by Market Overview:
The Global Vertical Farming Market is estimated to be valued at US$11.55 billion in 2023 and is expected to exhibit a CAGR of 10.30% over the forecast period of 2023 to 2030. Vertical farming refers to the practice of growing crops in vertically stacked layers, using controlled environments such as buildings or shipping containers. This innovative farming technique offers several advantages over traditional farming methods, including higher crop yields, reduced water usage, and year-round cultivation. With the increasing demand for fresh and pesticide-free produce, vertical farming has gained significant traction in recent years.
Market Key Trends:
One of the key trends in the vertical farming market is the emergence of Signify Holding (PHILIPS) as a leading player. Signify Holding, formerly known as Philips Lighting, has revolutionized the vertical farming industry with its advanced LED lighting systems. LED lights are essential components in vertical farming setups, as they provide the ideal spectrum of light for plant growth. Signify Holding’s innovative LED lighting solutions have significantly improved crop quality and yield, making them a preferred choice among vertical farmers worldwide.
Signify Holding’s dominance in the vertical farming market can be attributed to its extensive product portfolio, strong distribution network, and research and development capabilities. The company continuously invests in technological advancements to develop sustainable and energy-efficient lighting solutions tailored for vertical farming applications. Additionally, collaborations with industry leaders and strategic partnerships have further strengthened Signify Holding’s market position.
Segment Analysis:
The vertical farming market can be segmented based on technology, structure type, crop type, and region. In terms of technology, the market can be divided into hydroponics, aeroponics, and aquaponics. Among these, hydroponics is the dominating sub-segment due to its high efficiency and ability to save water compared to traditional farming methods. Hydroponics eliminates the need for soil and allows plants to grow directly in nutrient-rich water, leading to higher yields and faster growth rates.
Based on structure type, the vertical farming market can be classified into building-based and shipping container-based. Building-based vertical farms are the dominating sub-segment as they provide larger growing spaces and can accommodate a wider range of crops. These farms can be established in urban areas and utilize unused or underutilized buildings for agriculture, making them more sustainable and cost-effective.
When it comes to crop type, leafy greens and herbs are the dominant segments in the vertical farming market. These crops are highly suitable for vertical farming due to their short growth cycle and high demand in urban areas. Additionally, their vertical growth habit allows for efficient space utilization, maximizing yields in limited spaces.
Key Takeaways:
The Global Vertical Farming Market Demand is expected to witness high growth, exhibiting a CAGR of 10.30% over the forecast period from 2023 to 2030. This growth can be attributed to several factors. Firstly, the increasing Global population coupled with the decreasing availability of arable land is driving the adoption of vertical farming as a sustainable and space-efficient solution for food production. Furthermore, the growing demand for locally-grown, pesticide-free, and fresh produce is also fueling the market growth.
In terms of regional analysis, North America is the fastest-growing and dominating region in the vertical farming market. The region has seen significant investments in vertical farming projects, driven by the need for food security, sustainability, and shorter supply chains. Moreover, the presence of major players like Signify Holding (PHILIPS) and Aerofarms in the region contributes to its dominance.
Key players operating in the vertical farming market include Signify Holding (PHILIPS), Aerofarms, Sky Greens, IGS Limited, Everlight Electronics Co., Ltd., Freight Farms, Agrilution, American Hydroponics, Urban Crops Solutions, Vertical Farm System, Gronska stadsodling ab, V-Farm, GrowUp Farms Ltd, Vertical Future Ltd, SweGreen, Jones Food Company, InFarm, Agricool, Future Crops, GrowY, and Intelligent Growth Solutions Limited. These companies are focusing on technological advancements, strategic partnerships, and expansion strategies to gain a competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
