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Asia-Pacific Vertical Farming Market Research Report – Segmented By Growth Mechanism, , Structure, Offering and Country (India, China, Japan, South Korea, Australia, New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore and Rest of APAC) - Industry Analysis on Size, Share, Trends, COVID-19 Impact & Growth Forecast (2024 to 2029)

Published: March, 2023
ID: 2697
Pages: 145
Formats: report pdf report excel report power bi report ppt

Asia-Pacific Vertical Farming Market Size (2024 to 2029)

The vertical farming market in the Asia-Pacific region was valued at USD 1.3 billion in 2023. The Asia-Pacific market is further estimated to be growing at a CAGR of 29.04% from 2024 to 2029 and be worth USD 6.01 billion by 2029 from USD 1.68 billion in 2024.

The decreasing availability of land for agriculture due to urbanization, deforestation, and climate change is accelerating the adoption of vertical farming in the Asia-Pacific region and driving market growth. 

Vertical farming plays a vital role in reducing the environmental impact on agriculture. Due to deforestation, traditional agriculture practices are decreasing due to insufficiency in the land. Vertical farming uses low space of land for cultivation and eliminates the use of chemicals and pesticides. More productivity is observed in vertical farming compared to traditional farming with the same amount of land or even less. Vertical farming uses hydroponics and aeroponics techniques to produce crops. Vertical farming reduces the water consumption and decreases the need for pesticides by increasing the food productivity. This process is independent of the weather conditions as outdoor farming is highly affected by the fluctuations in weather compared to indoor farming. Increasing soil pollution significantly results in poor agricultural practices, inefficient irrigation, and low-quality food. The pollution problem can be solved by vertical farming, similar to indoor farming. 

The growing demand for organic food among the people is boosting the vertical farming market growth in the Asia-Pacific region. People are becoming more aware of the health issues caused by consuming chemically cultivated food products. Vertical farming helps cultivate pesticide-free and organic crops, which attracts people. Countries with high disposable incomes, like China, prefer pesticide- and pollution-free food products as they consider organic foods to be premium food with high consumption. In the case of middle-income countries, the growth is still at an early stage due to low awareness among the people. Imported organic foods and beverages are gaining traction due to their increased health benefits.

The growing incorporation of automation in agriculture is expected to accelerate the vertical farming market expansion. Smart farming helps farmers cultivate by providing accuracy in crop requirements and decreasing manual labor. Automation decreases labor costs and helps farmers make necessary decisions. Vertical farming monitoring systems with the Internet of Things (IoT) that collect data and visualize it with web apps have gained traction in recent years, which is expected to create opportunities for market expansion over the forecast period.

Vertical farming requires more investment initially due to its higher cost. The facilities required for vertical farming in urban areas cost a lot. As vertical farming is done without insects, pollination is done by hired labor, and skilled labor is expensive in urban areas. These factors are hindering the market value in the Asia-Pacific region. 

High energy consumption is the primary challenge facing the Asia-Pacific vertical farming market's growth. Vertical farming techniques in the region are highly dependent on electricity and fossil fuels. Traditional lighting technologies and high-pressure sodium lamps consume much energy, whereas traditional agriculture uses sunlight for plant development.

Impact of COVID-19 on the Asia-Pacific vertical farming market:

COVID-19 impacted the agriculture sector in the first half of the pandemic due to low labor during harvesting and cultivation procedures. The government's lockdown regulations led to a decrease in the supply chain and distribution, impacting the farmers, who were forced to sell their products at low cost. The pandemic regulations influenced the adoption of vertical farming, as the procedure was not affected by the lockdown because it was indoor farming. Many agri-tech businesses profited from vertical farming due to its artificial requirements.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

29.06%

Segments Covered

By Growth Mechanism, Structure, Offering and Country

Various Analyses Covered

Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape, Analyst Overview of Investment Opportunities

Country’s Covered

India, China, Japan, South Korea, Australia, New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore, and the Rest of APAC.

Market Leaders Profiled

Illumitex Inc. (U.S.), Aerofarms (U.S.), Koninklijke Philips N.V. (The Netherlands), and Sky Greens (Singapore) are some of the major players in the APAC vertical farming market.

 

This research report on the Asia-Pacific vertical farming market has been segmented and sub-segmented into the following categories.

Asia-Pacific Vertical Farming Market - By Growth Mechanism:

  • Hydroponics
  • Aeroponics
  • Aquaponics

The hydroponics segment is dominated, with the largest share in the Asia-Pacific vertical farming market revenue. Hydroponics uses water and nutrients for plant cultivation without soil and delivers highly efficient crops. Compared to traditional methods, it requires less space and water, which makes it a popular choice. Hydroponics attracts commercial growers due to its variable benefits, such as complete control over cultivation, high sustainability, eco-friendliness, and high-quality yield. 

Asia-Pacific Vertical Farming Market - By Structure:

  • Buildings
  • Shipping Containers

The building-based vertical farming segment dominated the market in 2023 and is expected to continue to do so in the forecast period. Its versatility allows it to operate in any location without consideration of weather and climatic changes. Resources such as water, space, and energy are maximized by building vertical farming. This type of farming can help countries facing difficulties in traditional agricultural methods. 

Asia-Pacific Vertical Farming Market - By Offering:

  • Hardware
  • Software
  • Service

The hardware segment held a significant share of the vertical farming market revenue due to the increased adoption of automation in agricultural practices. Adopting automation in vertical farming helps reduce labor costs by increasing efficiency with rapid procedures. The cloud-based software segment has been gaining traction recently and is projected to dominate in the forecast period due to vertical farming management software that collects and stores data.

Asia-Pacific Vertical Farming Market – By Country:

  • India
  • China
  • Japan
  • South Korea
  • Australia
  • New Zealand
  • Thailand
  • Malaysia
  • Vietnam
  • Philippines
  • Indonesia
  • Singapore
  • Rest Of APAC

Asia-Pacific region held the second-largest vertical farming market revenue share in 2023. China is expected to dominate the Asia-Pacific market with significant market revenue in the forecast period due to the presence of market key players in vertical farming. The increasing adoption of vertical farming due to pesticide-free and organic products is enhancing the market growth. Countries like Japan and China, which have high economic status, prefer organic food to maintain a premium lifestyle. Developing countries like India, Malaysia, and Vietnam are increasing their vertical farming adoption, which is still at an early stage. South Korea and Australia are increasing their vertical farming skills due to high productivity and efficient food products. Increasing government initiatives for indoor farming are projected to create opportunities for market expansion in various Asia-Pacific countries. The rising advancements in technology in agriculture are accelerating market growth. 

The Japanese vertical farming market is expected to grow at a CAGR of 9.45% during the forecast period. Government authorities' focus on developing innovative techniques to control and prevent diseases is escalating the growth rate of the Japanese vertical farming market. Changes in diet to lead a healthy lifestyle are another attribute prompting the demand for vertical farming. Due to Japan's increasing population and limited agricultural space, vertical farming is becoming popular as it produces a high quantity of agricultural products.

The vertical farming market in South Korea is expected to showcase prominent growth opportunities due to the growing prominence of producing year-round controlled environments. Government organizations' funding of vertical farming through investments is also ascribed to fueling the market's growth rate. Increasing awareness of the benefits of adopting vertical farming significantly influences the market's growth rate.

The vertical farming market in Singapore is anticipated to grow at a healthy CAGR during the forecast period. The trend towards cultivating a variety of crops using the latest technology that reduces the imports of foods from various countries is ascribed to bolstering the growth rate of the Singapore vertical farming market. Also, a growing number of companies focusing on vertical farming to meet the demand for producing local foods is inclined to showcase great opportunities for the market in Singapore.

KEY MARKET PLAYERS:

Illumitex Inc. (U.S.), Aerofarms (U.S.), Koninklijke Philips N.V. (The Netherlands), and Sky Greens (Singapore) are some of the major players in the APAC vertical farming market.

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FAQ's

What is the current size of the APAC vertical farming market?

The APAC vertical farming market is expected to be valued at USD 1.3 billion in 2023.

Which countries contribute the most to the APAC vertical farming market share?

China and Japan are the leading contributors to the APAC vertical farming market share.

What are the key trends driving growth in the APAC vertical farming market?

The growing demand for sustainable agriculture, technological advancements, and a rising focus on food security in the APAC region are majorly propelling the growth of the vertical farming market in the Asia-Pacific region.

What are the key market players involved in APAC vertical farming market?

Illumitex Inc. (U.S.), Aerofarms (U.S.), Koninklijke Philips N.V. (The Netherlands), and Sky Greens (Singapore) are some of the major players in the APAC vertical farming market.

 

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