Vertical Farming Market

Vertical Farming Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Sustainable Farming Practices

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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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Vertical farming is a method of cultivating plants vertically in stacked layers, using controlled environment agriculture technology. It enables the production of crops in an indoor facility, without the need for traditional land, soil, or natural sunlight. This method offers several advantages, such as year-round production, reduced water usage, elimination of chemical pesticides, and space optimization. The need for vertical farming arises from the growing Global population, increasing urbanization, climate change, and the need for sustainable farming practices.

Market Key Trends:
The key trend driving the growth of the vertical farming market is the increasing adoption of sustainable farming practices. Vertical farming offers numerous advantages over conventional agriculture, including reduced land requirements, decreased water usage, and efficient resource management. As a result, it is gaining popularity among farmers and agricultural organizations worldwide. Additionally, the rising demand for locally grown, fresh produce is further propelling the market growth. Vertical farming allows for the cultivation of crops closer to urban centers, reducing transportation costs and ensuring the availability of fresh produce to consumers. Moreover, advancements in technology, such as LED lighting and automated systems, are enhancing the efficiency and productivity of vertical farms, further driving market growth.

Key Players:
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, Agr

PEST Analysis:

Political: The political factors influencing the vertical farming market include government regulations and policies related to agriculture and food production. These regulations can impact the adoption and growth of vertical farming systems. For example, favorable government initiatives promoting sustainable farming practices and increasing concerns about food security can drive the demand for vertical farming.

Economic: The economic factors affecting the vertical farming market include the cost of vertical farming systems, availability of funding and investment opportunities, and market demand and supply dynamics. The economic viability of vertical farming systems and the potential for high returns on investment can attract investors and entrepreneurs to enter the market.

Social: The social factors influencing the vertical farming market include changing consumer preferences for locally sourced and organic food, increasing urbanization, and the need for sustainable agricultural practices. Vertical farming can address these social concerns by providing fresh, pesticide-free, and locally grown produce in urban areas.

Technological: Technological factors play a crucial role in the growth and development of the vertical farming market. Advancements in automation, artificial intelligence, hydroponic systems, and LED lighting technologies have made vertical farming more efficient and cost-effective. These technologies facilitate higher crop yields, reduce water and energy consumption, and enable year-round production, making vertical farming an attractive option for sustainable food production.

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 increasing demand for locally grown, pesticide-free, and sustainable food, especially in urban areas. Vertical farming allows for the production of fresh produce in vertical stacks or enclosed environments, irrespective of climatic conditions, leading to enhanced food security.

In terms of regional analysis, North America is the fastest-growing and dominating region in the vertical farming market. The region’s strong technological advancements, favorable government initiatives, and increasing awareness about sustainable agriculture are driving the adoption of vertical farming systems. Moreover, the presence of key market players in North America, such as Signify Holding (PHILIPS) and Aerofarms, further contributes to the region’s dominance in the vertical farming market.

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 key players are focused on technological advancements, strategic partnerships, and expansion to capitalize on the growing demand for vertical farming systems.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it