India's Vertical Farming Market Size was valued at USD 42.8 Billion in 2022. The Vertical Farming market industry is projected to grow from USD 52.00 Billion in 2023 to USD 246.96 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.50% during the forecast period (2024 - 2032). The increasing adoption of eco-friendly methods for producing fruits and vegetables has risen alongside the unprecedented growth of the global population, which has led to a heightened demand for urban agriculture, which is the main market driver anticipated to propel the Vertical Farming market in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India's population continues to rise, resulting in heightened food demand. As of July 23, 2023, India's population stands at 1,429.4 million, according to the latest United Nations data analyzed by Worldometer. In India, the urban population totals 461 million individuals, with this figure increasing by 2.3 percent annually. Projections suggest that by 2031, cities will contribute 75 percent of India's national income. According to UN India, it is anticipated that over 400 million people will reside in urban areas in India by 2030. Although cities occupy only 3 percent of the land, they contribute significantly to India's gross domestic product, accounting for 60 percent. With urban areas expanding, ensuring a consistent and reliable food supply becomes increasingly vital. Vertical farming presents an opportunity to cultivate a variety of crops in controlled environments, facilitating a more stable and continuous food production system. These factors propel the market CAGR.
India faces challenges due to its dense population and limited availability of arable land. According to The World Bank, the percentage of agricultural land in India was 60.2 in 2020, down from 60.4 in 2015. Vertical farming offers a solution to optimize land use by growing crops vertically in stacked layers or shelves. This innovative approach enables the cultivation of a larger volume of crops within a smaller physical footprint compared to traditional farming methods. Water scarcity poses a significant challenge in various regions of India. Vertical farming, especially methods like hydroponics and aeroponics, consumes less water compared to traditional soil-based farming techniques. By employing closed-loop systems that recycle and reuse water, vertical farms can substantially decrease water usage. This makes them well-suited for areas grappling with water shortages and drives the Vertical Farming market revenue.
The India Vertical Farming market segmentation, based on Components, includes Irrigation Components, Lighting, Sensors, Climate Control, Building Materials (Glass Greenhouse, Plastic Greenhouse), and Others. The lighting segment dominated the market mostly. The adoption of LED lighting in vertical farms has seen a significant uptick owing to its multitude of advantages tailored to the specific needs of indoor agricultural environments. LED lights offer precise control over the light spectrum and intensity, empowering farmers to tailor lighting conditions to meet the diverse requirements of different plant species, thereby promoting optimal growth and higher yields. Additionally, LED lights are highly energy-efficient, consuming notably less electricity compared to traditional lighting sources, while their extended lifespan helps reduce maintenance costs. Moreover, LED lights emit minimal heat, mitigating the risk of heat-related damage to plants and creating a more conducive working environment for farmers. The versatility and advantages of LED lighting have positioned it as the preferred choice among vertical farm operators, playing a pivotal role in the success and expansion of this innovative farming approach.
The India Vertical Farming market segmentation, based on Structure, includes Building-based Vertical Farms and container-based Vertical Farms. The building-based vertical farms category generated the most income. Building-based vertical farm structures have risen to prominence in the vertical farming market for several compelling reasons. Firstly, their versatility enables them to be established in any location, regardless of challenging climatic or weather conditions. This makes them particularly well-suited for countries or regions grappling with traditional farming obstacles, such as deserts or urban landscapes. Secondly, the efficiency of building-based vertical farms is remarkable, as they can optimize the utilization of resources such as water, space, and energy. Through vertical stacking, these farms can achieve higher yields within a smaller footprint.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India Vertical Farming market segmentation, based on Growth Mechanism, includes Hydroponics, Aeroponics, and Aquaponics. The Hydroponics category generated the most income. Hydroponics has gained popularity as a growth method due to its low installation costs and straightforward operations. It involves growing plants without soil, with mineral solutions substituted around the plant roots. Moreover, hydroponics eliminates the risk of soil organisms causing diseases. Increasing consumer awareness about the impact of pesticides is anticipated to drive demand for hydroponics. Plants cultivated hydroponically typically yield higher outputs compared to those grown in soil due to precise control over nutrient levels. Additionally, plant roots are submerged in a nutrient solution and regularly monitored to maintain the ideal chemical composition for optimal growth.
The India Vertical Farming market segmentation, based on Application, includes Indoor and outdoor. The Indoor category generated the most income. In contrast to traditional farming methods, indoor farming offers the advantage of year-round crop production, leading to enhanced productivity. Additionally, indoor farming can shield crops from adverse weather conditions by employing techniques such as controlled environment agriculture technology. This approach involves the use of artificial environmental controls, precise regulation of light, and fertigation methods to create optimal growing conditions within facilities.
The rising utilization of products to produce organic and high-quality nutritious food, facilitating a stable and sustainable year-round food supply, is driving market growth. According to a 2022 survey conducted across 187 countries practicing organic agriculture by the Research Institute of Organic Agriculture (FiBL) and the International Federation of Organic Agriculture Movements (IFOAM), India cultivates organic food on 2.6 million hectares, ranking fifth globally. The report also indicates that organic farming occupies 1.5% of total agricultural land in India, with a remarkable 145.1% increase in organic agricultural land over the past decade. The Economic Survey 2022-2023 highlights India's standing with 4.43 million organic farmers, the highest globally. Additionally, technological advancements such as integrating the Internet of Things (IoT) with mobile devices and drones to offer real-time crop health information are fueling market growth. The growing demand for vertical farming reflects increasing environmental awareness among farmers, as it minimizes land and water requirements for production, thereby positively impacting market expansion.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Vertical Farming market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Vertical Farming industry must offer cost-effective items.
Major players in the Vertical Farming market are attempting to increase market demand by investing in research and development operations, including UrbanKisaan, Triton Foodworks, FF Agro Technologies Pvt Ltd, Sparsh Bio Life, URBAN GREEN FATE FARMS.
Triton Foodworks
FF Agro Technologies Pvt Ltd
Sparsh Bio Life
URBAN GREEN FATE FARMS
January 2023: AeroFarms, a company specializing in vertical farming, launched nine new community farms to provide an additional 2 tons of fresh food access to over 4,500 local students.
January 2022: Brio Hydroponics launched the 'Unnati' project aimed at drawing investment into the agricultural segment. The Unnati project entails an optimized commercial hydroponics initiative designed to advance hydroponic farming practices and encourage Foreign Direct Investment (FDI) in the agriculture sector.
Irrigation Component
Lighting
Sensor
Climate Control
Building Material
Glass Greenhouse
Plastic Greenhouse
Others
Building-based Vertical Farms
Container-based Vertical Farms
Hydroponics
Aeroponics
Aquaponics
Indoor
Outdoor
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 42.8 Billion |
| Market Size 2023 | USD 52.00 Billion |
| Market Size 2032 | USD 246.96 Billion |
| Compound Annual Growth Rate (CAGR) | 21.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Structure, Growth Mechanism, Application, and Region |
| Countries Covered | India |
| Key Companies Profiled | UrbanKisaan, Triton Foodworks, FF Agro Technologies Pvt Ltd, Sparsh Bio Life, URBAN GREEN FATE FARMS |
| Key Market Opportunities | The increasing consumer demand for organic food Technological advancements, like IoT integration with mobile devices and drones, offer real-time crop health data |
| Key Market Dynamics | The growing need for independent farming practices across the country Increasing demand for high-quality food |
Frequently Asked Questions (FAQ) :
The India Vertical Farming market size was valued at USD 52.00 Billion in 2023.
The market is projected to grow at a CAGR of 21.50% during the forecast period, 2024-2032.
The key players in the market are UrbanKisaan, Triton Foodworks, FF Agro Technologies Pvt Ltd, Sparsh Bio Life, and URBAN GREEN FATE FARMS.
The Lighting category dominated the market in 2023.
The Hydroponics category had the largest share of the market.
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