Looking Up! Vertical Farming Market Set for More Big Growth

Posted by Growing Produce Staff|January 18, 2024

Things are looking up (way up) for the vertical farming market. It is projected to experience substantial growth, with its global valuation poised to surpass $35.3 billion (USD) by 2032, according a recently released industry outlook report from Market.US. The impressive figure is up from $6.8 billion (USD) in 2023.

This expansion is anticipated to progress at a compound annual growth rate (CAGR) of 20.8% from 2024 to 2033.

Vertical farming, typically conducted within controlled environments, employs soilless farming techniques such as hydroponics, aeroponics, and aquaponics. Given the escalating global population and the constraints of available arable land, vertical farming is emerging as a viable solution to address the burgeoning worldwide food demand.

Key Takeaways from the Report

Structure: In 2022, the vertical farming market saw the shipping container-based segment leading with a notable revenue share of 53%. This segment’s success is attributed to its efficient use of space and adaptability in various environments.
Growth Mechanism: Dominating the growth mechanism category, hydroponics accounted for the largest revenue share of 38% in 2022. This method’s popularity is due to its efficient nutrient delivery system and reduced water usage.
Component: The lighting system segment emerged as the highest revenue generator, contributing 32% to the market in 2022. The significance of this component lies in its role in ensuring optimal growth conditions for crops.
Crop Category: Fruits, vegetables, and herbs led the market in terms of crop categories, marking the highest revenue in 2022. This dominance reflects the growing consumer preference for fresh and organic produce.
Regional Dominance: North America held the highest market share in 2022, accounting for 35% of global revenue, indicative of advanced technological integration and high consumer demand in the region.
European Market Outlook: Europe is projected to exhibit significant growth from 2023 to 2032, driven by increasing adoption of sustainable farming practices and technological advancements in the region.