Global Vertical Farming Market Opportunities and Forcasts 2019-2026

Vertical Farming Market by Component (Irrigation Component, Plant Lighting, Sensor, Climate Control, Building Material, and Others), Structure (Building Based Vertical Farms and Container Based Vertical Farms) and Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics): Global Opportunity Analysis and Industry Forecast, 2019–2026.

Vertical Farming Market Outlook - 2026

The global vertical farming market size was valued at $2.23 billion in 2018, and is projected to reach $12.77 billion by 2026, growing at a CAGR of 24.6% from 2019 to 2026. Vertical farming is a revolutionary approach used to produce food and medicinal plants in vertically stacked layers such as in a skyscraper, used warehouse, or shipping container. It facilitates huge quantity of nutritious and quality fresh food without relying on favorable weather, high water usage, skilled labor, and high soil fertility. Moreover, it ensures reliable yield and consistency in crop production round the year along with climate control, and no effects of external environment factors such as diseases, pests, or predator attacks.

The demand for vertical farming industry is expected to increase rapidly during the forecast period, owing to rise in popularity of organic food. Furthermore, the vertically stacked structure of these farms reduces the demand for additional construction activity and land. Moreover, it reduces the intervention of machines required during conventional farming. Thus, optimum use of vertical space and balanced energy utilization contribute toward the vertical farming market growth. In addition, these facilities involve multiple technologies for growth of plants artificially. The technologies used in this farming enables to keep track of plants growth and harvesting, which further drives the market growth. However, high initial investment is required for setting the indoor vertical structure and setting up the lighting and irrigation systems. Also, the technologies involved in vertical farming are nascent, which is expected to have negative impact on market growth. Nonetheless, rise in urban population and surge in adoption of technology driven agriculture are expected to provide lucrative growth opportunities to the vertical farming market players.

The global vertical farming market trends are analyzed across various segments including farm structure, component, growth mechanism, and region. On the basis of component, the market is categorized into irrigation component, lighting, sensor, climate control, building material, and others, among which the building materials segment is further categorized into glass greenhouse and plastic greenhouse. Depending on growth mechanism, the market is sub-segmented into hydroponics, aeroponics, and aquaponics. The structure segment is bifurcated into building-based structure and container-based structure. The building-based structure is expected to dominate the global vertical farming market during forecast period. 

The regional segmentation of the market includes North America, Europe, Asia-Pacific, and LAMEA. The European vertical farming market is expected to grow at the highest CAGR during the forecast period, owing to growth in concern over availability of water in certain parts, majorly in central and southern regions, rise in demand of organic food, and requirement of ensuring urban food security.

Top Impacting Factors

The significant impacting factors in the vertical farming market include increase in optimum use of vertical space and balanced energy utilization, ease of crop monitoring and harvesting, limited arable land for traditional agriculture, and increase in popularity of organic foods. However, high initial investments and developmental phase of technologies used in vertical farming pose a major threat, thus hampering the market growth globally. Conversely, surge in adoption of technology driven agriculture and growth in urban population are projected to offer remunerative opportunities to the market. Each of these factors is anticipated to have a definite impact on the vertical farming market during the forecast period.

Some major factors impacting the market growth are given below:

Increase in popularity of organic foods

Organic food refers to the products obtained through farming system that does not use synthetic fertilizers, pesticides, and growth regulators. Presently, people across the globe have become increasingly aware about the source of food that they consume on a daily basis, and have switched from the food grown with the use of chemicals and pesticides to organic food. In North America, the sales of organic food witnessed significant growth over the past few years. 
The organic food market in America witnessed growth from 2006 to 2015. In 2016, the organic food market contributed nearly 5% share of overall food sales in America. The demand for organic food surpasses supply every year; thus, vertical farming is poised to be rapidly adopted.

Optimum use of vertical space and balanced energy utilization

Vertical farming is paradigm shift in the conventional agriculture. Many uninhibited properties, mines, and buildings can be rehabilitated into food production facilities thereby reducing construction cost required in agriculture center. Further, the vertically stacked structure of these farms eliminates the extensive spending on purchase of land. However, the optimum use of vertical space increases the productivity. For instance, 1-acre indoor vertical space is equivalent to 4-6 acres of outdoor space.

Ease of crop monitoring and harvesting

The technologies evolved in vertical farming are used in remote research stations, and refugee camp in flooded or earthquake affected areas. In such cases, various growth mechanisms used in vertical farming helps for artificial growth of crop in controlled environment. Moreover, the use of Internet of Things in components used in VF reduces the human intervention and tracks the growth of the crop. This in turn, reduces the labor cost and material wastage.

Competitive Analysis

The key players profiled in the report include 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd, Hort Americas, Illumitex Inc., Koninklijke Philips N.V., Urban Crop Solutions, and Sky Greens. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their position in vertical farming market.

Key Benefits for Vertical Farming Market:

• This study comprises analytical depiction of the global vertical farming market size along with the current trends and future estimations to depict the imminent investment pockets.
• The overall vertical farming market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current vertical farming market forecast is quantitatively analyzed from 2019 to 2026 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the vertical farming industry.
• The report includes the vertical farming market share of key vendors and market trends.

Vertical Farming Market Segments:

By Structure    1) Building-based Vertical Farms    2)  Container-based Vertical Farms

By Component    1) Irrigation Component  2) plant Lighting    3) Sensor   4) Climate Control  5) Building Material  6) Glass Greenhouse

7) Plastic Greenhouse   8) Others

By Growth Mechanism 1 ) Hydroponics   2) Aeroponics    3) Aquaponics

By Region

• North America    1) U.S.       2) Mexico         3) Canada
• Europe                1) UK        2) Germany       3) France          4) Netherlands   5) Rest of Europe
• Asia-Pacific         1) China   2) India              3) Japan           4) Australia          5) Singapore         6) Rest of Asia-Pacific
• LAMEA                1) Brazil   2) Saudi Arabia  3)South Africa  4) Rest of LAMEA

Key Players    1) 4D Bios Inc.   2) AeroFarms   3) Agrilution  4) AMHYDRO (American Hydroponics) 5) Everlight Electronics Co., Ltd.

                        6) Hort Americas  7) Illumitex Inc.  8) Koninklijke Philips N.V.  9) Urban Crop Solutions  10) Sky Greens

As a professional led grow light company, vertical agriculture market trend is always our focus. We aim to understand the current situation and future development trends of vertical agriculture, so as to develop and produce suitable led grow lights for vertical agriculture.