Vertical Farming Market by Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics), Structure (Building Based and Shipping Container), Offering (Hardware, Software, and Service), Crop Type, and Geography - Global Forecast to 2022

The vertical farming market is expected to grow at a CAGR of 24.8% from 2016 and reach USD 5.80 Billion by 2022. The base year used for study is 2015 and the forecast period is between 2016 and 2022. This report provides a detailed analysis of the vertical farming market based on offering, growth mechanism, structure, crop type, and geography. It has been estimated that the lighting segment based on the hardware offering would hold a large share of the vertical farming market.  However, the vertical farming market for climate control segment is expected to grow at the highest CAGR between 2016 and 2022.

To estimate the size of the vertical farming market, we have considered top players in the market and their market share in the said market. This research study involves extensive use of secondary sources such as study of annual and financial reports of top players, presentations, press releases, journals, paid databases, and interviews with industry experts.

The research methodology is explained below:

• Analyzing the overall size of the individual markets through the percentage split with the help of primary and secondary research 
• Analyzing the several market segments and subsegments.   
• Analyzing the supply and demand sides of the vertical farming ecosystem.
• Analyzing the market trends in various regions and countries, supported by the ongoing research and development (R&D) in these regions
• Finalizing the overall market sizes by triangulation with supply side data, which includes the product developments, supply chain, and estimated sales of vertical farming market.

After arriving at the overall market size, the total market has been split into several segments and subsegments, and confirmed with the key industry experts. The following figure depicts the breakdown of primaries conducted during the research study on the basis of company, designation, and region.

To know about the assumptions considered for the study, download the pdf brochure

Market Ecosystem

The vertical farming value chain include companies such as Sky Greens (Singapore), AeroFarms (U.S.), Green Sense Farms LLC (U.S.), Agrilution (Germany), American Hydroponics (U.S.), Illumitex, Inc. (U.S.), Koninklijke Philips N.V. (The Netherlands), Urban Crops (Belgium), and Everlight Electronics (Taiwan) among others.

Target Audience:

• Technology providers
• Technology investors
• Technology standards organizations
• Forums, alliances, and associations, and government bodies
• Venture capitalists
• Private equity firms, analysts and strategic business planners, and others.

Market covered under this report:

This research report categorizes the overall vertical farming market on the basis of offering, structure, growth mechanism, crop type, and region.

Vertical Farming Market, By Offering

• Hardware
• Software
• Services

Vertical Farming Market, By Structure

• Building-based vertical farms
• Shipping container vertical farms

Vertical Farming Market, By Growth Mechanism

• Aeroponics
• Hydroponics
• Aquaponics

Vertical Farming Market, By Crop Type

• Lettuce
• Peppers
• Broccoli
• Spinach
• Cucumbers
• Tomatoes
• Strawberries
• Pomegranates
• Others

Vertical Farming Market, By Region

• North America
  • U.S.
  • Canada
• Mexico
  • Europe
  • U.K.
  • France
  • Sweden
  • The Netherlands
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • Taiwan
  • Singapore
  • South Korea
  • Rest of Asia-Pacific
• RoW
  • Middle East
  • Africa
  • South America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the clients’ specific needs. The following customization options are available for the report:

Regional Analysis

Further breakdown of region-/country-specific analysis

Company Information

Detailed analysis and profiling of additional market players (up to five)

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Market Segmentation
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Opportunities for Vertical Farming Market
    4.2 Vertical Farming Market, By Offering
    4.3 Vertical Farming Market, By Hardware
    4.4 Vertical Farming Market, By Growth Mechanism
    4.5 Vertical Farming Market, By Structure
    4.6 Vertical Farming Market, By Geography
    4.7 Vertical Farming Market, By Growth Mechanism and Geography
    4.8 Life Cycle Analysis, By Growth Mechanism

5 Market Overview (Page No. - 36)
    5.1 Introduction
    5.2 Evolution of Vertical Farming
    5.3 Market Segmentation
           5.3.1 By Offering
           5.3.2 By Structure
           5.3.3 By Growth Mechanism
           5.3.4 By Crop Type
           5.3.5 By Geography
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Rising Demand for High-Quality Food, Without Pesticides Or Herbicides
                    5.4.1.2 Independent Farming Technique With Very Less/No Impact of Climatic Conditions
                    5.4.1.3 Possible to Grow Vegetables and Fruits in A Limited Space
           5.4.2 Restraints
                    5.4.2.1 High Initial Investments
                    5.4.2.2 Lack of Technical Know-How
                    5.4.2.3 Limitations on the Variety of Crops Grown
           5.4.3 Opportunities
                    5.4.3.1 Growing Opportunities for Vertical Farming in APAC
                    5.4.3.2 Production of Biopharmaceutical Products
           5.4.4 Challenges
                    5.4.4.1 Vertical Farms on A Large Scale

6 Industry Trends (Page No. - 45)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Porter’s Five Forces Analysis
           6.3.1 Bargaining Power of Suppliers
           6.3.2 Bargaining Power of Buyers
           6.3.3 Threat of New Entrants
           6.3.4 Threat of Substitutes
           6.3.5 Intensity of Competitive Rivalry

7 Vertical Farming Market, By Growth Mechanism (Page No. - 53)
    7.1 Introduction
    7.2 Aeroponics
    7.3 Hydroponics
    7.4 Aquaponics

8 Vertical Farming Market, By Structure (Page No. - 61)
    8.1 Introduction
    8.2 Building-Based Vertical Farms
    8.3 Shipping Container Vertical Farms

9 Global Vertical Farming Market, By Crop Type (Page No. - 65)
    9.1 Introduction
    9.2 Micro and Macro Economic Framework
           9.2.1 Demand Analysis and Trends Involved
                    9.2.1.1 Increasing Per Capita Global GDP Over the Years
                    9.2.1.2 Increasing Urbanization and Rising Disposable Income Among Consumers in Developing Countries
                    9.2.1.3 Growing Health Consciousness Among Consumers
                               9.2.1.3.1 Increasing Demand for Organic Food
                               9.2.1.3.2 Growing Consumer Demand for Local Food
           9.2.2 Supply Analysis and Trends Involved
                    9.2.2.1 Flexibility of Farm Location
                    9.2.2.2 Seasonality
                    9.2.2.3 Improvement of Food Supply Chain
           9.2.3 Growing Overall Demand for Fruits and Vegetables
           9.2.4 Green Leafy Vegetables in Vertical Farming
           9.2.5 Strawberries in Vertical Farming
           9.2.6 Global Vertical Farming Market, By Geography
           9.2.7 Global Vertical Farming Market, By Crop Type
                    9.2.7.1 North America
                    9.2.7.2 Europe
                    9.2.7.3 APAC
                    9.2.7.4 RoW
    9.3 Market Trends
           9.3.1 North America
                    9.3.1.1 Aerofarms LLC
                    9.3.1.2 Gotham Greens LLC
                    9.3.1.3 Green Sense Farms LLC
           9.3.2 APAC
                    9.3.2.1 Sky Greens
                    9.3.2.2 Mirai Co., Ltd.
                    9.3.2.3 Scatil
           9.3.3 Europe
                    9.3.3.1 Plantagon
                    9.3.3.2 Infarm GmbH

10 Vertical Farming Market, By Offering (Page No. - 87)
     10.1 Introduction
     10.2 Lighting
             10.2.1 Grow Lights
             10.2.2 Grow Light Reflectors
             10.2.3 Grow Light Ballasts
     10.3 Hydroponics Components
             10.3.1 Pumps and Irrigation
             10.3.2 Meters and Solutions
             10.3.3 Water Filtration
             10.3.4 Others
     10.4 Climate Control
             10.4.1 Ventilation Fans
             10.4.2 Air Purification/Control
             10.4.3 Others
     10.5 Sensors
             10.5.1 Temperature Sensors
             10.5.2 CO2 Sensors
             10.5.3 Nutrient Sensors
             10.5.4 PH Sensors
             10.5.5 Crop Sensors
             10.5.6 Others

11 Geographic Analysis (Page No. - 100)
     11.1 Introduction
     11.2 North America
             11.2.1 U.S.
             11.2.2 Canada
             11.2.3 Mexico
     11.3 Europe
             11.3.1 U.K.
             11.3.2 France
             11.3.3 Sweden
             11.3.4 The Netherlands
             11.3.5 Rest of Europe
     11.4 APAC
             11.4.1 Japan
             11.4.2 Singapore
             11.4.3 China
             11.4.4 Taiwan
             11.4.5 Rest of APAC
     11.5 RoW
             11.5.1 Middle-East
             11.5.2 Africa
             11.5.3 South America

12 Competitive Landscape (Page No. - 139)
     12.1 Introduction
     12.2 Market Ranking for Vertical Farming Market, 2016
     12.3 Competitive Scenario
     12.4 Developments
             12.4.1 Contracts and Partnerships
             12.4.2 Expansions
             12.4.3 New Product Developments

13 Company Profiles (Page No. - 146)
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, Ratio Analysis, MnM View)*
     13.1 Introduction
     13.2 Koninklijke Philips N.V.
     13.3 Aerofarms
     13.4 Sky Greens
     13.5 Illumitex, Inc.
     13.6 Everlight Electronics Co., Ltd.
     13.7 Green Sense Farms, LLC
     13.8 Agrilution
     13.9 American Hydroponics
     13.10 Urban Crops
     13.11 Vertical Farm Systems

*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

14 Appendix (Page No. - 164)
     14.1 Insights From Industry Experts
     14.2 Discussion Guide
     14.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     14.4 Introducing RT: Real-Time Market Intelligence
     14.5 Available Customization
     14.6 Related Reports
     14.7 Author Details

List of Tables (80 Tables)

Table 1 Market Segmentation: By Offering
Table 2 Market Segmentation: By Structure
Table 3 Market Segmentation: By Growth Mechanism
Table 4 Market Segmentation: By Crop Type
Table 5 Global Vertical Farming Market Size, By Growth Mechanism, 2013-2022 (USD Million)
Table 6 Aeroponics Growth Mechanism Segment, By Geography, 2013–2022 (USD Million)
Table 7 Hydroponics Growth Mechanism Segment, By Geography, 2013–2022 (USD Million)
Table 8 Aquaponics Growth Mechanism Segment, By Geography, 2013–2022 (USD Million)
Table 9 Global Vertical Farming Market, By Structure, 2013-2022 (USD Million)
Table 10 Building-Based Vertical Farms Market Size, By Geography, 2013–2022 (USD Million)
Table 11 Shipping Container Vertical Farms, Market Size, By Geography, 2013–2022 (USD Million)
Table 12 Global Vertical Farming Market, By Geography, 2014-2022 (USD Million)
Table 13 Global Vertical Farming Market Size, By Crop Type, 2014-2022 (USD Million)
Table 14 North American Vertical Farming Market, By Crop Type, 2014-2022 (USD Million)
Table 15 North American Vertical Farming Market, By Country, 2014-2022 (USD Million)
Table 16 European Vertical Farming Market, By Crop Type, 2014-2022 (USD Million)
Table 17 European Vertical Farming Market, By Country, 2014-2022 (USD Million)
Table 18 APAC Vertical Farming Market, By Crop Type, 2014-2022 (USD Million)
Table 19 APAC Vertical Farming Market, By Country, 2014-2022 (USD Million)
Table 20 RoW Vertical Farming Market, By Crop Type, 2014-2022 (USD Million)
Table 21 RoW Vertical Farming Market, By Country, 2014-2022 (USD Million)
Table 22 Hardware Segment of Vertical Farming Market, By Offering, 2013–2022 (USD Million)
Table 23 Vertical Farming Market Size, By Hardware Type, 2013–2022 (USD Million)
Table 24 Vertical Farming Market Size for Hardware, By Lighting, 2013–2022 (USD Million)
Table 25 Vertical Farming Market Size for Hardware, By Hydroponics Components, 2013–2022 (USD Million)
Table 26 Vertical Farming Market Size for Hardware, By Climate Control, 2013–2022 (USD Million)
Table 27 Vertical Farming Market Size for Hardware, By Sensors, 2013–2022 (USD Million)
Table 28 Global Vertical Farming Market Size, By Geography, 2013–2022 (USD Million)
Table 29 Lighting Devices Market Size, By Geography, 2013–2022 (USD Million)
Table 30 Hydroponics Components Market Size, By Geography, 2013–2022 (USD Million)
Table 31 Climate Control Devices Market Size, By Geography, 2013–2022 (USD Million)
Table 32 Sensors Market Size, By Geography, 2013-2022 (USD Million)
Table 33 North American Vertical Farming Market, By Country, 2013–2022 (USD Million)
Table 34 North American Vertical Farming Market, By Structure, 2013–2022 (USD Million)
Table 35 North American Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 36 North American Vertical Farming Market for Lighting Devices, By Country, 2013–2022 (USD Million)
Table 37 North American Vertical Farming Market for Hydroponics Components, By Country, 2013–2022 (USD Million)
Table 38 North American Vertical Farming Market for Climate Control Devices, By Country, 2013–2022 (USD Million)
Table 39 North American Vertical Farming Market for Sensors, By Country, 2013–2022 (USD Million)
Table 40 U.S. Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 41 Canadian Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 42 Mexican Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 43 European Vertical Farming Market, By Country, 2013–2022 (USD Million)
Table 44 European Vertical Farming Market, By Structure, 2013–2022 (USD Million)
Table 45 European Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 46 European Vertical Farming Market for Lighting Devices, By Country, 2013–2022 (USD Million)
Table 47 European Vertical Farming Market for Hydroponics Components, By Country, 2013–2022 (USD Million)
Table 48 European Vertical Farming Market for Climate Control Devices, By Country, 2013–2022 (USD Million)
Table 49 European Vertical Farming Market for Sensors, By Country, 2013–2022 (USD Million)
Table 50 U.K. Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 51 French Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 52 Swedish Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 53 Vertical Farming Market in the Netherlands, By Growth Mechanism, 2013–2022 (USD Million)
Table 54 Vertical Farming Market in Rest of Europe, By Growth Mechanism, 2013–2022 (USD Million)
Table 55 APAC Vertical Farming Market, By Country, 2013–2022 (USD Million)
Table 56 APAC Vertical Farming Market, By Structure, 2013–2022 (USD Million)
Table 57 APAC Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 58 APAC Vertical Farming Market for Lighting Devices, By Country, 2013–2022 (USD Million)
Table 59 APAC Vertical Farming Market for Hydroponics Components, By Country, 2013–2022 (USD Million)
Table 60 APAC Vertical Farming Market for Climate Control Devices, By Country, 2013–2022 (USD Million)
Table 61 APAC Vertical Farming Market for Sensors, By Country, 2013–2022 (USD Million)
Table 62 Japanese Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 63 Singapore Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 64 Chinese Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 65 Taiwanese Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 66 Rest of APAC Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 67 Vertical Farming Market in RoW, By Region, 2013–2022 (USD Million)
Table 68 Vertical Farming Market in RoW, By Structure, 2013–2022 (USD Million)
Table 69 Vertical Farming Market in RoW, By Growth Mechanism, 2013–2022 (USD Million)
Table 70 Vertical Farming Market in RoW for Lighting Devices, By Region, 2013–2022 (USD Million)
Table 71 Vertical Farming Market in RoW for Hydroponics Components, By Region, 2013–2022 (USD Million)
Table 72 Vertical Farming Market in RoW for Climate Control Devices, By Region, 2013–2022 (USD Million)
Table 73 Vertical Farming Market in RoW for Sensors, By Region, 2013–2022 (USD Million)
Table 74 Vertical Farming Market in Middle-East, By Growth Mechanism, 2013–2022 (USD Million)
Table 75 African Vertical Farming Market, By Growth Mechanism, 2013–2022 (USD Million)
Table 76 Vertical Farming Market in South America, By Growth Mechanism, 2013–2022 (USD Million)
Table 77 Market Rank Analysis of the Top Players in the Vertical Farming Market
Table 78 Contracts and Partnerships, 2014–2016
Table 79 Expansions, 2015–2016
Table 80 New Product Developments, 2015–2016

List of Figures (76 Figures)

Figure 1 Vertical Farming Market: Research Methodology
Figure 2 Research Flow
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation: Vertical Farming Market
Figure 6 Hardware Segment to Lead Vertical Farming Market, By Offering, 2016-2022 (USD Million)
Figure 7 Lighting Devices Sub-Segment of Hardware Segment to Lead Vertical Farming Market, By 2022 (USD Million)
Figure 8 Aeroponics Segment to Record Highest CAGR of Vertical Farming Market, By Growth Mechanism, 2016-2022 (USD Million)
Figure 9 Building-Based Segment to Record Highest CAGR of Vertical Farming Market, By Structure, 2016-2022 (USD Million)
Figure 10 Air Purification and Control Sub-Segment of Hardware Segment to Record Highest CAGR, 2016-2022
Figure 11 APAC Held Largest Share of Global Vertical Farming Market, in 2016
Figure 12 Global Vertical Farming Market to Record High CAGR, 2016-2022
Figure 13 Hardware Segment to Lead Vertical Farming Market, 2016-2022 (USD Million)
Figure 14 Lighting Devices Segment to Lead Vertical Farming Market, 2016-2022 (USD Million)
Figure 15 Aeroponics Growth Mechanism Segment to Record Highest CAGR, 2016-2022 (USD Million)
Figure 16 Building-Based Vertical Farms to Overtake Shipping Container Vertical Farms, By 2022
Figure 17 APAC to Lead Global Vertical Farming Market, 2016-2022 (USD Million)
Figure 18 Hydroponics Growth Mechanism Segment Held Largest Market Share in 2016
Figure 19 Hydroponics Growth Mechanism is in Its Growth Stage
Figure 20 Evolution of the Vertical Farming Market
Figure 21 Market Segmentation: By Geography
Figure 22 Drivers, Restraints, Opportunities, Challenges: Vertical Farming Market
Figure 23 Damage and Loss to Crops, By Type of Calamity (2003-2013)
Figure 24 World Population (2015–2050)
Figure 25 Value Chain Analysis: 2016
Figure 26 Porter’s Five Forces Analysis of Vertical Farming Market
Figure 27 Porter’s Five Forces: Impact Analysis
Figure 28 Bargaining Power of Suppliers: Low
Figure 29 Bargaining Power of Buyers: Medium
Figure 30 Threat of New Entrants: High
Figure 31 Threat of Substitutes: Low
Figure 32 Intensity of Competitive Rivalry
Figure 33 Vertical Farming Market, By Growth Mechanism
Figure 34 Hydroponics Segment LED Global Vertical Farming Market, By Growth Mechanism, in 2016 (USD Million)
Figure 35 Aeroponics Growth Mechanism Segment, By Geography, 2016–2022 (USD Million)
Figure 36 Hydroponics Growth Mechanism Segment, By Geography, 2016–2022 (USD Million)
Figure 37 Aquaponics Growth Mechanism Segment, By Geography, 2016–2022 (USD Million)
Figure 38 Vertical Farming Market, By Structure
Figure 39 Building-Based Vertical Farms to Record Highest CAGR, 2016-2022
Figure 40 Shipping Container Vertical Farms, By Geography, 2016–2022
Figure 41 Global Vertical Farming Market Size, By Crop Type: A Snapshot
Figure 42 Vertical Farming Market: SWOT Analysis
Figure 43 Global Per Capita GDP, 2008–2014 (Current USD)
Figure 44 Production of Vegetables and Fruits With Growing World Population
Figure 45 Global Vertical Farming Market Size, By Geography, 2016 vs 2022 (USD Million)
Figure 46 Global Vertical Farming Market Size, By Crop Type, 2016 vs 2022 (USD Million)
Figure 47 Major Vertical Farms Around the World
Figure 48 Vertical Farming Market, By Offering
Figure 49 Vertical Farming Market, By Hardware
Figure 50 Grow Lights to Lead Hardware Segment of Vertical Farming Market, 2016-2022 (USD Million)
Figure 51 Meters and Solutions Segment of Hydroponics Components Market to Record Highest CAGR, 2016-2022 (USD Million)
Figure 52 Air Purification and Control Segment of Climate Control Market to Record Highest CAGR, 2016-2022 (USD Million)
Figure 53 Temperature Sensors Segment to Lead Sensors Market, 2016-2022 (USD Million)
Figure 54 Vertical Farming Market, By Geography
Figure 55 Geographic Snapshot: APAC A Key Growth Region for Vertical Farming Market, 2016-2022
Figure 56 North American Vertical Farming Market, 2016
Figure 57 U.S. Dominated North American Vertical Farming Market in 2016
Figure 58 Aeroponics Growth Mechanism Segment in U.S. to Record Highest CAGR, 2016-2022 (USD Million)
Figure 59 European Vertical Farming Market, 2016
Figure 60 European Vertical Farming Market, 2016 to 2022
Figure 61 Aeroponics Growth Mechanism Segment in Rest of Europe to Record Highest CAGR, 2016-2022 (USD Million)
Figure 62 APAC Vertical Farming Market, 2016
Figure 63 Japan LED APAC Vertical Farming Market in 2016 (USD Million)
Figure 64 Aeroponics Growth Mechanism Segment in China to Record Highest CAGR, 2016-2022 (USD Million)
Figure 65 Middle-East Leads the RoW Vertical Farming Market, 2016-2022 (USD Million)
Figure 66 Aeroponics Growth Mechanism Segment in Middle-East to Record Highest CAGR, 2016-2022 (USD Million)
Figure 67 Companies Adopted Contracts and Partnerships as Key Growth Strategies Between 2013 and 2016
Figure 68 Market Evaluation Framework—Contracts and Partnerships & Expansions Between 2013 and 2016
Figure 69 Contracts and Partnerships: Key Growth Strategy Adopted By Market Players
Figure 70 Geographic Revenue Mix of Key Market Players
Figure 71 Koninklijke Philips N.V.: Company Snapshot
Figure 72 Koninklijke Philips N.V.: SWOT Analysis
Figure 73 Aerofarms: SWOT Analysis
Figure 74 Sky Greens: SWOT Analysis
Figure 75 Illumitex, Inc.: SWOT Analysis
Figure 76 Everlight Electronics Co., Ltd.: Company Snapshot

According to the new market research report, the vertical farming market is expected to be valued at USD 5.80 Billion by 2022, growing at a CAGR of 24.8% between 2016 and 2022. The growth of the vertical farming market could be attributed to the growing urbanization, rising demand for high quality food with no use of pesticides and herbicides, and independent farming technique with low impact of climatic conditions. However, the high initial investments, dearth of technical acumen, and limitations on the variety of crops grown are the restraints in the vertical farming market.

Of all the major hardware offerings, the lighting device and hydroponic growth mechanism is expected to dominate the vertical farming market. The services segment is expected to witness high growth opportunities in the vertical farming market. The growing research and technological advancements related to robotics and automation in vertical farming is increasing the demand for consulting, integration, and support services.

Among all the growth mechanisms, the hydroponics growth mechanism held the major share of the vertical farming market in 2015 as this is a widely adopted growth mechanism because of the less complexity in implementation. The aeroponics growth mechanism is expected to grow at the highest CAGR between 2016 and 2022. Aeroponics growth mechanism is advantageous as it facilitates faster plant growth, wherein more number of plants could be grown in lesser time than under normal conditions.

The vertical farming market by structure includes building-based and shipping-container vertical farms. The shipping-container vertical farm is expected to have the highest market share between 2016 and 2022, as these containers feature innovative climate technology and growing equipment, along with the perfect environment throughout the year, regardless of geographic location for high-volume and consistent harvests. The building-based vertical farms are expected to grow at the fastest rate between 2016 and 2022 owing to their wide acceptance in China, Japan, and other Asian countries.

Of all the regions, Asia-Pacific (APAC) held the largest market share and Europe is expected to grow at the highest CAGR between 2016 and 2022. In APAC, the vertical farming market is growing rapidly owing to the awareness regarding the importance of alternative methods of the farming because of the increase in population and limited fertile agriculture land. In Europe, the growth of vertical farming is majorly driven by the initiatives taken by the European Environment Agency (EEA) to build vertical farms to overcome challenges such as climate change, and continuous population growth, as well as to meet the challenges of producing food in a more environment-friendly way with quality and quantity. With the help of Sustain Solar Limited (U.K.), which works in the sector of food security for London, EEA has converted hundreds of flat roofs across the city into vegetable gardens to serve the local markets in the region.

High initial investments and limitations on the variety of crops grown are the restraining factors for the vertical farming market.

The major players in this market include Aerofarms (U.S.), Koninklijke Philips N.V. (the Netherlands), Illumitex, Inc. (U.S.), and Sky Greens (Singapore). These players have adopted various strategies such as new product developments, partnerships and contracts, and business expansions to cater to the needs of the vertical farming market.

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