Global Vertical Farming Market By Structure (Building-based and Shipping Container-based), Mechanism (Hydroponics, Aeroponics, and Aquaponics), Component (Irrigation, Lighting, Sensor, Climate Control, and Others) and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030

Market Perspective

The global Vertical Farming Market was valued at USD 5.87 billion in 2022 and is projected to reach USD 25.49 billion by 2030, growing at a CAGR of 17.32% from 2023 to 2030.

Vertical farming, the practice of growing food in vertical stacks within unconventional spaces like warehouses, skyscrapers, or shipping containers, is gaining popularity due to its numerous benefits. One key advantage of this process is that it allows for the cultivation of organic food, which is perceived as healthier, safer, and more environmentally friendly. The demand for organic food is heavily influenced by consumer purchasing habits, making it essential for producers, legislators, and suppliers to implement effective marketing strategies to capitalize on this market trend.

Furthermore, it enables easy harvesting, minimizes climatic impact, delivers high yields, reduces the need for pesticides, requires less space, and consumes minimal amounts of water. For instance, vertical farming has the potential to save up to 200 tons of water daily, which is equivalent to the water usage on nine hectares of conventional outdoor farming.

These advantages make vertical farming an attractive option for sustainable food production. As the market for organic food continues to grow, businesses and policymakers need to recognize the potential of vertical farming and develop strategies to harness its benefits. By embracing this innovative farming method, stakeholders can meet the increasing demand for organic food, address environmental concerns, and create a more sustainable and efficient food system.

Key Insights

• Based on structure, the shipping container-based segment acquired the largest market share in 2022
• Based on mechanism, the hydroponics segment captured the largest industry share in 2022
• Based on component, the lighting segment acquired the largest market share in 2022
• On the basis of region, North America accounted for the largest market share in 2022

Growing Adoption of Urban Agriculture Aids Growth of Vertical Farming

Growing adoption of urban agriculture will indeed aid the growth of vertical farming. Urban agriculture, including practices such as rooftop, indoor, and vertical farming, is gaining momentum as a sustainable and efficient way to produce food in urban areas. As more individuals and communities recognize the benefits of growing their own food locally, the demand for urban agricultural solutions like vertical farming is increasing.

Vertical farming offers unique advantages for urban environments, such as maximizing productivity in limited space, reducing transport distances, and providing fresh, locally grown produce. The ability to stack crops vertically allows for higher yields and efficient use of resources like water and energy. Vertical farming also eliminates the need for pesticides and reduces the carbon footprint associated with traditional agriculture.

Concerns Pertaining to Shortage of Skilled Workforce Hampers Market Growth

The shortage of a skilled workforce is a significant restraint for the vertical farming market. The management of controlled environments and advanced technologies in vertical farms demands expertise in areas like automation, data analysis, and agronomy. However, finding individuals with the required skills can be challenging, leading to a talent gap. Additionally, the repetitive nature of tasks in vertical farming can result in higher turnover rates, making it difficult to maintain a stable and experienced workforce. Addressing these workforce-related challenges is crucial for the continued growth and success of the vertical farming industry.

Segmentation Analysis

Based on structure, the market is categorized into building-based and shipping container-based. The shipping container-based segment garnered the highest revenue in 2022 due to the inherent advantages of container farming, such as its ability to support crop growth in any location. Container farming is advantageous because it is portable and does not require a large land area or specialized infrastructure to start cultivation. Additionally, with increasing competition, the price of shipping containers is decreasing as the cost of acquiring used containers is relatively low. This opens up opportunities for other businesses to enter the market.

Based on mechanism, the market is categorized into hydroponics, aeroponics, and aquaponics. The hydroponics segment captured the largest industry share in 2022 due to its cost-effective installation and user-friendly nature. Hydroponics is a soil-less growing method wherein plants are nourished by a mineral solution. This technology eliminates the risk of disease transmission from soil organisms. As consumers become more aware of the hazards of pesticides, the demand for hydroponics is expected to increase. Hydroponically grown plants yield higher outputs compared to those cultivated in soil along with better control over nutrient levels. Regular testing of the chemical solution ensures that the optimal chemical composition is maintained for plant growth.

Based on component, the market is categorized into irrigation, lighting, sensor, climate control, and others. The lighting segment held the largest market share in 2022 driven by the significant reliance on artificial lighting. This dependence plays a crucial role in meeting the light intensity requirements for optimal crop growth that can be attributed to farmers increasingly adopting hydroponic components. By incorporating hydroponic technology, farmers can reduce the weight load and infrastructure needed to sustain their equipment, thereby driving the demand for hydroponic components. This trend reflects a shift toward more efficient and sustainable farming practices.

North America Leads Global Industry Owing to Well-Established Vertical Farming Industry

North America held the largest market share in 2022 due to its well-established vertical farming industry and robust technological infrastructure. The region's commitment to sustainable agriculture and a growing preference for locally sourced, fresh produce have driven market expansion. Major players and startups alike have invested heavily in the region, further solidifying its dominance. Additionally, favorable government policies and incentives have contributed to the flourishing vertical farming sector in the region.

Asia Pacific Exhibits Fastest Growth Due to the Substantial Investments in Vertical Farming Technology

Asia-Pacific is expected to be the fastest-growing region in the market and is set to grow at the highest CAGR through the analysis period primarily driven by its large population, increasing urbanization, and the need for innovative solutions to address food security challenges. Countries like China, Japan, and Singapore have witnessed substantial investments in vertical farming technology and infrastructure. Moreover, the climate variability and limited arable land make vertical farming an attractive option. The region's proactive approach to sustainable agriculture and the adoption of advanced technologies are propelling it to become a significant player in the global vertical farming market.

Competitive Landscape

The global vertical farming is fragmented with key players such as AeroFarms, Signify, BrightFarms, Heliospectra AB, Freight Farm, SPREAD Co., Ltd, OSRAM GmbH, Intelligent Growth Solutions Limited, Gotham Greens, MIRAI, TruLeaf, Urban Crop Solutions, Plenty Unlimited Inc., and Valoya, Bowery Farming Inc., among others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, structure introductions, and collaborations to expand their business globally and enhance their competitive position.

The global Vertical Farming Market is segmented as follows:

By Structure

• Building-based
• Fiber Optical Cable

By Mechanism

• Hydroponics
• Aeroponics
• Aquaponics

By Component

• Irrigation
• Lighting
• Sensor
• Climate Control
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America