Vertical Farming Market is expected to reach US$ 19,864.8 million by 2028

Benefits of Vertical Farming Compared to Conventional Farming to Provide Growth Opportunities for Vertical Farming Market During 2021–2028

According to our new research study on “Vertical Farming Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Growth Mechanism and Component,” the market is projected to reach US$ 19,864.8 million by 2028 from US$ 4,300.2 million in 2021; it is estimated to grow at a CAGR of 24.4% from 2021 to 2028.

Over the years, the vertical farming market has picked up significant momentum. The rising awareness pertaining to the benefits of vertical farming is a key factor driving this growth. Since vertical farming is independent of weather, it allows farmers to achieve a consistent annual crop production without having to worry about adverse weather conditions. Moreover, it enables them to yield more in a small area. Compared to conventional farming, vertical farming yields ~240-times greater while requiring 99% less land and 98% less water. The emergence of next-generation, AI-powered vertical farming technologies that can help reduce the consumption of land and water further is boosting the growth of this market substantially. Moreover, increasing demand for sustainable agricultural ecosystems will continue to boost the demand for vertical farming in the coming years. Technological advancements have enabled the use of controlled environmental resources and agriculturally unsuitable sites, mainly skyscrapers, shipping containers, and vacant warehouses. Ascending focus on recapturing evaporated water and recycling products, in a bid to reduce wastage, is also projected to augment the vertical farming market proliferation in the coming years.

The global vertical farming market has been analyzed on the basis of growth mechanism, component, and geography. On basis of growth mechanism, the market is segmented into hydroponics, aeroponics, and aquaponics. Based on component, the market is segmented into lighting, sensor, climate control, irrigation component, building material, and others. In terms of geography, the vertical farming market is primarily segmented into North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM).

Impact of COVID-19 Pandemic on Vertical Farming Market

Governments across the world imposed various containment measures to control the spread of COVID-19. While in several countries the governments imposed complete lockdown, other countries experienced partial lockdown, and businesses were allowed to operate with various regulations. The production facilities were halted due to the shortage of workers in the vertical farming sector. Long-term decline in manufacturing, travel bans, and facility shutdown kept the workers away from factories for prolonged periods. This led to the shortage of equipment such as sensors and lighting required in the vertical agriculture market, decelerating the growth of the vertical farming market in 2020. The pandemic has also led to limitations on the availability of agricultural laborers and disruptions in international supply chains. However, the negative impact of COVID-19 on the electronics and semiconductors industries is expected to last for a short span, and the market is anticipated to observe a high demand in 2021, as economies have begun reopening and containment measures are being relaxed since the start of this year. The vertical farming market is also anticipated to witness significant growth due to the rise in urban agriculture as the  means of addressing local food shortage during the post-pandemic period.

Agrilution Systems GmbH; Aerofarms, LLC; Eden Green Technology; Elevate; iFarm; OSRAM; Plenty Unlimited Inc.; Square Mile Farms Ltd.; Sky Greens; and Vertical Farm Systems are among the major companies operating in the vertical farming market.

Vertical Farming Market – by Region

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Vertical Farming Market Size & Share | Global Analysis & Trends

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Vertical Farming Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics) and Component (Lighting, Sensor, Climate Control, Irrigation Component, Building Material, and Others)