Report Overview

Growing popularity and demand for organic food and vertical farming’s favorable characteristics, including requirement of less space to build, higher yield, and efficient energy utilization are expected to drive Saudi Arabia vertical farming market at a robust growth rate during the forecast period 2022 and 2028.

Saudi Arabia Vertical Farming Market - Industry Trends & Forecast Report, 2028

Saudi Arabia Vertical Farming Market size is expected to expand at an impressive CAGR of 26.7% during the forecast period between 2022 and 2028. Saudi Arabia vertical farming market expansion is driven by rising awareness of using innovative technology and equipment in agriculture. The rising use of modern technologies and equipment in farming techniques might be ascribed to the market expansion. Vertical farming is a sort of controlled-environment agriculture that makes soilless farming techniques, such as hydroponics and aeroponics. Farmers in a vertical farming arrangement can control temperature, nutrients, humidity, and light to improve crop quality and quantity while using less water and less space. The use of environment-friendly vertical farming is being aided by rapid urbanization and industrialization. Furthermore, during the period in analysis, the rising popularity of organic food and the shrinking amount of arable land for agriculture could contribute to the further expansion of Saudi Arabia vertical farming market.

Saudi Arabia Vertical Farming Market

Growth Drivers

Growing demand for food

The demand for food security measures is growing in Saudi Arabia because of the availability of superior healthcare services and the consumption of nutritious foods and beverages. Saudi Arabia has a sultry and arid climate with limited rainfall and relies heavily on fruit and vegetable imports from other countries. In the coming five years, demand for Saudi Arabia vertical farming could be fueled by the adoption of advanced farming techniques and equipment to enhance agriculture yield and properly utilize water resources.

Supportive government measures

Saudi Arabia's principal revenue-generating business is the oil and gas industry. The commitment of significant funding for the development of agriculture as a source of revenue other than the oil and gas industry could drive the country’s vertical farming market in the coming years. Saudi Arabia's agricultural business is growing due to the necessity to focus on food security and initiatives taken to promote agriculture and preserve water. The Ministry of Environment, Water, and Agriculture in Saudi Arabia emphasizes the importance of improving agriculture strategy and is working with local and international research institutions, as well as the commercial sector, to embrace cutting-edge technologies.

Restraints

Lack of workforce with expertise in vertical farming

Shortage of qualified and experienced workforce in vertical farming may limit the growth of vertical farming market in Saudi Arabia. In addition, significant initial capital investments could affect the expansion of Saudi Arabia vertical farming market. Marketing and distribution of vertical farm products could also pose a challenge for vertical farming companies in the country.

Impact of Covid–19 on Saudi Arabia Vertical Farming Market

COVID-19 had a significant impact on key economies in Middle East and Africa. Saudi Arabia government implemented a lockdown across the country, due to increasing infections. Work-from-home scenarios and social distancing norms have in a shrinking working force and a decline in revenue creation for big manufacturing units. The supply chain was also severely harmed throughout the Middle-East region. However, by the first quarter of 2021, market participants had resumed a faster manufacturing speed to stay competitive. In addition, Saudi Arabia market expansion is being fueled by a shift in consumer preferences and a rising demand for organic food.

Saudi Arabia Vertical Farming Market

Segmental Coverage

Saudi Arabia Vertical Farming Market - By Growth Mechanism

Saudi Arabia vertical farming market by growth mechanism is segmented into hydroponics, aeroponics, and aquaponics. During the projected period, the hydroponics segment is expected to have the greatest market share. Plants grow in nutrient solutions that are devoid of dirt in hydroponics. This growth mechanism has several advantages, including a higher return on investment, ease of implementation, and affordability. As a result, commercial farmers are in high demand for it. In the agricultural process, the hydroponics segment uses water most efficiently and reduces water waste. The amount of nutrients supplied to the plants can be easily regulated by adjusting the size and growth of the plants. The hydroponics mechanism enables plant development even in the event of a power outage and provides needed nutrients and water to the plants on a continuous basis, which is the fundamental reason for its high consumer demand.

Saudi Arabia Vertical Farming Market - By Structure

By structure, Saudi Arabia vertical farming market is split into two segments: Building-based Vertical Farms and Shipping Container-based Vertical Farms.

Saudi Arabia Vertical Farming Market - By Crop

Based on crop, Saudi Arabia vertical farming market is segmented into: Tomato, Berries, Lettuce and Leady Vegetables, Pepper, Cucumber, and Others. Among them, the Tomato and the Lettuce and Leady Vegetables segments are major categories in Saudi Arabia vertical farming market, due to the increasing demand for tomato and lettuces from fast food chains across the country.

Saudi Arabia Vertical Farming Market - By Application

Saudi Arabia Vertical Farming market is divided into indoor and outdoor segments based on application. During the period in analysis, the indoor segment is expected to have a higher market share. Traditional agricultural methods use a lot of water, whereas vertical indoor farming uses a lot less. The water that is left behind after the plants have used is reused in the water recycling process. Indoor farming, which uses automated technology to raise crops, reduces the need for manual labor. The falling cost of LED technology, which is critical in indoor vertical farming, is hastening the expansion of indoor vertical farms across the country. The availability of full spectrum LEDs, as well as the advent of LEDs with improved efficiency and longer lifespan, has aided the growth of a wide range of crops.

Saudi Arabia Vertical Farming Market – By Offering

By Offering, Saudi Arabia vertical farming market is segmented into Hardware, Software, and Services. The Hardware segment is further categorized as Irrigation Components, Lighting, Sensor, Climate Control, Building Materials, and Others (including HAVAC System, Shelves, and Racks). Among these offerings, the Hardware segment is the dominant one and is expected to continue its leadership position in Saudi Arabia vertical farming market by offering during the forecast period due to the increasing demand and high usage of devices across a variety of vertical farms. 

Competitive Landscape

Prominent players in Saudi Arabia vertical farming market include GrowGroup IFS, AeroFarms, LLC, Mowreq Specialized Agriculture Company, Kalera AS, and Signify Saudi Arabia. Market participants are employing various strategies, such as expanding their product portfolios and increasing their research and development efforts, to maintain their growth.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2018–2021
	Base Year – 2021
	Estimated Year – 2022
	Forecast – 2022–2028
Facts Covered	Revenue in USD Million
Market Coverage	Saudi Arabia
Product/ Service Segmentation	Growth Mechanism, Structure, Crop, Application, Offering
Key Players	GrowGroup IFS, AeroFarms, LLC, Mowreq Specialized Agriculture Company, Kalera AS, Signify Saudi Arabia.

 

By Growth Mechanism

• Hydroponics

• Aeroponics

• Aquaponics

By Structure

• Building-Based Vertical Farms

• Shipping Container – Based Vertical Farms

By Crop

• Tomato

• Berries

• Lettuce and Leafy Vegetables

• Pepper

• Cucumber

• Others

By Application

•  Indoor

• Outdoor

By Offering

• Hardware

• Irrigation Components

• Lighting

• Sensor

• Climate Control

• Building Materials

• Others(HVAC System, Shelves, Racks)

• Software

• Services

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Vertical Farming Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Patent Analysis
   5. Regulatory Framework
   6. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Vertical Farming Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Growth Mechanism
         1. Hydroponics
         2. Aeroponics
         3. Aquaponics
      2. By Structure
         1. Building-based Vertical Farms
         2. Shipping Container-based Vertical Farms
      3. By Crop
         1. Tomato
         2. Berries
         3. Lettuce and Leafy Vegetables
         4. Pepper
         5. Cucumber
         6. Others
      4. By Application
         1. Indoor
         2. Outdoor
      5. By Offering
         1. Hardware
            1. Irrigation Components
            2. Lighting
            3. Sensor
            4. Climate Control
            5. Building Materials
            6. Others (HVAC System, Shelves, Racks etc.)
         2. Software
         3. Services
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Company Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Business Expansion, Agreement, Partnership and Product Launch)
7. Impact of COVID-19 on Saudi Arabia Vertical Farming Market
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. GrowGroup IFS
   2. AeroFarms, LLC
   3. Mowreq Specialized Agriculture Company
   4. Kalera AS
   5. Signify Saudi Arabia
   6. Other Prominent Players
9. Key Strategic Recommendations

Note:

1. Financial Information of non-listed companies will be provided as per the availability
2. The segmentation and the companies are subjected to modification based on in-depth secondary for the final deliverable.