Vertical Farming Market
Vertical Farming Market Trend, Opportunity, and Forecast Analysis, 2024-2032
Vertical Farming Market is segmented by Growth Type, Structure, Crop Type, Offerings, and by Region. KDMI analyst foresees market revenue to cross USD 17.4 Billion by 2032 by growing with a CAGR of 25.1% during 2024-2032.
Vertical Farming Market Highlights
The global vertical farming market is expected to cross a value of USD 17.4 billion by the end of 2032. The market was valued at USD 5.5 billion in 2023 and is expected to expand at a CAGR of 25.1% between 2024-2032.yt
- Over the mid-term, the rising concern for the decreasing availability of land for agricultural use is the primary factor anticipated to drive the global vertical farming market.
- The high initial investment of vertical farming is a major factor to challenge the market growth.
- The North America vertical farming market is projected to dominate the global market.
Vertical Farming Market: Report Scope |
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Base Year |
2023 |
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Base Year Market Size |
USD 5.5 Billion |
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Forecast Year |
2024-2032 |
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Forecast Year Market Size |
USD 17.4 Billion |
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CAGR Value |
25.1% |
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Vertical Farming Market Key Trends/Major Growth Drivers |
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Restraint Factors |
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Vertical Farming Market Segmentation |
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Vertical Farming Market Key Players |
AeroFarms, Plenty Unlimited Inc., Gotham Greens, Bowery Farming, BrightFarms, Vertical Harvest, Infarm, 80 Acres Farms, Urban Crop Solutions, Sky Greens, Jones Food Company, Farm.One, and others. |
Vertical Farming Market Outlook
Vertical farming is a method of growing crops indoors in stacked layers or vertical structures, often in controlled environments such as warehouses, shipping containers, or high-rise buildings. Unlike traditional horizontal farming, which relies on outdoor fields and soil, vertical farming utilizes hydroponic, aeroponic, or aquaponic systems to cultivate crops without soil, using nutrient-rich water solutions or misting systems instead.
According to our researchers at KD Market Insights, one of the primary factors associated with the growth of the global vertical farming market is the rising concern for the decreasing availability of land for agricultural use. As urban populations continue to grow worldwide, which according to the World Bank is expected to grow by 1.5 times to reach 6 billion by 2045, there is an increasing pressure on available land for traditional agriculture. Vertical farming offers a solution by utilizing vertical space in urban areas, including vacant buildings, warehouses, and skyscrapers, to grow crops indoors. In addition to this, the rise in demand for locally grown, fresh produce in urban setting is also expected to contribute to he market growth in the coming years. AeroFarms, Plenty Unlimited Inc., and Gotham Greens are some of the significant parties in the global market for vertical farming.
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Vertical Farming Market Drivers – Analyst’s Observation
According to the analysts at KD Market Insights, some key growth drivers for the global vertical farming market are:
- Growing Awareness for Sustainability and Resource Efficiency: With recent advancements in agricultural technologies, modern day agricultural methods, such as hydroponic crop farming systems, aeroponic, aquaponic systems, or other controlled environment agricultural practices, are inherently more resource-efficient than conventional farming methods. Utilization of these methods significantly reduces water consumption, minimizes pesticide use, and optimizes nutrient delivery to plants. Hence, the sustainability benefits of vertical farming, such as reduced carbon footprint and conservation of natural resources, appeal to environmentally conscious consumers and policymakers, which is expected to contribute to the growth of the market in the coming years. As per our researchers, green vertical farming is known to emit near to 69% less carbon dioxide when compared to open field agricultural practices.
- Surge in Advancements in Vertical Farming Methods: The agricultural industry has been witnessing massive reforms in the recent era, taking the benefits of Industry 5.0 initiatives, including automation and controlled environment agriculture (CEA) practices. Innovations in LED lighting, climate control systems, robotics, and data analytics enable vertical farms to optimize plant growth conditions, improve crop yields, and reduce operational costs. The integration of smart sensors and IoT technologies further enhances efficiency and productivity in vertical farming operations. Such advancements in the agricultural industry are therefore expected to drive the demand for vertical farming methods, and in turn, contribute to the market growth.
Which Probable Factors Could Hamper the Growing Vertical Farming Market Trend?
As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of vertical farming are:
- High Initial Investment of Vertical Farming: Vertical farming requires significant upfront investment in infrastructure, technology, and equipment such as climate control systems, LED lighting, and hydroponic/aeroponic setups. The initial capital expenditure, hence, becomes a barrier to entry for new players, which may deter its widespread adoption, particularly among the small-scale farmers or startups.
- Growing Concern for Increasing Energy Costs: The operation of indoor vertical farms relies heavily on artificial lighting, heating, and ventilation systems to maintain optimal growing conditions. These energy-intensive processes contribute to high operational costs, including electricity bills, which can be a significant barrier to profitability, especially in regions with expensive energy tariffs.
How is the Global Vertical Farming Market Segmented?
Our experts at KD Market Insights have segmented the global vertical farming market as:
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By Growth Type |
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By Structure |
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By Crop Type |
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By Offerings |
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By Region |
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What are the Probable Factors Influencing the North America Vertical Farming Market Forecast?
The North America vertical farming market is majorly driven by rapid urbanization in the region, along with the increasing consumer preferences for sustainable agricultural practices. According to the World Bank, urban population as a share of total population in North America reached 83% in 2022, up from 79% in 2000. Vertical farming offers a solution by enabling year-round cultivation of crops in close proximity to consumers, reducing the need for long-distance transportation and addressing the challenges of limited agricultural land in urban areas. On the other hand, the consumers in the region are increasingly seeking sustainably produced food options that are free from pesticides, herbicides, and genetic modification. Vertical farming meets this demand by offering an environmentally friendly alternative to traditional agriculture, with reduced water usage, minimal pesticide use, and efficient resource utilization. Such factors are therefore expected to drive the demand for vertical farming in North America.
As per our analysts at KD Market Insights, the following five players lead the North America vertical farming market growth:
- Sky Urban Solutions
- UrbanKisaan
- VertiVegies
- Alesca Life Technologies
- Sustenir Agriculture
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Key Countries to Watch for in North America Vertical Farming Market |
Key Insights |
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United States Vertical Farming Market to Register the Largest Regional Market Share in 2032 |
USD 4.8 Billion |
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Canada Vertical Farming Market to Grow with the Highest CAGR During 2024-2032 |
25.7% |
Which Key Players Top the Global Vertical Farming Market Share?
As per our analysts at KD Market Insights, the competitive landscape of global vertical farming market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with vertical farming market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global vertical farming market share:
- AeroFarms
- Plenty Unlimited Inc.
- Gotham Greens
- Bowery Farming
- BrightFarms
- Vertical Harvest
- Infarm
- 80 Acres Farms
- Urban Crop Solutions
- Sky Greens
- Jones Food Company
- Farm.One
What are the Recent Developments Observed in the Vertical Farming Market?
Over the years, the experts at KD Market Insights have been observing the recent developments associated with global vertical farming market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.
For instance, Realty Income recently stated that it has partnered with Plenty Unlimited Inc, for constructing a farming space with an investment of USD 1 billion. This space would later be leased to Plenty Unlimited.
Further, AeroFarms shared that it has entered into a partnership with Nokia Bell Labs for identifying and tracking plant interactions at the most advanced levels.
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- Publication date: 5th April 2024
- Base year: 2022
- Forecast year: 2023-2033
- Format: PDF, PPT,Word,Excel
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