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Europe Vertical Farming Market Research Report – Segmented By Growth Mechanism (Hydroponics, Aeroponics and Aquaponics), Structure (Building Based and Shipping Container), Offering (Hardware, Software and Service), Crop Type Country (UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic and Rest of Europe) - Industry Analysis on Size, Share, Trends, COVID-19 Impact & Growth Forecast (2023 to 2028)

Published: March, 2023
ID: 2696
Pages: 145
Formats: report pdf report excel report power bi report ppt

Europe Vertical Farming Market Size (2023 to 2028)

The vertical farming market size in Europe is growing at a brisk pace and is expected to grow at a CAGR of 22% from 2023 to 2028. The European market size is anticipated to be worth USD 1.55 billion in 2023 and USD 4.19 billion by 2028.

europe-vertical-farming-market

Rapid urbanization is responsible for the decreasing agricultural land in Europe, which is greatly favoring the growth of the European vertical farming market. Vertical farming is an innovative technology to produce food organically. In this process, there is no need to use chemicals and pesticides, and the crops are cultivated with advanced technology. Vertical farming is completely dependent on natural solutions like aquaponics growth. Growing demand for organic food products with the shifting trend towards the adoption of healthy lifestyle activities is enhancing the growth rate of the European market.

The growing prominence of lowering the use of nitrate concentration, which is a health hazard, is likely to fuel the contribution to the growth of the European vertical farming market. In Europe, the traditional way of agriculture process is the sole reason for the emission of 11% of greenhouse gases annually. This attribute greatly promotes the growth rate of the European market.

Vertical farming emphasizes indoor practice where the process will not be affected by climatic changes. Therefore, the production remains constant. People are more aware of these new farming techniques, especially in urban areas, and are leveraging the European market growth. Key players are focussing on implementing various strategies to encourage consumers to adopt environmentally friendly and safer organic products in their daily routine.

The high cost of installation and maintenance of modern techniques is primarily impeding the market’s growth rate. In addition, not all crops can be grown through vertical farming techniques due to space constraints, which is acting as a big challenging factor for the market's key players.

The growing population in Europe is surging the demand to increase food production. According to a recent survey, the population in Europe will reach 470.1 billion by 2025. These statistics are directly ascribed to promote the advanced techniques in farming to improve the food production rate. Vertical farming is the best technique to boost the production rate as the process is completely done under specific circumstances and doesn’t depend on adverse weather conditions. Hence, the growing population is increasing the need to adopt the latest techniques in farming, which is quietly setting up growth opportunities for the market.

Impact of COVID-19 on the European vertical farming market: 

COVID-19 showed a significant impact on the growth of the vertical farming market in Europe. Due to complete lockdown restrictions and supply chain disruptions, the demand was totally reduced in 2020. However, the slow growth rate was sustained for about three months thereafter, and the demand for the vertical farming market started to rise at a higher rate. The side effects of COVID-19 impelled the need to adopt healthy lifestyle habits. Adoption of organic food products has been increasing since 2021 as people set to adopt healthy eating habits to maintain good health. This factor is likely to surge the demand for the vertical farming market in the coming years.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 to 2028

Base Year

2022

Forecast Period

2023 to 2028

CAGR

22%

Segments Covered

By Growth Mechanism, Structure, Offering and Region

Various Analyses Covered

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

Regions Covered

Germany, the U.K, France, Spain, and Italy

Market Leaders Profiled

Illumitex Inc. (U.S.), Aerofarms (U.S.), Koninklijke Philips N.V. (The Netherlands), and Sky Greens (Singapore) among others.

 

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

Europe Vertical Farming Market – By Growth Mechanism:

  • Hydroponics
  • Aeroponics
  • Aquaponics

Europe Vertical Farming Market – By Structure:

  • Buildings
  • Shipping
  • Containers

Europe Vertical Farming Market – By Offering:

  • Hardware
  • Software
  • Service

Europe Vertical Farming Market – By Crop Type:

  • Leafy Green
  • Pollinated Plants
  • Nutraceutical Plant
  • Others

Europe Vertical Farming Market – By Country:

  • UK
  • France
  • Spain
  • Germany
  • Italy
  • Russia
  • Sweden
  • Denmark
  • Switzerland
  • Netherlands
  • Turkey
  • Czech Republic
  • Rest of Europe

The European market is predicted to account for a considerable share of the worldwide vertical farming market during the forecast period. Increasing prominence for high-quality food with the latest agricultural techniques is attributed to the acceleration of the growth rate of the market in this region.

The German vertical farming market had the leading share of the European market in 2022 and the German market is also expected to grow at a notable CAGR during the forecast period owing to the rising investments in the latest farming techniques. Stringent rules and regulations by the FDA (Food and Drugs Administration) for the approval of new products are also an attribute escalating the growth of the vertical farming market in Germany. Along with this, increasing disposable income and people’s interest in organic products are enhancing the growth rate of the market. The convenience of growing crops in a multi-story building or warehouse is attracting consumers to adopt this technology.

The Italian vertical farming market is expected to showcase a healthy CAGR during the forecast period due to increasing urbanization at a rapid rate. Artificial intelligence is playing an important role in vertical farming. AI has the ability to track the development of the plant. These techniques enable the farmer to get complete details of the plant from irrigation to harvest, which further boosts the crop production rate. Robots integrated with artificial intelligence in vertical farming help in crop management. This technology also helps in controlling the temperature and lighting required for the crops. Thus, the demand for the vertical farming market in Italy is increasing at a robust rate.

UK and Spain are attributed to showcase prominent growth rates for the vertical farming market. Growing per capita income and increasing expenditure on organic-based food products are major factors for the market to grow in these countries. Frequently changing environmental conditions are elevating the demand to adopt vertical farming techniques.

France's vertical farming market is likely to have potential growth opportunities in the coming years.

KEY MARKET PLAYERS:

Illumitex Inc., Aerofarms, Koninklijke Philips N.V., and Sky Greens are some of the leading players in the European vertical farming market.

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FAQ's

What are the key trends driving the growth of vertical farming in Europe?

Sustainable agriculture, increased urbanization, the demand for locally grown produce, and advancements in technology are some of the notable trends in the Europe vertical farming market.

What are the major challenges facing the vertical farming market in Europe?

High initial setup costs, energy consumption, and the need for market acceptance and regulation are some of the key challenges to the growth of the Europe vertical farming market. 

 

Which countries in Europe have the most significant presence in the vertical farming market?

Countries like the Netherlands, Germany, and the United Kingdom have a strong presence in the European vertical farming market.

 

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