North America Vertical Farming Produce Market - Forecast (2021 - 2026)

North America Vertical Farming Produce Market Overview :

North America vertical farming produce market generated revenue of $741.2 million in 2020 and is projected to grow at a CAGR of 21.2% during the forecast period 2021-2026. The North America vertical farming produce market growth rate is attributed to the implementation of IOT sensors in vertical farming, professional farmers are gaining a holistic view of their farm and pinpoint actionable insights and they also have the ability to instantly adapt to changes and achieve favorable results by adjusting operations is anticipated to bring new opportunities. Vertical farming is a process of planting or growing the plants in horizontal stacked layer. Vertical farming uses various techniques such as hydroponics, aeroponics and aquaponics. Vertical farming is highly beneficial to cultivate crops in bare, arid land etc and it is difficult to grow plants in such places. Vertical farms ensure crop production all year in difficult conditions, such as where arable land is scarce or inaccessible. Furthermore, it guarantees a consistent yield and crop production throughout the year, as well as climate protection and no external environmental factors such as diseases, pests, or predator attacks.

Report Coverage

The report: “North America Vertical Farming Produce Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the North America Vertical Farming Produce Market:
By Vertical Farming Type: Shipping Container Based and Building Based.
By Crop Type: Vegetables, Fruits, Herbs and Others.
By Mechanism: Aeroponics, Hydroponics and Aquaponics.
By Technology: Lighting, Irrigation/Automated Drip Irrigation, Sensors, Climate Controls and Others.
By Cultivation: Less Than 5 Acres, 5 Acres to 10 Acres and Above 10Acres.
By Country: U.S., Canada and Mexico.

Key Takeaways

  • The factors such as the demand for the cultivation of cannabis through vertical farming have been increasing enormously to maximize yield and to maintain the quality of the cannabis crop and ultimately the well-being of the end-users are amongst the major factor projected to impel growth of North America vertical farming produce market.
  • With increase in the need for environmental control, lack of physical space and rise in the legalization of medical and recreational cannabis are the key factors owing to the growth in the segment during forecast period 2020-2025.

North America Vertical Farming Produce Market Segment Analysis - By Crop Type

On the basis of Crop Type, Vegetable generated largest market revenue in 2020 and is projected to grow at a CAGR of 23.0% during the forecast period 2021-2026. This segment is estimated to reach revenue of $1,509 million by 2026. The vegetable segment is analyzed to hold significant share and is the fastest growing segment by crop type during the forecast period of 2021-2026 owing to rise in vertically grown vegetables that has the benefit of avoiding the common issue of fruit rot. Furthermore, vegetables are grown using conventionally technology in soil using climate-controlled conditions of a vertical farming facility, as these produce can be grown throughout the year. However, allowing cucumber vines to grow vertically increases air circulation around the plant, which helps to keep fungal diseases at bay. 


North America Vertical Farming Produce Market Segment Analysis – By Vertical Farming Type

Building based segment accounted for the largest market share in 2020. The building-based segment is analyzed to hold significant share owing to the availability of space the growers can move around and monitor the produce easily owing to which the building based vertical farming crop yields to more than that of traditional soil farming and shipping container-based farming there by driving the building base segment.

On the contrary, shipping container based is the fastest growing segment by procedure with a CAGR of 23.2% during the forecast period of 2020-2025. This is owing to these types of containers are less expensive and are readily available. Also, shipping container-based farms can save more space by piling shipping containers while achieving higher yield per square foot owing to which there is increased demand of these shipping container, thereby driving the growth of this market.

North America Vertical Farming Produce Market Segment Analysis – By Country

United States is the major region dominating the North American vertical farming produce market accounted for the 70% revenue share in 2020. U.S. in North America region is dominating the vertical farming produce market owing to the growing demand for reducing the intervention of machines required for conventional farming, increasing popularity of organic crops, and rise in the external funding opportunities for stakeholders and researchers are the major factors that are driving the vertical farming produce market in the country. 

Canada in North America is projected to grow at a fastest CAGR during the forecast of 2021-2026. The major reason being the increasing demand for leading-edge technologies to the food sector to produce the fresh and sustainable produce and to allow consumers to know exactly where the produce is coming from is driving the growth of the market.


North America Vertical Farming Produce Market Drivers

Rise In The Adoption Of Hydroponic Technology:

The Food and Agriculture Organization (FAO) has been implementing hydroponic farming technology in the areas of the North America region that suffer from food shortages and is also working on various projects to establish large hydroponic farms to mitigate impending food shortages, which is creating a positive impact on the growth of the North America vertical farming produce market. The National Aeronautics and Space Administration (NASA) is also experimenting with growing crops on the International Space Station using hydroponics farming technology as it requires less resources and space than conventional farming. The eco-friendly start-up companies are increasingly adopting hydroponic technology to produce crops on a large scale in an indoor and controlled temperature environment, which is propelling the growth of the market. The key players in the region are increasing their investment in hydroponic farming technology owing to its potential to mitigate the threats posed to the agricultural system as the crops were grown in optimal conditions using controlled environment agriculture (CEA) technology, which is driving the growth of the market.


North America Vertical Farming Produce Market Challenges

Lack Of Skilled Workforce:

Despite knowledgeable and skilled workforce is essential in vertical farming, it involves the usage of advanced solutions, such as sensors, automated systems, artificial intelligence, hydroponic, and aquaponics systems. This need for skilled workforce is estimated to affect the growth of the market as most of the farmers in the North America region are not aware of the advanced tools and equipment used in vertical farming. Farmers in the region are extensively adapted to labor-intensive traditional farming and most of these farmers are venturing into vertical with traditional systems that are not efficient in terms of design. In vertical farming technology, farmers should be data analysts, system supervisors, and bio-scientists in addition to working with crops. However, the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA) is actively supporting projects ranging from promotional campaigns to the creation of funding for agricultural companies for educating the farmers about vertical farming. It is also focusing on training the farmers with advanced equipment used in vertical farming, which is said to reduce the negative impact on the growth of the North America vertical farming produce market.

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Location: United States

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