Vertical Farming Crops Market

This study intends to analyse diverse aspects of the global vertical farming crops market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

In recent years, the vertical farming crops market has gradually gained prominence due to a host of factors. Most notably, the implementation of innovative technologies such as AI and robotics to improve operational processes and increase yields. There has been a steady growth in the demand for organic products, particularly in various emerging economies of the Asia Pacific. Higher disposable incomes and an increase in investments toward R&D initiatives are also expected to have a profound impact on future generated revenues for players engaged in the global vertical farming crops market. Globalization and urbanization are also expected to increase the demand for consumable products thus fuelling market growth prospects in the process.

Key Report Findings

• The global vertical farming market is expected to be roughly valued at arpproximately US$3 Bn by 2026
• Asia Pacific to index significant growth over the forecast period
• Bowery farming has the largest vertical farming operations in the US
• In 2021, Aerofarms LLC announced a merger agreement with Spring Valley Acquisition Corp. to become the world leader in indoor farming

Growth Drivers

AI, and Robotics Technologies Offer a Collective Push

One of the major driving factors for the expansion of the vertical farming crops market is the growing level of awareness about sustainable farming amid surging urbanisation, and the consistent depletion of arable and fertile land. The vertical farming market is expected to grow rapidly fuelled by innovative technologies such as robotics, Artificial Intelligence (AI), analytics, and the Internet of Things (IoT) being integrated. In terms of yield, vertical farming has a substantial benefit. Vertical farming has been found to produce 240x greater agricultural production with 99% less land, 95% less water, and zero use of chemicals.

Recent technological breakthroughs, such as analytics and automation, make it possible to effectively manage crop output across farms; as a result, market participants are embracing these technologies to increase production and crop health, thus augmenting market growth in the process. For instance, to produce good and healthful food, Plenty AG's farm in San Francisco uses IoT, robots, big data, climate management, LED lighting control systems, and Al technologies. Temperature, irrigation, and lighting are all controlled by Al-powered robots at the workplace. Similarly, Bimantis, a firm based in India, created The GreenSage, a farming system that is combined with IoT-powered solutions. The solution automates the monitoring and control of light, plant growth, nutrients, and air quality.

LED lighting technology functions as a supplement to sunlight, ensuring higher productivity with little power consumption, thereby increasing adoption and expanding the vertical farming market further. In October 2020, the VYPR 3x and VYPR DUO 32 lighting systems were launched by OSRAM GmbH's brand Fluence, which is a leading global provider of energy-efficient LED lighting solutions for farm and commercial production of cannabis. This new launch will aid in expanding the company's product portfolio.

Low Installation Costs, and Ease of Use for Hydroponics

The hydroponics segment is expected to continue its dominance over the forecast period. With its low installation costs and ease-of-use, hydroponics is a popular growth mechanism. It is a method of growing plants without soil in which a mineral solution is inserted around the plant roots in place of soil. Furthermore, the hydroponics method eliminates the risk of soil organisms causing disease. Consumers' growing awareness of the dangers of pesticides is also expected to drive-up the demand for hydroponics. However, due to proper nutrient control, hydroponically grown plants result in higher yields when compared to soil-grown plants. Furthermore, plant roots are immersed in a chemical solution and checked on a regular basis to ensure that the proper chemical composition is maintained for growth.

Growth Challenges

High Initial Investments, and Greater Energy Consumption

The costs associated with setting up a vertical farm can be high owing to the need for specialized equipment such as environmental control systems, grow lights, as well as irrigation systems, and this can be a major deterrent for small and medium-sized businesses. Moreover, vertical farms required significant amounts of energy to run, mainly for lighting and environmental control systems. This could lead to high energy costs, thus potentially hindering adoption rates. Additionally, vertical farming is ideal for growing crops that have a high yield per unit of space and can be grown in a controlled environment. This limits the number of crops that can be grown using this technology in comparison to traditional farming methods.

Growth Opportunities Across Regions

Technological Advancements, and Rising Demand for Organic Foods Across Asia Pacific

The Asia Pacific is expected to dominate the global vertical farming crops market over the forecast period. The primary drivers of this market include technological advancements and a growing demand for organic foods. The population of this region is also rapidly increasing. India overtook China as the most populous nation in the world. This surge in populations stimulates a higher demand for food, creating new opportunities for vertical farming crops market players. Furthermore, increasing urbanisation and the adoption of modern agricultural practices are also propelling this market forward. Furthermore, major market players are actively focusing on innovation. To increase production, key companies are investing heavily in R&D initiatives as well as implementing emerging technologies.

Furthermore, this region's growth is fuelled by the growing popularity of vertical farming in countries such as Japan, India, and China. Expanding cities and towns, improved lifestyles of individuals, rising per capita incomes, and favourable government initiatives that promote the use of modern agricultural techniques, are all driving growth for the vertical farming crops market. For instance, over 200 small-scale lettuce vertical farming factories use artificial light in Japan, and the number of such factor factories is expected to double by 2025.

Europe Develops a Favorable Breeding Ground

Europe is slated to experience significant growth over the forecast period as genetically modified crop technology continues to broaden. Furthermore, the growing use of nanotechnology, and robotics in agriculture boosts regional market demand. The use of nanotechnology aids in the improvement of food packaging as well as effective disease and pest control. The European Environment Agency has launched several initiatives to build vertical farms to address the challenges of continuous population growth and climate change, as well as to produce food in an environmentally friendly manner. As a result, demand in this region’s vertical farming crops market has increased. In March 2020, ‘Signify’ expanded its partnership with Planet Farms (Italy), a European vertical farm operator. Signify will supply horticulture LED grow lights to five more vertical farms that Planet Farms plans to set up in various European countries, including Switzerland and the United Kingdom in the future.

Key Market Players - Vertical Farming Crops Landscape

Some key companies in the global vertical farming crops market include Aerofarms LLC, Agricool, Badia Farms, Bowery Farming Inc., Brightfarms, Farm.One Inc., Gotham Greens, Infarm GmbH, Plenty Unlimited Inc., and Sky Urban Solutions Holding PTE Ltd. To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

Recent Notable Developments

• In August 2021, Cargill collaborated with vertical farming pioneer AeroFarms to boost cocoa bean yields and develop more climate-resilient farming practices. Together, these two organisations will test various indoor growing technologies, such as aeroponics and hydroponics, as well as light, carbon dioxide, irrigation, and nutrients, to figure out the best conditions for cocoa tree growth
  
  
• In July 2021, Heliospectra AB, a global leader in intelligent lighting technology for vertical farming, announced a new seller partnership with MineARC Systems, a global leader in the manufacture and supply of controlled environments. Heliospectra's market-leading LED lighting and lighting control solutions will be represented in Australia by the company

Regional Classification of the Global Vertical Farming Crops Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Vertical Farming Crops Market 

• Vertical Farming Crops Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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