The global vertical farming market size was estimated to be worth USD 5,894.4 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 20.1% from 2023 to 2030. adoption of ecological fruit and vegetable production. The unprecedented growth of the world's population has increased the demand for urban agriculture.
Vertical farming is the practice of producing food in layers stacked vertically, for example. B. in a used warehouse, skyscraper or shipping container. Organic foods are considered healthier, more nutritious, safer and more ecological. A critical factor influencing demand for organic food is consumer buying behavior, which is essential for producers, policy makers and suppliers to implement successful marketing strategies.
Obesity and heart disease are common health problems among consumers. Furthermore, the increasing depletion of groundwater and changing climate conditions have led traditional producers to adopt alternative farming methods. Increased consumer health concerns and the above factors are likely to increase industry demand.
Unlike traditional farming, indoor farming can produce crops all year round, resulting in higher productivity. In addition, indoor farming can protect crops from extreme weather conditions by employing techniques such as climate control technology, where plants use artificial environmental control, light control, and fertigation.
Growing demand for quality food, independent agricultural technology and increasing urbanization are some of the crucial factors responsible for the growth of the market. These factors increased the need for food. Demand for food is expected to increase significantly by 2030 with a growing population. The introduction of the vertical growing technique allows consumers to grow plants in a warehouse or multi-story building.
On the basis of components, the vertical farming market is segmented into hardware, software and services. The hardware segment had the highest market share in 2022. Hardware plays an important role in preserving the environment in vertical farming. The segment is further categorized into Lighting, Hydroponic Components, Climate Control and Sensors. The lighting segment led the market, accounting for more than 44% of global hardware sales in 2022. The large share of the lighting segment is due to vertical farms' reliance on artificial lighting. Artificial lights provide sufficient light intensities needed for plant growth. The climate control segment is expected to register the highest CAGR of 27.0% during the forecast period. Increasing acceptance ofhydroponicFarmer components to minimize the weight load and the infrastructure required to support the equipment are expected to drive demand for hydroponic components.
Climate control is a type of growing where plants are grown in a greenhouse in a controlled environment that allows the grower to maintain and monitor proper light levels.carbon dioxide, water, humidity, pH levels and nutrients for plant growth. The main objective of climate-regulating agriculture is to facilitate protection and maintain ideal growing conditions during the development period of a crop. In many cases, climate-controlled agriculture ensures that plants receive the ideal nutrients for their growth.
Farming with the help of light technology ensures uniform plant growth, reducing heat stress in the root area and providing uniform lighting. The use ofLed lightningThe technology acts as a supplemental light source to the sun, providing greater productivity with minimal energy consumption. The sensors allow comprehensive monitoring of the external environment and crop conditions. Various sensors such as nutrient sensors,humidity sensors, and light sensors are used to monitor plant growth. Monitoring also allows notification of changes and alerts.
Automation in vertical farming aims to minimize time to market, reduce distribution, production, and environmental costs, and standardize for high quality. IoT has become a mainstream technology in diverse industries such as transportation, manufacturing, and agriculture. The spread of IoT has revolutionized the agricultural industry.
Furthermore, the software segment is expected to show a CAGR of 22.2% from 2023 to 2030 due to upcoming trends in agricultural technologies and practices. The software can identify a producer, crop batch, country or field, and fruit and vegetable supplier information. As the cloud-based software collects millions of data points in real time that can be analyzed using machine learning techniques to determine how changes in certain environmental parameters affect the yield and taste of the final product, it is expected that the market to grow significantly this year. years.
Information about the growth mechanism
The hydroponics segment recorded the highest market share in 2022 and is expected to remain dominant between 2023 and 2030. Hydroponics is a popular growing mechanism due to low installation costs and ease of use. It is a method of growing plants without soil, replacing the soil with a mineral solution placed around the roots of the plants. In addition, the hydroponic method eliminates the risk of soil organisms causing disease.
Growing consumer awareness of the effects of pesticides is expected to drive demand for hydroponics. Plants grown hydroponically produce higher yields than similar plants grown in soil due to proper control over nutrients. In addition, the roots of the plants are immersed in the chemical solution and checked periodically to ensure that an appropriate chemical composition for growth is being maintained.
The aquaponics segment is expected to gain significant market share during the forecast period. Aquaponics is the integration of hydroponics and aquaculture, eliminating the need for harmful chemicals in cultivation. Plants such as lettuce, chives, peppers, kale, mint, cucumber and peas are grown through aquaponics. The water used in aquaponic systems contains fish waste, which becomes rich in nutrients and increases the production time of plants. This creates a sustainable natural system that eliminates the use of chemicals to produce food.
The aeroponics segment is expected to witness significant growth during the forecast period. This system is similar to hydroponics in that neither method uses soil to grow plants. However, growing medium is not necessary in aeroponics, as the plant roots are suspended in a darkroom and regularly sprayed with a nutrient-rich solution.
Crop category information
The fruit, vegetable and herb segment recorded the highest market share in 2022 and is expected to remain dominant between 2023 and 2030. The increasing cultivation of fruits and vegetables co-cultivated in vertical farming is driving the growth of the segment. Crops grown using vertical farming offer maximum profit for the companies involved in their cultivation. At the same time, vertical farming improves biodiversity because it does not disturb the land. Therefore, vertical farming is in high demand for growing various types of crops. In addition, fruits, vegetables and herbs are divided into tomatoes, lettuce, peppers and chili peppers, strawberries, cucumbers, leafy greens (except lettuce), herbs and others. Among them, the tomato segment led the market, accounting for more than 24% of global fruit, vegetable and herb revenue in 2022. This large proportion is due to the high average demand for tomatoes in all regions compared to other crops, such as lettuce, peppers, cucumbers, herbs and so on. Some of the most commonly grown vegetables, herbs and fruits in different regions include strawberries, lettuce, bell peppers and chili peppers, tomatoes, cucumbers and leafy greens. One of the most important factors in growing crops in vertical farming is validating the economic viability of that crop, which ensures that the company is making good money from its cultivation.
Likewise, the time it takes for plants to fully grow is one of the criteria, as some vegetables like lettuce and mint grow quickly, while herbs and some fruits take longer to grow but may have larger margins than many others. As a farmer, it is imperative to ensure that we can sell what we grow and that the cost of production should not be too high. To make this decision, the type of crop also plays a very important role in the feasibility study of vertical farming. Lettuce has shown consistent demand around the world, which has improved its cultivation.
The Floral and Ornamental Plants segment is expected to grow at significant CAGR during the forecast period. The increasing use of flowers and ornamental plants for decorative and aesthetic purposes is expected to stimulate market growth. Vertical farming has also gained popularity in growing edible flowers including marigolds, matthiol, carnations and snapdragons. The segment was further divided into perennials, annuals and ornamentals. Ornamental flowers held the largest market share in 2022 due to increased sales.
Information about the structure
The marine container segment dominated the market with a share of around 53.32% in 2022 and is expected to remain dominant between 2023 and 2030. This growth is attributed to the structure's ability to support the cultivation of crops, regardless of geographic location. start farming start.
Also, as competition increases, the price of marine containers decreases because the cost of purchasing used containers is relatively less, giving other companies an opportunity to enter the market. However, the comparatively low performance and the antagonism between light, heat and disposition are some of the disadvantages of this type of cultivation.
Factors such as increased technological advancement and increased penetration of precision agriculture are expected to drive the marine container segment during the forecast period. Widespread in Japan, China and other Asian countries, the construction segment is the fastest growing segment in terms of revenue due to its increasing adoption in the region. Building-based farming helps to minimize farming costs and requires more arable land than individually cultivated land, ensuring food security.
Container-based agriculture uses 95% less water than traditional drip irrigation agriculture. Shipping containers are easily modified, stackable, durable and can be recycled and remanufactured at lower cost. In addition, the global glut of unused containers is likely to affect segment growth during the forecast period.
In terms of revenue, Asia-Pacific dominated the vertical farming market in 2022 with a share of around 28.04% and is expected to remain dominant between 2023 and 2030. The region's population is the main factor expected to drive demand.
Significant growth is expected in Europe over the projected period due to increasing acceptance of GM crop technology. In addition, the increasing adoption of nanotechnology and robotics in agriculture increases regional market demand. The use of nanotechnology helps improve food packaging and fight diseases and pests.
The European Environment Agency has undertaken several initiatives to build vertical farms to meet the challenges of continued population growth and climate change and to produce food in an environmentally harmful way. This has led to an increase in market demand in the region.
Growing urban populations and the commercialization of indoor farming are expected to increase demand in Africa. However, lack of financial resources to build modern vertical farms and limited access to water and land are expected to restrict the growth of the regional market. To overcome these challenges, several models have been followed in the region, such as vertically stacked wooden crates and bag gardens.
Insights into top companies and market shares
Major market players are involved in strategies such as partnerships, business expansions, new product development and contracts to expand their market share. Actors invest in R&D for product innovation and improvement. They also leverage the improved database of customers, products and processes to achieve the transformation needed to survive in this highly competitive market. The market is mainly dominated by lighting providers with a large share. Some of the Major Players in the Global Vertical Farming Market are:
Illumitex, Inc. (USA)
American Hydroponics (EUA)
Everlight Electronics Co., Ltd.
GrowUp Urban Farms Ltda.
Green Sense Farms, LLC
vertical farming systems
Vertical Farming Market Report Scope
Market size value in 2023
US$ 6,915.9 million
2030 sales forecast
US$ 24,948.3 million
20.1% CAGR from 2023 to 2030
Base year for the estimate
2017 - 2021
2023 - 2030
Revenue in MUSD/billion and CAGR from 2023 to 2030
Revenue forecast, company share, competitive landscape, growth drivers and trends
structure, supply, growth mechanism, fruits, vegetables and herbs,Region
North America; Europe; Asia-Pacific; South America; MEANS
US.; Canada; Mexico; UK.; Germany; France; Italy; Spain; Japan; China; India; Singapore; South Korea; Brazil
Important companies not profile
Agrilution GmbH; aerodrome; Bright Farms Inc.; Everlight Electronics Co., Ltd.; freight operations; GrowUp Urban Farms Ltd.; Green Sense Farms, LLC; vertical farming systems
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Segments covered in the report
This report forecasts revenue growth at the global, regional and national level and provides analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has prepared the report on the market Global Vertical Farming Market Based on Structure, Component, Growth Mechanism, Plant Category, and Region:
Structure Perspective (Revenue, $M, 2017 - 2030)
ComponentOutlook (Revenue, $M, 2017-2030)
climate control(Video) Global Vertical Farming Produce Market Size, Trends & Analysis Forecasts to 2026
Systems integration and consulting
Supported professional services
Growth Engine Perspective (Revenue, $M, 2017-2030)
Culture Category Perspective (Revenue, $M, 2017 - 2030)
Fruits Vegetables and Herbs
paprika and paprika
Leafy greens (except lettuce)
Flowers and ornamental plants
ornamental plants(Video) Best Website for Sector Analysis | HINDI
Andere (Cannabis, Microgreens)
Regional Perspectives (Revenue, $M, 2017-2030)
Middle East and Africa (MEA)
Frequently asked questions about this report
What are the key factors driving the global vertical farming market?
B.Among the key factors driving the growth of the vertical farming market is the growing adoption of eco-friendly fruit and vegetable production. The unprecedented growth of the world's population has also increased the demand for urban agriculture.
How big is the vertical farming market?
B.The size of the global vertical farming market was estimated at US$5.89 billion in 2022 and is expected to reach US$6.92 billion in 2023.
What is the growth of the vertical farming market?
B.The global vertical farm market is projected to grow at a CAGR of 20.1% from 2023 to 2030, reaching $24.95 billion by 2030.
Which segment had the highest market share in vertical farming?
B.Asia-Pacific dominated the vertical farming market with a 28.04% share in 2022. This is due to the growing awareness of the importance of alternative farming due to the reduced availability of fertile farmland and the growing population.
Who are the key manufacturers in Vertical Farming market space?
B.Some of the main players operating in the vertical farming market are AeroFarms (USA); Illumitex, Inc. (USA); and American Hydroponics (USA).