Product Overview
Vertical farming is a way of growing different kinds of products in vertically organized layers, in unused vertical warehouse spaces, in skyscrapers, in containers, etc. Vertical farming is a groundbreaking approach used in vertically stacked layers such as a skyscraper, used factory, or shipping container for the cultivation of food and medicinal plants. For several organizations, this method allows profitability to fulfill their corporate social responsibility (CSR) through sustainable agricultural practices. The other advantages of vertical farming technology include the use of technology for controlled-environmental farming and techniques for indoor farming, where all environmental factors can be controlled for crop production. Three modes or technologies are used to conduct vertical farming: aeroponics, hydroponics, and aquaponics. Different devices, fruits, vegetables, herbs, and aquatic species are used in each process. This technique of cultivation finds wide usage in several indoor and outdoor applications.

Market Highlights
Global Vertical Farming Market is expected to project a notable CAGR of 24.1% in 2030.
Global Vertical Farming Market to surpass USD 12.71 billion by 2030 from USD 2.5 billion in 2018 at a CAGR of 24.1% throughout the forecast period, i.e., 2019-30. Due to the growing popularity of organic foods, demand for the vertical farming industry is expected to grow rapidly during the forecast period. Also, these farms’ vertically stacked arrangement decreases the need for additional construction activity and land. In addition, it reduces the intervention needed by machines during traditional farming. Thus, efficient use of vertical space and balanced use of resources contribute to the growth of the vertical farming industry. Furthermore, these facilities artificially require several technologies for plant development. Technologies used in this farming allow plant growth and harvesting to be controlled, which further drives the market growth.

Global Vertical Farming Market: Segments
Lighting Segment to grow with the highest CAGR during 2019-30
Global Vertical Farming Market is segmented by hardware component as lighting, hydroponics components, climate control, and sensors. The greater market share in 2018 was accounted for by the lighting segment and is also expected to witness high growth during the forecast period. Vertical farming, however, relies heavily on artificial lights. Artificial light acts as a sunlight replacement and is necessary to provide sufficient intensity of the light to allow crop growth. The primary factors considered when providing lighting for plants are the volume and length of the light. Lights either have a spectrum of light like that of the sun or a spectrum that suits the plants’ needs. With different colors, temperatures, and spectral outputs from the rising lights, as well as varying the intensity output of the lamps, outdoor lighting conditions can be established. Specific spectrum ranges, luminous effectiveness, and color temperature are used for specific plants and for different time periods, depending on the type of plant being cultivated, the stage of cultivation, and the photoperiod needed.

Aquaponics mechanism segment to grow with the highest CAGR during 2019-30
Global Vertical Farming Market is segmented by mechanism into aeroponics, hydroponics, and aquaponics. The greater market share in 2018 was accounted for by the hydroponics segment and is expected to remain dominant over the forecast period. Hydroponic farming is a soil-free method of growing plants where the soil is substituted with a mineral solution inserted around the roots of the plant. In the hydroponic mechanism, plants can live for a long time in the event of a power failure, as the increasing medium continues to provide water and nutrients, unlike aeroponics, where plants can die in just a few hours due to mist spraying nozzles failing or malfunctioning. During the forecast period, the market is expected to see the fastest growth in aquaponics, as it combines both hydroponics and fish farming or aquaculture to create an efficient closed-loop system that helps to produce various types of crops effectively.

Building-based structure Segment to grow with the highest CAGR of 24.6% during 2019-30
Global Vertical Farming Market is segmented by structure into the building based and shipping container structures. The greater market share in 2018 was accounted for by the shipping container segment and is expected to remain dominant over the forecast period. This growth is due to the structure’s ability to help grow crops regardless of the geographic location. Moreover, with increased competition, the price of shipping containers falls as the cost of purchasing used containers is comparatively smaller, which allows other businesses the ability to enter the marketplace. The building-based structure is expected to rise during the forecast period at the highest CAGR. This form of farming offers almost eight times more growing areas than single-level farmland and helps to minimize the cost of farming, thus ensuring long-term food security for a city.

Global Vertical Farming Market: Market Dynamics
Drivers
Increase in popularity of organic foods
Today, people around the world have become increasingly conscious of the source of food they eat on a regular basis and have moved from foods that are processed using chemicals and pesticides to organic foods. With the rising population, the migration from rural to urban areas is also growing. The growth of the global vertical farming market is driven by evolving lifestyles, growing per capita income, and increasing health awareness among consumers. Furthermore, the increasing emphasis on reliable crop production, regardless of climatic conditions, is pushing farmers’ emphasis on the environmentally friendly production of fresh fruits and vegetables. Governments of different countries are now encouraging sustainable food production through the use of organic pesticides. These factors are expected to increase the growth of modern agriculture and thus drive the growth of vertical agriculture.

High investment in vertical farming
The development of the vertical farming industry is adversely affected by the high price of farm scrapers. Most of the hardware used in the industry, due to its advanced features such as activated lights and temperature control, is very expensive. The cost of organic pesticides, which is influenced by the overall cost of investment, is also rising. The high hardware costs make it difficult for small and medium-sized companies to introduce them, which is hampering the growth of the demand for vertical farming.

Restrain

Lack of skilled workforce and technical knowledge
The use of advanced solutions, such as cameras, sensors, automated systems, artificial intelligence, and hydroponic, aquaponic, or aeroponic systems, is also used in vertical farming. Knowledgeable and professional staff are required to operate these advanced systems. Maintenance of machines and computers also includes people who are technically well-trained and equipped with all the know-how to update. The shortage of skilled labor has impacted numerous industries worldwide, and vertical farming is no exception. Most farmers are also entering this market with their systems, which are not productive and expensive in terms of construction. Vertical farms need to be up-to-date in various aspects of agriculture to maintain and stay competitive in the market.

Global Vertical Farming Market: Regions
Global Vertical Farming Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, APAC, and MENA.

Global Vertical Farming Market in the Asia Pacific held the largest market share of XX.X% in the year 2018 owing to the rising population of fertile agricultural land in the Asia-Pacific region is decreasing, creating an incentive for urban farming. China and India are the most populous countries and, with growing urbanization and population, the available agricultural land in these countries is declining at a rapid rate. In the coming years, rising disposable and per capita incomes across APAC are expected to drive urban farming demand. Due to the increasing expansion of genetically modified crop technology, Europe is expected to see substantial growth over the forecast period. In addition, the rising adoption of nanotechnology and robotics for agriculture increases regional market demand. The use of nanotechnology helps to enhance food packaging and enhance the control of diseases and pests.

Competitive Landscape:
The Global Vertical Farming market, which is highly competitive, consists of several major players such as AeroFarms (U.S.); Illumitex, Inc. (U.S.); and American Hydroponics (U.S.) hold a substantial market share in the Global Vertical Farming market. Other players analyzed in this report are Koninklijke Philips N.V., AeroFarms LLC, Sky Greens Pte. Ltd, Illumitex Inc, Everlight Electronics Co. Ltd, Hort Americas, Agrilution GmbH, American Hydroponics Systems Inc., Urban Crop Solutions Inc., and Vertical Farm Systems among others.

Key players are adopting inorganic growth strategies such as product launches in the global nutritional supplement market. For instance, in In In In January 2020, Osram launched the new generation of the Oslon Square Hyper Red with a wavelength of 660 nm, which is the flagship product in Osram Opto Semiconductors’ comprehensive horticulture portfolio.

Global Vertical Farming Market is further segmented by region into:
North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
APAC Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
MENA Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA
Global Vertical Farming Market: Key Players
Signify Holding (PHILIPS)

Company Overview

Business Strategy
Key Product Offerings
Financial Performance
Key Performance Indicators
Risk Analysis
Recent Development
Regional Presence
SWOT Analysis
Aerofarms LLC
Sky Greens
Illumitex Inc.
Everlight Electronics Co., Ltd.
Green Sense Farms Holdings. Inc
Agrilution GmbH
American Hydroponics
Urban Crops Solutions
Vertical Farm System
Gronska
V-Farm
Growup Farms Ltd.
Vertical Future Ltd.
SweGreen
Jones Food Company
InFarm
Agricool
Future crops
Global Vertical Farming Market report also contains analysis on:
Global Vertical Farming Market Segments:
By Component:

Hardware

Lighting
Grow Lights
Grow Light Reflectors
Grow Light Ballasts
Hydroponic Components
Pumps and Irrigation
Meters and Solutions
Water Filters
Others (includes Timer and Delivery System)
Climate Control
Ventilation Fans
Air Purification/ Control
Others (includes Condenser and HVAC System)
Sensors
Temperature Sensors
CO2 Sensors
Nutrient Sensors
PH Sensors
Crop Sensors
Others (Biosensors and Electronics Nose)
Software
By Structure:
Building Based
Shipping Container Based
By Mechanism:
Hydroponics
Aeroponics
Aquaponics
By Crop Type:
Lettuce
Spinach
Broccoli
Cucumber
Pepper
Tomato
Others
Global Vertical Farming Market Dynamics
Global Vertical Farming Market Size
Supply & Demand
Current Trends/Issues/Challenges
Competition & Companies Involved in the Market
Value Chain of the Market
Market Drivers and Restraints

The post Global Vertical Farming Market Analysis and Forecast Report 2030 first appeared on CRI Report.

Market Segmentation

• Mechanism: Hydroponics, Aquaponics, and Aeroponics
• Product: Lighting Devices, Hydroponic Components, Climate Control Devices, Sensing Devices, and Others

Regional Segmentation

• North America: U.S., Canada, and Mexico
• Europe: Germany, Netherlands, France, Spain, and Italy
• U.K.
• Middle East and Africa: South Africa, U.A.E, and Saudi Arabia
• China
• Asia-Pacific: India, Japan, Thailand, South Korea, and Rest-of-Asia-Pacific
• Rest-of-the-World: Brazil

Market Growth Drivers

• Advantages over Conventional Farming
• Advancements in Light-Emitting Diode (LED) Technology
• Ensuring High Quality and High Level of Food Safety

Market Challenges

• Need of Constant Monitoring
• High Operational and Maintenance Cost
• Not Suitable for All Types of Crops

Market Opportunities

• Demand from Countries with Less Arable Land and Unfavorable Climate
• Integration of Technology with Vertical Farming

Key Companies Profiled

AeroFarms, AppHarvest, Vertical Harvest, CropOne, Plenty Unlimited Inc., AmHydro., Kalera, Heliospectra AB, Hort Americas, Signify Holding (Koninklijke Philips N.V), OSRAM GmbH., Valoya, EVERLIGHT ELECTRONICS CO., LTD., Sky Greens, SPREAD Co., Ltd.

How This Report Can Add Value

Market by Product: Analysis and Forecast: The segment gives a brief overview of the product portfolio of different companies and the market presence of different products existing in the market.

For instance, in June 2021, Fluence Bioengineering by OSRAM Gmbh launched the RAZR modular system to support diverse vertical farming and on-site propagation needs. Fluence’s newest LED solution featuring market-leading efficacies of 2.6 μmol/J under Fluence’s PhysioSpecBROAD R3 white spectrum

Market by Mechanism: Analysis and Forecast: The segment gives a brief overview of the market status of different mechanisms of the product and key players offering products in those applications. Hydroponics is expected to lead the market in terms of mechanism. Hydroponics is one of the main growing systems used in vertical farms. In a hydroponic system, plants are produced in nutrient solutions without soil. Hydroponic systems immerse plant roots into liquid solutions with different nutrients.

For instance, in January 2021, Farms2050 collaborated with AmHydro. to set up India’s first and only indigenous high-tech climate-controlled greenhouse by October 2021. AmHydro. would be providing internal technologies to the Farms 2050 for setting up the hydroponic farm.

Key Questions Answered in the Report

• What is the estimated global vertical farming market size in terms of revenue for the forecast period 2021-2026, and what is the expected compound annual growth rate (CAGR) during the forecast period 2021-2026?
• What are the key trends, market drivers, and opportunities in the market pertaining to vertical farming?
• What are the major restraints inhibiting the growth of the global vertical farming market?
• What kinds of new strategies are being adopted by the existing market players to expand their market position in the industry?
• What is the competitive strength of the key players in the global vertical farming market based on an analysis of their recent developments, product offerings, and regional presence?
• How is the competitive benchmarking of the key vertical farming companies in the agriculture market based on the analysis of their market coverage and market potential?
• How much revenue each of the segments is expected to record during the forecast period along with the growth percentage, based on:
o Mechanism, including hydroponics, aquaponics, and aeroponics
o Products, including lighting devices, hydroponics components, climate control devices, sensor devices, and others
o Region, including North America, the U.K., Europe, Asia-Pacific, China, the Middle East and Africa, and the Rest-of-the-World
• Which type of players and stakeholders are operating in the market ecosystem of vertical farming, and what is their significance in the global market?
• Which are the leading consortiums and associations in the global vertical farming market, and what are their roles in the market?

Global Vertical Farming Market

Vertical farming is used to produce various vegetables and fruits on vertically inclined surfaces. Unlike conventional farming of vegetables and other foods on a single level, such as in a field or a greenhouse, the vertical farming method produces foods in vertically stacked layers generally incorporated into structures such as a shipping container, repurposed warehouse, and skyscraper.

In addition to this, vertical farming is a crop production system that integrates numerous technologies such as big data analytics, robotics, the internet of things (IoT), and artificial intelligence (AI). Such technologies help the crops to grow well without any agronomic constraints. Vertical farming depends on some technologies to observe the crops constantly, to maintain temperature, humidity, lights, and air circulation in the farm.

Advanced technologies utilized in vertical farming also help in crop production, harvesting schedules, and quality control. It also helps farms to adapt and avoid new or unexpected hazards in their paths.

Global Vertical Farming Industry Overview

The global vertical farming market was valued at $5.50 billion in 2020 and is projected to reach $19.86 billion in 2026, following a CAGR of 24.3% during 2021-2026. The market growth is highly impacted by the shift of population from rural to urban areas, and the declining size of arable land, among others. Apart from this, the market is also driven by factors such as its advantages over conventional farming, advancements in light-emitting diode (LED) technology, and high quality and high level of food safety assurance.

Market Segmentation

Global Vertical Farming Market by Mechanism

Vertical farming can be done by various mechanisms, such as hydroponics, aquaponics, and aeroponics. Hydroponics helps plants grow in water, aeroponics helps grow plants suspended in air, and aquaponics is an exceptional combination of hydroponics and fish farming in an integrated system. It requires both water and fish to grow the plants.

The hydroponics segment is the largest in the global vertical farming market. Hydroponic farms optimize plant growth, offer local fresh produce, and minimize the use of water, space, transport, and pesticides. Also, hydroponics can be used in a greenhouse using natural light, and most commonly by using LED lights to save space. Owing to such a wide range of advantages offered by hydroponics, its demand is increasing across the globe.

Global Vertical Farming Market by Product

There is a wide range of products (components) used in vertical farming including, lighting devices, hydroponic components, climate control devices, sensing devices, and others. The demand for lighting devices is likely to witness positive growth in developed and developing countries. This growth is mainly due to the advantages of lighting devices such as propagating young plants, cultivating healthier crops, and pesticide-free crops. Also, the production of crops can be increased by using vertical farming lighting to light multiple layers of crops, attaining a higher yield with a smaller footprint.

Global Vertical Farming Market by Region

North America region is expected to dominate the global vertical farming market during the forecast period. The high agricultural growth in these regions, along with the increased emphasis on smart farming and digitization in agriculture, is expected to boost the development of vertical farming in these regions.

The U.S. is a major player in the North America vertical farming market. The U.S. is dominated by the key players of vertical farming, including AeroFarms, Plenty Unlimited Inc., Bowery Farming, Gotham Greens, among others. The country witnessed the production of a wide range of green vegetables, such as kale, arugula, lettuce, and pak choi. In 2019, there were more than 2,000 vertical farms in the U.S., out of which 60% of the market was driven by small to medium scale companies.

Key Market Players and Competition Synopsis

AeroFarms, AppHarvest, Vertical Harvest, CropOne, Plenty Unlimited Inc., AmHydro., Kalera, Heliospectra AB, Hort Americas, Signify Holding (Koninklijke Philips N.V), OSRAM GmbH., Valoya, EVERLIGHT ELECTRONICS CO., LTD., Sky Greens, SPREAD Co., Ltd.

The companies that are profiled in the report have been selected based on a selective pool of players, primarily Tier-1 (which holds 50%-60% of the market), mid-segment players (comprise of 30-40% share), and small and emerging companies (holds the balance 10-20% share), based on various factors such as product portfolio, annual revenues, market penetration, research and development initiatives, along with a domestic and international presence in the global vertical farming market.

Global Farm Equipment Rental Market Analysis

The post Global Vertical Farming Market – A Global and Regional Analysis: Focus on Mechanism, Product and Country-Wise Analysis – Analysis and Forecast, 2020-2026 first appeared on CRI Report.