July 18, 2024
Vertical Farming Market

Vertical Farming Market Is Estimated To Witness High Growth Owing To Growing Demand for Locally Grown Produce and Increasing Need for Efficient Food Production

The global vertical farming market is estimated to be valued at US$ 11,548.1 million in 2021 and is expected to exhibit a CAGR of 10.30% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

A) Market Overview:

Vertical farming is a revolutionary approach to agriculture that involves growing plants in vertically stacked layers in controlled indoor environments. This method of farming utilizes techniques such as hydroponics, aeroponics, and aquaponics, and allows for year-round production of crops without relying on conventional farming practices. Vertical farming offers several advantages, including higher crop yields, reduced land and water usage, protection from environmental factors, and elimination of pesticide use.

The Vertical Farming Market is witnessing significant growth due to the increasing demand for locally grown produce, the need for efficient and sustainable food production, and the growing urban population. Vertical farms can be set up in urban areas, allowing fresh produce to be grown closer to consumers, reducing transportation costs and carbon emissions. Moreover, vertical farming eliminates the need for large amounts of arable land, making it a viable solution for regions with limited agricultural space.

B) Market Dynamics:

Driver 1: Growing Demand for Locally Grown Produce

There is a rising consumer preference for locally sourced fresh produce due to its perceived higher quality and nutritional value. Vertical farming allows for the cultivation of crops in close proximity to urban areas, enabling farmers to supply fresh produce directly to local markets. This reduces the time between harvest and consumption, resulting in fresher and healthier produce for consumers.

For example, companies like Aerofarms and Urban Crops Solutions are utilizing vertical farming techniques to grow pesticide-free greens and herbs in urban areas. These farms are located near major cities, enabling them to deliver fresh produce to local grocery stores, restaurants, and consumers.

Driver 2: Increasing Need for Efficient Food Production

Vertical farming offers a more efficient and sustainable method of food production compared to traditional farming practices. By utilizing advanced technologies such as LED lighting, climate control systems, and precise nutrient delivery, vertical farms can optimize crop growth and maximize yield potential. This helps address the issue of food scarcity, especially in densely populated urban areas.

For instance, companies like Agrilution and InFarm are using vertical farming systems to cultivate a wide range of crops efficiently. These systems provide precise control over factors such as temperature, humidity, and lighting, allowing for optimal plant growth and higher crop yields.

C) Segment Analysis:

The vertical farming market can be segmented based on technology, crop type, and structure type. By technology, the market can be divided into hydroponics, aeroponics, and aquaponics. Hydroponics is the dominating segment due to its simplicity, ease of implementation, and ability to produce a wide variety of crops.

By crop type, leafy greens and herbs dominate the market, as these crops have a shorter growth cycle and are well-suited for vertical farming methods. They also have high consumer demand and are widely used in salads, sandwiches, and culinary preparations.

D) PEST Analysis:

Political: Vertical farming is influenced by government policies and regulations related to agriculture, food safety, and environmental sustainability. Governments are increasingly incentivizing the adoption of vertical farming techniques to reduce reliance on imported produce and promote food security.

Economic: Vertical farming presents economic opportunities by creating jobs in urban areas and contributing to local economies. The reduced transportation costs and lower dependence on traditional farming practices can also result in cost savings for consumers and businesses.

Social: Vertical farming addresses social concerns such as food security, environmental sustainability, and access to fresh, nutritious produce. It promotes a healthier lifestyle by offering pesticide-free and locally grown fruits and vegetables.

Technological: Technological advancements in LED lighting, automation, and data analytics are driving the growth of the vertical farming market. These technologies enable precise control over growing conditions, optimize resource utilization, and improve crop quality and yield.

E) Key Takeaways:

1: The global vertical farming market is expected to witness high growth, exhibiting a CAGR of 10.30% over the forecast period. This growth can be attributed to increasing demand for locally grown produce and the need for efficient food production. Vertical farming offers several advantages, including higher crop yields and reduced land and water usage.

2: In terms of regional analysis, North America is expected to dominate the vertical farming market due to the presence of key players like Aerofarms, Freight Farms, and Urban Crops Solutions. The region has a high adoption rate of advanced farming technologies and a strong focus on sustainable agriculture.

3: Key players operating in the global vertical farming market include Signify Holding (PHILIPS), Aerofarms, IGS Limited, Everlight Electronics Co., Ltd., Freight Farms, Agrilution, Urban Crops Solutions, and InFarm. These companies are investing in research and development to improve vertical farming techniques, expand their product offerings, and cater to the growing demand for fresh, locally grown produce.

Overall, the global vertical farming market is poised for significant growth in the coming years, driven by the need for sustainable food production, urbanization, and advancements in agricultural technologies. Vertical farming has the potential to revolutionize the way we grow and consume food, offering a more efficient and environmentally friendly solution to meet the increasing demand for fresh produce.