Global Vertical Farming Market

Vertical Farming Market Size, Share, Growth Analysis, By Technology(Aeroponics and Hydroponics), By End-User(Commercial, and Residential), By Region - Industry Forecast 2024-2031


Report ID: SQMIG45I2097 | Region: Global | Published Date: June, 2024
Pages: 197 |Tables: 60 |Figures: 75

Vertical Farming Market Insights

Global Vertical Farming Market size was valued at USD 6.88 billion in 2022 and is poised to grow from USD 8.27 billion in 2023 to USD 36.04 billion by 2031, growing at a CAGR of 20.2% in the forecast period (2024-2031).

The growing use of IoT sensors for crop production is expected to drive market demand. The data gathered from these sensors is stored and analyzed on the cloud to optimize farm management. Automation in agriculture, coupled with big data and predictive analytics, will further boost the market. Vertical farming is an effective technique for ensuring stability in crop production, especially under unfavorable climatic conditions. It offers several advantages over traditional farming methods, such as less water usage, reduced need for agrochemicals, and lower dependence on agricultural labor. Vertical farming utilizes metal reflectors and artificial lighting to maximize natural sunlight. Consumers' growing concerns about genetically modified organisms and the environmental and health effects of pesticides have led to an increased demand for organic foods. Organic product handlers and growers must comply with regulations under the Organic Foods Production Act of 1990. Artificial lighting can extend the hours of natural daylight, leading to healthier plants and increased yields. High-pressure sodium and LED lighting are popular choices, with LED lighting systems expected to grow significantly in the future. Hydroponic systems eliminate the need for pesticides and artificial ripening agents, resulting in nutritious vegetables. However, high initial investment and limited crop variety remain potential market restraints.

Market Snapshot - 2024-2031

Global Market Size

USD 6.88 billion

Largest Segment

Hydroponics

Fastest Growth

Aeroponics

Growth Rate

20.2% CAGR

Global Vertical Farming Market ($ Bn)
Country Share for North America Region (%)

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Vertical Farming Market Segmental Analysis

The Global Vertical Farming market is segmented by technology, end-user, and region. Based on technology, the market can be segmented into aeroponics and hydroponics. Based on end-user, the market is segmented into commercial and residential. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Vertical Farming Market Analysis by Technology

By technology, the market can be segmented into aeroponics and hydroponics. Hydroponics dominated the global vertical farming market. This is due to its relatively lower setup costs, ease of operation, and wider availability of technology compared to aeroponics. Hydroponics systems also require less maintenance and are easier to scale up. Hence, it is a popular choice for commercial vertical farming operations.

Aeroponics is the fastest-growing technology in the global vertical farming market. It has a higher yield potential than hydroponics and uses significantly less water. Aeroponics also requires less space compared to hydroponics, making it more suitable for vertical farming operations. Although the setup cost for aeroponics is higher than hydroponics, the potential return on investment is higher due to the higher yields.

Vertical Farming Market Analysis by End-User

By end-user, the market can be segmented into commercial and residential. The commercial segment includes vertical farming operations that produce crops for commercial purposes such as restaurants, grocery stores, and other businesses. The commercial segment dominated the vertical farming market due to the high demand for locally grown and fresh produce. Commercial vertical farming allows for the production of crops in a controlled environment that can be harvested year-round, making it a reliable source of fresh produce.

The residential segment includes vertical farming systems that are designed for home use. Residential vertical farming is gaining popularity due to the increasing awareness of the benefits of home-grown food, such as reduced food waste, increased sustainability, and improved health. The residential segment currently holds a smaller share of the market, but it is expected to grow at a significant rate during the forecast period.

Global Vertical Farming Market By Technology, 2022 (%)

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Vertical Farming Market Regional Insights

North America dominated the global market, with the United States being the largest agriculture producer in the world. The use of advanced technologies and innovative farming practices has made the region highly efficient in crop production. The region's adoption of precision agriculture techniques, such as GPS-enabled tractors and drones, has increased yields and reduced operational costs. Additionally, the region has a well-established distribution network and infrastructure, making it easier to transport and market crops. The key players in the North American agriculture market include John Deere, AGCO, and Monsanto.

In contrast, the Asia-Pacific region is the fastest-growing market for agriculture due to the rising demand for food from its large population. The region's growing middle class and increasing urbanization have led to a shift towards high-value crops, such as fruits, vegetables, and meat. Moreover, the region has abundant agricultural land, favorable climatic conditions, and a skilled workforce. China and India are the key players in the Asia-Pacific agriculture market, with companies such as AGCO, Deere & Company, and CNH Industrial operating in the region.

Global Vertical Farming Market By Region, 2024-2031
  • Largest
  • Fastest

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Vertical Farming Market Dynamics

Vertical Farming Market Drivers

Increasing demand for food

  • The global vertical farming market is driven by the increasing demand for food due to the growing global population, the need to optimize crop production in limited space, and the increasing awareness of the benefits of sustainable farming practices. Vertical farming provides several advantages over traditional farming methods, such as reduced water usage, efficient use of space, and less dependence on agricultural labor. Moreover, advancements in technology, such as IoT sensors and artificial lighting, are making vertical farming more accessible and efficient, further driving market growth.

Vertical Farming Market Restraints

Lack of standardization in regulations

  • The lack of standardization in regulations for vertical farming is the key challenges faced by the industry. Additionally, the high energy costs associated with artificial lighting and the need for specialized skills and knowledge to operate and maintain vertical farming systems can also hinder market growth. Furthermore, the perception that vertical farming is only suitable for high-value crops limits its applicability to other crops, such as grains and oilseeds.

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Vertical Farming Market Competitive Landscape

The global vertical farming market is fragmented, with several small and large players operating in the industry. The market is highly competitive, with companies focusing on research and development to improve the efficiency and sustainability of vertical farming systems. Moreover, collaborations and partnerships between companies are increasing to expand the market reach and provide innovative solutions to customers. The market is also witnessing the entry of several new players, further intensifying the competition. The companies in the vertical farming market compete based on product features, price, quality, and brand image.

Vertical Farming Market Top Player’s Company Profiles

  • Everlight Electronics (Taiwan)
  • Growtainer (US)
  • Illumitex (US)
  • Sky Greens (Singapore)
  • Koninklijke Philips N.V. (Netherlands)
  • Plenty (US)
  • Signify Holding B.V. (Netherlands)
  • Urban Crops Solutions (Belgium)
  • Vertical Farm Systems (Australia)
  • Alesca Life Technologies (Hong Kong)
  • American Hydroponics (US)
  • FarmOne (US)
  • Freight Farms (US)
  • General Hydroponics (US)
  • Heliospectra AB (Sweden)
  • Local Roots Farms (US)
  • Modular Farms Co. (Canada)

Vertical Farming Market Recent Developments

  • In April 2024, the Jiashan Agriculture Center in China is striving to optimize production efficiency by combining vertical farming with greenhouse cultivation. Serving as a demonstration center, it highlights horticulture's role in enhancing regional food security. Despite being established just last year, the center has already outlined plans for expansion, with support from several Dutch organizations involved in the project.  
  • In December 2023, Green Onyx made headlines by sending its vertically farmed freshwater lentils into space. 
  • In December 2023, Senn Brothers Produce, a prominent wholesale food distributor in South Carolina, made waves with the launch of its own vertical farm. This move was aimed at supporting the introduction of its indoor-grown private-label brand, Sennsational FRESH, which offers a diverse range of leafy greens. By having full control over its lettuce supply, Senn Brothers is enhancing the value it provides to its customer network while also making indoor-grown produce more readily available to end consumers.

Vertical Farming Key Market Trends

  • One of the key market trends in the global vertical farming market is the increasing focus on sustainable farming practices and the adoption of technology-driven solutions to maximize crop yields and minimize resource consumption. Additionally, the growing demand for fresh and locally grown produce, advancements in artificial lighting technology, and the rising popularity of urban farming are also driving the market growth. Furthermore, companies are exploring new business models such as vertical farming co-operatives and community-supported agriculture programs to cater to changing consumer preferences and expand market reach.

Vertical Farming Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global vertical farming market analysis, the market is driven by factors such as the increasing demand for food, the need for sustainable farming practices, and advancements in technology. The market is highly competitive, with several small and large players operating in the industry, and companies focusing on research and development to improve the efficiency and sustainability of vertical farming systems. However, the market also faces several challenges, including high initial investment costs, limited crop variety, and lack of standardization in regulations for vertical farming. Despite these challenges, the market is expected to witness significant growth in the coming years, driven by increasing demand for fresh and locally grown produce and the adoption of technology-driven solutions.

Report Metric Details
Market size value in 2022 USD 6.88 billion
Market size value in 2031 USD 36.04 billion
Growth Rate 20.2%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Technology
    • Aeroponics and Hydroponics
  • End-User
    • Commercial, and Residential
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Everlight Electronics (Taiwan)
  • Growtainer (US)
  • Illumitex (US)
  • Sky Greens (Singapore)
  • Koninklijke Philips N.V. (Netherlands)
  • Plenty (US)
  • Signify Holding B.V. (Netherlands)
  • Urban Crops Solutions (Belgium)
  • Vertical Farm Systems (Australia)
  • Alesca Life Technologies (Hong Kong)
  • American Hydroponics (US)
  • FarmOne (US)
  • Freight Farms (US)
  • General Hydroponics (US)
  • Heliospectra AB (Sweden)
  • Local Roots Farms (US)
  • Modular Farms Co. (Canada)
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Vertical Farming Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Vertical Farming Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Vertical Farming Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Vertical Farming Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Vertical Farming Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Vertical Farming Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Vertical Farming Market size was valued at USD 6.88 billion in 2022 and is poised to grow from USD 8.27 billion in 2023 to USD 36.04 billion by 2031, growing at a CAGR of 20.2% in the forecast period (2024-2031).

The vertical farming market is fragmented, with several small and large players operating in the industry. The market is highly competitive, with companies focusing on research and development to improve the efficiency and sustainability of vertical farming systems. Moreover, collaborations and partnerships between companies are increasing to expand the market reach and provide innovative solutions to customers. The market is also witnessing the entry of several new players, further intensifying the competition. The companies in the vertical farming market compete based on product features, price, quality, and brand image. 'AeroFarms (US)', 'BrightFarms (US)', 'Everlight Electronics (Taiwan)', 'Green Sense Farms (US)', 'Growtainer (US)', 'Illumitex (US)', 'Sky Greens (Singapore)', 'Koninklijke Philips N.V. (Netherlands)', 'Plenty (US)', 'Signify Holding B.V. (Netherlands)', 'Urban Crops Solutions (Belgium)', 'Vertical Farm Systems (Australia)', 'Alesca Life Technologies (Hong Kong)', 'American Hydroponics (US)', 'FarmOne (US)', 'Freight Farms (US)', 'General Hydroponics (US)', 'Heliospectra AB (Sweden)', 'Local Roots Farms (US)', 'Modular Farms Co. (Canada)'

The vertical farming market is driven by the increasing demand for food due to the growing population, the need to optimize crop production in limited space, and the increasing awareness of the benefits of sustainable farming practices. Vertical farming provides several advantages over traditional farming methods, such as reduced water usage, efficient use of space, and less dependence on agricultural labor. Moreover, advancements in technology, such as IoT sensors and artificial lighting, are making vertical farming more accessible and efficient, further driving market growth.

One of the key market trends in the vertical farming market is the increasing focus on sustainable farming practices and the adoption of technology-driven solutions to maximize crop yields and minimize resource consumption. Additionally, the growing demand for fresh and locally grown produce, advancements in artificial lighting technology, and the rising popularity of urban farming are also driving the market growth. Furthermore, companies are exploring new business models such as vertical farming co-operatives and community-supported agriculture programs to cater to changing consumer preferences and expand market reach.

North America dominated the market, with the United States being the largest agriculture producer in the world. The use of advanced technologies and innovative farming practices has made the region highly efficient in crop production. The region's adoption of precision agriculture techniques, such as GPS-enabled tractors and drones, has increased yields and reduced operational costs. Additionally, the region has a well-established distribution network and infrastructure, making it easier to transport and market crops. The key players in the North American agriculture market include John Deere, AGCO, and Monsanto.

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