Global Vertical Farming Market Report 2023: A $15.3+ Billion Industry by 2028 with Hardware Dominating

DUBLIN, Aug. 2, 2023 /PRNewswire/ -- The "Global Vertical Farming Market by Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure (Building-based, Shipping container-based), Crop Type, Offering (Lighting, Sensors, Climate Control, Software, Services) & Region - Forecast to 2028" report has been added to  ResearchAndMarkets.com's offering.

The global vertical farming market is estimated to be USD 5.1 billion in 2023 and is projected to reach USD 15.3 billion by 2028, growing at a CAGR of 24.7% during the forecast period.

One of the driving factors behind this growth is the increasing demand for fresh, locally produced food, as consumers become more conscious of the origin and quality of their food, leading to a surge in farm-to-table options. Vertical farming offers an innovative and sustainable solution to meet this demand.

Hardware Dominance:

The hardware segment, including LED lighting, sensors, and climate control, is expected to dominate the vertical farming market throughout the forecast period. LED lighting provides energy efficiency, reduced operating costs, and lower heat production, while sensors monitor crucial factors for optimal growing conditions. Climate control ensures a consistent environment, protecting vertical farms from pests and diseases, and enhancing efficiency and productivity.

Aquaponics Growth Mechanism:

The aquaponics growth mechanism in vertical farming is expected to offer lucrative growth opportunities. Aquaponics involves the symbiotic cultivation of plants and fish in a closed system, leading to water conservation and high productivity. It consumes up to 90% less water than traditional farming methods, recycling water continuously and minimizing waste.

Lettuce as a Popular Crop:

Lettuce holds a significant share in vertical farms due to its short growth cycle and compact size, making it well-suited for vertical farming systems. The high demand for lettuce in the market, especially in urban areas where vertical farms are commonly located, contributes to its popularity.

North America Dominates the Market:

North America is likely to dominate the vertical farming market during the forecast period due to a large and expanding population with a high demand for fresh and locally sourced produce. Vertical farming enables year-round cultivation, independent of weather conditions, addressing this demand. Moreover, the region's robust economy and access to substantial venture capital fuel the growth of the vertical farming industry.

Market Dynamics

Key Drivers

• High yield associated with vertical farming over conventional farming.
• Advancements in light-emitting diode (LED) technology.
• Year-round crop production irrespective of weather conditions.
• Requirement of minimum resources.
• Limited availability of arable land.

Restraints

• Lack of technically skilled workforce and limited crop types.
• High start-up costs.

Opportunities

• Reduced environmental impact from agriculture by adoption of vertical farming.
• Potential market opportunities in Asia-Pacific and Middle East.
• Cannabis cultivation through vertical farming.

Challenges

• Maintenance of temperature, humidity, and air circulation in a vertical farm.
• Higher energy consumption leading to high operational costs.
• Vertical farming on a large scale.

Case Study Analysis

• Ljusgarda Implemented Heliospectra's LED Lighting in Indoor Growth Facility
• Hortipolaris Cultivation and Research Facility Implemented Fluence LED Lighting Solution
• AeroFarms Uses Advanced Technologies to Take Vertical Farming to New Heights
• Benefits of IoT Deployment in Indoor Vertical Farms
• Riat Used Signify's LED Lighting Solution to Grow Tomatoes and Cucumbers in Vertical Farms
• Karma Farm Adopted Hydroponic Solution for Year-Round Crop Production

Key Players: 

• 4D Bios Inc.
• AeroFarms
• Agricool
• Altius Farms
• AmHydro
• AMS-Osram AG
• Bowery Farming Inc.
• BrightFarms
• Everlight Electronics Co. Ltd.
• Fluence
• Freight Farms, Inc.
• Future Crops
• GP Solutions, Inc.
• Green Sense Farms Holdings, Inc.
• Heliospectra
• Hortipolaris Cultivation and Research Facility
• Infarm
• Intelligent Growth Solutions Limited
• Karma Farm
• Ljusgarda
• Plenty Unlimited Inc.
• Riat
• SananBio
• Signify Holding
• Sky Greens
• Spread Co. Ltd.
• Urban Crop Solutions
• Valoya
• Vertical Farm Systems
• Vertical Future Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/3ak3an

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