ID: MRFR/SEM/2062-HCR | February 2021 | Region: Global | 100 pages
According to the latest report, the vertical farming market size is predicted to reach a revenue of USD 6.5 Billion by the end of 2024 at a CAGR of roughly 20% during the forecast period of 2019 – 2024. Vertical farming is the implementation of growing crops in perpendicular stacked layers. These crops are grown indoors with the help of artificial light conditions and temperature. It uses soilless farming techniques including hydroponics, aquaponics, and aeroponics. Vertical farming aims for higher productivity in compact spaces.
The rise in demand for superior quality and large volumes of foodstuffs is the major factor driving the growth of the vertical farming market. The other factor contributing to the growth of the vertical farming market includes the lack of ease of access to the cultivated land area and the reduction in the environmental impact. Vertical farming allows the cultivation of foods in huge quantities within a bounded land area in order to satisfy the rising demand for food globally. The rise in the demand for the vertical farming industry globally is predicted to increase during the forecast period due to the rise in the demand for organic foods across the globe. The perpendicular stacked-layer farming helps in the reduction of the demand for additional land and construction activity. The balance between the ideal use of vertical space and energy is also contributing to the growth of the vertical farming market.
This report contains all the information on the vertical farming market research and the market strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the vertical farming market analysis and forecast to 2024 is also included in the report.
Covid 19 Analysis
The outbreak of the covid 19 pandemics has affected the global vertical farming market in APAC, moreover, the medium scale companies and small scale companies are struggling to carry their business. However, the market is expected to witness a steady recovery by the end of 2021 due to the support of the governments and investors. The global vertical farming market growth varies from region to region where few countries offer Hugh potential in terms of growth and few countries face low-profit margins and closures.
The rising population, rise in the per capita income, change in lifestyles, the transhumance from rural to an urban area, the increased health consciousness among the consumers are the major factor driving the growth of the vertical farming market. The shifts of the focus of the farmers for the production of vegetables and fresh fruits irrespective of climatic conditions are other major factors contributing to the growth of the vertical farming market. The governments of various countries are likely to promote the cultivation of organic food with the help of organic pesticides which is ultimately boosting the growth of modern agriculture and eventually contributing to the growth of the vertical farming market. Organic foods are produced without the use of pesticides and artificial fertilizeorganics in vertical farming in order to satisfy the trends of eating healthy foods is another factor.
The rise in the use of the internet of things (LoT) sensors which are used in indoor farming with the help of the interconnected internet in the production of crops and the sweeping production of biopharmaceutical products creates a major opportunity for the key players in the vertical farming market.
The major companies involved in the production of the pharmaceutical products are interested in using indoor farming techniques for the production of crops in a green environment and cultivation therefore these companies are adopting vertical farming techniques for producing different crops which are used in the production of the biopharmaceutical products.
The requirement for the huge capital for the investment in the initial stage and the lack of practical knowledge among the farmers are the major restraints of the global vertical farming market. The limitation of cultivating certain crops with the help of vertical farming is another factor that is hampering the growth of the global vertical farming market system.
Vertical farming also involves the use of advanced solutions including sensors, artificial intelligence, cameras, automated systems, and hydroponic, aquaponics, or aeroponic systems which require a huge amount of investment and can be considered as a major restraint for small and medium scale businesses.
The maintenance of the circulation of conditioned air within the premises of vertical farm in order to create a steady growing environment however the racks in the vertical farms are in tacked very closely which creates a difficulty in creating uniform air condition everywhere, it is considered as the major challenge for the vertical farming market.
In order to avoid such challenges of air circulation, the farmers are relying on circular fans which add additional costs to the productions and eventually affect the prices of the produce.
Cumulative Growth Analysis
The establishment of automatic seed planters, greenhouse roof washers, and harvesting robots are expected to reduce operating costs and enlarging revenues in the global vertical farming market. The uses of hydroponics permit the cultivation of long-term crops in wide a range that is grown in vertical farming.
The rise in the development of the hydroponics field, simplifying technology, and rise in economic growth are contributing to the growth of the global vertical farming market. The evolution in comprising top lighting, customized lighting systems for research testing, tissue culture, and interlighting are stabilizing the growth of the global vertical farming market outlook.
Value Chain Analysis
According to the reports, the global vertical farming market is segmented on the basis of technology, structure, types of crop, and regions. On the basis of the technology, the global vertical farming market has been segmented into hydroponic, aquaponics, or aeroponic systems. On the basis of the structure, global vertical farming is segmented into the basis of indoor vertical farming and outdoor vertical farming.
Indoor vertical farming is further distributed into building-based vertical farming and shipping containers vertical farming. The shipping container vertical farming is predicted to dominate the global vertical farming industry in terms of revenue with a 44.2% of market share in the year 2020 and it is predicted to remain dominant between 2021 and 2028. On the basis of the crop type, the vertical farming market is segmented into tomatoes, leafy vegetables, herbs, lettuce, strawberries, and others. The tomato segment is predicted to led the market, it accounted for more than 23% of the global vertical farming market revenue in 2020
The market is segmented on the basis of the technology, structure, types of crop, and regions. The global vertical farming market is expected to witness decent growth during the forecast period.
Based on the application, the vertical farming market is segmented into hydroponic, aquaponics, or aeroponic systems
Based on the propulsion types, the vertical farming market is segmented into a tomato, leafy vegetables, herbs, lettuce, strawberries, and others
On the basis of the region, the global vertical farming market is segmented into four key regions and that is North America, Europe, Asia Pacific, and the rest of the world. The Asia Pacific is predicted to dominate the global vertical farming market throughout the evaluation period. The rise in the population of these regions and the decline in the cultivated land is the major factor for the growth of the market in this region along with that the rise in technological advancement is another major factor. Malaysia, Japan, China and Japan are the major countries from the Asia Pacific regions are contribution to the growth of the global vertical farming market report.
The presence of several key players in the global vertical farming market potential creates rivalry. The global market is growing at a remarkable pace, which escalates the competitiveness among the major key players in the market. These key players are focusing on making strategies like building partnerships, expansion of business, developments of new products, and building contracts to expand the vertical farming market shares. For the enhancement of the products, the key players are willing to invest in R&D. The database of the products and customers are also been used for assisting in this highly competitive market.
Major Key Players
The following report comprises of –
Global Market by Technology
Global Market by Structure
Global Market by Crop Type
Global Market by Region
Frequently Asked Questions (FAQ) :
The global vertical farming market is expected to expand by the end of 2024 with an approximately 20% CAGR during the forecast period.
2019 to 2024 is the growth period of the global vertical farming market.
Asia pacific market is ready to score high in the global vertical farming market.