Vertical Farming Market Value By Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), By Structure (Building-based vertical farm and Shipping container-based vertical farm), By Region - Industry Share, Statistics & Forecast, 2023 – 2032

MVI Statistics and Viewpoints:

• Vertical Farming Market size exceeded USD 3.5 Billion in 2022.
• The market is expected to attain at more than 21.4% CAGR from 2023 to 2032. 
• By the end of the forecast period, the industry is anticipated to surpass USD 24.3 Billion.

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Vertical farming companies focus on space efficiency, sustainability, controlled environments, and resource efficiency. They maximize land use by growing crops vertically, employ eco-friendly practices, maintain precise environmental conditions, and optimize resource utilization. They utilize automation and technology for improved productivity and offer a diverse range of locally grown produce. By prioritizing these factors, vertical farming enhances food security and contributes to a more sustainable and efficient agricultural system.

Market Overview:

The vertical farming market has been rapidly evolving and gaining traction in recent years, revolutionizing the way we grow and consume food. Vertical farming refers to the practice of cultivating crops in vertically stacked layers or structures, typically indoors or in controlled environments. This innovative approach maximizes space utilization, minimizes the need for land and water resources, and offers precise control over environmental factors such as light, temperature, humidity, and nutrients.

The global vertical farming market has witnessed significant growth and is slated to continue expanding in the coming years. Several factors are driving the industry growth, including the increasing global population, rising demand for food security, limited availability of arable land, climate change challenges, and the need for sustainable agricultural practices. Vertical farming addresses these challenges by offering a more efficient and sustainable method of food production.

The market outlook for vertical farming is promising, with a projected growth rate of several billion dollars over the next decade. Advancements in technology, increasing consumer demand for sustainable and locally sourced produce, and the need for food security in the face of climate change are slated to boost the industry growth. Additionally, government initiatives promoting sustainable agriculture and investment in vertical farming are likely to further foster the market in various regions across the globe.

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Growth Drivers:

• Limited Availability of Arable Land: Urbanization and industrialization have led to the conversion of agricultural land into residential or commercial areas, reducing the availability of arable land for traditional farming practices. Vertical farming overcomes this constraint by utilizing unused or underutilized spaces such as buildings, warehouses, or repurposed industrial structures. By growing crops vertically, farmers can produce food in urban areas and make efficient use of available space.
   
• Technological Advancements: The advancements in technology have played a crucial role in the growth of the vertical farming market. Hydroponics, aeroponics, and aquaponics, which are commonly employed in vertical farming, optimize resource usage and enable efficient plant growth. Artificial intelligence (AI), machine learning (ML), and Internet of Things (IoT) technologies have enhanced monitoring, control, and automation within vertical farming systems, leading to improved efficiency, productivity, and resource management. These technological advancements have made vertical farming more economically viable and scalable

Restraints:

• Energy Consumption and Cost: Vertical farms heavily rely on artificial lighting to provide the necessary light spectrum for plant growth. Additionally, climate control systems, ventilation, and irrigation systems consume considerable amounts of energy. The cost of electricity can be a significant operational expense, impacting the profitability of vertical farming ventures. Although advancements in LED lighting and energy-efficient technologies have helped reduce energy consumption to some extent, finding cost-effective and sustainable energy solutions remains a challenge.

By Growth Mechanism Synopsys:    

The vertical farming market is divided into three segments based on growth mechanism: hydroponics, aeroponics, and aquaponics. Among these segments, the hydroponics segment is witnessing the majority share of the vertical farming industry over the forecast period. This is primarily due to its versatility, relatively lower complexity compared to aeroponics and aquaponics, and proven track record in commercial applications. Hydroponic systems have been extensively researched, developed, and optimized over the years, leading to a wide range of commercial hydroponic solutions and a greater number of hydroponic farms worldwide.

Regional Overview:

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The North America region held over 41% share of the vertical farming market in 2022. The region has emerged as a leading region in the global market. The United States, in particular, has seen substantial growth in vertical farming initiatives, driven by factors such as limited arable land, increasing urbanization, and consumer demand for fresh and local produce. Several large-scale vertical farming companies, including AeroFarms, Plenty, and Bowery Farming, have their operations based in the region. The region benefits from strong technological advancements, access to capital, supportive policies, and well-established distribution networks.   

The Asia-Pacific region is poised to grow the fastest in the vertical farming market over the forecast period, driven by factors such as a large population, limited arable land availability, and increasing food security concerns. Countries like Japan, Singapore, and South Korea have embraced vertical farming as a solution to their urbanization challenges and the need for sustainable agriculture. Japan, in particular, has a long history of vertical farming practices and is known for its advanced technology and high-tech vertical farms. Singapore has also emerged as a hub for vertical farming, focusing on producing fresh and locally grown produce for its densely populated urban areas.

Recent Development:

• In October 2022, Singrow (Singapore), has intended to broaden throughout and beyond Asia, introducing its consumer concept brand Blooom. Beyond its current presence in Indonesia, China, and Singapore, this company intends to expand its partner farm footprint to the Philippines, Hong Kong, Thailand, and the Middle East.
   
• In August 2021, AeroFarms collaborated with Nokia Bell Labs to pool their resources and expand their expertise in networking, autonomous systems, and integrated machine vision and machine learning methods to track and detect plant interactions at the most advanced levels.

Top companies includes in the global vertical farming market:

• AEROFARMS 
• AMHYDRO 
• HORT AMERICAS
• KONINKLIJKE PHILIPS N.V. 
• SKY GREENS
• 4D BIOS INC. 
• AGRILUTION 
• EVERLIGHT ELECTRONICS CO., LTD.
• ILLUMITEX INC. 
• URBAN CROP SOLUTIONS 
• Other Players

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In-depth analysis of vertical farming market along with industry coverage and forecasting for the following segments: 

Market Size, By Growth Mechanism

• Hydroponics 
• Aeroponics
• Aquaponics

Market Size, By Structure

• Building-based vertical farm 
• Shipping container-based vertical farm

Market Size, By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America