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Add to CartGlobal Vertical Farming Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Type;
Hydroponics, Aeroponics, and Aquaponics.By Structure;
Building-Based Vertical Farms and Shipping-Container Vertical Farms.By Component;
Lighting System, Irrigation & Fertigation System, and Climate Control Sensors, and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Vertical Farming Market (USD Million), 2021 - 2031
In the year 2024, the Global Vertical Farming Market was valued at USD 7,073.62 million. The size of this market is expected to increase to USD 34,879.40 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 25.6%.
Vertical farming represents a revolutionary approach to agricultural production, leveraging innovative techniques to maximize space utilization and increase crop yields in limited environments. Unlike traditional horizontal farming, which relies on vast expanses of land, vertical farming cultivates crops vertically on shelves, racks, or towers, making efficient use of vertical space. This method allows farmers to harvest crops in multi-tiered systems, significantly increasing the productivity of a given area. By stacking crops vertically, farmers can grow more food exponentially with the same amount of land, addressing the challenge of limited arable land availability, particularly in densely populated urban areas.
One of the key advantages of vertical farming is its ability to achieve higher productivity in smaller spaces. By cultivating crops indoors, vertical farming eliminates the need for expansive agricultural land and minimizes the impact of adverse weather conditions on crop growth. Additionally, vertical farming utilizes artificial light and controlled temperature conditions to create an optimal growing environment year-round, independent of seasonal variations. This controlled environment ensures consistent crop growth and quality, leading to predictable harvests and increased efficiency in food production.
Vertical farming relies heavily on technology to optimize growing conditions and maximize crop yields. Sensors, robots, and LEDs serve as essential tools in vertical farming operations, replacing natural sunlight and enabling precise control over lighting, temperature, humidity, and nutrient levels. Algorithms are employed to continuously monitor and adjust these environmental factors, ensuring that crops receive the ideal conditions for growth and development. Furthermore, vertical farming systems such as hydroponics, aquaponics, and aeroponics enhance space utilization and resource efficiency by eliminating the need for soil and minimizing water usage. Hydroponic systems deliver nutrients directly to plant roots through a water-based solution, while aquaponic systems integrate fish farming with plant cultivation, creating a symbiotic ecosystem that recycles nutrients and minimizes waste. Aeroponic systems mist plant roots with nutrient solutions, providing optimal nutrient uptake and promoting rapid growth.
Despite its numerous benefits, vertical farming presents unique challenges, particularly in terms of execution and control. Farmers must carefully manage temperature, humidity, and light levels to ensure the optimal growth conditions for crops. However, with advancements in technology and ongoing research, vertical farming continues to evolve as a viable solution for sustainable food production. By integrating efficient growing systems, leveraging technology, and maximizing resource utilization, vertical farming holds promise for increasing efficiency and productivity in agricultural production while conserving land and resources for future generations.
Global Vertical Farming Market Recent Developments
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In May 2023, AeroFarms revealed the expansion of its partnership with Amazon Fresh.
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In February 2023, ams OSRAM collaborated with Revolution Microelectronics, a US-based controlled agriculture environment designer.
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In February 2023, Realty Income, a commercial real estate investment trust, partnered with Plenty Unlimited Inc. The collaboration involves an investment of up to USD 1 billion to construct farming space that will be leased to Plenty Unlimited.
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In September 2022, Freight Farms collaborated with The University of Arizona Biosphere 2.
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In May 2022, Signify Holding, the global leader in lighting, successfully finalized the acquisition of Fluence from ams OSRAM.
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In May 2022, ams OSRAM introduced the OSLON Optimal family of LEDs, featuring the latest 1mm2 chip designed specifically for horticulture lighting applications.
Segment Analysis
Hydroponics involves growing plants in a nutrient-rich water solution without soil, providing precise control over nutrient delivery and optimizing water usage. Aeroponics suspends plant roots in a misted nutrient solution, promoting rapid growth and efficient nutrient uptake. Aquaponics integrates fish farming with plant cultivation, creating a symbiotic ecosystem where fish waste provides nutrients for plants, and plants purify the water for fish. Secondly, by structure, the market includes building-based vertical farms and shipping-container vertical farms. Building-based vertical farms utilize existing structures such as warehouses or skyscrapers to create multi-level growing environments, maximizing space utilization in urban areas. Shipping-container vertical farms repurpose shipping containers into modular growing units, offering scalability and mobility for deployment in various locations. Lastly, by component, the market comprises lighting systems, irrigation, and fertigation systems, climate control systems, sensors, and others. Lighting systems, such as LED lights, provide artificial light sources to support plant growth, while irrigation and fertigation systems deliver water and nutrients to plants in hydroponic or aeroponic setups. Climate control systems regulate environmental factors like temperature and humidity to create optimal growing conditions, while sensors monitor various parameters and provide real-time data for farm management. Other components may include automation technologies, software solutions for crop monitoring and management, and infrastructure for vertical farm construction and maintenance. By analyzing these segments, stakeholders can gain insights into the diverse technologies, structures, and components driving the growth and innovation of the Global Vertical Farming Market, facilitating informed decision-making and strategic planning for industry players across the vertical farming ecosystem.
Global Vertical Farming Segment Analysis
In this report, the Global Vertical Farming Market has been segmented by Type, Structure, Component, and Geography.
Global Vertical Farming Market, Segmentation by Type
The Global Vertical Farming Market has been segmented by Type into Hydroponics, Aeroponics, and Aquaponics.
In the evolving landscape of agricultural practices, vertical farming methods such as hydroponics, aeroponics, and aquaponics are revolutionizing food production by offering efficient, sustainable, and space-saving alternatives to traditional soil-based farming. Among these methods, hydroponics stands out as the dominant segment in the market, having witnessed remarkable growth in recent years and poised for continued expansion. Hydroponics involves cultivating crops in nutrient-rich water solutions, eliminating the need for soil. This method offers precise control over growing conditions, resulting in faster growth rates and higher yields compared to soil-based cultivation. Moreover, hydroponic crops are known for their superior quality, as they are less susceptible to pests, diseases, and soil contamination. The increased demand for healthy and safe food, coupled with the ability of hydroponics to produce crops with higher nutritional content, has fueled its adoption in the market. Additionally, hydroponic farming requires less water and space compared to traditional farming methods, making it a sustainable solution to address global food security challenges.
On the other hand, the aeroponics segment is poised to gain traction in the coming years, offering unique advantages in resource efficiency and land conservation. Aeroponics, unlike hydroponics, relies on air to deliver nutrients to plant roots suspended in a misted environment. This method requires almost 95% less water and space for farming purposes, making it particularly well-suited for urban environments and regions facing water scarcity or soil erosion issues. As relentless soil usage has led to soil erosion and the depletion of arable land, aeroponics emerges as a viable solution to overcome these challenges. By harnessing the power of air and technology, aeroponics enables the cultivation of crops in a controlled environment, promoting faster growth rates, higher yields, and improved resource efficiency. Additionally, aeroponic systems are highly adaptable and scalable, making them suitable for a wide range of applications, from small-scale urban farms to large commercial operations. Overall, the growth of the hydroponics and aeroponics segments in the Global Vertical Farming Market reflects the increasing demand for sustainable and efficient food production solutions. These innovative farming methods not only address key challenges such as land scarcity, water shortages, and soil degradation but also offer opportunities to improve food safety, nutrition, and accessibility. As vertical farming continues to gain momentum worldwide, hydroponics and aeroponics are expected to play pivotal roles in shaping the future of agriculture, providing a pathway towards a more resilient and sustainable food system for generations to come.
Global Vertical Farming Market, Segmentation by Structure
The Global Vertical Farming Market has been segmented by Structure into Building-Based Vertical Farms and Shipping-Container Vertical Farms.
Building-based vertical farms are witnessing a surge in demand, driven by the increasing trend of repurposing existing buildings and infrastructure for agricultural purposes. Cities worldwide are utilizing abandoned or underutilized buildings to deploy vertical farms, thereby maximizing space utilization and revitalizing urban landscapes. For instance, Chicago's innovative vertical farm, "The Plant," was established within an old pork-packing plant, showcasing the adaptive reuse of industrial spaces for agricultural production. Similarly, Bowery Farming has leveraged NASA's data-driven model to transform unused warehouses into high-tech urban vertical farms, demonstrating the potential for repurposing existing structures for sustainable food production. On the other hand, shipping container-based vertical farms are gaining popularity as versatile and portable solutions for indoor agriculture. Numerous companies have repurposed shipping containers into compact and efficient vertical farming units, equipped with advanced technologies such as drip irrigation systems, LED lighting, and vertically stacked shelves for plant cultivation. These container farms offer flexibility and scalability, allowing for rapid deployment in various urban and remote locations. Additionally, they are integrated with sophisticated growth management systems that enable remote monitoring and control of environmental parameters, such as temperature, humidity, and nutrient levels, using computer or smartphone applications. This technological innovation ensures optimal growing conditions and maximizes crop yields, contributing to the segment's growth trajectory in the foreseeable future.
The growing adoption of building-based and shipping container-based vertical farms underscores the market's adaptability and resilience in addressing urbanization and land constraints. Building-based vertical farms leverage existing infrastructure to create sustainable food production hubs within urban environments, fostering community engagement and revitalizing urban spaces. Meanwhile, shipping container-based vertical farms offer modular and scalable solutions that can be deployed in diverse settings, from urban rooftops to rural areas, enabling localized food production and reducing dependence on long-distance supply chains.
Furthermore, both segments contribute to sustainability goals by minimizing resource consumption, reducing food miles, and mitigating environmental impacts associated with conventional agriculture. By harnessing innovative technologies and repurposing existing resources, the Global Vertical Farming Market is poised for continued growth and innovation, paving the way for a more resilient and sustainable food system in the future.
Global Vertical Farming Market, Segmentation by Component
The Global Vertical Farming Market has been segmented by Component into Lighting System, Irrigation & Fertigation System, Climate Control Sensors, and Others.
Among these components, lighting systems are anticipated to exhibit significant growth due to the increasing demand for LED lighting systems. LED lighting systems are favored in vertical farming for their ability to reduce operational costs and minimize power consumption. Compared to conventional light sources, LED lighting generates lower heat, making it ideal for maintaining optimal growing conditions within vertical farms. Moreover, the shift in consumer demand for unseasonal food has propelled the need for climate control components in vertical farms. These components enable farmers to monitor and regulate environmental factors such as light intensity and humidity, ensuring optimal growing conditions for crops. Advanced climate control systems that can be managed remotely from mobile devices or computers are expected to drive the growth of hydroponic components, as they offer greater convenience and efficiency in farm management. In addition, the adoption of sensors is gaining traction in vertical farming, driven by the integration of advanced technologies such as artificial intelligence, the Internet of Things (IoT), and big data analytics. Sensors play a crucial role in monitoring various parameters such as temperature, humidity, nutrient levels, and crop health, providing real-time data that can be analyzed to optimize growing conditions and maximize yield. Big data analytics further enhances the utility of sensor data by enabling farmers to gain insights into crop health trends, identify potential issues early, and make data-driven decisions to improve overall farm productivity.
Global Vertical Farming Market, Segmentation by Geography
In this report, the Global Vertical Farming Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Vertical Farming Market Share (%), by Geographical Region, 2024
North America is the most significant global vertical farming market shareholder and is anticipated to exhibit a CAGR of 28.9% during the forecast period. North America is one of the prominent regions for the growth and development of the global vertical farming market. There is a high emphasis on alternate farming techniques in North America, which creates an increased adoption rate for vertical farming in the region. Vertical farming and food production is an ideal solution to the region's demand for food due to their ability to provide high-quality, nutritious, and fresh crops close to urban centers where highly perishable items are sent to the market quickly. In addition, the North American region is expected to dominate the global vertical farming market due to many leading companies operating in the region, such as AeroFarms, Squareroot, and American Hydroponics.
Europe is projected to exhibit a CAGR of 26.7% over the forecast period. In recent years, the global vertical farming market in the Europe region has been growing steadily. The number of vertical farms in Europe is still relatively small, but the sector is increasing rapidly. However, in recent years, farms have experienced rapid expansion. There are increasing investments and a concurrent proliferation of startups. Following a global trend, the development of this industry is mainly due to the simultaneous drop in the price of LED lighting technologies and the growing consumer demand for fresh, healthy, and local produce grown with limited inputs. Currently, there are two international nonprofit industry associations for vertical farming in Europe: the Association for Vertical Farming (AVF) and the Farm Tech Society (FTS). The FTS focuses on the controlled environment agriculture (CEA) industry, of which vertical farming is a subgroup, while the AVF focuses on vertical farming only.
In Asia-Pacific, countries such as India have the highest population globally, creating higher food demand in these regions. This is expected to drive the global vertical farming market in the Asia-Pacific region. The global vertical farming market in the Asia-Pacific region is enormous, considering countries' dependence on agriculture. Agriculture is a primary occupation for a large population in the countries located in this region. These countries have adopted modern farming techniques in the face of rapid urbanization and an increased number of abandoned farms. These techniques are essential in helping the agricultural and farming sector to sustain, grow and improve production. In addition, the agricultural industry in the region is a necessary contributor to the overall GDP of the region, recording extraordinary growth in the years 2008-2019. Moreover, India is one of the largest food producers globally, catering to around 20% of the global population. Such factors are anticipated to fuel the Asia-Pacific market growth.
The U.K. is one of the significant markets for vertical farming in the European region. Since 2010, conventional farming activities in the U.K. have been hindered due to climate irregularities. This creates a massive challenge for the farmers in increasing their agricultural production. Alternate farming techniques such as vertical farming act as a huge solution to the current situation of the farmers in the U.K. Agriculture can be produced more abundantly by vertical farming without relying on climatic conditions.
The Middle East and Africa are highly deprived regions of the economy compared to other developed areas. In much of the region, the early development of irrigation-based civilizations laid the groundwork for intensive agricultural systems still in use today. Since most of the population relies on agriculture, the scope for this region's global vertical farming market is anticipated to increase.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Vertical Farming Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Water Scarcity and Resource Conservation
- Growing Population and Food Demand
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Demand for Locally Grown and Fresh Produce-Consumers are increasingly prioritizing factors such as freshness, quality, and sustainability when making food purchasing decisions. As a result, there is a rising preference for locally sourced produce, as it is perceived to be fresher, healthier, and environmentally friendly compared to imported or conventionally grown crops.
Vertical farming offers a compelling solution to address this demand by enabling the cultivation of fresh produce in urban areas and other densely populated regions closer to consumers. Unlike traditional agriculture, which relies on vast expanses of land located far from urban centers, vertical farming can be implemented in indoor facilities located within or near urban areas. This proximity to consumers reduces the need for long-distance transportation and distribution networks, thereby minimizing the carbon footprint associated with food supply chains. Furthermore, vertical farming allows for year-round production of fresh produce, independent of seasonal variations and climate conditions. By controlling environmental factors such as light, temperature, and humidity, vertical farms can create optimal growing conditions for a wide range of crops, ensuring consistent quality and availability throughout the year. This continuous supply of fresh, locally grown produce aligns with consumer preferences for access to a diverse selection of fruits, vegetables, and herbs regardless of the season.Additionally, vertical farming facilitates the cultivation of specialty and niche crops that may not be readily available or economically viable through conventional farming methods. Farmers can respond quickly to changing consumer trends and preferences by adjusting their crop selection and production schedules to meet market demand. This flexibility allows vertical farming operations to cater to diverse consumer tastes and dietary preferences, enhancing their competitiveness in the marketplace.
Restraints
- Energy Consumption and Operating Costs
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Technical Complexity and Skills Gap- Vertical farming, with its reliance on advanced technologies such as hydroponics, aeroponics, and LED lighting systems, requires specialized knowledge and expertise for effective implementation and operation. However, the shortage of skilled professionals with the necessary technical know-how presents a challenge for companies looking to scale up their vertical farming operations.
Furthermore, the complexity of these technologies demands ongoing maintenance, troubleshooting, and optimization, which can be daunting for operators lacking adequate training and experience. As a result, the technical complexity and skills gap act as barriers to entry for new players and hinder the growth potential of the vertical farming industry. To address these restraints, investment in education and training programs focused on vertical farming technologies is essential to cultivate a skilled workforce capable of driving innovation and overcoming technical challenges in the industry. Additionally, collaboration between industry stakeholders, educational institutions, and government bodies can facilitate knowledge sharing and skill development initiatives, ultimately fostering the sustainable development of the vertical farming market.
Opportunities
- Urbanization and Population Growth
- Diversification of Crop Varieties
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Increasing Consumer Demand for Sustainable Food- With growing concerns about food security, environmental sustainability, and the impact of traditional agriculture on land and water resources, consumers are seeking alternatives that are more eco-friendly and resource-efficient. Vertical farming offers a solution by enabling the cultivation of crops in vertically stacked layers, often in controlled indoor environments. This method requires significantly less land and water compared to traditional farming, while also minimizing the need for pesticides and herbicides.
Vertical farming can be implemented in urban areas, reducing transportation distances and carbon emissions associated with food distribution. As consumers become more conscious of the environmental and social implications of their food choices, the demand for sustainably produced food is expected to rise. Vertical farming not only addresses these concerns but also offers the potential for year-round production, higher crop yields, and the ability to grow a wide variety of crops, including fruits, vegetables, and herbs. Therefore, the increasing consumer demand for sustainable food presents a lucrative opportunity for the Global Vertical Farming Market to expand its reach and impact in meeting the evolving needs of modern food systems.
Competitive Landscape Analysis
Key players in Global Vertical Farming Market include,
- 4D Bios Inc
- AeroFarms
- Agrilution
- AMHYDRO (American Hydroponics)
- Everlight Electronics Co., Ltd
- Hort Americas
- Illumitex Inc
- Koninklijke Philips N.V
- Urban Crop Solutions
- Sky Greens
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Structure
- Market Snapshot, By Component
- Market Snapshot, By Region
- Global Vertical Farming Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Water Scarcity and Resource Conservation
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Growing Population and Food Demand
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Demand for Locally Grown and Fresh Produce
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- Restraints
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Energy Consumption and Operating Costs
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Technical Complexity and Skills Gap
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- Opportunities
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Urbanization and Population Growth
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Diversification of Crop Varieties
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Increasing Consumer Demand for Sustainable Food
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
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Global Vertical Farming Market, By Type, 2021 - 2031 (USD Million)
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Hydroponics
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Aeroponics
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Aquaponics
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- Global Vertical Farming Market, By Structure, 2021 - 2031 (USD Million)
- Building-Based Vertical Farms
- Shipping-Container Vertical Farms
- Global Vertical Farming Market, By Component, 2021 - 2031 (USD Million)
- Lighting System
- Irrigation & Fertigation System
- Climate Control Sensors
- Others
- Global Vertical Farming Market, By Geography, 2021 - 2031 (USD Million)
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North America
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United States
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Canada
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Europe
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Germany
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United Kingdom
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France
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Italy
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Spain
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Nordic
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Benelux
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Rest of Europe
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Asia Pacific
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Japan
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China
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India
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Australia & New Zealand
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South Korea
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ASEAN (Association of South East Asian Countries)
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Rest of Asia Pacific
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Middle East & Africa
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GCC
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Israel
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South Africa
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Rest of Middle East & Africa
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Latin America
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Brazil
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Mexico
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Argentina
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Rest of Latin America
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- Competitive Landscape
- Company Profiles
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4D Bios Inc
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AeroFarms
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Agrilution
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AMHYDRO (American Hydroponics)
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Everlight Electronics Co., Ltd
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Hort Americas
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Illumitex Inc
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Koninklijke Philips N.V
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Urban Crop Solutions
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Sky Greens
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- Company Profiles
- Analyst Views
- Future Outlook of the Market