Global demand for vertical farming is anticipated to reach US$13.39 billion

The growing popularity of organic food, efficient use of vertical space and balanced energy consumption, simplicity of monitoring and harvesting crops, and the reduction in available farmland are the primary drivers of the vertical farming market, which has been forecast by Bonafide Research to reach US$13.39 billion at a CAGR of 21.82%.

Vertical farming is an innovative way of growing crops that offers advantages such as easy harvesting, minimal impact from the weather, high yields, reduced need for pesticides, smaller land requirements, and less water usage. This has made it possible to maximize the use of small plots of land for greater production. The growth of the vertical farming market is influenced by factors such as the increasing popularity of organic food, the efficient use of vertical space and balanced energy consumption, the convenience of monitoring and harvesting crops, and declining available farmland. However, the market's growth is hindered by the high cost of initial investment and the use of cutting-edge technology. However, the rising urban population and the growing adoption of technology are expected to offer significant growth opportunities in the vertical farming market.

Among the key takeaways in the report, aeroponics farming is expected to be valued at US$1.6 billion by 2024, although hydroponic farming will remain the leading growth mechanism and be adopted by the majority. Shipping containers, meanwhile, are expected to be widely used for vertical farming at a growth rate of 24.02% over the forecast period. The lighting component will remain essential for vertical farming, to monitor intensity, timing, and energy efficiency to ensure optimal plant growth and productivity. The climate control component (HVAC) is becoming an integral part of vertical farming because it helps maintain an optimal environment for the crops.

Outdoor vertical farming is becoming increasingly popular because it offers a cost-effective and sustainable solution to the challenges of indoor vertical farming, while also providing many benefits, such as improved plant growth, reduced pesticide use, and increased production capacity.

The Asia-Pacific region is anticipated to surpass North America by 2027, becoming the leader with almost 35% market share.

Aeroponics farming involves growing crops without soil, instead suspending their roots in the air and misting them with nutrient-rich water solutions. The plants receive their required nutrients and water from the misting process, which allows for efficient and precise nutrient delivery, resulting in faster growth and higher yields. Aeroponic farming also offers several benefits over traditional agriculture, such as reduced water usage, lower pest and disease risk, and a controlled environment for optimal plant growth. Despite the advantages, aeroponic farming requires specialized equipment and a high degree of technical knowledge, which may limit its adoption in some regions. However, it is particularly suited to urban areas, as it requires minimal land and can be set up in high-rise buildings or other compact spaces. Aeroponics farming provides year-round crop production in regions that are affected by harsh weather conditions, improved quality, and flavor.

Shipping containers' increased use is due to portability, durability, cost-effectiveness, adaptability, sustainability, and a space-saving modular design. They can be easily moved to different locations, and their heavy-duty steel makes them strong, durable, and ideal in challenging environments. Shipping containers are relatively inexpensive and can be easily modified to create a controlled environment for vertical farming with the necessary systems and infrastructure to support plant growth. Some shipping containers are made from recycled materials, which helps reduce waste and promote sustainability. The vertically stackable property can allow for more efficient use of available space and increase crop yields. They are easy to customize and expand the setup as needed.

Lighting plays a critical role in vertical farming, as plants will not be able to photosynthesize and produce energy, leading to stunted growth. Different plant species require different spectrums of light, and LED lighting is often used. In vertical farming, light intensity is carefully controlled to ensure optimal growth. The light cycle can be controlled, as plants need a specific ratio of light to dark periods to grow and produce flowers and fruit. LED lights are often used in vertical farming because they are energy-efficient and long-lasting, which helps reduce operating costs and environmental impact.

Sensors are essential components of the industry, and their use is increasing as technology continues to advance. Sensors are used to measure various parameters such as temperature, humidity, light intensity, water pH, and nutrient levels, and this information is used to adjust the growing conditions to optimize plant growth. The use of sensors has increased in recent years, as technology has advanced, to monitor and control the growing environment in real time. These sensors are more accurate, reliable, and easier to use. Additionally, using sensors and automation in vertical farming helps increase efficiency, reduce costs, and improve crop yields.

Vertical farms are typically housed in enclosed spaces, and the temperature, humidity, and other environmental conditions must be precisely controlled to optimize plant growth. Climate control systems can help reduce energy costs by optimizing energy usage and reducing the need for artificial lighting. This in turn helps to reduce the overall carbon footprint of vertical farms. Controlling the air quality by removing excess humidity, reducing CO2 levels, and ensuring adequate ventilation prevents the growth of harmful microorganisms, such as mold and mildew. Climate control mechanisms are essential components of larger vertical farms, to maintain the optimal growing environment in the face of increased demand.

Outdoor vertical farming is becoming more popular because it is less expensive, provides a natural source of light, can be built on a large scale, is highly sustainable with less pesticide use, and is more accessible. They don't require the same level of energy consumption, as natural sunlight, which improves plant growth. They are more sustainable than indoor facilities, and can reduce the carbon footprint of the operation. Outdoor vertical farms can increase production capacity and reduce the cost per unit of production. The natural environment helps to control pests and diseases and can be more accessible to the public, as it can be located in urban areas or near consumer markets.

North America has the highest adoption of vertical farming technology to meet the growing demand for fresh, locally grown produce and overcome the challenges of soil degradation and water scarcity. Additionally, the region boasts a number of vertical farming companies. The need for sustainable farming that is accessible in urban areas is a major factor in the growth of vertical farms in the region. The complicated supply chain can thus be hopped off while remaining energy efficient, sustainable, and providing nutrient-rich agricultural products.

The Asia-Pacific region is anticipated to surpass North America by 2027, becoming the leader with almost 35% market share. Urbanization-led demand for fresh, locally-grown fruits and vegetables, increased food security due to environmental degradation, reduced dependence on imports, and environmental benefits are driving the rapid adoption of vertical farming in the region. Further, technological advancements such as LED lighting, automation, and precision agriculture have made vertical farming more economically viable and accessible.

The trend towards automated vertical farming in Europe is seeing greater adoption, with a growth rate of 22.72% during the forecast period. Automated vertical farms can reduce water usage, fertilizer, and pesticide use, and grow crops year-round in controlled environments, which can be particularly beneficial in areas with harsh weather conditions. There are several companies operating automated vertical farms in Europe, like INFARM, Elho Greenhouses, Yasai, Nordic Harvest, Lufa Farms, Plenty, and Agrofy, which grow largely lettuce, herbs, and microgreens. They use advanced technologies such as LED lighting, automation, and precision agriculture to improve crop yields.

Latin America is relatively new to vertical farming compared to other regions, with less adoption mainly due to initial high set-up costs. Vertical farming requires a significant investment in technology, equipment, and infrastructure. The limited knowledge and understanding of vertical farming and the lack of a proper regulatory environment for agriculture and food products make it even more difficult. There are challenges associated with the infrastructure required for vertical farming, including access to reliable electricity, water, and transportation. Despite these challenges, the vertical farming industry is starting to gain momentum in Latin America.

Water scarcity and adverse climatic conditions have increased the use of vertical farming in the Middle East and Africa region. The rise of new businesses, growing partnerships with various enterprises, and increased economic and political stability will be the major drivers over the forecast period. The Ministry of Environment, Water, and Agriculture has allocated funds to develop and localize vertical farming technology in the region. As more people move towards cities, there is a growing demand for fresh and locally produced crops.

A sample of the report can be viewed here