Global Vertical Farming Market to Gain a CAGR of 23.10% by 2028

Triton Market Research presents the Global Vertical Farming Market report sectioned by Technique (Aeroponics, Hydroponics, Aquaponics), Structure Type (Shipping Container-based, Building-based), Crop Type (Pepper, Tomato, Lettuce and Leafy Vegetables, Microgreens, Berries, Cucumber, Other Crop Types), Offering (Sensors, Lighting, Climate Control, Hydroponic Components), and Regional Outlook (Middle East and Africa, North America, Europe, Latin America, Asia-Pacific).

It also includes the Market Summary, Industry Outlook, Key Insights, Impact of COVID-19, Porter’s Five Forces Analysis, Market Attractiveness Matrix, Industry Components, Vendor Scorecard, Key Market Strategies, Drivers, Challenges, Opportunity, Competitive Landscape, Research Methodology & Scope, Global Market Size, Forecasts & Analysis (2022-2028).

Triton’s research report suggests that the global vertical farming market is set to witness growth at a CAGR of 23.10% during the forecast period 2022-2028.

Vertical farming refers to controlled environment farming. It can be carried out anywhere using hardware or software, using roughly 80% less water than conventional farming techniques.

In recent years, the surge in population, less availability of cultivable land, government incentives, and demand for fresh food have increased the need for vertical farming. As per WHO and the population council, around 80% of the population resides in urban cities. Hence, the growing infrastructural projects have led to the scarcity of land, compelling growers to adopt new solutions to cultivate fresh produce. In this regard, vertical farming allows consumers to grow crops indoors in layers, multi-story buildings, or warehouses.

However, the higher initial investment is anticipated to negatively impact the vertical farming market.

Europe is estimated to witness the fastest growth over the forecast period. This growth can be attributed to the rising expansion of genetically modified crop technology. The increasing adoption of nanotechnology and robotics for farming has further elevated the need for vertical farming techniques. Nanotechnology helps improve food packaging and enables pest control. Therefore, as stated above, these factors drive the vertical farming market.

The major companies in the vertical farming market are AeroFarms, American Hydroponics, Agrilution, Growup Farms Ltd, Jones Food Company, Gronska Stadsodling AB, V-Farm, Urban Crop Solutions, IGS Limited, Freight Farms, Sky Greens, Signify Holdings (Philips), Everlight Electronics Co Ltd, Vertical Farm Systems, and Swegreen.

New entrants are taking advantage of funding and technological advancements to gain a competitive edge in the market. However, there is a need for a high initial investment that might create entry barriers. Given these factors, the threat of new entrants is expected to remain moderate over the forecast period. Similarly, the threat of substitutes is anticipated to moderate due to rising demand for fresh produce and lack of water and land resources.