Market Overview 

Vertical farming introduced the concept of agricultural cultivation in a stack layered manner, arranged in an upright position in buildings and indoor spaces. The farming technology uses artificial means of cooling and lighting to grow conventional crops and vegetables in a unique manner, ensuring a higher yield of produce throughout the year. 

Market Dynamics  

The increasing initiatives towards higher crop yield using innovative farming technologies and rising efforts of year-round agricultural cultivation using energy-efficient methods are the primary factors driving the market growth. The growing need and demand for higher production of vegetables and fruits are influenced by the incremental rise in the global population, with shortages in food supply and expenditure on establishment of a long distribution chain compelling corporations to adopt innovative farming solutions. The lack of lands for agriculture on a worldwide scale would further influence growth in the opening of vertical farming facilities, as full-scale space utilized vertical farms can quickly be established in urban centres of living. The application of artificial lighting and cooling equipment further enables greater control over the growth of crops, ensuring the higher output of high-value nutritious vegetables and fruits. However, high initial investments and limitations in the number of crops fit to undergo vertical farming cultivation processes might hamper the market growth. The establishment of a vertical farming facility requires procurement and installation of expensive lighting and HVAC equipment, along with vertical racks for crop cultivation. Additional spending is done on the purchase of mineral nutrients and organic fertilizers, which might augment the final product pricing towards higher costs and act as barriers to market growth. The gradual consumer shift towards organic produce grown through space-utilized artificial means would provide lucrative opportunities for the market in the coming years. The openness of consumers concerning food grown in vertical farms with less environmental impact would present vendors with new possibilities of product sales and business expansion during the forecast period. 

Market Segmentation 

The global Vertical Farming market is mainly classified based on Type, Application, and Growth Mechanism. Type is segmented into Building-based Vertical Farms and Container-based Vertical Farms. By Application, the market is bifurcated into Vegetables, Fruits, and Others. By Growth Mechanism, the market is further categorized into Hydroponics, Aeroponics, and Aquaponics. 

The Building-based Vertical Farms segment by Type holds a considerable share in terms of overall market value owing to the strategical position of such buildings in the vicinity of urban cities, which contribute to a significant percentage of potential consumers. The utilization of space in multi-storeyed buildings also provides an additional area of crop growth, improving the final vertical farm output during the forecast period. 

In terms of Application, the Vegetables segment is expected to continue to build upon and dominate its market position, owing to the growing need for vegetable cultivation fit for human consumption. The gradual consumer awareness and preferential shift towards procurement of organic vegetable items would further propel the growth prospects of the segment in the coming years. 

Regional Analysis 

Based on geography, the global Vertical Farming market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. North America is further divided in the U.S., Canada, and Mexico, whereas Europe consists of the UK, Germany, France, Italy, Russia, and Rest of Europe. Asia-Pacific is segmented into India, China, Japan, South Korea, and Rest of Asia-Pacific. The South America region includes Brazil, Argentina, and the Rest of South America. At the same time, the Middle East & Africa is categorized into GCC Countries, Egypt, South Africa, and Rest of Middle East & Africa. 

North America is the leading region and holds a substantial share in terms of overall market value, followed by Europe. The rising consumer awareness concerning vertical farming produce and increasing investments into the establishment of vertical farms would boost the growth prospects of the regional market in North America. 

Competitive landscape 

The Vertical Farming market is moderately consolidated, with globally-expansive vendors operating in demand-rich locations to cater to the demands of crop cultivation through vertical farming. The high initial investments required for established vertical farms have sometimes deterred the entry of new market players, with investments by top vendors further consolidating their strategic market position. 

Key players operating in the Vertical Farming industry include AeroFarms, LLC, Agricool, Altius Farms, Badia Farms, Bowery Farming Inc., Crop One Holdings, Freight Farms, Inc., Heliospectra AB, InFarm, Osram Licht AG, Plenty Unlimited Inc., Signify N.V., Sky Greens, SPREAD Co., Ltd., and Valoya. 

The opening and expansion of vertical farming facilities in various geographical locations and diversification of business opportunities through strategic partnerships are the primarily followed business strategies of key companies looking to capture substantial market share during the forecast period. 

Covid-19 Impact Analysis 

The worldwide spread of the Covid-19 pandemic has virtually disrupted the supply chain dynamics of the Vertical Farming market, with uncertainty in produce distribution channels further hampering the growth of the market in such times. The shutting down of building complexes and infrastructural facilities have interrupted the initiatives of regular monitoring and control provided by operators of vertical farming technologies, with stringent restrictions on the movement of goods and people being implemented in almost all countries around the globe. The limited workforce, as a result, might remain insufficient to handle the fundamental needs of crop cultivation inside extensive vertical farm facilities. The unpredictability of the evolving market scenario might further refrain potential investors from committing to future funding towards the extension of vertical farming facilities and business, hindering the market growth. The year-round cultivation of crops in vertical farms would, however, open up new avenues of product sales to prominent vendors as traditional farming methods also take a hit and miss the sowing period of seasonal crops. The disruptive complications of the coronavirus might also necessitate the cultivation of increased crop output, which could duly be fulfilled by vertical farming facilities. 

Vertical Farming Market Key Segments: 

By Type 

• Building-based Vertical Farms 
• Container-based Vertical Farms 

By Application 

• Vegetables 

• Fruits 
• Others 

By Growth Mechanism 

• Hydroponics 
• Aeroponics 

• Aquaponics 

Key Global Vertical Farming Industry Players 

• AeroFarms, LLC 
• Agricool 
• Altius Farms 

• Badia Farms 
• Bowery Farming Inc. 
• Crop One Holdings 
• Freight Farms, Inc. 
• Heliospectra AB 

• InFarm 
• Osram Licht AG 
• Plenty Unlimited Inc. 
• Signify N.V. 
• Sky Greens 

• SPREAD Co., Ltd. 
• Valoya 

What Report Provides 

• Full in-depth analysis of the parent Industry 
• Important changes in the market and its dynamics 

• Segmentation details of the market 
• Former, on-going, and projected market analysis in terms of volume and value 
• Assessment of niche industry developments 
• Market share analysis 
• Key strategies of major players 

• Emerging segments and regional growth potential