Vertical Farming Market Size, Share, Forecast, & Trends Analysis by Component (Hardware {Lighting}, Software), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure, Crop Type (Tomato, Berries, Lettuce, Microgreens)-Global Forecast to 2031
According to the research report titled, 'Vertical Farming Market Size, Share, Forecast, & Trends Analysis by Component (Hardware {Lighting}, Software), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure, Crop Type (Tomato, Berries, Lettuce, Microgreens)-Global Forecast to 2031,' the vertical farming market is projected to reach $43.88 billion by 2031, at a CAGR of 22.6% during the forecast period 2024-2031. The report provides an in-depth analysis of the global vertical farming market across five major regions, emphasizing the current market trends, market sizes, recent developments, and forecasts till 2031.
Succeeding extensive secondary and primary research and an in-depth analysis of the market scenario, the report conducts the impact analysis of the key industry drivers, restraints, opportunities, and trends. The growth of this market is driven by the declining arable land and the rising need to increase crop yield, the growing population & rapid urbanization, the increasing demand for chemical-free fruits & vegetables, and growing water scarcity & changing climatic circumstances.
Furthermore, recent technological advancements in vertical farming, the rise of urban farming, and the increasing consumption of fresh foods are expected to generate growth opportunities for the stakeholders in this market. Additionally, the rising emphasis on sustainability and reducing the environmental impact of farming is a prominent trend in this market.
The key players operating in the global vertical farming market are Signify Holding B.V. (Netherlands), Heliospectra AB. (Sweden), AmHydro (U.S.), Freight Farms, Inc. (U.S.), Intelligent Growth Solutions Limited (U.K.), Everlight Electronics Co., Ltd. (China), ams-OSRAM AG (Austria), Vertical Farm Systems Pty Ltd (Australia), Urban Crop Solutions BV (Belgium), Vertical Future (U.K.), 4D Bios Inc. (U.S.), and Argus Control System Ltd. (Canada).
Based on component, the vertical farming market is segmented into hardware, software, and services. In 2024, the hardware segment is expected to account for the largest share of 54.7% of the vertical farming market. The growth in urban farming, the availability of technologically advanced components, the rising acceptance of precision farming techniques, and the increasing preference for advanced LED lighting and autonomous irrigation systems are the factors contributing to the large market share of this segment.
Based on growth mechanism, the vertical farming market is segmented into hydroponics, aeroponics, and aquaponics. In 2024, the hydroponics segment is expected to account for the largest share of 61.1% of the vertical farming market. The large market share of this segment can be attributed to the rising penetration of controlled-environment agriculture, the advantages of hydroponics, such as low water consumption and less risk of soil-borne diseases, and rising technological advancements in hydroponics.
Based on structure, the vertical farming market is segmented into building-based vertical farms and shipping container-based vertical farms. In 2024, the shipping container-based vertical farms segment is expected to account for the larger share of 56.0% of the vertical farming market due to the rise in technological advancements in shipping container-based vertical farming, wide acceptance of the method across several nations, and the increasing demand for locally traced fresh produce. In addition, shipping container-based vertical farming can be established anywhere in areas with difficult weather or climate conditions. Furthermore, it is appropriate for locations facing difficulties in traditional farming. These structures are portable and do not require dedicated building space. These benefits drive the adoption of shipping container-based vertical farming, supporting the growth of this segment.
Based on crop type, the vertical farming market is segmented into tomato, berries, lettuce & leafy vegetables, pepper, cucumber, microgreens, herbs, and other crop types. In 2024, the tomato segment is expected to account for the largest share of 16.6% of the vertical farming market. The widespread use of vertical farming in tomato crop cultivation, the growing demand for tomatoes, and the high yields and natural pest suppression in vertical farming are the factors supporting the growth of this market.
Based on geography, the vertical farming market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 29.5% of the vertical farming market, followed by Europe and Asia-Pacific. The vertical farming market in North America is expected to reach $3.10 billion in 2024. North America's significant market share can be attributed to the widespread vertical farming carried out across North America, the rising adoption of precision farming methods and advanced technologies, and the increasing demand for locally sourced fresh and organic produce.
Key Questions Answered in the Report:
What is the revenue generated from the sale of vertical farming solutions?
At what rate is the global demand for vertical farming solutions projected to grow over the next 5-7 years?
What is the historical market size for vertical farming solutions?
What are the major factors influencing the growth of this market at the global and regional levels?
What are the major opportunities for existing players and new entrants in this market?
Which component, growth mechanism, structure, and crop type segments are expected to create major traction for the players in this market?
What are the key geographical trends in this market? Which regions/countries are expected to offer significant growth opportunities for the vendors in this market during the analysis period?
Who are the major players in the vertical farming market? What are their specific offerings in this market?
What are the recent developments in the vertical farming market? What are the impacts of these developments on the market?