Middle East & Africa Vertical Farming Market Outlook, 2027

Middle East & Africa Vertical Farming Market Outlook, 2027

Due to the shortage of water and adverse climate conditions, the Middle East and Africa region is witnessing an increase in demand for adopting innovative and alternative agricultural processes in various developing economies across the region. The high necessity for large production of food crops due to meager land arability and geographic factors is driving the market for vertical farming in the Middle East and Africa. Also, many companies are looking to capitalize on this factor by providing higher investments to their R & D departments. The emergence of new businesses and expanding collaborations with international and domestic enterprises has resulted in a significant increase in demand for innovative approaches to alternative farming practices. For instance, in Saudi Arabia, the Ministry of Environment, Water and Agriculture has allocated USD 27 million to develop and localize vertical-farming technologies across the country. On the other hand, taking the UAE alone, the population is projected to reach 11.5 million by 2025. This presents huge challenges to the economy and food security. However, the vertical farming industry is projected to be a booming sector across the region, which can overcome these challenges. Also, vertical farming initiatives across the region have been supported by local governments as they can allow various economies to target their sustainable approach to the environment.

According to the report titled ""Middle East & Africa Vertical Farming Market Outlook, 2027"", published by Bonafide Research, the vertical farming market is expected to expand at a CAGR of 21.26% from 2022 to 2027. Vertical farms offer the prospect of growing more produce locally and making better use of the region’s limited water resources. These factors are projected to lead to the overall market growth during the forecast period. The Middle East & Africa vertical farming market is segmented into three prominent countries, including the UAE, Saudi Arabia, and South Africa. Among these countries, South Africa is projected to lead the market by 2027 with more than 20% market share. As agricultural land is limited in South Africa, vertical farming is gaining more traction in the country. Vertical farming can supply fresh food for those who cannot farm or whose soil conditions are not suitable for farming. Also, with the limited water resources in South Africa, they can grow more crops through vertical farming (as it consumes up to 95% less water than traditional farming). Furthermore, in South Africa, Pick n Pay On Nicol in Sandton and Pick n Pay Constania in Cape Town are the first stores to launch vertical farms.

According to the report, the Middle East and Africa vertical farming market is segmented into three growth mechanisms, including hydroponics, aquaponics, and aeroponics. Among these types, the hydroponics segment is projected to acquire a larger market share in the market during the forecast period. The convenience provided by this growth mechanism and higher efficiency have directed major market players to adopt this segment. In the UAE alone, there are more than 1,000 hydroponics farms. The country has grown from 50 to 1000 from 2009 to 2021. Further, the market is segmented into two structure types, including building-based vertical farming and shipping container-based vertical farming. Among these types, the building-based vertical farming market is expected to lead the market with more than 55% by 2027. The growing adoption of vertical farming in residential and commercial sectors has propelled the market growth for this segment.

COVID-19 Impact:
The impact of COVID-19 on major economies in the Middle East and Africa region was severe. Due to growing infections, the government imposed a lockdown across various regions and the Middle East & Africa was one of them. Social distancing norms and work from home scenarios have resulted in a lower labor force and a drop in the revenue generation for major production plants. The supply chain was also heavily affected across the whole region. However, by the first quarter of 2021, market players regained their manufacturing at a higher pace to remain in the competition. Also, a change in consumer preference and high demand for organic food has fuelled the market growth in the Middle East and Africa.

Major Companies present in the market:
GP Solutions, Inc., Signify Holding, OSRAM GmbH., Crop One Holdings, Urban Crop Solutions, Everlight Electronics co. Ltd, AGM Services, ZipGrow Inc., Koninklijke Philips NV

Considered in this report
• Geography: Middle East & Africa
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Middle East & Africa Vertical Farming Market with its value and forecast along with its segments
• Country wise vertical farming market analysis
• Application wise vertical farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• UAE
• Saudi Arabia
• South Africa

Based on Growth Mechanism of vertical farming in the report:
• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type of vertical farming in the report:
• Building based-vertical farming
• Shipping based-vertical farming

Based on hydroponics components of vertical farming in the report:
• Lighting
• Climate Control (HVAC)
• Sensors
• Other Hydroponic Components (Irrigation & fertigation system)

Based on application type in the report:
• Indoor-vertical farming
• Outdoor-vertical farming

Based on crop type in the report:
• Tomatoes
• Bell & Chili peppers
• Lettuce
• Herbs
• Leafy Greens (excluding lettuce)
• Strawberry
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Keywords: Global vertical farming market size, herbal, botanical, Skyscraper farming, Agricultural techniques, Vertical Farming Market In Middle East, Vertical farming component, farming equipment, Tomato Lettuce vertical farming, Bell & Chili, food & beverage, market demand of vertical farming, hydroponics, aeroponics, aquaponics, shipping container vertical farming, top vertical farming countries, top vertical farming companies, top hydroponics farming by countries, Middle East, Africa, UAE, Saudi Arabia, South Africa.

This report would help you answer the following questions:
1. At what rate Middle East & Africa vertical farming market is anticipated to grow?
2. Which country is leading the market by 2027?
3. How many types of growth mechanisms are explained in the report?
4. Where is the biggest vertical farm?
5. Who was the founder of vertical farming?