Vertical Farming Market Outlook, 2029

Vertical farming is basically the process of producing food on vertically inclined surfaces. Instead of farming crops, vegetables, and other foods on a single level (on a flat field), this method allows food to grow in a vertical manner into stacked layers. These layers are commonly integrated into other structures, including skyscrapers, shipping containers, or repurposed warehouses. The vertical farming process uses technology from controlled environment agriculture (CEA) to enhance the overall outcome. That includes artificial control of temperature, light, humidity and gases across the vertical farming structure. Vertical farming offers an opportunity to change the way we grow crops and consume them.

Also, this industry is expected to be the 'future of agriculture' due to its high level of monitoring and increased efficiency. Vertical farming reduces the use of water and land while also reducing waste. Additionally, the crops are secured from pests and other impurities due to the CEA technology. Further, by 2050, the world’s population is projected to grow to 9.7 billion people. Every industry will face difficulties in feeding such a large population to industrial development and increasing urbanization, we are losing a precious amount of arable land with every passing day. In 2015, scientists found that Earth had lost a third of its arable land over the previous 40 years. Many researchers believe that vertical farming can be a viable option to overcome this threat. The primary goal of this industry is to maximize crop production with a limited amount of space.

According to the research report, “Global Vertical Farming Market Outlook, 2029”, the market is expected to cross USD 20.90 Billion market size by 2029, increasing from USD 6.05 Billion In 2023. The global market is forecasted to grow with 23.25% CAGR by 2024-29. Market revenue growth is expected to be driven by various factors, including a rise in global demand for food, higher yields than traditional farming, and independence from climate impacts. Drastic climate change and erratic weather patterns have significantly impacted the agriculture industry across the globe in the last decade. This change is creating higher demand for alternative, sustainable farming practices such as vertical farming.

The global vertical farming market is segmented into five major regions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Among these regions, the Asia-Pacific region is estimated to acquire a larger portion of the market share during the forecast period. Asia-Pacific is one of the most lucrative markets for vertical farming compared to other regions. There has been a significant rise in new manufacturers and start-ups offering new innovative products across the region. In addition to that, higher adoption of advanced technologies such as artificial intelligence (AI), enhanced sensors, robotics, and smart monitoring is boosting the market growth.

According to the report, the USA dominated the global vertical farming market in the base year of 2023 and it is expected to continue that momentum during the forecast period. The USA is highly fragmented, with more than 2000 farms across the country. Also, the need for farming methods that can reduce the overall environmental impact across the USA is projected to fuel the market's growth. Further, based on the growth mechanism, the global vertical farming market is segmented into three types: hydroponics, aeroponics, and aquaponics. Among these types, hydroponics growth mechanisms are anticipated to acquire more than half of the market share in terms of value during the forecast period.

The hydroponics segment is a predominant growth mechanism that involves growing plants in nutrient solutions (free of soil). As this segment uses 90% less water and land, it creates a higher demand for this type of vertical farming across the globe. On the other hand, the aeroponics growth mechanism is expected to be the fastest growing segment in the global market.

In the global vertical farming market, building-based and container-based systems represent two key structural approaches, each contributing to the sector's rapid expansion. Building-based vertical farms are the larger segment, dominating the market due to their ability to support large-scale, high-volume crop production. These systems, often housed in repurposed warehouses or skyscrapers in urban areas, provide the advantage of year-round cultivation in controlled environments, making them highly efficient and suited for meeting the growing demand for fresh, locally sourced produce in cities.

Their capacity for scaling up operations positions building-based farms as the preferred choice for commercial farming ventures focused on maximizing yields and minimizing land use. Meanwhile, container-based farms are the faster-growing segment, driven by their flexibility, portability, and cost-effectiveness. These systems are typically housed in modified shipping containers, allowing for small-scale, localized farming that can be deployed in urban and remote areas alike. They are particularly attractive to startups and smaller-scale operators who seek to enter the vertical farming space with lower upfront costs and adaptable solutions.

In the global vertical farming market, the application segments of indoor and outdoor vertical farming play distinct yet complementary roles in shaping the industry’s landscape. Indoor vertical farming is the larger segment, dominating the market due to its ability to provide controlled environments that optimize growing conditions regardless of external climate factors. These systems, typically housed in warehouses or dedicated facilities, allow for year-round cultivation, ensuring consistent crop production of high-value vegetables, herbs, and fruits.

The growing urban population and increasing demand for fresh produce have further fuelled the adoption of indoor vertical farms, making them a preferred choice for commercial operations seeking to maximize efficiency and yield. In contrast, outdoor vertical farming is the faster-growing segment, gaining traction as innovations in agricultural technology and vertical farming techniques enable crops to be grown in non-traditional outdoor settings. This approach can enhance land utilization and reduce the need for extensive infrastructure while still leveraging vertical growing methods. The trend towards outdoor vertical farming is also driven by its potential to improve resource efficiency and sustainability, aligning with environmental goals and consumer preferences for eco-friendly practices.

In the global vertical farming market, the crop type segment is diverse, encompassing tomatoes, bell and chili peppers, lettuce, herbs, leafy greens (excluding lettuce), strawberries, and other fruits and vegetables like cucumbers. Among these, tomatoes represent the largest segment, widely cultivated due to their high demand in various culinary applications and the versatility they offer to both consumers and producers. The trend of increasing urbanization and the growing preference for locally sourced food have significantly bolstered the production of tomatoes in vertical farms, allowing for consistent quality and year-round availability.

Following tomatoes, leafy greens, including lettuce and herbs, have gained substantial traction, driven by their rapid growth cycles and high market demand. These crops are particularly well-suited for vertical farming systems, where controlled environments can optimize conditions for growth, resulting in improved yields and reduced resource usage. The rising interest in health and wellness has also prompted consumers to seek fresh, pesticide-free produce, enhancing the appeal of vertical farming for growing leafy greens and herbs.

COVID-19 Impacts

In order to deliver safe goods and services, stop disease outbreaks, and lower the chance of downtime, vital enterprises and organisations depend on pest control. When the coronavirus lockdown limitations are relaxed, the restoration of a building to normal usage will be delayed by pest infestations. Utilizing pest control services at this time will enable you to keep an eye on infestations, deal with them immediately, and drastically save expenditures.

Considered In the Report

• Geography: Global
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Aspects covered in this report

• Global Vertical Farming Market with its value and forecast along with its segments
• Region & country wise vertical farming market analysis
• Application wise vertical farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America (US, Canada, Mexico)
• Europe (Germany, UK, France, Italy, Spain, Netherlands)
• Asia-Pacific (China, Japan, Taiwan, Singapore, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

Based on Growth Mechanism

• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type

• Building based-vertical farming
• Shipping based-vertical farming

Based on components

• Lighting
• Climate Control (HVAC)
• Sensors
• Other Hydroponic Components (Irrigation & fertigation system)

Based on application type

• Indoor-vertical farming
• Outdoor-vertical farming

Based on crop type

• Tomatoes
• Bell & Chili peppers
• Lettuce
• Herbs
• Leafy Greens (excluding lettuce)
• Strawberry
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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