MEA Vertical Farming Market

Middle East and Africa Vertical Farming Market 2023 to 2028

The size of the vertical farming market in the Middle East and Africa is anticipated to be worth USD 26.4% from 2023 to 2028 and the MEA market is expected to be worth USD 2.94 billion by 2028 from USD 0.91 billion in 2023.

MARKET DRIVERS:

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. 

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 market size growth. 

MARKET RESTRAINTS:

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.

MARKET OPPORTUNITIES:

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. 

MARKET CHALLENGES:

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. 

COVID-19 Impact 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:

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

MEA Vertical Farming Market - By Growth Mechanism:

• Hydroponics
• Aeroponics
• Aquaponics

The hydroponics segment dominates the vertical farming market due to ideal crop production in the UAE, Israel, South Africa, and other countries. Hydroponics reduces water consumption by not using any fertilizers with low land space, driving the demand for vertical farming. Advancements in technologies with large-scale and bright vertical techniques are expected to boost yield production by ensuring regional food security. Hydroponics adoption is significant in the UAE; over 200 farms use hydroponic systems. 

MEA Vertical Farming Market - By Structure:

• Buildings
• Shipping Containers

The buildings segment dominated the market in 2022 due to increased space for the comfort of vertical farming. The building segment is expected to dominate in the forecast period due to its versatility for operating in any location, irrespective of the climatic and weather conditions. The building has maximum resources such as water, space, and energy for healthy plant growth. 

MEA Vertical Farming Market - By Crop Type:

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

The tomato segment dominated the vertical farming market in 2022 due to the high demand for tomatoes cultivated by vertical farming. Tomatoes are an essential crop required which is in high demand for cultivation due to their demand in the Food and beverages industry. The tomatoes cultivated by vertical farming are of high quality and yield high. The lettuce segment has gained traction recently due to vertical farming. Red lettuce is in high demand by Food stores.

MEA Vertical Farming Market - By Offering:

• Hardware
• Software
• Service

The hardware segment held the largest share of the vertical farming market revenue due to the increased adoption of automation in agriculture. Automation in agriculture helps reduce labor costs with rapid machine procedures and high-yield efficiency. The cloud-based software segment is estimated to have significant growth in the forecast period due to rising demand for vertical farming management software, which collects and stores data and provides farmers with efficient decision-making.

MEA Vertical Farming Market – By Country:

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

 Africa dominated the vertical farming market due to the increasing urban population and commercialization of indoor farming. Various models, such as vertical stacked wooden crates and sack gardens, are being developed in Africa, propelling the market growth—the nations of the Middle East import the most significant portion of the food from their countries. UAE, Saudi Arabia, and other countries are expected to import 85% of food, and 90% includes cereals, meat, and vegetables. According to the MD of the International Monetary Fund (IMF), 141 million people in the Middle East lack access to enough food in a conference held in Saudi Arabia in 2022. UAE and Israel are expected to have various innovations and developed farming techniques to boost regional market expansion. 

KEY MARKET PLAYERS:

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.