Vertical Farming Market by Offering (Hardware, Software, Services), Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material), Structure (Container-Based Structure, Building Based Structure), Growth Mechanism (Hydroponics, Aeroponics, Aquaponics) and Region - Global Industry Analysis, Size and Forecast, 2019-2031

Global Vertical Farming Market Outlook

The world's population is predicted to double in size over the next few decades, placing enormous strain on the planet's natural resources and driving up demand for food, necessitating more agricultural production. Additionally, increasing purchasing power and shift in consumer preferences owing to greater focus on their health, demand for organic and pollution-free food would rise in future. Further, the pollution and environmental damage brought on by traditional farming methods have inspired academics and farmers to develop new, much more environmentally friendly farming methods including terrace farming, greenhouse/share net farming, urban farming, and vertical farming.

Some of the crucial factors to demonstrate the value of vertical farming include energy-efficient buildings, varied crop output, and production costs. By integrating application-specific solutions, pertinent hardware and devices for real-time data collection, data analysis, and automated actuator application, IT businesses can play a vital role in making the technology practical for crop production. In order to increase competitiveness and profitability of crop production, IT vendors can also aid in optimizing various farm processes.

Through vertical farming, crop productivity can be increased while food miles are cut down and product quality is raised. In certain cases, where space is at a premium rate close to metropolitan areas, vertical farming can be the viable options. This has benefits for both lowering transportation costs and raising the quality of the provided item. In contrast, cost of vertical farming is higher than those of conventional agricultural techniques, and they will probably stay that way for a while. These expenses can be broken down into the capital expenditures required to construct the farm and the operating expenses related to maintaining the farm. On a small scale, capital expenditures account for the majority of farm costs, but on larger farms, operating expenses like labor, lighting, and water and air management quickly overtake them. As the vertical farm installation grows in size the operational costs become so significant, however, initial investment to upgrade the environmental management equipment will pay off in the long run.

The issues specific to vertical farms will soon start to become more relevant, even though the efficiency of vertical farming can initially be increased through transferable advancements in lighting and automation from other market sectors. Off-the-shelf lighting and HVAC systems won't function effectively when requested to satisfy the needs of a vertical farms since the requirements for a Heating, Ventilation, and Air Conditioning (HVAC) system for an office building are considerably different from those of a vertical farm.

The future of vertical farming lies on system integration, creative problem-solving, and anticipating the specific difficulties brought on by a broader variety of crops. Also, automation and sensing technologies have advanced significantly in recent years. Examples include automatic robotic pickers and vision systems. However, there are still potential to advance current off-the-shelf technologies due to the special difficulties brought on by physical sensitivity, ambient conditions, and space limitations. Further, investors are advised to conduct their due diligence before investing in a turnkey vertical farming system because not all systems offer the same return on investment. Vertical farming appears to be gaining momentum and has the potential to offer creative ways to feed a growing population in the future.

One important conclusion is that, because LED lights are required to grow the crops, the cost of production for vertical farming is higher than that of traditional field crops and greenhouse production. As a result, produce from vertical farms cannot compete at wholesale rates. Therefore, for vertical farming businesses to be viable, they must discover a means to sell their goods at significantly higher prices. The findings indicate that all vertical farming systems can produce a significant net return at a particular level of retail sales (sales to consumers). The findings of this evaluation, however, also imply that very high direct sales targets are necessary for the larger enterprises.

With LED light technology continuing to get more affordable and efficient, there still seems to be a lot of potential for vertical farming. Investors should anticipate a decrease in startup costs as more companies enter the market and LED technology advances. However, potential investors should independently confirm the data supplied by manufacturers of vertical farming equipment and approach the industry with the knowledge that the market for produce is very dissimilar from the market for produce generated in a conventional greenhouse operation. Additionally, vertical farming has very high potential returns, but it has also demonstrated that it may be a very dangerous venture if sales targets are not met and a local market with high-income consumers is not there.

Market Scope – Global Vertical Farming Market

Major segments analyzed in the global vertical farming market are offering, component, structure, and growth mechanism. Based on offering, the global vertical market is studied across hardware, software, and services. By component, the global vertical farming market size is analyzed across irrigation component, lighting, sensor, climate control, building material, and others segments. Based on structure, the global vertical farming market is bifurcated into container-based structure and building based structure. In terms of growth mechanism, the global vertical farming market revenue share is analyzed and divided into hydroponics, aeroponics, and aquaponics segments.

Regional Outlook – Global Vertical Farming Market

Key regions covered in the global vertical farming market report are North America, Western Europe, Eastern Europe, Asia Pacific, Latin America, and Middle East and Africa. Developed countries such as U.S., Germany, and UK are focused towards increasing their expenditure on enhanced data analytics and data-driven intervention solutions to enhance their competencies and comply regulatory guidelines and standards.

Supplier Analysis – Global Vertical Farming Market:

This research study provides vertical farming market assessment and includes reliable insights, stats, and industry-validated market estimation and projections, supplemented by appropriate assumptions, methodologies, and approaches. DataCube has arrived to market estimations and performed projections by analyzing key market indicators/factors/variables and leading vendors along with number of other players impacting vertical farming industry performance.

Companies reviewed during the course of global vertical farming market study are Osram, Signify, AeroFarms, Freight Farms, Spread, sky Greens, Valoya, Plenty, Heliospectra AB, and Everlight Electronics among other. Some of the other key vendors analyzed are GP Solutions, Growing Greens, Iron Ox, Upward Farms, Vertical roots, Bright Farm, Smallhold, Sasaki, Altius Farms, Intelligent Growth Solutions (IGS), Bowery Farming, UrbanKisaan, UGF (Urban Green Fate), AgriCool, Triton FoodWorks, Barton Breeze, and Babylon Micro-farms.

Key Highlights

• Actual vertical farming market data for 2019, 2020, and 2021
• Estimated vertical farming market value for the year 2022 and market growth prospect between 2022 and 2031
• Historical YoY growth trend and forecast trend at granular level
• Impact of COVID-19 on vertical farming market in terms of $ and various insights on COVID-19 recovery scenarios
• Cross sectional analysis of offering segment at end user level
• Data analysis for six major regions with coverage of 25+ countries
• Summary of key growth factors, challenges, and opportunities shaping vertical farming industry
• Rationale for individual segment growth and decline
• Product and price differentiation, branding & distribution channel strategies
• Market entry strategies and routes to market
• Key player positioning and benchmarking