Vertical Farming Market Value To Grows At USD 6.42 Bn In 2023

Published Date : 22 May 2023

The global vertical farming market value is growing at USD 6.42 billion in 2023 and is expected to touch around USD 31.15 billion by 2030, poised to grow at a remarkable CAGR of 25.2% between 2022 and 2030.

Rising consumer health consciousness, together with escalating urbanization and rising per capita income, are all contributing factors to the expansion of the global vertical farming industry.

Market Overview:

Many people refer to vertical farming as "future farming" since it employs environmentally controlled agricultural technology to maximize the utilization of indoor farming practices. This is particularly true given that a sizable majority of the world's population will have migrated to cities by 2050. In such an environment, with a population that is constantly growing, there will be a greater need for natural and organic local food.

A novel agricultural technique called vertical farming has the potential to address the looming food problem. Our crops are cultivated vertically stacked layers of the product as opposed to horizontally. It increases water efficiency while also reducing or eliminating the need for soil for crops. Based on its regulated environment, which includes temperature, light, humidity, and artificial intelligence, vertical farming may ensure consistent produce output and increase crop yields. Buildings, communities, and even shipping containers may readily be equipped with this environmentally friendly technology. Also, it may grow food closer to where it will be consumed, saving money and lowering emissions on transportation.

Regional Analysis:

The United States dominated the North American market in the verticle farming market

Those of the United States dominated North American markets. Increasing worries about nutrition and food security are predicted to provide a number of brand-new chances for the business to thrive. It is projected that the United States will contribute significantly to supporting the ecology of future foods. Freshly picked veggies should become more widely available in retail establishments as customer preferences shift toward "fresh-from-farm-to-table" products (which is also the pioneer in adopting this concept). Urbanization in areas like New York, Chicago, and Milwaukee has fueled the atmosphere for vertical farming through projects like renovating abandoned warehouses, abandoned buildings, and high rises. This has increased the output of freshly cultivated food. 

Size of the UK vertical farming market

The worldwide vertical farming market is anticipated to expand at a CAGR of 5.4% between 2021 and 2026. Just 21% of the global vertical farming market is accounted for by Europe, which is outpaced by North America and the Asia-Pacific area. In 2021, the market for vertical farming in Europe was expected to be worth USD 0.85 billion. Yet, according to a survey from Market Data Forecast, the European vertical farming industry will expand by 22% yearly and reach USD 2.31 billion by 2026. The UK is one of the leading nations in the European vertical farming sector, along with France, Germany, Spain, and Italy. The popularity of vertical farming in certain regions in Europe has been spurred by rising customer demand and technological developments in that countries and across the continent.

Vertical Farming Market Report Scope:

Report Coverage Details
Market Revenue in 2023 USD 6.42 Billion
Projected Forecast Revenue in 2030 USD 31.15 Billion
Growth Rate from 2022 to 2030 CAGR of 25.2%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2022 to 2030
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Competitive Landscape:

The top businesses in the verticle farming market are listed below:

AeroFarms (United Arab Emirates)- Since 2004, AeroFarms has used the most recent developments in indoor vertical farming, artificial intelligence, and plant biology to increase the production and distribution of fresh produce locally and internationally.

  • 4D Bios Inc
  • Illumitex Inc
  • Urban Crop Solutions
  • Koninklijke Philips N.V.
  • AMHYDRO (American Hydroponics)
  • Agrilution
  • Everlight Electronics Co., Ltd
  • Hort Americas
  • Others

Types of Vertical Farming:

Vertical farms in buildings

Although abandoned structures are converted for vertical farming, frequent usage of such structures is not required. Vertical farms can also be built using new structures, depending on the needs.

Shipping-container vertical farms

Used or repurposed shipping containers are outfitted with monitoring sensors, climate controls, vertically stacked farms, and LED lights. Such farms can reduce their need for space while increasing their productivity.

Underground vertical farms

These vertical farms sometimes referred to as "Deep Farms," are constructed in tunnels, mine shafts, or other underground spaces. As the temperature and humidity are consistent, less energy is needed to heat them, and an underground water source may be used for water supply. In addition, these farms may generate 7 to 9 times as much food as a typical farm.

Market Dynamics:

Market Drivers: Providing High-tech solutions driving the market

A novel solution that addressed various societal issues was provided by vertical farms. In particular, how can we feed an expanding population while protecting it from the rise in catastrophic weather patterns?

The industry of "vertical farming" arose in response, providing high-tech solutions that entailed growing vegetables indoors utilizing rising structures like shelves, buildings, shipping containers, and even abandoned mine shafts. Startups in vertical farming raised billions of dollars and promised quick expansion.

The majority of vertical farming firms promoted high-tech solutions to assist develop and make the farming industry more effective. A few ideas include employing AI to monitor indoor plant conditions, robotic farming to save labor expenses, and genetically modified soil.

Market Restraints: Higher labor cost

The adoption is further boosted by the increased production of organic crops via vertical farming. The vertical farming market's expansion is nonetheless constrained by the hefty initial expenditure. In addition, the lack of variety in crops cultivated and high labor costs restrict market expansion.

Market Opportunities: Advancement in agriculture technology

Microgreens are crops grown using vertical farming techniques. They contain high levels of polyphenols, a type of antioxidant that helps reduce the risk of illnesses including heart disease, Alzheimer's disease, diabetes, and several malignancies.

The agricultural technology sector is expanding quickly as a result of increased innovation, garnering both public and private interest. Commercial farmers are increasingly implementing high-capital-outlay technology including sophisticated hydroponic systems and computerized traceability systems. Growers are also making significant investments in LEDs and other cutting-edge lighting goods to lessen their exposure to associated hazards by carefully monitoring and acquiring new technology.

Hardware Insights:

Among the important hardware elements required for a vertical farming arrangement are lighting and hydroponic components. In place of sunshine, artificial light produces light levels that are sufficient for crop development.

It is possible to alter the grow lights' outputs' hues, temperatures, and spectral compositions as well as their intensity to provide different lighting situations outside. High-intensity discharge (HID) and LED grow lights are now the most popular choices for vertical farming.

Hydroponics Insights:

Over the projection period, the hydroponics segment is anticipated to maintain its dominance, mostly because of the ease of installation and economical creation of vertical farms. Due to the fact that mineral nutrients dispersed in water are delivered directly to the plant's roots in a hydroponics system, the plant develops primarily upward, encouraging faster growth, quicker harvesting, and better yield. Herbs, greenery, and food products are grown year-round utilizing hydroponic systems in both indoor and outdoor settings using an inert growing medium to secure the plant's roots. Less water usage is one of the main benefits of employing this technique since it recycles water.

Recent Development:

  • October 2022: With the rising demand for their specialty green and their decision to extend outside the Northeast area to include all whole food stores, AeroFarms has chosen to go national. The first indoor farming business to join the Whole Foods Market Global Planogram will be AeroFarms.
  • October 2022: Agtech business Singrow, with its headquarters in Singapore, intended to spread across and outside of Asia and introduce its consumer concept brand Blooom. Beyond its existing presence in China, Indonesia, and Singapore, the firm wants to expand its partner farm reach to the Philippines, Thailand, Hong Kong, and the Middle East.
  • February 2022: By constructing its second growing facility in Kyle, Texas, Infarm plans to increase its market share in the United States. The facility will reportedly be 50,000 square feet large and produce 2.2 million pounds of salad annually.

Market Segmentation:

By Growth Mechanism

  • Hydroponics
  • Aeroponics
  • Aquaponics

By Component

  • Lighting
  • Climate Control
  • Sensor
  • Irrigation
  • Others

By Fruits, Vegetables & Herbs

  • Bell & Chili peppers
  • Strawberry
  • Tomato
  • Lettuce
  • Cucumber
  • Herbs
  • Leafy Greens (excluding lettuce)
  • Others

By Structure

  • Shipping Container
  • Building-based

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