Vertical Farming Market (By Growth Mechanism: Hydroponics, Terraponics, Aeroponics, Aquaponics; By Component: Lighting, Sensors and Climate Control, Irrigation, Others; By Structure: Shipping Container and Building-based; By Fruits, Vegetables & Herbs: Bell & Chili peppers, Strawberry, Tomato Lettuce, Cucumber, Herbs, Leafy Greens (excluding lettuce) and Others) - Global Market Size, Share, Growth, Trends Analysis, Regional Outlook and Forecasts 2023 - 2032


The global vertical farming market size was valued at USD 5.1 billion in 2022 and it is predicted to be worth around USD 39.9 billion by 2032 and registering at a CAGR of 22.89% from 2023 to 2032. U.S. vertical farming market was valued at USD 552.7 million in 2022.

Vertical Farming Market Size 2023 to 2032

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Key Takeaways:

  • Asia Pacific vertical farming market has accounted revenue share of 28.4% in 2022.
  • By structure, the shipping container segment has captured a revenue share of around 54.3% in 2022.
  • The building-based segment held a revenue share of 45.7% in 2022.
  • By growth mechanism, the hydroponics segment has held a 41% revenue share in 2022.

Vertical Farming Market Overview

Vertical farming by 2050 is considered to be a new method for feeding huge global populations. Building a farm that is close to the people it serves by supplying cheaper, organic, disease-free crops and preserving limited natural resources. The more sustainable and innovative method of agriculture than conventional agriculture and greenhouse farming is known to be vertical farming. It takes very little water and saves a large amount of soil and space. In difficult conditions, such as villages, mountain towns and deserts, this farming method is useful. The growth of the global vertical farming market is driven by rising customer health awareness, along with increasing urbanization and increasing per capita income. Indoor farming methods are also used by companies involved in the manufacture of pharmaceutical goods for cultivation and crop production in a green climate. Many pharmaceutical companies are introducing indoor farming techniques that are commonly used in producing biopharmaceutical products for the production of various crops.

Scope of the Vertical Farming Market

Report Highlights Details
Market Size in 2023 USD 6.24 billion
Market Size by 2032 USD 39.9 billion
Growth Rate from 2023 to 2032 CAGR of 22.89%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Growth Mechanism, Component, Fruits, Vegetables & Herbs, Structure
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Companies Mentioned 4D Bios Inc, Illumitex Inc, Urban Crop Solutions, Koninklijke Philips N.V., AMHYDRO (American Hydroponics), AeroFarms, Agrilution, Everlight Electronics Co., Ltd, Hort Americas, Others

 

Vital factors accountable for market growth are:

  • Rising population levels across the globe
  • Stabilized crop production irrespective of climatic changes
  • Insufficiency of farming land worldwide
  • Conservation as well as reutilization of natural resources

Growth Mechanism Insights

Hydroponic Segment Stated Major Market Stake in 2022

The prime market share in the global vertical farming market was recorded in 2022 by hydroponic segment. Over the projected period, the climate control segment is predictable to register a high CAGR. To drive demand for hydroponic components, increasing adoption of hydroponic components by farmers to minimize the weight load and infrastructure needed to support the equipment is anticipated. Vertical farming automation aims to minimize time to market, reduce costs for distribution, production and the environment, and standardize high quality.

Fruits, Vegetables & Herbs Insights

Bell & Chili peppersis Predicted Grow at Rapid Pace During Years to Come

Using this method, strawberries, lettuce, leafy greens, and tomatoes are among the most cultivated vegetables. Of all products, due to its adaptability to grow in small spaces with limited need for additional care, lettuce shows significant growth. Validating the economic viability of that crop, which ensures that the company is making a large amount of money from its cultivation, is one of the important factors behind growing any crop in vertical farming. Similarly, one of the criteria is the time taken for crops to grow completely because some vegetables such as lettuce and mint grow quickly, while herbs and some fruiting crops take longer to grow, but can have higher margins than many other plants.

Structure Insights

Shipping Container is Anticipated to Rule the Vertical farming Market Revenue

In terms of revenue, the shipping container conquered the sector in 2022 and is projected to remain leading during the forecast era. This growth is accredited to the structure's capability to assistance grow crops irrespective of the geographical site. Over the forecast period, factors such as budding technological advances and penetration of precision farming are expected to drive the shipping container segment. In Japan, China, and other Asian countries, the building based segment is extensively accepted and is the fastest-growing segment by revenue due to its growing acceptance in the region.

Regional Insights

North America is projected to be the Largest Market for Vertical farming

The report study deals with the main market trends for vertical farming products across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa, among other geographical regions. In 2022, Asia Pacific dominated the sector and is anticipated to continue leading in future. Rising awareness about the significance of alternative farming, due to less fertility of land its availability is the key factor expected to spur the demand. North America is probable to be the major market. Rising urban population and commercialization of inside farming are expected to motivation the demand.

Topmost Players contending in the Market:

Many commercial growers are implementing technologies, such as advanced hydroponic systems and electronic traceability systems that require high capital expenditure. The vertical farming idea has laid its hands on the thriving cannabis industry over the past few years, where entrepreneurs are providing alternative ways to gain more money. The growth of the global market is motivated by rising customer health awareness, along with increasing urbanization and increasing per capita income. Indoor farming methods are also used by companies involved in the manufacture of pharmaceutical goods for cultivation and crop production in a green climate. Many pharmaceutical companies are introducing indoor farming techniques that are commonly used in producing biopharmaceutical products for the production of various crops.

Vertical Farming Market Players

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

Recent Market Developments:

  • In year 2018, The leading player Fluence was awarded the Canadian Cannabis Awards as the best lighting firm of 2018 by OSRAM. The award will support the firm achieve universal recognition in lighting horticulture.

Major Market Segments Covered:

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

By Geography

  • North America
      • U.S.
      • Canada
  • Europe
      • Germany
      • France
      • United Kingdom
      • Rest of Europe
  • Asia Pacific
      • China
      • Japan
      • India
      • Southeast Asia
      • Rest of Asia Pacific
  • Latin America
      • Brazil
      • Rest of Latin America
  • Middle East & Africa (MEA)
      • GCC
      • North Africa
      • South Africa
      • Rest of Middle East & Africa

Frequently Asked Questions

What is the current size of the global vertical farming market?
According to Precedence Research, the global vertical farming market size is expected to reach around USD 39.9 billion by 2032 from USD 5.1 billion in 2022.
What is the growth rate of global vertical farming market?
The global vertical farming market is expected to grow at a CAGR of 22.89% from 2023 to 2032.
Which factors driving the vertical farming market growth?
The growth factors of vertical farming market are rising population levels across the globe, stabilized crop production irrespective of climatic changes, insufficiency farming land worldwide and conservation as well as reutilization of natural resources.
Which segment accounted for the largest vertical farming market share?
The prime market share in the global vertical farming market was recorded in 2022 by Hydroponic Components segment. Over the projected period, the climate control segment is predictable to register a high CAGR.
Which region is expected to hit largest revenue share in medical imaging outsourcing market?
The North America is projected to be the largest market for vertical farming.
Which key companies are operating in the vertical farming market?
Some of the major players operating in global vertical farming market are Urban Crop Solutions, Agrilution, Green Sense Farms Holdings,Illumitex Inc., AeroFarms, HELIOSPECTRA AB, EVERLIGHT ELECTRONICS CO., LTD., MOFLO aeroponics, Sky Greens, Gills N Claws Pte Ltd, Signify Holding, Bowery Farming, Inc., Triton Foodworks, Infarm, SPREAD Co., Ltd., AmHydro, CubicFarm Systems Inc., Inc., ZipGrow Inc., Altius Farms, among others.

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