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Vertical Farming - Global Market Trajectory & Analytics

  • ID: 4806398
  • Report
  • February 2022
  • Region: Global
  • 311 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • 4D Bios, Inc.
  • Agrilution Systems GmbH
  • Freight Farms
  • Heliospectra AB
  • Osram Licht AG
  • Signify Holding

Global Vertical Farming Market to Reach $5.8 Billion by 2026


Vertical farming technique incorporates controlled-environment agriculture, which aims to optimize plant growth, and soilless farming techniques namely hydroponics, aquaponics, and aeroponics. All these techniques offer promising farming tools specially for mountainous regions or places where the soil is infertile. Flowers, vegetables and fruits can be grown indoors and outdoors on rooftops of buildings. These products are mainly used in homes and in medium and small agricultural businesses. Amid the COVID-19 crisis, the global market for Vertical Farming estimated at US$2.7 Billion in the year 2020, is projected to reach a revised size of US$5.8 Billion by 2026, growing at a CAGR of 14% over the analysis period. Lighting, one of the segments analyzed in the report, is projected to grow at a 13.9% CAGR to reach US$2.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Hydroponic Components segment is readjusted to a revised 13.6% CAGR for the next 7-year period. This segment currently accounts for a 20.3% share of the global Vertical Farming market.



The U.S. Market is Estimated at $779.3 Million in 2021, While China is Forecast to Reach $888 Million by 2026


The Vertical Farming market in the U.S. is estimated at US$779.3 Million in the year 2021. The country currently accounts for a 26.94% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$888 Million in the year 2026 trailing a CAGR of 16.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 11.9% and 12.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.5% CAGR while Rest of European market (as defined in the study) will reach US$1 Billion by the close of the analysis period.

Expanding global population and the rising demand for a variety of foods and crops is necessitating focus on alternative farming conditions as supplements to traditional cultivation. Declining availability of arable land worldwide and the rising need for food security are fueling growth in the vertical farming market. The continuous decline in farmland is attributed to factors such as growing climatic changes, random metrological and geological events such as tornadoes, hailstorms, floods, and droughts. Vertical farming techniques minimize the dependence on prevailing climatic conditions and allow optimum use of arable land. The technique is increasingly being adopted worldwide in a bid to prevent damage of crops from natural calamities and other unpredictable changes in an area. Vertical farming method has the ability to address food security concerns such as utilization, stability, accessibility, and availability. Also with ground water levels getting depleted and climatic change having severe impact on agricultural activities, there is growing emphasis on alternatives to traditional farming methods. Population growth and the ever-widening gap between demand and supply of food is the main reason for vertical farming gaining prominence over traditional agriculture. Vertical farming provides a solution to the issue as crops can be grown in limited spaces, and such cultivation will not rely on the environment or climatic conditions ensuring a continuous supply of food. Driven by numerous benefits such as low consumption of agrochemicals and water, low dependence on fertility of soil and human labor, vertical farming has emerged to be a lucrative farming technique in recent years. The market is also driven by the rising consumer demand for clean and organic food that is free from pesticides and GMOs. Rising incidence of heart diseases, obesity and other life-threatening diseases is also driving consumers to seek healthier options, thus presenting opportunities for growth.

Climate Control Segment to Reach $871.7 Million by 2026


In the global Climate Control segment, USA, Canada, Japan, China and Europe will drive the 15.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$276 Million in the year 2020 will reach a projected size of US$744.6 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$179.5 Million by the year 2026.

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.
Frequently Asked Questions about the Global Market for Vertical Farming

What is the estimated value of the Global Market for Vertical Farming?

The Global Market for Vertical Farming was estimated to be valued at $2.7 Billion in 2020.

What is the growth rate of the Global Market for Vertical Farming?

The growth rate of the Global Market for Vertical Farming is 13.6%, with an estimated value of $5.8 Billion by 2026.

What is the forecasted size of the Global Market for Vertical Farming?

The Global Market for Vertical Farming is estimated to be worth $5.8 Billion by 2026.

Who are the key companies in the Global Market for Vertical Farming?

Key companies in the Global Market for Vertical Farming include 4D Bios, Inc., AeroFarms LLC, Agrilution Systems GmbH, AMHYDRO (American Hydroponics), Everlight Electronics Co., Ltd., Freight Farms, General Hydroponics, Inc., Heliospectra AB and Mirai Co., Ltd..

FEATURED COMPANIES

  • 4D Bios, Inc.
  • Agrilution Systems GmbH
  • Freight Farms
  • Heliospectra AB
  • Osram Licht AG
  • Signify Holding

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Influencer Market Insights
  • World Market Trajectories
  • 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
  • Vertical Farming – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)

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
  • World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
  • 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
  • Global Availability of Arable Land in Hectares Per Person for the Years 1990, 2000, 2018 and 2020
  • 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
  • Average Global Surface Temperature (In Degrees Fahrenheit) for the Years 1940, 2000 and 2020
  • Rising Popularity of Organic Foods Drives Investments into Vertical Farming
  • 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

UNITED STATES

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • 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

CANADA

JAPAN

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • Challenges with Conventional Agriculture Spurs Interest in Vertical Farming
  • China Sets Eyes on Emerging as Global Leader in Vertical Farming Technology

EUROPE

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Market Overview

FRANCE

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

UNITED KINGDOM

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)

REST OF EUROPE

ASIA-PACIFIC

  • Vertical Farming Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Market Overview

REST OF WORLD

  • UAE Targets Vertical Farming amid COVID-19 and Climate Change Concerns

IV. COMPETITION

  • Total Companies Profiled: 70

A selection of companies mentioned in this report includes:

  • 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