming has emerged as a critical industry across the North American market. Since vertical farming does not depend on the weather, it allows farmers to achieve consistent annual crop production. Vertical farming increases output by nearly 240 times while requiring 99% less land and water. Further, the North American vertical farming market is segmented into three major countries: the United States of America (USA), Canada, and Mexico. Among these countries, the USA vertical farming is projected to lead the overall market during the forecast period. For the North American market, the USA accounts for more than 40% of the market share in 2021; for the global market, the USA accounts for more than 10% of the market share.

Compared to other economies, the USA was one of the early adopters of vertical farming technology. The growing need for sustainable agriculture operations across the country that reduce adverse environmental impacts is expected to boost the market's growth. Research processes by the National Aeronautics and Space Administration (NASA) to grow plants in a closed environment have built the foundation for vertical farming technology across the country. The recent trend of the farm-to-table movement has promoted organic food production across the country. Many market players are implementing the higher R & D sectors into the vertical farming industry. Moreover, by 2023, a new building will soon be constructed in Pennsylvania that will be the largest vertical farm in the world.

According to the report, North America's vertical farming market is segmented into three growth mechanism types: hydroponics, aeroponics, and aquaponics. Among these types, the hydroponics segment is projected to occupy more than 55% of the market share during the forecast period. The lower installation cost and ease of operation of these processes have boosted the demand for the hydroponics segment during the forecast period. Further, the market is segmented into two structure types: building-based vertical farming and shipping container-based vertical farming. Among these types, the building-based vertical farming segment is projected to dominate during the forecast period. On the other hand, the shipping container-based vertical farming segment is expected to grow at a higher rate from 2022–2027.

COVID-19 Impact: 
Covid-19 significantly impacts supply chains and logistics, causing a major threat to accessing fresh and nutritious food. Across the North American region, urban farming activities have the potential to contribute to healthy food and reduce food consumption. Due to social distancing norms and lockdown situations imposed by the various regional governments, many production units remained shut. However, staying at home changed many consumers’ preferences regarding health and food. These factors have accelerated the demand for organic food across the region. These factors are anticipated to fuel the market's growth during the forecast period.



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: North America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• North America Vertical Farming Market with its value and forecast along with its segments
• 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

Countries covered in the report
• US
• Canada
• Mexico

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.

This report would help you answer the following questions:
1. At what rate North America vertical farming is anticipated to grow?
2. Which country is leading the North America vertical farming?
3. Which growth mechanism is leading the North America vertical farming?
4. Which countries are explained in the North America vertical farming report?
5. What farming is most profitable?

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