North America Vertical Farming Market: Industry Analysis and Forecast (2024-2030) by Technology, Application, Type, and Region

North America Vertical Farming Market Dynamics:

The population growth of North America creates market openings, as population growth will require sufficient food. Furthermore, due to the rise in population, land availability is also likely to shrinkage, which will further encourage people to adopt vertical farming, which will again contribute to the growth of the vertical farming market in North America. In addition, the presence of various local players enhances the growth of the North American vertical farming market as players come up with the latest and innovative ideas for farming and creating maximum productivity. Factors attributed to the growth of the market are the growing popularity of organic foods and the growing advantage of vertical farming over conventional farming.

However, initial investments and high maintenance costs may hinder the growth of the farming market during the forecast period. Small vertical farms spend an average of $3.45 per square foot on energy while large vertical farms spend an average of $8.02 per square foot. Indoor vertical farms typically spend 56% of their operating budgets on labour or about $20.78 per square foot. Another disadvantage of vertical farming is that the initial construction and installation costs can be quite high. Since vertical farming systems are often quite complex and require a lot of planning, the initial costs can be huge.

Continuous year-round agricultural production demand is likely to be considered as a key opportunity of the North American vertical farming market during the forecast period. Vertical farming techniques ensure the stability of crop yields by controlling the environment in which crops grows in this region. The growth of the agricultural market is likely to increase during the study period as this technique ensures that the crops receive all the nutrients they need for proper growth and also get rid of the instability of traditional agricultural processes. This method can also conserve and reuse natural resources such as water and soil. Hydroponics and Aeroponics are the two main technologies that use less land and water than conventional growing processes in North America. The growth of the product market will also lead to an increase in organic production and a reduction in the use of pesticides to ensure good health for consumers.

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Impact of Covid-19 on the North America Vertical Farming Market:

In the event of COVID19, North America, particularly the United States, experienced an unprecedented increase in the number of coronavirus infections, resulting in the shutdown of food and beverage production, other horticultural productions subsequently impacted demand for vertical crops in the first months of 2020. Additionally, a decline in overall production activities led to a halt in food and beverage production projects, thereby reducing the need for vertical crops. A similar trend is also observed in other North American countries like Mexico, Canada and Panama. However, these countries are expected to overcome the drop in demand as economic activity is starting to accelerate, especially in early 2021.

North America Vertical Farming Market Segment Analysis:

By Structure Type, the market is segmented as Building-based vertical farming and Shipping container-based vertical farming. Building-based vertical farming dominated the market with a 62.2% share in 2023. The building-based segment is analysed as having a large market share due to the available space where growers can easily move and monitor the produce, thus building-based vertical farming offers high yields than traditional land farming and container-based farming by driving their base segment of the building.

However, The Shipping container-based vertical farming segment is expected to grow at a CAGR of 23.4% through the forecast period. This is attributable to those forms of packing containers which is less highly-priced and are without problems available. Also, transport container-primarily based farms can store greater area via way of means of piling transport packing containers even as reaching better yield in line with rectangular foot attributable to which there's multiplied call for of those transport container, thereby using the increase of this market.

North America Vertical Farming Market Regional Insights:

The United States of America is the main region that dominates the North American agricultural vertical market and accounts for 71.5% of the revenue market share in 2023. The United States in North America dominates the agricultural vertical market due to the decreasing demand for intervention. The intervention of machinery required for agriculture, the growing popularity of organic crops and increasing opportunities for external funding for stakeholders and researchers are the main factors driving the agricultural market.

However, Canada is expected to grow at a CAGR of 10.5 % through the forecast period.

The main reason is the growing demand for advanced technology in the food sector to produce fresh and sustainable products and allow consumers to know exactly where the product is coming from, which is driving the growth of the market leader in this country.

The objective of the report is to present a comprehensive analysis of the North America Vertical Farming market to the stakeholders in the industry. The report provides trends that are most dominant in the North America 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 North America 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 North America 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 North America 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 North America 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 North America Vertical Farming market. The report also analyses if the North America Vertical Farming 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 North America Vertical Farming market. Economic variables aid in the analysis of economic performance drivers that have an impact on the North America Vertical Farming market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the North America Vertical Farming market is aided by legal factors.

North America Vertical Farming Market Scope:

North America Vertical Farming Market Key Players:  

• Eden Green Technology
• Elevate Farms Inc.
• iFarm
• OSRAM GmbH
• Plenty Unlimited Inc.
• Agrilution
• AeroFarms