Vertical Farming Market Size By Product (Equipment [Lighting Systems, Pumps & Irrigation Systems, Tanks, Sensors, Pipes, Climate Controllers, Meters & Solutions, Others], Fruits, Vegetables & Herbs [Tomato, Lettuce, Bell & Chili Peppers, Strawberry, Cucumber, Leafy Greens, Others], Aquatic Species [Tilapia, Bass, Trout, Salmon, Crab, Others]), By Technology (Hydroponics, Aeroponics, Aquaponics [Salmon, Others]), By Application (Indoor, Outdoor), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027

Published Date: May 2021  |  Report ID: GMI1525  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 280   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Vertical Farming Market size valued at USD 4.51 billion in 2020 and will grow at a CAGR of 23.2% from 2021 to 2027. The ability of vertical farming to produce high-quality herbs, fruits, and vegetables throughout the year will positively influence industry growth.
 

Vertical Farming Market

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The atmosphere in vertical farming installations is controlled by using various equipment including sensors, humidity controllers, coolers, etc. A typical vertical farm is impervious to climate change and natural calamities such as floods, droughts, soil-related diseases, etc. Rapid changes in the climate due to the effects of global warming have resulted in vertical farming being considered the most effective alternative to traditional farming methods.
 

The rate of conservation and recycling of natural resources in vertical farming is another factor that will contribute to the vertical farming market growth. The majority of the water used in traditional farming is lost due to evaporation or runoffs. On the other hand, vertical farms need less water than traditional farms and most of the water is recycled back, thus reducing the usage of water by almost 90%. Vertical farming also reduces dependency on fertilizers & pesticides and needs less soil than conventional farming. However, high capital requirement, energy consumption, limitations on crop variety, and the lack of awareness may restrict the market penetration in agriculture industry.
 

Lower installation cost & easy operations to drive demand for hydroponics

Hydroponics holds more than 50% of the vertical farming market share as it has several advantages over conventional farming methods. The growing conditions in this 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, thus adding to the farmer’s profit.
 

The technology can be used anytime around the year, eliminating business risks for farmers and improving local food access in the community. However, the development of more innovative and sustainable technologies including aeroponics and aquaponics has the potential to shift focus from hydroponics vertical farming.
 

Crop cultivation through non-traditional farming techniques to surge equipment growth

Vertical farming equipment market is likely to witness a 20% CAGR till 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. The demand for this equipment is expected to rise with the growing popularity of vertical farming.
 

Environment & climate controllers are crucial parts of a vertical farm as they help in manipulating a crop’s growing environment to desired conditions. Coolers, fogging systems, humidity controllers, carbon dioxide generators, irrigation controllers, etc., are some of the environment & climate controllers commonly used in vertical farms. Solutions containing the desired amount of nutrients are also used in vertical farming installations. The growing crop cultivation through non-traditional farming techniques, such as aquaponics, hydroponics, and aeroponics, is poised to spur the demand for equipment used in these installations.
 

Land preservation to escalate revenue generation from indoor application

Vertical Farming Market, By Application

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In 2020, indoor vertical farming market generated around USD 3 billion in revenue. 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. These factors will provide an opportunistic line for market growth through 2027.
 

Increasing demand for food to fuel revenue across Asia Pacific

  Vertical Farming Market, By Region

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The Asia Pacific vertical farming market is estimated to register above a 24% growth rate through 2027. Japan holds the largest market share in Asia Pacific as it is one of the early pioneers in the industry. The rising expansion of existing vertical farming projects in conjunction with the integration of automation will propel industry expansion in Japan. For instance, Spread Co. produces over 20,000 heads of lettuce each day. The company has about 3,000 square meters facility outside of Kyoto. Urbanization and rising population feeding requirements in countries including India, South Korea, Taiwan, and others will propel the revenue generation.
 

Joint ventures, partnerships, and acquisitions to drive competition in the industry

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 key vertical farming market participants include Sky Greens, Green Spirit Farm, Aerofarms, Plantagon International., Mirai Co., Ltd., General Hydroponics, Urban Crop Solutions, American Hydroponics, and Spread Co.
 

This market research report on vertical farming 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:

Market, By Technology

  • Aeroponics
  • Hydroponics
  • Aquaponics
    • Salmon
    • Others

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

  • Indoor
  • Outdoor

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Netherlands
    • Belgium
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • South Africa
    • GCC
       

Frequently Asked Questions (FAQ) :

Vertical farming market share exceeded USD 4.51 billion in 2020 and will expand at a CAGR of 23.2% over 2021-2027.
Vertical farming equipment industry will record a CAGR of 20% between 2021 and 2027, driven by the rising usage of equipment comprising atmosphere controllers, grow lights, pipes, and irrigation systems for a variety of purposes.
Indoor vertical farming market accounted for a revenue of more than USD 3 billion in 2020 and will depict considerable growth, as the practice helps in satisfying the surging demand for food.
The Asia Pacific vertical farming industry size will grow at a rate of 24% through 2027 with increasing urbanization and population feeding needs.

Premium Report Details

  • Published Date: May 2021
  • Pages: 280
  • Tables: 226
  • Charts / Figures: 37
  • Companies covered: 23
  • Countries covered: 16

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