Global Vertical Farming System/Module Market By Type (Hydroponics, Aeroponics, Others), By Application (Vegetable Cultivation, Fruit Planting, Other), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 44206 | Published Date: Jul 2024 | No. of Pages: 10 | Base Year for Estimate: Jul 2024 | Format:
Market Overview:
Vertical farming is an innovative agricultural approach that involves growing crops in stacked layers, often integrated into other structures like skyscrapers or shipping containers. This method leverages controlled-environment agriculture (CEA) technology, which optimises plant growth and enhances sustainability. The ability to artificially regulate light, temperature, humidity and gases allows for the production of food and vegetables inside. Increasing crop yield in a regulated area is the main objective of vertical farming.
The global vertical farming/ module market was valued at USD 5.26 billion in 2024 and is projected to reach USD 41.28 billion by 2031, growing at a CAGR of 27.3% from 2024-2031. The market is driven by the growing interest in cutting-edge food delivery techniques, rising demand for sustainable food production and growing knowledge of the advantages of vertical farming systems. Furthermore, the growing acceptance of e-commerce usage is also expected to be a major driver.
Premium Insights:
The rise of urbanisation and the need for local food production are driving the adoption of vertical farming systems in cities
Vertical farming reduces the need for arable land and water, making it a key solution for sustainable agriculture
Global Vertical Farming System/Module Marke Dynamics:
Drivers: Urbanisation with limited land availability, focus on food security & climate resilience and growing consumer interest in locally grown traceable food
-The global population is becoming increasingly urbanised, leading to a decline in available land for conventional agriculture. Vertical farming offers a solution for growing food closer to urban centres, reducing transportation costs and ensuring fresh produce availability.
-Climate change poses threats to traditional agriculture through extreme weather events and disruptions in growing seasons. Vertical farming provides a controlled environment that minimises reliance on weather conditions and promotes year-round food production, contributing to food security.
-Consumers are increasingly interested in knowing the origin and production methods of their food. Vertical farming allows for local food production with greater control over growing conditions, potentially appealing to health-conscious consumers.
Restraints: Energy consumption concerns, consumer perception & acceptance, regulations & policy landscape.
-Vertical farming systems rely heavily on artificial lighting and climate control technologies, which can lead to high energy consumption. Developing renewable energy solutions and energy-efficient systems is crucial for long-term sustainability.
-While awareness is growing, some consumers may not be fully familiar with the concept of vertical farming or may have concerns about the taste and quality of produce grown in these systems.
-Vertical farming may fall outside the scope of existing agricultural regulations in some regions. Developing clear and supportive regulatory frameworks is necessary to encourage investment and innovation in this sector.
Opportunities: Technological integration, focus on product diversification & premiumisation and strategic partnerships & collaboration.
-Integrating AI and automation technologies into vertical farming systems can further enhance efficiency, optimize resource utilization, and improve crop yields.
-Vertical farming can produce a wider variety of crops, including specialty greens, herbs, and even fruits. Focusing on premium and niche markets can increase profitability and attract a wider consumer base.
-Collaboration between vertical farming companies, research institutions, agricultural suppliers, and retailers can accelerate innovation, optimize supply chains, and bring high-quality, locally-grown produce to a wider audience.
Market By Vertical Farming System Type Insights:
Based on product type, the market is segmented into inkjet Aquaponics, Aeroponics,
and Hydroponics. The Hydroponics segment accounted for the largest market in 2023 and is a method of growing plants without soil where the soil is replaced by a mineral solution which is inserted around the plant roots.
Based on application, the market is segmented into Vegetables, Plants, Flowers and others. The vegetable segment accounted for a major market share in 2023 as hydroponics and aeroponics techniques can easily be integrated into existing vegetable production. The method is also increasingly being utilised in cultivating flowers.
Market By End-Use Insights:
Based on end-use, the market is segmented into commercial, residential and R&D. Among these the commercial sector accounted for a significant market share due to increased investments.
Market By Region Insights:
Based on regional coverage, the market is segmented into North America, Asia-Pacific, Europe, Latin America and Middle East & Africa. In 2023, the Vertical Farming System / Module Market was dominated by North America in terms of revenue share accounting for 35,2% market share. The reason behind this dominance can be attributed to the increase in demand for VFS systems in this region especially over the next six years. Although Asia-Pacific has been capturing a considerable amount of market share in recent years.
Competitive Scenario:
Key players in this market include Smart Grow System, H Metropolis Farms, Green Hive, HOVE International, Nihon Advanced Agri CO., Urban Crop Solutions, UPGROWN FARMING CO., Green Living Technologies, VertiCrop, Modular Farm Co.
Scope of Work-Global Vertical Farming System/Module Market
Key Market Developments
2022-The first vertical farm in Riyadh and only the second in Saudi Arabia was launched by Green Basket's pilot farm.
2021-The first beefsteak tomato shipments from AppHarvest's main facility in Morehead, Kentucky, went to stores like Kroger, Walmart, Meijer, Food City, and Publix. The 60-acre CEA farm is predicted to yield 45 million pounds of non-GMO tomatoes annually and uses 90% less water than conventional open-field farming.
Frequently Asked Questions (FAQs)
What is the current size of the global vertical farming system/module market?
Ans. As of 2024, the market was valued at USD 5.26 billion in 2024 and is projected to reach USD 41.28 billion by 2031.
What are the main drivers of the market?
Ans. Key drivers include urbanisation with limited land availability, focus on food security & climate resilience and growing consumer interest in locally grown traceable food
What are the primary challenges faced by the market?
Ans. The primary challenges include energy consumption concerns, consumer perception & acceptance, regulations & policy landscape.
Who are the major players in the vertical farming system/module market?
Ans. The major players include Smart Grow System, H Metropolis Farms, Green Hive, HOVE International, Nihon Advanced Agri CO., Urban Crop Solutions, UPGROWN FARMING CO., Green Living Technologies, VertiCrop, Modular Farm Co.
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