Vertical Farming Market to Grow at CAGR of 23.41% through 2033 - Sustainable Farming Practices in Agriculture Sector to Propel Growth

The vertical farming market size is anticipated to grow from USD 5.03 Billion in 2022 to USD 41.21 Billion in 10 years. The market should witness a moderate growth rate owing to the increasing demand for vertical farming in different regions. Government initiatives such as green agriculture are significantly helping global vertical farming grow.

Newark, June 06, 2024 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the vertical farming market will grow from USD 5.03 Billion in 2022 to USD 41.21 Billion by 2032. The primary reason for the growth of the vertical farming market is the rising demand for food security across regions due to rising urbanization. The need for increasing crop production has risen tremendously as the population grows.

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Key Insight of the Vertical Farming Market

The North American region will account for the largest market size during the forecast period.

The North American region will hold a significant market share due to the rising number of customers adopting vertical farming practices. One of the main factors propelling the regional precast construction market is the government initiatives for promoting sustainable farming practices which do not deteriorate the soil quality. Further, the availability of required infrastructure promotes widespread usage of such farming practices.

The building-based segment is expected to augment the market during the forecast period.

The structure type segment is divided into shipping container-based and building-based. The building-based segment is expected to augment the market during the forecast period. Vertical farming frequently makes use of abandoned buildings. Vertical farming involves piling layers of crops on top of one another. By relocating farms into urban areas, vertical farm buildings aim to address the issue of rural-urban migration.

The aquaponics segment is expected to augment the market during the forecast period.

The growth type segment is divided into aeroponics, hydroponics and aquaponics. The aquaponics segment is expected to augment the market during the forecast period. An aquaponics system that grows plants vertically above a fish tank is called a vertical aquaponics system. Aquaponics offers many possibilities for system designs and approaches for those who wish to maximize their backyard's potential for fresh food but have limited space.

The software segment is expected to augment the market during the forecast period.

The component segment is divided into software, services and hardware. The services segment further includes managed services, system counselling and integration and assisted professional services. The hardware segment further includes climate control, sensors, lighting and hydroponic components. The software segment is expected to augment the market during the forecast period. Vertical farming software can help users automate chores, keep an eye on their crops, and manage the farm from a distance. The software optimizes crop performance, automates laborious activities and guarantees complete produce traceability and food safety.

The bell and chili peppers segment is expected to augment the market during the forecast period.

The crop segment is divided into pepper, lettuce, cucumber, strawberry, bell and chili peppers, tomato, spinach, herbs, kale and others. The bell and chili peppers segment is expected to augment the market during the forecast period. Bell peppers, chilli peppers, sweet peppers, and banana peppers have all proven successful for vertical growers. For some peppers, the size of the plant is the main issue. Vertical farms may also successfully grow a variety of pepper varietals.

Report Scope and Segmentation –

Report CoverageDetails
Forecast Period2023-2032
Forecast CAGR23.41%
2022 Value ProjectionUSD 5.03 Billion
Market Size in 2032USD 41.21 Billion
Historical Data2019-2021
No. of Pages238
Report CoverageRevenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends
Segments Coveredby Structure Type, Growth Type, Component
Regions CoveredThe regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Vertical Farming Market Growth DriversRising awareness for vertical farming

Market Dynamics

Driver: Benefits of vertical farming

Vertical farming provides many advantages, including improved crop yields, effective land use, decreased water usage, and temperature management, using cutting-edge technologies and sustainable practices. Vertical farming makes multiple cultivation layers possible, increasing the growing space available. This vertical structure allows farmers to produce much better crop yields than traditional farming practices. Crop production can rise when environmental variables like light, temperature, and humidity are optimally controlled. This allows crops to develop more quickly and productively. Water scarcity is an issue because traditional farming practices use much water. On the other hand, hydroponic farming methods, which require up to 90% less water than traditional agriculture, are used in vertical farming.

Restraint: Energy consumption

Artificial lighting is used in vertical farms to give plants the light they need for photosynthesis. These lighting systems can have significant energy consumption, which raises the overall cost of operation and harms the environment. Thus, this is hindering the growth of the vertical farming market.

Opportunity: Favourable regulations for sustainable practices

New legislation is being developed in the U.S. and the U.K. to address some of the more prominent everyday sustainability and environmental issues, such as pollution, trash, and carbon emissions. Sustainable agriculture demands a limited use of non-renewable resources to protect the environment and future generations. The strategy promotes converting to minimizing land use, renewable energy sources, and eliminating environmental pollution. Farmers need effective management solutions, and remote sensing technologies in sustainable agriculture provide data for the most precise and trustworthy analytics. The preservation of natural resources for sustainable agriculture can lead to food security. The inappropriate soils cannot support a sufficient amount of agricultural production. Thus, sustainable agriculture may minimize soil loss and replenish soil fertility.

Challenges: Lack of skilled professionals

Technical know-how in fields like plant biology, data engineering and analytics is needed to operate a vertical farm. Farmers must have a thorough understanding of environmental control systems, fertilizer management, and crop cultivation. Finding and keeping qualified employees can be difficult, especially in areas where vertical farming is still relatively new.

Browse Detailed Summary of Research Report with TOC:

Some of the major players operating in the Vertical Farming market are:

• Aerofarm
• Agrilution GmbH
• Brightfarms Inc.
• Freight Farms
• Everlight Electronics Co., Ltd
• GrowUp Urban Farms Ltd.
• Vertical Farm Systems
• Green Sense Farms, LLC

Key Segments Cover in the Market:

By Structure Type:

• Shipping Container-Based
• Building-Based

By Growth Type:

• Aeroponics
• Hydroponics
• Aquaponics

By Component:

• Software
• Services

o Managed Services
o System Counseling and Integration
o Assisted Professional Services

• Hardware

o Climate Control
o Sensors
o Lighting
o Hydroponic Components

By Crop:

• Pepper
• Lettuce
• Cucumber
• Strawberry
• Bell and Chili Peppers
• Tomato
• Spinach
• Herbs
• Kale
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

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About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed on a global, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyzes driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, product analysis, supply and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirements whether they are looking to expand or planning to launch a new product in the global market.

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