Vertical Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Vertical Farming Market is Segmented by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (Building-based Vertical Farms and Shipping Container-based Vertical Farms), Components (Lighting, Climate Control, Sensors, and Other Hydroponic Components), Crop (Tomato, Lettuce and Leafy Vegetables, Pepper, Cucumber, Microgreens, and Other Crop Types), and Geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers the market sizes and forecasts in value (USD) for all the above segments.

Vertical Farming Market Snapshot

Vertical Farming Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: North America
Largest Market: North America
CAGR: 5.4 %

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Market Overview

The vertical farming market is projected to register a CAGR of 5.4% during the forecast period (2021-2026).

The outbreak of COVID-19 has affected the supply chain of vertical farming. The global pandemic has had an impact on the proper functioning of various industries across the globe. With the closure of the restaurant, catering, and hospitality industries in most parts of the world, the foodservice industry also fell abruptly.​ However, companies have started using the e-commerce platform for their sales to customers. The increased demand for organic products among consumers, fueled by the improved standard of living and higher disposable income, has paved the way for the development of vertical farming, wherein organic farming is practiced widely. Microgreens are among the crops cultivated by vertical farming methods and are a rich source of polyphenols, a class of antioxidants that helps to lower the risk of diseases such as heart disease, Alzheimer's disease, diabetes, and certain cancers.​ Thus, due to the numerous health benefits, there is an increasing demand among health-conscious consumers in the region, which is expected to drive the market in the forecast period.

North America is projected to be the largest and fastest-growing market. Vertical farming is an environment-friendly and profitable technology. It has been promoted by various governments and non-governmental organizations for its benefits in terms of food security. The need for food supply against the explosive population is expected to increase by 2050, which has catalyzed the growth of the vertical farming market. Funds are being invested in the market to bring developments and technological advancements in this specific sector.

Scope of the Report

Vertical farming is an agricultural method through which crops are grown in vertically stacked layers. It is done in a controlled environment using techniques such as aquaponics, hydroponics, and aeroponics that do not make use of soil. The market is studied in terms of end users of vertical farming technology. The report defines the market in terms of the key players, the factors driving the market, and the factors restraining the growth, along with the competition present in the global vertical farming market.​ The market is segmented by growth mechanism (aeroponics, hydroponics, and aquaponics), structure (building-based vertical farms and shipping container-based vertical farms), components (lighting, climate control, sensors, and other hydroponic components), crop (tomato, lettuce and leafy vegetables, pepper, cucumber, microgreens, and other crop types), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers the market sizes and forecasts in value (USD) for all the above segments.

By Growth Mechanism
Aeroponics
Hydroponics
Aquaponics
By Structure
Building-based Vertical Farms
Shipping Container-based Vertical Farms
By Components
Lighting
Climate Control
Sensors
Other Hydroponic Components
By Crops
Tomato
Lettuce and Leafy Vegetables
Pepper
Cucumber
Microgreens
Other Crop Types
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
France
Sweden
Rest of Europe
Asia-Pacific
Singapore
China
Japan
Taiwan
Rest of Asia-Pacific
South America
Brazil
Rest of South America
Africa
South Africa
Rest of Africa

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Key Market Trends

Rapid Pace of Development of Precision Farming Technologies

The introduction of harvesting robots, automatic seed planters, and greenhouse roof washers has been instrumental in reducing operating costs and increasing revenues in the vertical farming market. The automating movement of plants is gaining popularity. It includes unit tasks of transplanting, seeding, packaging, harvesting, and cleaning, which boosts the vertical farming market. The use of hydroponics allows the long-term cultivation of a wide range of crops grown in vertical farming. Recent developments in the field of hydroponics to cater to casual indoor growers, simplifying technology and economics, are driving this segment's growth in the market. The development of customized lighting systems for research testing, comprising top-lighting, inter-lighting, and tissue culture, is accelerating the growth of the lighting devices segment. These plants are grown in stacks of hydroponic trays under pink LED lights. The LED lighting’s reduced heat output and energy use have made this technology feasible. In April 2019, companies such as Samsung launched a wide range of horticultural LEDs that produce a broad spectrum of light to support healthy plant growth.

Vertical Farming Market Latest Trends

North America Dominates the Market

The US market dominated the North American region. Growing concerns toward food security and nutrition are expected to open a number of novel opportunities for the industry to prosper. The United States is anticipated to invest a significant share in facilitating the ecosystem for future foods. As more consumer insights develop toward “fresh-from-farm-to-table”, the availability of freshly harvested vegetables across retail outlets is expected to increase in the country (which is also the pioneer in adopting this concept). The onset of urban population dwellings across cities, such as New York, Chicago, and Milwaukee, has propelled the environment for vertical farming with activities, such as revamping derailed vacant warehouses, derelict buildings, and high rises, which has, in turn, led to an increase in the production of fresh grown foods altogether. Over the past few years, the vertical farming concept has laid its hands across the booming cannabis market, where companies are including alternative options to garner more revenues. Major players in the Canadian vertical farm industry are Canada’s Modular Farms, based in Toronto, and Nova Scotia’s TruLeaf, leading the trail followed by startups, such as Ecobain Gardens, which grew from 1300 sq. ft. in 2013 to 6000 sq. ft. in 2018, by engaging the fresh herb mix concept.

Vertical Farming Market Size By Region

Competitive Landscape

The market is highly fragmented with the major revenue-generating companies like Infarm, Aerofarms, Signify Holdings (Phillips), Illumitex Inc., Everlight Electronics Co. Ltd, Vertical Farm Systems, Green Sense Farms LLC, Agrilution, and Urban Crops Solutions, among others, cornering just some part of the market share, while the rest of the market is shared among numerous players. In the fast-growing vertical farming market, companies are not only competing on the basis of product quality or product promotion but are also focused on other strategic moves to acquire a larger share and expand their acquired market size. Many commercial growers are adopting technologies that involve high capital expenditure, such as advanced hydroponic systems and electronic traceability systems. Additionally, growers are heavily investing in LEDs and other innovative lighting products to reduce their exposure to associated risks by carefully monitoring and investing in new technologies. Partnerships and collaborations will enable growers to provide year-round supplies, thereby strengthening their positions in the market. The new players entering the indoor vertical farming market can fetch profits by choosing the most profitable crops and using the correct facility systems.

Recent Developments

In December 2019, AeroFarms started to build a state-of-the-art indoor vertical farm to meet increasing consumer demands for more flavorful produce. It is expected to be one of the largest farms of its kind in the world in Danville, Virginia.​

In April 2019, Samsung launched a wide range of horticultural LEDs that produce a broad spectrum of light to support healthy plant growth.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Growth Mechanism

      1. 5.1.1 Aeroponics

      2. 5.1.2 Hydroponics

      3. 5.1.3 Aquaponics

    2. 5.2 By Structure

      1. 5.2.1 Building-based Vertical Farms

      2. 5.2.2 Shipping Container-based Vertical Farms

    3. 5.3 By Components

      1. 5.3.1 Lighting

      2. 5.3.2 Climate Control

      3. 5.3.3 Sensors

      4. 5.3.4 Other Hydroponic Components

    4. 5.4 By Crops

      1. 5.4.1 Tomato

      2. 5.4.2 Lettuce and Leafy Vegetables

      3. 5.4.3 Pepper

      4. 5.4.4 Cucumber

      5. 5.4.5 Microgreens

      6. 5.4.6 Other Crop Types

    5. 5.5 Geography

      1. 5.5.1 North America

        1. 5.5.1.1 United States

        2. 5.5.1.2 Canada

        3. 5.5.1.3 Mexico

        4. 5.5.1.4 Rest of North America

      2. 5.5.2 Europe

        1. 5.5.2.1 United Kingdom

        2. 5.5.2.2 France

        3. 5.5.2.3 Sweden

        4. 5.5.2.4 Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. 5.5.3.1 Singapore

        2. 5.5.3.2 China

        3. 5.5.3.3 Japan

        4. 5.5.3.4 Taiwan

        5. 5.5.3.5 Rest of Asia-Pacific

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Rest of South America

      5. 5.5.5 Africa

        1. 5.5.5.1 South Africa

        2. 5.5.5.2 Rest of Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Signify Holding (PHILIPS)

      2. 6.3.2 Aerofarms LLC

      3. 6.3.3 Sky Greens

      4. 6.3.4 Illumitex Inc.

      5. 6.3.5 Everlight Electronics Co. Ltd

      6. 6.3.6 Green Sense Farms Holdings Inc.

      7. 6.3.7 Agrilution GmbH

      8. 6.3.8 American Hydroponics

      9. 6.3.9 Urban Crops Solutions

      10. 6.3.10 Vertical Farm System

      11. 6.3.11 Gronska

      12. 6.3.12 V-Farm

      13. 6.3.13 Growup Farms Ltd

      14. 6.3.14 Vertical Future Ltd

      15. 6.3.15 SweGreen

      16. 6.3.16 Jones Food Compnay

      17. 6.3.17 InFarm

      18. 6.3.18 Agricool

      19. 6.3.19 Future Crops

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Vertical Farming Market market is studied from 2016 - 2026.

The Vertical Farming Market is growing at a CAGR of 5.4% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Sky Greens , Agrilution GMBH, Green Sense Farms Holdings, Inc., Aerofarms, Urban Crop Solutions are the major companies operating in Vertical Farming Market.

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