The global vertical farming market size is projected to reach USD 12.04 Billion by 2026. Increasing technological advancements have allowed improved efficacies as well as enhanced output. According to a report published by Fortune Business Insights, titled “Vertical Farming Market Size, Share & Industry Analysis, By Type (Hydroponics, Aeroponics, and Aquaponics), By Structure (Building-Based, Shipping-Container), By Component (Lighting System, Irrigation and Fertigation System, Climate Control, Sensors, and Others) and Regional Forecast, 2019-2026,” the market was worth USD 2.13 billion and will exhibit a CAGR of 24.8% during the forecast period, 2019-2026.
Vertical farming is a form of urban agriculture, which involves small plants aligned vertically. The process is used to facilitate the development of vegetables inside a building or any residential area. The primary aim of vertical farming is to maximize the use of natural resources within commercial as well as residential areas. Moreover, the demand for visually appealing interior architectures will fuel the demand for vertical farming. Properties of vertical farming such as water reusability and improved efficacy will aid the growth of the market in the forthcoming years. This process is flexible and can sustain several crops, as a result of which it will witness massive adoption in the coming years. Ongoing trends in vertical farming, coupled with encouragement from government organizations, will add to the growth of the market.
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Key Segments in the Vertical Farming Market:
- By Type: On the basis of type, the market is segmented into hydroponics, aeroponics, and aquaponics. Among these, the hydroponics segment currently holds the highest market share. The ease of operation and low cost of instalment of hydroponics will aid the growth of this segment. Moreover, minimum utilization of soil and water in hydroponics will lead to a wider adoption across the world. Hydroponically-grown plants provide better yield than the others. The benefits of hydroponics type will aid the growth of this segment in the forthcoming years. The aeroponics segment is projected to exhibit the highest CAGR in the coming years, owing to the ability to absorb necessary nutrients from air.
- By Structure Analysis: Based on structure analysis, the market is segmented into building-based vertical farms and shipping-container vertical farms. Among these, the building-based vertical farms are projected to account for the leading market share in the coming years. Increasing technological advancements in precision farming, coupled with reduced cost of installment will aid the growth of this segment. Shipping-container vertical farms segment will witness considerable growth driven by the ease of transportation and lesser land requirement.
- By Component: On the basis of component, the market is segmented into lighting system, irrigation and fertigation system, climate control, sensors, and others. Among these, the lighting segment is projected to account for the highest market share in the coming years. Lighting system irrigation produces enhanced yield irrespective of the climatic conditions. Recent advancements in lighting systems have improved overall produce. The irrigation and fertigation segment will witness considerable growth driven by increasing adoption. As of 2018, the irrigation and fertigation segment accounted for 25.0% of the overall vertical farming market share.
- By Region: The report analyzes the ongoing vertical farming market trends across major regions including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The market in Asia Pacific is projected to dominate the market in the coming years, driven by the increasing incorporation of technologically advanced systems. As of 2018, the market in North America was worth USD 664.7 million and this value is likely to increase further in the coming years.
Major Companies Are Focused on Mergers and Acquisitions
The market derives growth from major companies such as AeroFarms, 4D Bios Inc., and Green Sense Farms Holdings are focusing on acquiring medium as well as small scale companies. The increasing number of company mergers and acquisitions will have a direct impact on the growth of the market in the coming years.
A few of the other companies that have made significant contributions to market growth include:
- EVERLIGHT ELECTRONICS CO., LTD.
- Koninklijke Philips N.V.
- Hort Americas
- Illumitex Inc.
- Sky Greens
- Plantagon International
- PLENTY UNLIMITED INC
- Thrive Agritech
Key Industry Developments:
May 2019 - Thrive Agritech, Inc., announced the launch of Apex LED grow light for high-intensity applications including supplemental greenhouse lighting and source lighting for indoor farming.
The global vertical farming market is segmented on the basis of:
Value (USD Billion)
- Building-Based Vertical Farms
- Shipping-Container Vertical Farms
- Lighting System
- Irrigation and Fertigation System
- Climate Control
- North America (U.S. and Canada)
- Europe (U.K., Germany, France, Italy, Spain, The Netherlands and Rest of Europe)
- Asia Pacific (China, Japan, India, Singapore, Southeast Asia, and Rest of Asia Pacific)
- Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)