Middle East and Africa Vertical Farming Market Research Report – Segmented By Growth Mechanism, Structure, Offering, Crop Type and Country (KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan and Rest of MEA) - Industry Analysis on Size, Share, Trends, COVID-19 Impact & Growth Forecast (2024 to 2029)

Updated On: January, 2024
ID: 2699
Pages: 145

Middle East and Africa Vertical Farming Market (2024 to 2029)

The vertical farming market size in the Middle East and Africa is anticipated to be worth USD 26.4% from 2024 to 2029 and the MEA market is expected to be worth USD 3.71 billion by 2029 from USD 1.15 billion in 2024.

Current scenario of the Middle East and Africa Vertical Farming Market

Vertical farming is a technique to grow plants in optimal conditions with soilless farming techniques. This farming technique requires very little land and results in high crop yield, which is gaining much attention in today’s world. The world needs food with the rapidly increasing population. The demand to increase food production utilizing modern techniques is the major goal for the higher authorities in every country. Vertical farming does not depend on external environmental conditions as the process is done indoors. The plants are organized vertically and supervised with the specific requirements needed by the plants. The plant growth can be optimized in a controlled environment where the external conditions do not damage the crop production rate. 

The scarcity of water and less arable land are enhancing the growth of vertical farming in the Middle East and Africa. The development of vertical farms is prominently suitable for this region due to high water scarcity. Better land needs to be fully utilized by the people as there is not enough space for growing crops. The rainfall is also low, and a high range of rains is observed during the harvesting season, which impacts the farmer's cultivation of crops. All these reasons influence the region's people and increase the adoption rate of vertical farming. The government initiatives for better farming practices are accelerating vertical farming in the region. Various government initiatives are increasing the market penetration of vertical farms to attain food security measures. The increasing cereals and oil seed export activities and rising population food requirements are boosting the Middle East and Africa vertical farming market value. 

An increasing number of government initiatives to decrease dependency on imports for food requirements are propelling the adoption of vertical farming. Due to Scarcity and low agricultural practices, the Middle East and African regions mainly depend on imported food for their requirement. As vertical farming does not require spacious land and low water content, it is being highly adopted by the people. The government is taking various initiatives to decrease imports and increase vertical farming practices to avoid dependency. The collaborations of public and private sectors for vertical farming for production and delivery are boosting the adoption of vertical farming. Increasing investments by the market players in vertical farming for developing the country's economy is accelerating the regional market growth. With the government approval to produce cannabis as a legal procedure, many areas are focusing on the cultivation of cannabis. The demand for cannabis is very high across the world. The vertically farmed cannabis has observed significant flowering, which is meeting the requirement to create opportunities for market expansion. 

The initial set-up for vertical farming is expensive due to the essential requirements hampering the market growth. As vertical farming does not include insect pollination, the pollination must be done manually, which is time-consuming and requires labor charges. The energy costs are also high in vertical farming due to complete dependency on the power supply. The need for more skilled personnel is the major challenging factor for the growth of vertical farming in the Middle East and African region. The requirement for skilled labor is more for the vertical farming procedure, limiting the market growth. 

Market Drivers

Rapidly growing urban populations in urban areas and decreasing agricultural land are two major factors that will influence the market's growth. Another major factor prompting the growth rate of the market is the rising need to adopt eco-friendly technological developments in farming techniques. Vertical farming reduces the usage of chemicals or pesticides and promotes products that can be recycled. These factors lower the carbon footprints that are ascribed to boost the Middle East and Africa's vertical farming market’s growth. In today’s world, reducing carbon footprints is becoming the major trend, and it can be totally sustained through the adoption of vertical farming. The rising scarcity of water problems is also ascribed to boost the growth rate of the Middle East and African vertical farming market. Water required for the vertical farming process is much less without compromising on producing a high crop yield every year. 

In addition, changing consumers’ preference to eat only organic food products rather than plants cultivated with chemicals and pesticides is greatly influencing the growth rate of the Middle East and African vertical farming market. 

Market Restraints

However, the high cost of setting up the proper infrastructure with the best equipment needed to organize plants under a specific atmosphere is slowly degrading the growth rate of the market. Small-scale businesses could not afford the high technological development in agriculture due to its cost factor, which is also a factor impeding market value. Lack of skilled farmers in gaining complete knowledge of vertical farming due to fewer campaigns by government organizations. 

Market Opportunities

The rapid adoption of the latest technologies in developed countries in the Middle East and Africa is solely to create huge growth opportunities for the market. For instance, Mowreq Specialized Agriculture and YesHealth Group joined together in Saudi Arabia to launch an automated vertical farm with iFarm Leafy Greens technology. The expected production capacity in this area is around 16 tons per month. Investors are actively supporting vertical farming in the Middle East and African countries to sustain the rising demand for food production with technological developments. 

Market Challenges

Though there are many advantages to vertical farming techniques, there are a few challenges for the key players in the Middle East and Africa vertical farming market. Vertical farming techniques consume high energy. The environment set to provide an optimized environment for the potential growth of the plants requires LED lights and other devices, which consume high energy. The continuous need to provide light and other conditions required for the plants, irrespective of the exterior climatic conditions, is the main reason for the high consumption of electricity, which is likely to impede the growth rate of the market. 

Impact of COVID-19 on the Middle East and Africa vertical farming market

The pandemic's arrival had impacted the agricultural sector due to low labor and supply disruptions. The adoption of vertical farming has increased due to the benefits of vertical farming, which does not require land and complete dependency on the power system. The strict lockdown regulations had impacted the distribution, which pressured the farmers to sell the product for low cost, which benefitted the Agri-tech businesses. 

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

26.4%

Segments Covered

By Growth Mechanism, Structure, Offering, Crop Type 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

KSA, UAE, Israel, the rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan and the Rest of MEA

Market Leaders Profiled

Cargill, Inc., DSM, BASF, Archer Daniel Midland Co., Ajinomoto, International Flavors & Fragrances, Inc., Evonik Industries AG, Novozymes, CHR Hansen, Tegasa, SHV (Nutreco NV), Kemin Industries, Inc., DuPont, Adisseo, Anova Group, Alltech, Inc., Addison Group, Sumitomo Chemical Co. Ltd., and Megamix LLC.

 

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

Middle East and Africa Vertical Farming Market By Growth Mechanism

  • Hydroponics
  • Aeroponics
  • Aquaponics

The Hydroponics segment is leading with the dominant share of the market. Hydroponics technique uses water-based nutrient solutions to grow plants. The plants receive essential nutrients through this solution, and the growth of the plants will be optimistic. This technique of growing plants can give a lot of space to grow a large number of plants as the plants are accommodated vertically. The need to use no soil is one of the greatest advantages of following this growth mechanism in vertical farming techniques. The Aquaponics segment has the highest growth rate during the forecast period. 

Middle East and Africa Vertical Farming Market By Structure

  • Buildings
  • Shipping Containers

The buildings segment is leading with the largest share of the market, and shipping containers are set to have huge growth opportunities in the coming years. Vertical farming does not require agricultural land to cultivate the plants. The buildings can be transformed for vertical farming by installing the equipment needed to organize and cultivate the plants. The build for vertical farming is slightly different from the greenhouse with regard to height. Buildings are usually lightweight and promote high energy-efficiency methods with few or multi-story. Shipping containers are ideal for producing a high crop yield in urban areas.  

Middle East and Africa Vertical Farming Market By Crop Type

  • Lettuce
  • Pepper
  • Broccoli
  • Cucumber
  • Spinach
  • Tomato
  • Strawberry
  • Pomegranate
  • Others

Lettuce segment is leading with the largest market share. The demand for the lettuce crop production is highly rising from many years. Growing awareness over the health benefits of lettuce is majorly escalating the growth rate of the market. The demand to increase the crop production of the lettuce is increasing year on year with the rising prominence for the use of lettuce in making medicine that has the ability to cure various diseases.  

Middle East and Africa Vertical Farming Market By Offering

  • Hardware
  • Software
  • Service

The hardware segment is holding the dominant share, and the software segment is likely to have prominent growth opportunities in the coming years. To improve vertical farming practices, highly advanced technologies like sensors, drones, robotics, and others must be installed to continuously monitor the farm remotely. The software allows the farmers to make immediate decisions, if necessary, from anywhere without attending to the farm area. Advanced technology is playing a crucial role in enhancing the optimistic results through vertical farming to an extent. 

Middle East and Africa Vertical Farming Market By Country

  • KSA
  • UAE
  • Israel
  • Rest Of GCC Countries
  • South Africa
  • Ethiopia
  • Kenya
  • Egypt
  • Sudan
  • Rest Of MEA

UAE is projected to lead the dominant share of the vertical farming market. The presence of the top companies in the countries is established to leverage the growth rate of the market. The gigaFarm project was initiated by ReFarm in 2022 and is gaining a lot of attention across the world. The largest firm in vertical farming thinks differently and operates in a way that helps it succeed in the marketplace. For instance, in 2022, the world’s largest vertical farm was unveiled in Dubai at AI Maktoum International Airport. A 3000-square-meter indoor facility was built to produce more than one million kilograms of leafy vegetables each year. The rapid adoption of advanced technology and implementation in the agriculture sector at high speed to reduce the eventually growing concern of greenhouse gases. 

KEY MARKET PLAYERS

Theare Illumitex Inc., Aerofarms, Koninklijke Philips N.V. and Sky Greens are some of the major companies in the Middle East and Africa vertical farming market.

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Frequently Asked Questions

Which countries in the Middle East show the highest growth potential for vertical farming?

The UAE and Saudi Arabia are leading in terms of growth potential, driven by increasing investments in sustainable agriculture.

What factors contribute to the growth of vertical farming in Africa?

Factors such as water scarcity, population growth, and the need for food security are driving the adoption of vertical farming in Africa.

What are the key trends influencing the vertical farming market in the Middle East?

Automation, controlled-environment agriculture, and smart farming practices are notable trends shaping the Middle East vertical farming landscape.

What Is The Current Size Of Middle East Africa Vertical Farming?

The current size of the vertical farming Middle East and Africa market is at USD 0.91 billion in 2023.

What Are The Key Market Players Involved In Middle East Africa Vertical Farming?

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

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