Middle East and Africa Vertical Farming Market - Industry Analysis and Forecast (2024-2030) by Technology, Application, Type, and Region

Market Definition:

Vertical farming is a method of preparing food, such as in a skyscraper, used factory, or shipping crate, that is done in vertically stacked layers. Indoor farming methods and controlled environment farming (CEA) technologies are used for modern vertical farming concepts where all environmental conditions can be controlled. Middle East and Africa vertical farming market report is studied and prepared by considering the segment analysis as by growing machanism and country.

Middle East and Africa Vertical Farming Market Dynamics:

In the Middle East, where energy and water are major resources due to the extreme climate, the demand for local food sources is staggering. This became apparent during the COVID-19 pandemic when import supply chains were severely disrupted. Food imports into the UAE in the first quarter of 2020 reached more than 3.5 million tons, worth more than AED 13 billion. Meanwhile, according to Alpen Capital's GCC 2019 Food Report, approximately 85% of food consumed in the entire Bay Area is imported. The reasons for this include climate, water scarcity and limited arable land. For countries like the UAE, which will be contingent on imports for more than four-fifths of its food source, indoor vertical farming can deal with unprecedented welfare. Indoor vertical farms offer the prospect of growing more produce locally and making better use of the region’s limited water resources which is driving the growth of this Middle East and Africa vertical farming market. Pollution has major economic consequences in terms of health, lack of productivity, health care costs and disruption to the environment, hence, the rising concerns regarding a pollution-free environment are Fuelling the development of the vertical farming market.

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It may be seen that there is a good fit between environment and consumer demand and technology all over the Middle East region, from the UAE to Saudi Arabia and Kuwait. Measured atmosphere agriculture resolutions are exclusively beneficial in hot and humid climates, where greenhouse preservation cannot maintain temperatures at optimum levels, and well-insulated buildings can be enhanced controlled with climate control schemes. However, this kind of meticulous environment agriculture can be expensive ahead. This costly structure is hampering the growth of the Middle East and Africa vertical farming market.

Consumers in the Middle East region are used to paying high prices for fresh, leafy greens because very few can be grown outdoors, locally. This means that operators of indoor vertical farms can expect high rates of return on investment, and therefore initial building construction costs, as well as all climate control technologies and advanced vertical farming inside, can be recovered very quickly. This factor gives a huge opportunity for Middle East and Africa vertical farming market.

Impact of COVID-19 on the North American Vertical Farming Market:

Despite the general slowdown in the economic system and human activities, the pandemic has changed the story of vertical farming, often seen as far-fetched. Vertical farming involves growing vegetables indoors, on stacked shelves using artificial lights (LED technology), while controlling temperature and humidity for maximum plant growth. There are undeniable advantages to this practice. It reduces water requirements by up to 95%, indoor conditions do not allow the use of pesticides and it also reduces agricultural land and also allow agricultural development without expansion, while permitting farming around year regardless of weather conditions. One of the main advantages of vertical farming, which stands out during the pandemic, is the shortening of the supply chain. Vertical farming aims to address today's global challenges such as population growth, resource scarcity (especially water) and supply chain security.

Middle East and Africa Vertical Farming Market Segment Analysis:

By Growth Mechanism, the Middle East and Africa vertical farming market is segmented as Hydroponics, Aeroponics and Aquaponics. Hydroponics Segment dominated the market with a 45.2% share in 2023. Hydroponic farms are often grown vertically, with LED lights illuminating each layer of the plant, making the most of small spaces, making them a viable option for growing plants indoors. Plants can be planted closer together to save space. Hydroponics, also known as soilless agriculture, includes a process of growing crops without the use of soil. In this segment, the roots are grown in a liquid nutrient solution. Factors that drive the installation of hydroponic systems are low installation costs, water-saving methods, ease of use, and higher profit margins. This segment also involves growing plants in nutrient solutions that are free of soil.

However, The Aeroponics segment is expected to grow at a CAGR of 21.7% in the Middle East and Africa vertical farming market through the forecast period. Aeroponics supply higher consequences in yield than soil gardening and are appropriate for indoor and concrete areas and additionally offers larger yields, more healthy plants, has to decrease jogging charges and appears set for destiny developments, even as hydroponics is less complicated to installation and control and is appropriate for most, for this reason, this section is anticipated to offer monstrous boom in the course of the forecast period.

Middle East and Africa Vertical Farming Market Regional Insights:

The number of ambitious projects in various countries like UAE and Saudi Arabia is undoubtedly the result of key initiatives launched by the government to encourage investment in the various sector. The relaxation of foreign direct investment (FDI) standards is up to date in Middle East Region. Under the latest regulations, a total of 122 economic activities in 13 sectors have been designated as eligible for up to 100% foreign ownership, including agriculture in the UAE. These regulations provide an opportunity for investors to gain full ownership of several economic activities, including logistics and supply chains.

However, Real estate in Dubai could be one of the main beneficiaries of this growing trend. In 2019 Dubai H2 Industry Report highlights the emergence of new concepts such as cloud kitchens and vertical farming which has had a positive impact on the demand for Vertical Farming in Dubai.

The objective of the report is to present a comprehensive analysis of the Middle East and Africa Vertical Farming market to the stakeholders in the industry. The report provides trends that are most dominant in the Middle East and Africa Vertical Farming market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Middle East and Africa Vertical Farming Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

The qualitative and quantitative data provided in the Middle East and Africa Vertical Farming market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Middle East and Africa Vertical Farming market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Middle East and Africa Vertical Farming market.

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Middle East and Africa Vertical Farming market. The report also analyses if the Middle East and Africa market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few Players, etc.

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Middle East and Africa Vertical Farming market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Middle East and Africa Vertical Farming market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Middle East and Africa market is aided by legal factors.

Middle East and Africa Vertical Farming Market Scope:

KEY PLAYERS:  

• Illumitex Inc.
• Aerofarms
• Koninklijke Philips N.V.
• Sky Greens
• AGM Services
• ZipGrow Inc.
• Signify Holding
• OSRAM
• GmbH