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Vertical Farming Market to Register a CAGR of 25.9% during Forecast Period; Factors such as Increasing Challenges for Land Availability & Water Scarcity to Aid Growth

April 12, 2022 | Information & Technology

The global vertical farming market size reached USD 3.47 billion in 2021. The market value is estimated to increase from USD 4.16 billion in 2022 to USD 20.91 billion in 2029 at a CAGR of 25.9% in 2022-2029. This information is published by Fortune Business Insights™, in its report, titled, “Vertical Farming Market Size, Share & COVID-19 Impact Analysis, By Type (Hydroponics, Aeroponics and Aquaponics), By Structure (Building-Based Vertical Farm and Shipping-Container Vertical Farm), By Component (Lighting System, Irrigation & Fertigation System, Climate Control, Sensors, and Others), and Regional Forecast, 2022-2029”


Government Imposed Lockdowns to Slow Market Growth during Pandemic


COVID-19 pandemic shorted the growth of vertical farming during the forecast period due to a variety of factors including disruptive supply chains, shortages of food supplied worldwide, suspended trade routes and government-imposed lockdowns. Lack of labor forces across various countries further decreased the market share. For instance, in June 2020, Singapore announced rapidly progressing rooftop farms for improving food security including aquaponics and hydroponics for saving real estate.


However, the market is expected to pick up the pace as the pandemic looms due to rising demand for locally produced vegetables & foods, increasing investments for risen consumer demand towards organic fruits & vegetables and rapid innovations in building efficient supply chains. The growth of vertical farms was hampered for a shorter duration, however, the market will exhibit signs of picking up the pace during the latter part of the pandemic.


Signify Expands Collaborations for Building a Substantial Vertical Farming Resource


Signify and Planet Farms were collaborating since 2018 for constructing Italy’s first vertical farm research lab in Milan. Recently, Signify expanded its collaboration with Planet Farms by providing horticultural LEDs to Europe’s largest farm and five more facilities across all of Europe. Signify will aim to assist Greenpower LED production modules that were managed by Philips GrowWise Control for providing the best quality, taste, and yield.


This collaboration will include support for aromatic herbs and lettuces that will be sold to consumers all around the world. This facility is completely automated, which ensures that the consumer will be the first to handle the crop. Furthermore, Signify also reached an agreement for providing horticultural LED grow lights for five vertical farms in Switzerland and the U.K.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/industry-reports/vertical-farming-market-101958


Rising Inclination towards Climate Control Technology & Increasing Water Crisis to Augment Growth


Factors such as increasing demands for lower water usage and enhancing efficiency regarding productivity, rising food security activities, and resistive weather and environmental concerns will boost the vertical farming market growth during the forecast period. In February 2021, McCain Foods announced investing around USD 65 million in GoodLeaf Farms and TruLeaf Sustainable Agriculture towards increasing innovative approaches in Canada. This investment will further establish a network of vertical farms across Canada.


Additionally, factors such as rising challenges for land availability for food production coupled with rising adoptive measures regarding vertical farms will increase the footprint of the market during the forecast period. According to the World Bank, agriculture accounted for 70% of freshwater usage worldwide.  


Industry Developments:



  • April 2020: AeroFarms announced investing USD 43 million for developing a vertical farming facility across Cane Creek Center of Danville. This investment is expected to expand business practices across America to provide richer quality food for consumers.


List of Players in the Market:



  • AeroFarms (U.S.)

  • BrightFarms (U.S.)

  • Plenty Unlimited Inc. (U.S.)

  • Freight Farms, Inc. (U.S.)

  • OSRAM Licht AG (Germany)

  • Urban Crop Solutions (Europe)

  • Heliospectra AB (Sweden)

  • Everlight Electronics (Taiwan)

  • Signify (The Netherlands)

  • Sky Greens (Singapore)


Further Findings:



  • The lightweight systems are expected to witness the largest segmental growth during the forecast period owing to a reduction in operational costs and minimized power consumption. Additionally, LED-based lighting systems generate a lesser amount of heat compared to conventional light resources.

  • North America will occupy the largest vertical farming market share during the forecast period owing to increased adoption of robotics & automated technologies coupled with increased demand for organic, rich, and fresh quality food articles. Also, the legalization of Cannabis within the U.S. and Canada will increase the footprint of the market in the region.


Table of Segmentation:


















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



By Type




  • Hydroponics

  • Aeroponics

  • Aquaponics     



By Structure




  • Building-Based Vertical Farms

  • Shipping-Container Vertical Farms



By Component




  • Lighting System

  • Irrigation and Fertigation System

  • Climate Control

  • Sensors

  • Others (HVAC Systems, Building material, etc.)



By Region




  • North America (By Type, By Structure, By Component, and by Country)

    • U.S. (By Structure)

    • Canada (By Structure)



  • Europe (By Type, By Structure, By Component, and by Country)

    • U.K. (By Structure)

    • Germany (By Structure)

    • France (By Structure)

    • Italy (By Structure)

    • Spain (By Structure)

    • The Netherlands (By Structure)

    • Rest of Europe





  • Asia Pacific (By Type, By Structure, By Component, and by Country)


    • China (By Structure)

    • Japan (By Structure)

    • India (By Structure)

    • Singapore (By Structure)

    • Southeast Asia (By Structure)

    • Rest of Asia Pacific




  • The Middle East & Africa (By Type, By Structure, By Component, and by Country)

    • GCC (By Structure)

    • South Africa (By Structure)

    • Rest of the Middle East & Africa



  • South America (By Type, By Structure, By Component, and by Country)

    • Brazil (By Structure)

    • Mexico (By Structure)

    • Argentina (By Structure)

    • Rest of South America




Vertical Farming Market
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  • 2018-2020
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