Vertical Farming Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Vertical Farming Market Size accounted for USD 4,250 Million in 2022 and is estimated to achieve a market size of USD 42,304 Million by 2032 growing at a CAGR of 26.1% from 2023 to 2032.

Vertical Farming Market Highlights

• Global vertical farming market revenue is poised to garner USD 42,304 million by 2032 with a CAGR of 26.1% from 2023 to 2032
• North America vertical farming market value occupied around USD 1,275 million in 2022
• Asia-Pacific vertical farming market growth will record a CAGR of more than 27% from 2023 to 2032
• Among growing mechanism/channel, the hydroponics sub-segment generated over US$ 1,912 million revenue in 2022
• Based on growing platform, the buildings sub-segment generated around 63% share in 2022
• Increasing demand for agricultural monitoring systems is a popular vertical farming market trend that fuels the industry demand

The United Nations projects that the global population will reach around 9.6 billion by 2050, with over 86% of this population residing in cities. Considering the current trend where people are already shifting from rural to urban areas in search of a better quality of life, the United Nations' predictions are likely to hold true. The growing urban population will create a substantial demand for high-quality food. The reduction in agricultural activities due to this shift from rural to urban areas will result in a significant gap between food demand and supply. Vertical farming, which can produce quality and fresh food with less available land and lower water usage, could offer a viable solution to this problem. Vertical farming is an advanced agricultural technique that utilizes artificial lights and a controlled environment within enclosed structures to grow greens, herbs, and more. For expanding cities, these urban farms provide convenient access to fresh and nutritious food year-round.

Global Vertical Farming Market Dynamics

Market Drivers

• High yield compared to conventional farming is tied to vertical farming
• Advancement in lighting technologies in farming
• Significantly raise the popularity of organic vegetables
• Optimum utilization of vertical space & balanced energy utilization

Market Restraints

• A scarcity of technically skilled labor
• High start-up costs
• Developmental phase of technologies used

Market Opportunities

• Growth in urban population
• Increasing demand for agricultural monitoring systems
• Rising adoption of automation and digitization in vertical farming

Vertical Farming Market Report Coverage

Vertical Farming Market Insights

Some of the major factors driving the growth of this market include the availability of farm-fresh produce within easy reach of urban populations, the accessibility of organic produce with minimal or no use of insecticides and pesticides, a rapidly increasing population, limited available arable land, year-round production capabilities, and protection from adverse climatic conditions, among others. Vertical farming encompasses growing methods such as hydroponics and aeroponics technology, which consume approximately 70% less water compared to traditional farming techniques. Urban waste, such as sewage water, can be recycled and used for vertical farms, and sewage sludge can be converted into topsoil. However, one of the major factors restricting the growth of the vertical farming market is the high cost associated with setting up a vertical farm within urban areas, considering the ever-expanding real estate sector. Another significant limitation of vertical farms is their ability to grow only a limited variety of fruits and vegetables. The growing acceptance of environmentally friendly fruit and vegetable cultivation is driving the expansion of the vertical farming market. Additionally, the increasing demand for genetically engineered seeds, coupled with rising customer preferences for organic and specialty products, is expected to further accelerate the growth of the vertical farming market in the foreseeable future.

Vertical Farming Market Segmentation

The worldwide market for vertical farming is split based on growing mechanism/channel, growing platform, crop type, hardware components, and geography.

Vertical Farming Growing Mechanism/Channels

• Hydroponics
• Aeroponics
• Aquaponics

According to an analysis of the vertical farming industry, the hydroponics segment held the highest market share in 2022. Hydroponics is expected to experience rapid growth due to the increasing demand for safe and healthy food. It is gaining popularity because of recent developments aimed at enhancing the flavor and longevity of vegetables and fruits. The reduced water usage and increased production capacity are driving the demand for these farming methods.

Vertical Farming Growing Platforms

• Shipping Containers
• Buildings

In terms of growing platforms, the shipping container segment dominated the market in 2022. This growth is attributed to the platform's ability to support crop production irrespective of location. One of the key advantages of container farming is its portability; it does not require a large plot of land or a specialized facility to commence cultivation. The shipping container segment is expected to be driven by factors such as increasing technological advancements and the rapid expansion of precision farming throughout the projected period.

Vertical Farming Crop Types

• Greens
• Vine Crops
• Fruits and Flowers
• Herbs
• Strawberry
• Cannabis
• Tomatoes
• Others

According to the vertical farming market forecast, the tomato category is expected to see significant growth in the market over the next several years. This growth can be attributed to the high demand for tomatoes in all regions, as compared to leafy greens, peppers, lettuce, cucumbers, herbs, and other products. Strawberries, tomatoes, lettuce, bell peppers, chile peppers, cucumbers, and leafy greens are among the most commonly cultivated vegetables, herbs, and fruits in various regions.

Vertical Farming Hardware Components

• Lighting Devices
• Sensor
• Climate Control
• Irrigation
• Others

In terms of hardware components, the climate control segment is expected to grow rapidly in the market over the next few years. Climate control agriculture involves cultivating plants inside a greenhouse with a regulated climate that allows producers to control and monitor factors such as lighting, CO2 levels, moisture, humidity, pH values, and mineral levels for optimal crop growth. The primary goal of climate control agriculture is to enhance crop protection and maintain optimal growth conditions throughout the crop's development cycle. Climate-controlled agriculture is often employed to ensure that plants receive the necessary growth-promoting nutrients.

Vertical Farming Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Vertical Farming Market Regional Analysis

Currently, North America is the largest market for vertical farming and is expected to maintain its dominance throughout the forecast period. The rising awareness among farmers regarding the importance of alternative farming methods to meet the demands of a rapidly growing population, achieve better crop yields in limited available areas, and conserve water are the major factors contributing to the growth of the vertical farming market in this region.

In other hand, vertical farming is increasing rapidly in Europe, owing to a growing emphasis on sustainable agriculture, local food production, and lowering the environmental impact of traditional farming. Technological improvements and government backing also help to drive market growth.

Furthermore, vertical farming is a rapidly growing market in the Asia-Pacific area, with countries like as Japan, Singapore, and China investing extensively in this sector. Key growth factors are population congestion, limited arable land, and consumer desire for high-quality, locally farmed produce.

Vertical Farming Market Players

Some of the top vertical farming companies offered in our report includes Agrilution GmbH, AeroFarms, Everlight Electronics Co., Ltd, Brigth Farms, Green Sense Farms, LLC, AMHYDRO (American Hydroponics), Vertical Farm Systems, Illumitex Inc, 4D Bios Inc., and Urban Crop Solutions.