Vertical Farming Market Outlook Till, 2022 - 2030: Grand View Research, Inc

The global vertical farming market size is expected to reach USD 33.02 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 25.5% from 2022 to 2030. Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. The growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.

Vertical farming is effective in ensuring stability in crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over the traditional farming technique, such as less use of water, the lesser need for agrochemicals, and low dependence on agricultural labor. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.

Vertical Farming Market Segmentation

Grand View Research has segmented the global vertical farming market based on structure, offering, growing mechanism, fruits, vegetables, & herbs, and region:

Based on the Structure Insights, the market is segmented into Shipping Container and Building-based.

• The shipping container segment dominated the market with a share of over 50.0% in 2021 and is expected to remain dominant over the forecast period.
• The price of shipping containers decreases with increased competition because the cost of acquiring used containers is relatively less, which gives other companies an opportunity to enter the market space.

Based on the Offering Insights, the market is segmented into Lighting, Hydroponic Components, Climate Control and Sensors.

• The lighting segment led the market and accounted for more than 40.0% in 2021. The large share of the lighting segment can be attributed to the dependence of vertical farms on artificial lighting.
• The climate control segment is expected to register the highest CAGR of 27.0% over the forecast period. Increasing adoption of hydroponic components by farmers to minimize the weight load and infrastructure needed to support the equipment is anticipated to drive the demand for hydroponic components.
• Climate control is a kind of agriculture where plants are grown inside a greenhouse under a controlled environment that allows a grower to maintain and monitor the proper supply of light, carbon dioxide, water, humidity, pH levels, and nutrients for crop growth.

Based on the Growing Mechanism Insights, the market is segmented into Hydroponics, Aeroponics and Aquaponics.

• The hydroponics segment held the largest revenue share of more than 50.0% in 2021 and is expected to remain dominant over the forecast period. Hydroponics is a popular growth mechanism due to low installation costs and ease of operations.
• Aquaponics is the integration of hydroponics and aquaculture, which eliminates the need for harmful chemicals for cultivation.
• The aeroponics segment is anticipated to witness considerable growth over the forecast period. This system is similar to hydroponics as neither method uses soil to grow plants.

Based on the Fruits, Vegetables, & Herbs Insights, the market is segmented into Tomato, Lettuce, Bell & Chili Peppers, Strawberry, Cucumber, Leafy Greens, Herbs and Others.

• This large share is attributed to the high average demand for tomatoes in all regions compared to other crops such as lettuce, leafy greens, peppers, cucumbers, herbs, and so on.
• One of the important factors behind growing any crop in vertical farming is to validate the economic viability of that crop, which ensures that the company is making a large amount of money from its cultivation.
• The time taken for crops to grow fully is one of the criteria because some vegetables like lettuce and mint grow fast, whereas herbs and some fruiting crops take more time to grow but can have higher margins than many other plants.

Vertical Farming Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

Key market players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. The players are investing in R&D for product innovation and enhancement. They are also utilizing the improved database of the customers, products, and processes to achieve the requisite transformation necessary for sustaining in this highly competitive market.

Some prominent players in the Global Vertical Farming market include:

AeroFarms (U.S.)

Illumitex, Inc. (U.S.)

American Hydroponics (U.S.)

Agrilution GmbH

Brightfarms Inc.

Everlight Electronics Co., Ltd.

Freight Farms

GrowUp Urban Farms Ltd.

Green Sense Farms, LLC

Vertical Farm Systems

Order a free sample PDF of the in Vertical Farming Market Intelligence Study, published by Grand View Research.