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Vertical Farming - Global Market Trajectory & Analytics

  • ID: 4806398
  • Report
  • January 2021
  • Region: Global
  • 253 pages
  • Global Industry Analysts, Inc
For Modern Agriculture to Sustainably Feed the World, Innovation in Alternatives to Traditional Farming is Key. Vertical Farming to Reach US$ 6.7 Billion

The global market for Vertical Farming is projected to reach US$ 6.7 billion by the year 2027, trailing a post COVID-19 CAGR of 14% over the analysis period 2020 through 2027. Factors such as global warming and climate change are threatening stability and availability of fresh produce and food for the global population that is projected to increase from 7.7 billion to more than 10 billion by the mid-21st century. In addition, COVID-19 has disrupted food supply chain and highlighted the pressing need for measures to ensure fast and direct delivery of foods to consumers. These concerns are prompting various agro-tech companies to exploit vertical farming for achieving food safety and feeding the exponentially-growing global population. Companies such as Vertical Field are harnessing smart designs, geoponic technology and agricultural proficiency to deal with these concerns. These players are offering vertical agricultural solutions to reduce human handling and waste while ensuring availability of more, fresh and nutritious produce through the year directly and locally to people. In a major development in vertical farming, Indoor agro-tech expert IGS is setting up a vertical farm system in Scotland. The facility is estimated to offer around 70 tons of produce including leafy greens and crops like basil per year. On the other hand, various companies are planning to place vertical farms in restaurants and retail chains across cities. In addition, players are looking forward to work with a diverse range of local clients including caterers and retailers to deliver nutritious, fresh and quality produce. These products are anticipated to promote and facilitate sustainable life while positively influencing the environment, offering a sustainable alternative to conventional agriculture.

The concept of vertical farming is garnering significant attention during the COVID-19 crisis that has triggered the demand for locally-grown foods. Vertical farming offers organic fruits and vegetables while consuming less land and water in comparison to traditional agriculture. In contrast to various industries that have been hit hard by the COVID-19 pandemic, vertical farming is gaining ground on account of its ability to satiate the need for locally-grown lettuce and kale. While participants are already operating large-scale facilities in Europe, Asia and the Middle East, others are announcing new projects since the onset of COVID-19. Vertical farms are witnessing considerable expansion across urban areas as they control various aspects like seed and storage as well as provide consumers with information about the source and production of food. While traditional crops are rotting in fields across several regions owing to disruptions in supply chains and farming amid COVID-19, vertical farms are recording high output. These disruptions to conventional farming practices have left consumers struggling for fresh food. On the other hand, operators of vertical farms are enjoying strong demand and supporting people with safer, fresher food. In addition to exploiting advanced technology to reduce the requirement of inputs like water, operators are betting on automation, machine learning and vision systems for crop monitoring. Moreover, the practice uses no pesticides, around 95% less water and scores considerably higher than conventional agriculture in terms of productivity.

The continuous expansion of vertical farming across urban areas is prompting various startups to join the bandwagon. Plenty, a San Francisco-based startup, is working on a new farm site in Los Angeles, while Kalera, based in Orlando, has set up its second facility that is estimated to yield nearly 6 million lettuce heads annually. By boosting localized production along with shortening and improving resiliency of the supply chain, vertical farming is anticipated to aid economic growth. However, there are certain concerns associated with vertical farming such as its capital- and energy-intensive nature. On the other hand, the use of LEDs and solar panels is expected to reduce energy requirements and make the option more sustainable. While vertical farming is unlikely to replace traditional agriculture, it is anticipated to post major gains in urban areas. The idea is supported by increasing funding secured by startups and other participants. Moreover, vertical farming has expanded to numerous countries and regions including the UAE, Sweden and Singapore. In addition, COVID-19 is prompting various countries to accelerate vertical farming projects as a result of increasing focus on urban agriculture and local output. In a notable development, AeroFarms voiced plans for setting up a large-scale R&D vertical farming facility in Abu Dhabi. Vertical farming is anticipated to be also bolstered by its ability to reduce distance to consumers and adapt to various shocks. The impact of COVID-19 on the agricultural and food supply chains is expected to provide a considerable opportunity for vertical farming. The concept is likely to drive various companies to invest in vertical farming.

Select Competitors (Total 70 Featured):
  • 4D Bios, Inc.
  • AeroFarms LLC
  • Agrilution Systems GmbH
  • AMHYDRO (American Hydroponics)
  • Everlight Electronics Co., Ltd.
  • Freight Farms
  • General Hydroponics, Inc.
  • Heliospectra AB
  • FarmVisionAI
  • Mirai Co., Ltd.
  • Osram Licht AG
  • Plenty Unlimited, Inc.
  • Signify Holding
  • Sky Greens
  • Spread Co., Ltd.
  • Urban Crop Solutions
  • Valoya Ltd

The global analysis and forecast periods covered within the report are 2020-2027 (Current & Future Analysis) and 2012-2019 (Historic Review). Research estimates are provided for 2020, while research projections cover the period 2021-2027.
Note: Product cover images may vary from those shown
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • Vertical Farming: Turning COVID-19 Crisis into Opportunity to Satiate Changing Food Demand
  • Consumer Preference for Healthy, Locally Grown Greens amid COVID-19 Benefits Vertical Farming
  • Vertical Farming Emerges as Viable, Sustainable Option for Future Food Security
  • Vertical Farming Draws Particular Appeal amid COVID-19 Pandemic
  • An Introduction to Vertical Farming
  • Global Market Prospects & Outlook
  • Hydroponics: The Largest Segment
  • Shipping Containers Segment Leads Vertical Farming Market
  • Developing Economies to Witness High Adoption of Vertical Farming
  • Competition
  • Companies Invest in Vertical Farm Facilities
  • Vertical Farming Players Join Fight against COVID-19 Virus
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Significant Benefits of Vertical Farming Technique Compared to Traditional Farming Methods Augurs Well for the Market
  • Optimum Usage of Vertical Space & Energy Usage and Easy Monitoring & Harvesting of Crops: Key Benefits Driving Adoption
  • Vertical Farming: A Solution to Solve Hunger in Future
  • Expanding Global Population and Demand Supply Imbalance Drive Focus onto Vertical Farming
  • EXHIBIT 1: World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
  • EXHIBIT 2: Food Demand Growth Worldwide: Demand Growth in Million Tonnes for Select Foods for the Period 2008-2017 and 2018-2027
  • Shortage of Arable Land and Limited Food Production Necessitate Alternate Farming Techniques, Driving Market Prospects
  • EXHIBIT 3: Global Availability of Arable Land in Hectares Per Person for the Years 1990, 2000, 2018 and 2020
  • EXHIBIT 4: Arable Land Worldwide as a % of Total Land Area for the Years 1990, 2000, 2018 and 2020
  • Climate Change Concerns and Need for Stabilized Crop Production Turn Attention onto Vertical Farming
  • EXHIBIT 5: Average Global Surface Temperature (In Degrees Fahrenheit) for the Years 1940, 2000 and 2020
  • Rising Popularity of Organic Foods Drives Investments into Vertical Farming
  • EXHIBIT 6: Global Organic Foods Market Size (in $ Billion) for the Years 2019, 2021, 2023 and 2025
  • Reducing Operating Costs Becomes Imperative to Enhance Economic Viability of Vertical Farming
  • Advancements in Gardening & Farming Technologies Propel Market Growth
  • Vertical Farming Innovations to Revolutionize Agriculture
  • Hydroponics: Soilless Cultivation
  • Aeroponics: Soilless and Water-Efficient Cultivation
  • Aquaponics: Symbiotic Closed-Cycle Plant and Fish Ecosystem
  • Lokal: Ideal for Indoor Farming
  • AeroFarms: An Ingenious and Innovative Vertical Farming Technology
  • Plantscapers: A Food Building to Feed the Occupants
  • VertiCrop: Sustainable Farming for High-Density Urban Areas
  • Modular Farms: Fresh Produce From Virtually Anywhere in Any Climate
  • Cubic Farming Systems: Sustainable and Automated Next-Gen Farming
  • ZipGrow: Modern Farmers’ Farming Solution
  • Bowery: World’s Most Advanced Commercial Indoor Farming Company
  • Skyfarm: Vertical Farming Tower Powered by Wind
  • Sky Greens: Hydraulic-Driven World’s First Commercial Vertical Farm
  • Automation and Data-Driven Techniques to Transform Vertical Farming Market
  • Advancements in Agricultural Practices Drive Growth in Vertical Farming Market
  • Rising Significance of Automation, AI & Robots for Vertical Farming
  • LED Grows as the Preferred Medium of Lighting in Vertical Farming
  • Advancements In Light-Emitting Diode (LED) Technology Drive Vertical Farming Market
  • Opportunity Emerges from Vertical Farming of Cannabis
  • Limited Varieties of Cultivable Crops through Vertical Farming Restrains Market
  • Challenges Confronting Vertical Farming Market
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • GEOGRAPHIC MARKET ANALYSIS
  • UNITED STATES
  • Vertical Farming in the US: An Overview
  • Popularity of Farm-to-Table Concept Drives Vertical Farming Market
  • Hydroponics Emerges as the Dominant Growth System in the US Vertical Farming Market
  • Outdoor Vertical Farming Witnesses Strong Growth
  • Lighting Devices: The Major Component of Vertical Farming Market
  • Fruits and Vegetables Crop Type Leads the Vertical Farming Market
  • Legalization of Cannabis in Select States Fosters Vertical Farming Market
  • Competition
  • Market Analytics
  • CANADA
  • JAPAN
  • CHINA
  • Challenges with Conventional Agriculture Spurs Interest in Vertical Farming
  • China Sets Eyes on Emerging as Global Leader in Vertical Farming Technology
  • Market Analytics
  • EUROPE
  • Market Overview
  • Market Analytics
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • REST OF EUROPE
  • ASIA-PACIFIC
  • Market Overview
  • Market Analytics
  • REST OF WORLD
  • UAE Targets Vertical Farming amid COVID-19 and Climate Change Concerns
  • Market Analytics
IV. COMPETITION
  • Total Companies Profiled: 93
Note: Product cover images may vary from those shown
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