Global Vertical Farming Market Scope Report

Global Vertical Farming Market Size, Forecast, and Trend Highlights Over 2023 - 2033

The global vertical farming market is estimated to garner a revenue of ~USD 34 billion by the end of 2033 by growing at a CAGR of ~26% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 5 billion in the year 2022. The considerable decline in arable land in many parts of the world is the primary factor driving the growth of the global vertical farming market. For instance, it was observed that the total arable land in China in 2019 was about 7% less compared to the total amount just a decade before.

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Several factors cause the decline of arable lands, including population growth, land degradation, climate change, deforestation, urban sprawl, and more. Vertical farms conserve both land and operating room by using space vertically with layers of crops stacked one on the other.

Global Vertical Farming Market: Growth Drivers and Challenges

Growth Drivers

• Rapid Growth of Urbanization – It is estimated that the total urban population in the world should surpass 5 billion by 2045. Industrialization, social benefits and services, commercialization, employment opportunities, change in the mode of living, and modernization are the main factors leading to the growth of urbanization. Most of the vertical farms are established in and around urban areas, with the urban population constituting the primary consumers of the farm produce. This localization of farms also minimizes transportation needs and thus greenhouse gas (GHG) emissions.

• High Demand for Organic Food Produces – In 2020, up to 5% of the total food sales in the United States (U.S.) was comprised of sales of organic food.  

• Rapid Increase in the Number of Health-Conscious Customers – As of 2022, between 24 and 31% of all grocery customers in the U.S. and Europe should be categorized as health-conscious customers.

• Rapid Growth in Agricultural Waste – The annual amount of agricultural waste produced in Russia is estimated to reach up to 651 million tons.

Challenges

• Requirement for Large Initial Investments

• Lack of Practical Knowledge of Farming Methods Among Farmers

• Delay in the Manufacturing and Supply of Electronics Needed in Vertical Farming as a Result of COVID-19

The global vertical farming market is segmented and analyzed for demand and supply by growth mechanism into hydroponics, aeroponics, and aquaponics. Of these, the hydroponics segment is anticipated to hold the largest market by the end of 2033. Water conservation is the main factor driving segment growth. It is estimated that plants should grow successfully in the hydroponic method by utilizing around 85% less water than in traditional soil cultivation. Other factors contributing to the segment growth include scalable initial investments, high profitability, and the little use of soil.

Global Vertical Farming Market Regional Synopsis

Regionally, the global vertical farming market is studied into five major regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. Amongst these markets, the market in the Asia Pacific region is projected to hold the largest market share by the end of 2033. The population growth, awareness about the alternative farming method, and the decline of arable lands are the major factors driving the regional market growth. For instance, it is estimated that the population in Asia should reach around 55% of the projected total world population in 2050.

Market Segmentation

Our in-depth analysis of the global vertical farming market includes the following segments:

Key Companies Dominating the Global Vertical Farming Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global vertical farming market that are included in our report are AeroFarms, LLC, BrightFarms, Inc., Plenty Unlimited Inc., Freight Farms, Inc., OSRAM GmbH, Urban Crop Solutions BV, Heliospectra AB, Signify Netherlands B.V., Agrilution Systems GmbH, 4D Bios Inc., and others.

Global Vertical Farming Market: Latest Developments

• October, 2022: Urban Crop Solutions BV announced the establishment of a research center in Spain in collaboration with Dr. Rudi Pauwels to optimize crop nutrient content while studying the effects of climate change on crops in Southern Europe.

• September, 2022: Freight Farms announced collaborating with the team of scientists and research facilities at the University of Arizona Biosphere 2 to explore indoor farming in the face of environmental challenges to the global food system.

Key Reasons to Buy Our Report

• The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.

• It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis and challenges that impact the market growth.

• The report includes detailed company profiles of the major players dominating the market.

• We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.

• We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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