Vertical Farming Market Size
Vertical Farming Market size surpassed USD 4.51 billion in 2020 and is poised to grow at a CAGR of over 23% between 2021 and 2027. The ability of vertical farming to produce high-quality herbs, fruits, and vegetables throughout the year will positively influence the market revenue.
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Vertical Farming Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2020 |
| Vertical Farming Market Size in 2020 |
4,510.0 Million (USD) |
| Forecast Period |
2021 to 2027 |
| Forecast Period 2021 to 2027 CAGR |
23.2% |
| 2027 Value Projection |
19,181.9 Million (USD) |
| Historical Data for |
2017 to 2020 |
| No. of Pages |
280 |
| Tables, Charts & Figures |
263 |
| Segments covered |
Technology, Product, Application and Region |
| Growth Drivers |
- Soaring population levels leading to imbalance in food demand and supply
- Scarcity of farming landA major natural resource
- Stabilized crop production irrespective of climatic changes
- Conservation and recycling of natural resources
|
| Pitfalls & Challenges |
- Higher initial investments
- Lack of technical acumen
- Limitations on the variety of crops grown
- High energy consumption (light, air conditioning)
|
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Vertical farming is on the rise, and sustainability plays a big role in its growth. Traditional farming loses a ton of water to evaporation and runoff. But in vertical farms, water is used way more efficiently. They recycle most of the water they use, cutting down on usage by a whopping 90%. Vertical farms also use fewer fertilizers and pesticides, and they need less soil than traditional farms. This all adds up to a more sustainable way to grow food. However, vertical farming is still a relatively new concept. It requires a lot of money to get started, and it uses a lot of energy. And while vertical farms can grow a lot of different crops, they can't grow everything. There's also not a lot of awareness about vertical farming, which makes it tough to get the word out about the benefits. Despite these challenges, vertical farming has the potential to make a big impact on the agricultural industry. It's a more sustainable way to grow food, and it can help feed the growing population.
Lower installation cost & easy operations will drive the demand for hydroponics
Hydroponics technology segment held around 50% vertical farming market share in 2020. The growing conditions in hydroponics technology can be consistently monitored and controlled to ensure correct chemical composition for effective growth. It utilizes less water compared to traditional farming techniques. This technology does not use soil, thus eliminating weeds, pests, etc. and subsequently cutting down labor costs. Furthermore, there are no limitations on setting up a hydroponics system on rural agricultural land. This will subsequently improve its accessibility and eliminate the need for a complex distribution network.
Vertical Farming Market Analysis
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In 2020, indoor application segment generated USD 3 billion revenue in the vertical farming market. It includes practices performed in warehouses, containers, research centers, parking lots, etc. This method plays an important role in satisfying the rising food demand due to the growing population and scarce land under cultivation. Indoor vertical farming consumes less water and gives out more harvest than traditional farming. Irrespective of sudden climatic changes, indoor farming produces feed in higher quantity without crop damage.
Vertical farming equipment market is predicted to witness more than 20% growth rate through 2027. Equipment including grow lights, atmosphere controllers, irrigation systems, pipes, etc., are used for varied purposes. They monitor the farm’s atmosphere, crop growth, and control the number of nutrients in the solutions. Within the equipment segment, environment & climate
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The Asia Pacific market for vertical farming is booming! It's growing like crazy, at a rate of 24% every year. Japan is the biggest player in the region because they got into the game early on. They're keeping their lead by expanding their existing farms and adding in more automation. Like this company called Spread Co., they're producing over 20,000 heads of lettuce every day! They've got a huge facility outside of Kyoto. Other countries in Asia like India, South Korea, and Taiwan are also getting into vertical farming because their cities are growing and their people need to eat. So, the future of vertical farming in Asia Pacific looks bright!
Vertical Farming Market Share
Key companies operating in the vertical farming market include
- Sky Greens
- Green Spirit Farm
- Aerofarms
- Plantagon International
- Mirai Co., Ltd
- General Hydroponics
- Urban Crop Solutions
- American Hydroponics
- Spread Co
Manufacturers are constantly focusing on joint venture, partnership, merger & acquisition, and geographic expansion strategies to attain a competitive edge in the industry. For instance, in February 2020, Urban Crop Solutions collaborated with CropKing to enhance its service offerings.
The vertical farming market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2017 to 2027 for the following segments
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Market, By Technology
- Aeroponics
- Hydroponics
- Aquaponics
Market, By Product
- Equipment
- Lighting systems
- Pumps & irrigation systems
- Tanks
- Sensors
- Pipes
- Environment & climate controllers
- Meters & solutions
- Fruits, vegetables, herbs
- Tomato
- Lettuce
- Bell & chili pepper
- Cucumber
- Leafy greens
- Herbs
- Aquatic species
- Tilapia
- Bass
- Trout
- Salmon
- Carb
Market, By Application
The above information is provided on a regional and country basis for the following
- North America
- Europe
- Germany
- UK
- France
- Netherlands
- Belgium
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Middle East & Africa
