Market Overview
Vertical farming is the practice of growing food on vertically stacked layers or structures, such as shipping containers, skyscrapers, or repurposed warehouses. Controlled Environment Agriculture (CEA) and Indoor farming are the technologies used in vertical farming where all the environmental factors, including humidity, temperature, light, etc., can be controlled easily. The primary goal of vertical farming is to maximize agriculture output using limited space & minimal resources like energy & water, and it is witnessing increasing demand across the Middle East & Africa.
According to MarkNtel Advisors, the Middle East Vertical Farming Market is anticipated to grow at a CAGR of around 18.76% during the forecast period, i.e., 2022-27. Due to the extreme climatic conditions, water & energy are the premium resources in the Middle East region. According to the Alpen Capital’s 2019 GCC Food Report, nearly 85% of food consumed in GCC countries is imported due to water scarcity, extreme climatic conditions, and limited arable land.
It has further resulted in food price fluctuations in the region. Also, the unstable socio-political environment has significantly impacted the source countries & trade routes. Hence, these factors are leading to the burgeoning adoption of vertical farming across the Middle East & Africa region for extensive access to nutritious, safe, and affordable food.
However, this kind of agriculture practice can be costly. But consumers across the Middle East are ready to pay a premium price for fresh & green vegetables. Hence, the Vertical farming market is expected to grow significantly in the coming years, further states the research report, “ Middle East Vertical Farming Market Analysis, 2022.”
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR | 18.76% |
| Countries Covered | UAE, Saudi Arabia, Israel, Egypt, Rest of Middle East |
| Key Companies Profiled | AeroFarms, Freight Farms, Plenty, CropOne, Badia farms, Intelligent Growth Solution, Osram GMBH, Koninklijke Philips N.V., Urban Fresh Farms |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Middle East Vertical Farming Market
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Market Segmentation
By Growth Mechanism:
Demand for Hydroponics to Grow at the Fastest Rate during 2022-27
Hydroponics is the method of growing food without soil by using mineral nutrient solutions in water. It is the most water-efficient farming approach that helps reduce soil-related problems like adverse effects of pesticides & soil-borne insects.
Water crises are amongst the most prominent factors behind the increasing adoption of hydroponics. This method costs less than other growth mechanisms, offers a higher return on investments, and is easy to set up. Further, the full ability of vertical farming can be achieved easily by hydroponics in a climate-controlled environment. Hence, these factors contribute to the growing demand for the Hydroponics growth mechanism.
By Components:
Here, Lighting acquired the largest market share in recent years. Sunlight is the most crucial resource of traditional farming. Therefore, vertical farming done inside a closed building is highly dependent on artificial lights for its positive result as this light act as a substitute for the sunlight. The sunlight conditions are attained by varying the intensity of artificial light.
According to plants that need to be cultivated and the stage of cultivation, the intensity of artificial lights can vary in terms of the range of the spectrum, color temperature, and luminous efficiency required for the growth of specific plants. Hence, the benefits mentioned above are aiding the demand for lighting components in the vertical farming market.
Country Landscape
Dramatically Increasing Adoption of Vertical Farming in UAE
The adoption of Vertical Farming in the UAE is increasing astronomically due to the scarcity of water supply, limited arable land, and scorching temperatures in the country. Hence, there is a significant demand for a technologically advanced approach to enhance the food production capacity & security in the country. Vertical farming is an energy & water-efficient approach for food production, where crop remains unaffected by the weather.
By eliminating the complex chain of processing & distribution wherein chances of food spoiling are high, the said approach shall help the country reduce food losses. Hence, these aspects indicate the increasing use of vertical farming across the UAE.
Market Dynamics:
Key Drivers
Growth Challenges
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East Vertical Farming Market is forecast to grow at a CAGR of around 18.76% during 2022-27.
A. The demand for Hydroponics is expected to grow at the fastest rate and create lucrative growth opportunities for the leading market players
A. UAE is expected to witness the maximum adoption of Vertical Farming during 2022-27 and present immense opportunities to the leading players of the Middle East Vertical Farming Market.
A. The increasing demand for locally produced vegetables and minimizing import dependency are the key factors driving the Middle East Vertical Farming Market growth.
A. Post-Covid-19 Pandemic, the Middle East Vertical Farming Market is projected to witness steady growth owing to the increasing demand for locally grown food across the region.
