Vertical Farming Market Analysis

Components (Lighting, Climate Control, Sensors)

The global vertical farming market is segmented and analyzed for demand and supply by components into lighting, climate control, and sensors. Out of which, the lighting segment is anticipated to garner the highest revenue by the end of 2037. The growth of the segment can be attributed to growing use of LED lights. The extraordinary advancements in light-emitting diode (LED) technology over the past few years have been a major factor in the phenomenal expansion of vertical farming. For many years, only the most lucrative crops were grown in artificial light-dependent indoor growing facilities since they were so expensive to run. However, LEDs are now so reasonably priced and effective that they are fundamentally altering the economics of indoor farming. For the following three decades from 2020 to 2050, it is anticipated that LED light prices would continue to decrease in the United States. In 2017, the price of a kilolumen was about USD 0.6. In 2050, it's predicted to fall to about 0.2 USD. Even more encouraging are the projected prices for LED fixtures and lamps that provide warm and cold light. By 2037, it is projected to fall to approximately 0.2 US dollars per kilolumen.

Structure (Building-Based Vertical Farms, Shipping Container-Based Vertical Farms)

The global vertical farming market is also segmented and analyzed for demand and supply by structure into building-based vertical farms, and shipping container-based vertical farms. Amongst which, the shipping container-based segment is anticipated to have the significant growth over the forecast period. This growth is attributed to the structure's ability to support crop production regardless of location. One of the main benefits of container farming is that it could be moved easily and doesn't need a large plot of land or a special facility to start growing. Also, as competition expands, shipping container prices decrease since it is very inexpensive to acquire used containers, allowing more businesses to enter the market. However, such systems have some drawbacks, such as low comparative productivity and antagonism between light, heat, and layout. Hence, there are various technological improvement carried out which is estimated to boost the demand for shipping container-based vertical farms.

Our in-depth analysis of the global vertical farming market includes the following segments: