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. With most of its segments performing well, the segment by component is expected to hold a majority share. In the regional view, Asia Pacific holds a majority share since a large proportion of the population resides in these countries.
The vertical farming market is one of the fastest-growing farming markets across the globe and the vertical farming outlook has changed the traditional methods of farming requiring huge land and surfaces for the cultivation of crops. The increasing population and the ever-increasing food demand had created a burden on the farming industry and it was becoming impossible to cater to the overall needs. Also to meet the additional demands the environment was being negatively impacted and harmed, thus all such factors gave way for the rise of vertical farming companies and indoor vertical farming techniques.
Vertical farming systems and technologies provide a better approach to farming methods where vertical farming methods allow the cultivation of crops in huge quantities within a bounded land area which does not require huge sums of money to be invested in capital and also does not impact the environment harshly. The major reason behind this stands out that the perpendicular stack-based farming reduces the need for additional land and there is full utilization of land towards farming with ideal use between land and energy providing major returns.
The demand for organic and superior-quality foodstuff has shifted the production ability of the vertical farming companies and provided a base to ensure high-quality and quantity approved production to meet the increasing demands. Apart from this people have also started to grow fruits and vegetables indoors and thus given the concept of indoor vertical farming.
COVID 19 Analysis:
The novel coronavirus or the Covid 19 pandemic has negatively impacted the vertical farming industry since the demand for high-quality products has now been restricted to general food products and the vertical farming companies have faced shortages in personnel, accumulated stocks, and forced shutdowns. Due to the lockdowns in various countries, the demand for vertical farming equipment and buildings has also significantly marked the slow growth rate of the vertical farming industry.
The impact of covid 19 can be easily seen in a way that most of the big players have to shut down their main production units and are also forced to lay off employees. However, it is expected that the market will certainly pick up growth as soon as the lockdown restrictions are removed and people can move freely. It is expected that the post-lockdown period would be a great success for the vertical farming market revenue. The segment by component is expected to provide maximum returns with more investments being made by the public for farming purposes.
The vertical farming market has been experiencing a diversified growth in all segments and across different regions due to the rising populations and the increasing per capita incomes of people which has shifted the demands of people towards more organic, health, and environment-friendly foodstuffs has developed the market for vertical farming companies.
The increasing awareness and consciousness among people on what they eat and increased focus on health issues have driven the market for organic farming which in itself tends to produce such fruits and vegetables without the use of insecticides and pesticides and are high in nutrition value.
Vertical farming at home has given a boost to this market whereby people are themselves interested in producing farm products in small quantities in their homes using vertically stacked structures and low investment for self-consumption.
The overall growth in the vertical farming market has been expediently rising but certain factors hinder the growth process of the vertical farming market which include large sums of money to be invested initially in setting up of vertical farming companies and thus it restricts various new players to enter the markets.
Secondly, the lack of practical knowledge related to vertical farming among farmers also hampers the growth process, though the technology is used in such farming the overall crop production, raising, and caring involves the participation of farmers which is restricted due to their unawareness of the farming techniques. Moreover, only a limited variety of crops can be grown through vertical farming which acts as another barrier for vertical farming market.
The vertical farming market is an emerging market and has gained significance due to improved vertical farming technology and continuous improvements by various companies in terms of making vertical farming reach beyond a specific level and gain global acceptance. The use of lighting technology to act as a supplementary source to the sun to provide light to the plants and reduce heat stress on roots thereby ensuring maximum nutrients to the roots.
Sensor technology has also been developed whereby sensors react according to the changes in the external environment and crop growth. Also, a modern concept of automation in vertical farming methods is used by the companies to reduce time to market, distribution and production costs, and ensure high quality.
To analyze the trends that are prevalent in the global vertical farming market regions and players that will dominate the global trends and lead the market operations towards growth figures that have been predicted by the prominent leaders in the international market and key experts for the ongoing forecast period that ends in 2028.
To understand the scale of functioning of the global vertical farming market segments that are prevalent through their ability to meet the vibrant needs of the target audience for market products and services in major mushrooming regions across the globe for the period.
To draw a competitive scale amongst the global market players producing the electric commercial vehicles and to understand the recent developments of the key market players in the recent past that promise great results to the market for the ongoing forecast period and market trends that end in 2028.
The vertical farming market has been segmented as follows:
The vertical farming market has been segmented as follows:
By Growth mechanism
The global vertical farming market has been divided into four regions where each region has been contributing significantly in terms of its capabilities and population demands. However, among the four nations, the Asia Pacific region has been accounting for the major vertical farming market share whereby the key drivers towards the growth of the vertical farming industry are developed here, and the population seems to be quite interested in the innovations in terms of new products in the market.
The major vertical farming market revenue is expected to come from countries like China, Japan, Korea, and India. The vertical farming statistics indicate that the population along with the disposable incomes of people of these countries has been increasing which has led to shifts in lifestyles and changing demands.
The European region is also experiencing steady growth where the vertical farming equipment and tools are used significantly in indoor farming and vertical farming at home. The North American region is also experiencing vast growth in vertical market shares as the US vertical market is leading the demand for vertical farming crops in this region and people are also taking vertical farming advantages in their homes.
The competitive landscape in terms of the vertical farming market has been immense and nail-biting with new players easily entering the market and the existing players making huge investments in this segment. The big names from this market are:
The key players in the market are more focused on developing future strategies and set themselves as joint ventures to increase the vertical market share and size.
Recently, Aerofarms, a major vertical farming company in the USA, has announced plans to invest and construct an indoor vertical farming building in UAE to extract benefits from the abundant sunlight and heat present in the country to foster vertical farming growth and also expand its business.
In recent technological developments, the Internet of things has entered the mainstream vertical farming market which has reduced various production and distribution costs and also reduced the time taken to supply products from the place of manufacture to the actual place of delivery. Thus, it has completely transformed the vertical farming market outlook and its scope all around the globe.
Recently, the introduction of robot harvesters, automatic seed planters, and greenhouse roof cleaners have positively impacted the vertical farming market by reducing various costs indulged with it. The use of hydroponics is the latest development that allows the cultivation of various crops by this method.
The Global report helps the investors to gain meaningful information about the market and make decisions wisely. The report discusses the steps taken by the market leaders to boost the market growth and inflate market valuation for their good. The report fully summarises the ongoing market scenario in the vertical farming market which would help the intended audience to seek more information about the market. The objective of the report was to fully summarise the key players in the market and their role in boosting the vertical farming market value. The report also discusses the future growth prospects and the competitive landscape in the vertical farming industry and lays down the expected growth rate of the market along with the hindrances it might have to face.
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.