The Vertical Farming System Market size was valued at $4.12 billion in 2020 and is projected to reach $25.18 billion by 2030, registering a CAGR of 23.2%.
The vertical farming market is one of the fastest-growing farming markets worldwide and the prospect of vertical farming has changed traditional farming practices that require huge amounts of land and surface area to grow crops. Growing populations and ever-increasing food demands have strained agriculture and made it impossible to meet overall demand. All these factors have given way to vertical farming companies and the rise of indoor vertical farming techniques as they have also negatively impacted and damaged the environment to meet additional demand.
Vertical farming systems and technologies are a better approach to farming methods that allow the growing of vast amounts of crops within limited land areas where vertical farming methods do not require huge amounts of money invested in capital and do not harshly impact the environment. provides. The main reason for this is that vertical stack-based agriculture reduces the need for additional land and there is full utilization of land for agriculture which provides major returns as an ideal use between land and energy.
Market Dynamics:
Drivers:
The vertical farming industry is experiencing diversified growth in all sectors and in different regions due to population growth and increasing per capita income of people, which has shifted people's needs towards more organic, healthy, and environmentally friendly food products. A market for vertical farming companies.
As people become more aware and conscious about what they eat and more concerned about health issues, the organic market has grown, which tends to produce fruits and vegetables with high nutritional value without the use of pesticides and pesticides.
Vertical farming at home has energized this market where people are interested in producing small amounts of produce at home using vertically stacked structures and low investment for their own consumption.
Restraints:
Although the overall growth of the vertical farming market is growing at an exponential rate, there are certain factors hindering the growth process of the vertical farming market, such as the need for large initial investments in establishing vertical farming companies, which restricts the entry of various new players of the market.
Second, farmers' lack of practical knowledge about vertical farming also hinders the growth process. Although technology is used in such farming, farmers' participation in crop production, breeding, and care are limited. Moreover, only limited varieties can be grown through vertical farming, which is another barrier to vertical farming system market.
Key players:
Market Segmentation:
Vertical Farming System Market, By Component
Vertical Farming System Market, By Structure
Vertical Farming System Market, By Growth mechanism
Vertical Farming System Market, By Crop Type
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Leafy Greens (excluding lettuce)
Vertical Farming System Market, By Geographical Analysis
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North America
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U.S
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Canada
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Europe
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U.K.
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Netherland
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Sweden
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France
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Asia-Pacific
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Japan
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China
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Singapore
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Taiwan
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Latin America
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Brazil
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Middle East and Africa
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South Africa
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Regional Analysis:
Asia Pacific dominated the market with a revenue share of over XX% in 2021 and is expected to continue to dominate during the forecast period. Increasing awareness of the importance of alternative agriculture due to decreasing availability of fertile farmland and the growing population in the region are key factors expected to propel demand.
Europe is expected to witness significant growth over the projected period owing to the expansion of genetically modified crop technologies. Additionally, the increasing adoption of nanotechnology and robotics for agriculture drives regional market demand. The use of nanotechnology helps to improve food packaging and enhance disease and pest control.
The European Environment Agency has taken several initiatives to build vertical farms to overcome the challenges of continued population growth and climate change and to produce food in an environmentally unfriendly way. This has increased market demand in the region.
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Report Metric |
Details |
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Market Size Available for Years |
2020–2030 |
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Base Year Considered |
2020 |
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Forecast Period |
2021–2030 |
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Forecast Unit |
Value (USD) |
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Segments Covered |
Offering, Technology, Application, End-User, and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, and LAMEA |
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Companies Covered |
Agrilution GmbH; Aerofarm; Brightfarms Inc.; Everlight Electronics Co., Ltd; Freight Farms; GrowUp Urban Farms Ltd.; Green Sense Farms, LLC; Vertical Farm Systems |
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