India Vertical Farming Market Size
India Vertical Farming Market reached USD 42.2 million in 2022 and is expected to reach USD 187.9 million by 2030, growing with a CAGR of 20.5% during the forecast period 2024-2031. Vertical farming allows for the cultivation of crops in urban environments where arable land is limited.
With a growing population and rapid urbanization, the availability of arable land for traditional farming is decreasing. Vertical farming provides a solution by enabling food production in urban areas or regions with limited space. Hence, the growing food demand and limited arable land act as key drivers for India's vertical farming market.
Vertical farms can grow crops throughout the year, in controlled indoor environments, regardless of seasonal changes, allowing continuous production and access to a wide diversity of crops. Traditional outdoor agriculture is limited by seasonal changes and climate conditions, which can cause fluctuations in crop yields and supply. With vertical farming, the production cycle is independent of external factors, ensuring a consistent and reliable supply of fresh produce throughout the year. Hence, year-round production and crop diversity acts as a key trend for vertical farming market growth
Market Scope
| Metrics | Details |
| CAGR | 20.5% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Crop Type, Type, Structure, Component, Distribution Channel and Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Population and Urbanization
India's population has been continuously growing, leading to higher food demand. As of July 23, 2023, the current population of India is 1,429. 4 million based on Worldometer elaboration of the latest United Nations data. As urban areas expand, the need for a consistent and reliable food supply becomes more critical. Vertical farming offers the potential to grow a variety of crops in controlled environments, enabling a more stable and continuous food production system.
Traditional agriculture is often subject to seasonal variations and weather-related challenges. Vertical farming provides a controlled environment where factors like temperature, light, and humidity can be optimized to create ideal growing conditions year-round. This consistency in production ensures a stable and reliable supply of fresh produce, regardless of external weather conditions.
Limited Arable Land
India is a densely populated country with limited availability of arable land. For instance, According to The World Bank, In India, in 2020, the % of agricultural land was 60.2, a decline from 60.4 in 2015. Vertical farming offers a solution to optimize land use by growing crops vertically in stacked layers or shelves. This allows for the cultivation of a larger volume of crops within a smaller physical footprint compared to traditional
Water scarcity is a significant concern in several regions of India. Vertical farming, particularly hydroponics, and aeroponics, uses less water compared to conventional soil-based farming. By recycling and reusing water in a closed-loop system, vertical farms can significantly reduce water consumption, making them suitable for regions facing water shortages.
High Initial Investment
Vertical farming heavily relies on advanced technologies, including LED lighting systems, automated climate control, sensors, and data analytics. These technologies are expensive to acquire and install, adding to the initial investment. Maintaining a controlled environment is critical in vertical farming to ensure optimal growing conditions throughout the year. This requires sophisticated environmental control systems for temperature, humidity, CO2evels, and nutrient delivery, which can be costly to implement.
According to Barton Breeze, the final cost for setting up a hydroponic farm on one acre of land will be INR 110lakh. This substantial upfront capital required for vertical farming can be prohibitive for small-scale farmers or entrepreneurs looking to enter the market. The high costs for infrastructure, technology, and automation may deter potential investors from considering vertical farming as a viable option.
Market Segment Analysis
The India vertical farming market is segmented based on crop type, type, structure, component, distribution channel, and region.
Rising Demand For Hydroponics due to the Higher Yields and Faster Growth by Using This Technology
According to the Water Resources Group (WRG), by 2030, India will only have 50% of the water it needs. This situation is possibly to be the worst in India's history and will impact agriculture. Hydroponics is highly water-efficient, using less water in comparison to traditional soil-based agriculture. In water-scarce regions of India, hydroponics provides an attractive solution for sustainable farming.
Hydroponic systems provide plants with precisely measured nutrients, optimizing their growth potential. With controlled environments and an optimized nutrient supply, hydroponic crops often yield higher output and grow faster compared to traditional soil-based farming. According to a study published by V.Chandrshekaran, founder of a hydroponic technology firm, in soil-based agriculture, the average annual yield of lettuce per acre was 9-10 tonnes, while in hydroponics agriculture, it was 300-400 tonnes.
Market Key Players
The major global players include UrbanKisaan, Triton Foodworks, FF Agro Technologies Pvt Ltd, Sparsh Bio Life, URBAN GREEN FATE FARMS, Barton Breeze, ASAGRIAQUA, SIMPLYFRESH PVT. LTD., IGO Agri Techfarms, and Letcetra Agritech Private Limited.
COVID-19 Impact on Market
COVID Impact
During the pandemic, there was a higher demand for locally grown and fresh produce as consumers were more concerned about the safety and hygiene of food supplies. Vertical farming, with its potential to grow crops closer to urban centers, has benefited from this trend as it provides a controlled environment for growing vegetables and greens.
The Covid-19 pandemic caused disruptions in supply chains in the agricultural sector. With traditional agricultural practices relying on transportation over long distances, there have been challenges in ensuring a steady supply of fresh produce. Vertical farming's localized production has been seen as a more resilient solution during such disruptions.
By Crop Type
- Fruits and Vegetables
- Tomato
- Berries
- Lettuce & Leafy Vegetables
- Pepper
- Cucumber
- Microgreens
- Others
- Flowers
- Others
By Type
- Hydroponics
- Aeroponics
- Aquaponics
By Structure
- Building-based Vertical Farm
- Shipping-Container Vertical Farm
By Component
- Lighting System
- Irrigation & Fertigation System
- Climate Control
- Sensors
- Others
By Distribution Channel
- E-Commerce
- Specialty Stores
- Hypermarket/Supermarket
- Others
Key Developments
- In January 2023, AeroFarms, a vertical farming company launched 9 new community farms to provide additional 2 tons of fresh food access to 4,500+ local students.
- In March 2023, General Education Minister V Sivankutty inaugurated the fully-automated hydroponic farm developed on 16000 sqft of land at Karamana, Kerala, India.
- In January 2022, Brio Hydroponics launched the project ‘Unnati’ to attract investment in the Agri segment. Project Unnati is an optimized commercial hydroponics project which has been designed to further develop hydroponic farming and attract FDI in the Agriculture sector.
Why Purchase the Report?
- To visualize the India vertical farming market segmentation based on crop type, type, structure, component, distribution channel and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of vertical farming market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The India vertical farming market report would provide approximately 45 tables, 38 figures and 181 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
