Vertical Farming and Plant Factory Market, By type (Hydroponics and Aeroponics), By Application (Indoor and Outdoor), and Regional Forecast to 2032

Updated On: 13 November 2024

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VERTICAL FARMING AND PLANT FACTORY MARKET OVERVIEW

The Vertical Farming and Plant Factory Market Size was US$ 176.55 Mn in 2023 and is projected to touch US$ 5644.09 Mn By 2032, Exhibiting a CAGR of 41.41% During the Forecast Period.

It provide the user with a lot of features that make this particular product service work efficiently and effectively. Growing vegetables in layers that are primarily placed vertically is known as vertical gardening. The method may make use of soil-growing, hydroponic, or aeroponic growing techniques. In harsh environments, like those with little or no arable land, vertical farms attempt to grow food. This method increases the amount of food in water without the need of nutrition solutions derived from minerals and dirt. This method's primary advantage is that it reduces soil-related farming issues like diseases, pests, and insects. This factor has augmented the Vertical Farming and Plant Factory Market growth.

The anticipated rate of growth for this particular product service is due to quality level of assurance. Prosperity has been observed for this particular product market with amusing numbers. One of the most effective and environmentally friendly methods of growing food is vertical farming. For example, compared to a regular farm, Nordic Harvest consumes 250 times less water. Additionally, due to its limited land utilization, vertical farming causes less disturbance to local plants and animals, therefore safeguarding native flora and wildlife. This has ultimately outraged the sales and demand for this particular market growth and prosperity.

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GLOBAL CRISES IMPACTING VERTICAL FARMING AND PLANT FACTORY MARKET - COVID-19 IMPACT

"Market Growth Obstructed by Pandemic due to Lockdown"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

This has affected the overall supply and demand chains of the particular market. As a result of the government's lockdown and other steps to stop the coronavirus from spreading, all supply activities were postponed, which decreased the amount of product related to food and beverages. Therefore, a small influence from COVID-19 is anticipated on the Vertical Farming and Plant Factory Market share.

LATEST TREND

"Diode Technological to Drive Market Growth"

A latest trend has been witnessed to proliferate the market growth. This particular trend has been recorded to be the most profiting trends that have been upgraded to augment the overall market growth. Its anticipated that the market has augmented because of this particular trend. The industry is expected to flourish due in large part to the following factors: light-emitting diode technological advancements, year-round crop production regardless of weather conditions, high yield and many other benefits connected with vertical farming over conventional farming, and little resource requirements. A comprehensive analysis of the market is given in the Global Vertical Farming and Plant Factory Market report. A lot of specifications have been made to this particular product which has benefited the market growth. This specific trend has influenced the market growth so much so that the revenue and share numbers of this particular product is touching the skies and soaring over.

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VERTICAL FARMING AND PLANT FACTORY MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Hydroponics and Aeroponics.

• Hydroponics: It is nothing but a type of farming technology with the Hydroponics.

• Aeroponics: It is basically a type that of farming technology with the Aeroponics.

BY APPLICATION

Based on application, the global market can be categorized into Indoor and Outdoor.

• Indoor: It is just an application where it is used by Indoor.

• Outdoor: It is nothing but an application where it is used by Outdoor.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Insecticides to Boost the Market"

This is the major factor attributing the growth of this particular market. This factor is majorly involved in taking the revenue numbers above the skies and soaring greater heights and also the sales and demands have been proliferation and increased its value to greater extent. The growing population has caused customer expectations for healthier, more organic, and environmentally friendly meals to shift, which has led to a variety of developments in the vertical farming sector worldwide. For vertical farming companies, this has opened up various opportunities. Insecticide and pesticide-free produce that naturally gravitates toward organic farming depends heavily on the vertical farming business. So, it is anticipated that market expansion will be driven by the population's rising rate. This particular product has recorded to be profiting for the market growth. This particular factor has been proved to a boon for this particular product market. These factors are anticipated to drive the market growth during the forecast period.

"Better Yield to Expand the Market"

This is the second major factor attributing the growth of this particular market and has resulted in the hike of revenue numbers so much so that they are touching the skies. Clients benefit from it. This particular product market has touched new levels of lucrative revenue numbers and has also recorded to be the boon for this particular product market growth. The market is expected to develop throughout the projected period as a result of vertical farming's growing popularity because it produces a higher yield than conventional farming. This is a result of the continual temperature and humidity adjustments made by climate control and LED illumination used in vertical agriculture. Consequently, the yields from vertical farming are greater than those from traditional farming. Also, there are major output advantages from vertical farming. A 240-fold increase in agricultural productivity has been observed using vertical farming, which requires 99 percent less land, zero pesticides, and 95 percent less water. Consequently, the market is expected to increase at a faster rate throughout the estimate period. This factor has attributed the overall growth of this market and helped with the hike of revenue numbers as well. These factors are anticipated to drive the market growth in the present times and also during the forecast period.

RESTRAINING FACTOR

"High Cost of Raw Materials to Impede Market Growth"

These particular solutions have been very helpful yet extremely costly as well. This particular restraining factor has caused the revenue numbers to impede with extremely low yields and declining the sales and demand for this market. Farmers' lack of practical understanding about vertical farming is another significant obstacle that is anticipated to impede industry expansion. The expansion of the market is being impeded by farmers' ignorance about the use of AI-based vertical farming. Artificial intelligence (A.I.) in vertical farming helps farmers manage their energy and opens up new possibilities for easier, more sustainable farming.

OPPORTUNITY

"Advancements in Technology To Create Opportunity for the Product in the Market"

This particular opportunity has been attributing the market growth immensely. Over the anticipated term, there should be plenty of potential for market expansion due to the growing usage of automation and digitization in vertical farming. Time is saved, environmental costs are decreased, output is increased, and food quality is standardized thanks to automation and digitization. The Internet of Things (IoT) has emerged as the primary technology in vertical farming, generating a multitude of growth prospects for the industry. The agricultural sector has undergone a transformation thanks to the expansion of the internet of things (IoT), which has also spurred market expansion.

CHALLENGE

"HIgh Initial Investment Could Be a Potential Challenge for Consumers"

This particular factor has been drastically challenging for the market growth and has become another major restraining factor. High initial investment costs to hamper the market growth. Vertical farming's high initial cost is expected to impede market expansion during the forecast period. Cost is a significant consideration in every stage of the vertical farming process, from selecting the highest-yielding crops to identifying the appropriate buildings. This makes the process costly. Additionally, as land in metropolitan regions is typically expensive, the land prices alone add a significant amount to the upfront cost. These elements will therefore hinder market expansion.

VERTICAL FARMING AND PLANT FACTORY MARKET REGIONAL INSIGHTS

• NORTH AMERICA

The North American region has augmented a lot in the past few years in this particular product market. The United States Vertical Farming and Plant Factory Market has anticipated to augment immensely over the forecast period. It is anticipated that over the projection period, North America will possess the biggest market share. By introducing technological innovations into the product line, the presence of major players like AeroFarms and Freight Farms will accelerate market growth. Greater investments made by businesses in R&D would accelerate regional market expansion.

• EUROPE

The european market for this particular market has been accounted for attributing the over all global shares for this particular product service market. Due to the increasing use of genetically modified crop technologies, Europe is expected to experience significant growth throughout the predicted timeframe. In addition, the growing use of robots and nanotechnology in agriculture raises demand in local markets. Nanotechnology is used to improve pest and disease management as well as food packaging.

• ASIA

Asia-Pacific is anticipated to expand at the fastest rate during the projection period due to a rise in the demand for cutting-edge technologies. This particular region has experienced immense proliferation in the market shares and has attributed to the global market revenue.

KEY INDUSTRY PLAYERS

"Leading Players adopt Acquisition Strategies to Stay Competitive"

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

LIST OF MARKET PLAYERS PROFILED

• Urban Crop Solutions (Belgium)
• TruLeaf (U.S.)
• Vertical Farm Systems (Australia)
• Metropolis Farms (U.S.)
• CityCrop (U.K.)

KEY INDUSTRY DEVELOPMENT

October 2023: This particular company has attributed the market growth in terms of revenue and shares system. This particular development and investment the global market has been recorded to be a boon for the market growth. Due in large part to the growing demand for their specialty green, AeroFarms has made the decision to move beyond the Northeast region to all whole food stores nationally. The Whole Foods Market Global Planogram will feature AeroFarms as the first indoor farming firm.

REPORT COVERAGE

3This research profiles a report with extensive studies that take into description the firms that exist in the analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.market affecting the forecasting period. With detailed studies done, it also offers a comprehensive.