The worldwide vertical farming market is anticipated to gain USD 9.9 billion by 2025. It stood at USD 1.1 billion in 2105. High preference for eco-friendly production of vegetables & fruits can propel the growth during the forecast period (2014 to 2025). Obesity and heart diseases are the primary health concerns today. Apart from that, reducing ground water levels and changing climate conditions are pushing conventional farmers toward vertical farming. These factors can impel market expansion over the years to come.
Vertical farming is a method of producing food in vertically stacked layers. Used warehouses skyscrapers, and shipping containers are commonly used to grow fruits & vegetables. Vertical farming applies advanced controlled-environment agriculture (CEA) technology. It controls fertigation and various environmental factors such as temperature, light, and humidity.
The global market for vertical farming is segmented on the basis of structures, offerings, growing mechanisms, and regions. On the basis of structures, the fragments are shipping container & building based. Shipping container may continue dominating the overall market during the forecast period. Technological developments and preference for precision farming are expected to drive demand. Container based farming utilizes drip irrigation, which uses 95% less water than the traditional methods. In addition, easy availability of unused shipping containers can further support the expansion. However, factors like high initial investments and limited crop variety may hinder market growth.
As per offerings, the market segments are hydroponic components, lighting, climate control, and sensors. Climate control is anticipated to register the highest growth from 2016 to 2025. Adoption of hydroponic components to minimizing the weight load can drive the market till 2025. Applications of automation to reduce time to market can positively impact the market over the forecast period.
According to distribution mechanisms, the market is fragmented into hydroponics, aquaponics, and aeroponics. Owing to lowered risk of disease-causing soil organisms, hydroponics may witness impressive growth in the years to come. Consumer awareness regarding the side effects of pesticides can further support the demand. Aquaponics may gain significant market share over the forecast period. They reduce the use of harmful chemicals that are required for cultivation.
Geographically, the global market is divided into North America, Asia Pacific, Europe, Middle East & Africa (MEA), and South America. Asia Pacific may continue leading the overall market over the forecast period. High preference for alternative farming due to the lack of fertile land is the key regional driver. Increasing demand for food triggered by population explosion can further support the regional expansion. Europe is expected to witness significant CAGR over the forecast period with innovative technologies like robotics, nanotechnology, and genetically-modified crops. Africa may register substantial rise in terms of demand over the forthcoming years. Rise in urban population and rapid commercialization of indoor farming may propel regional expansion.
AeroFarms (US), Illumitex, Inc. (US); American Hydroponics (US); and Everlight Electronics Co Ltd. (Taiwan) are the key participants in the global vertical farming market. AreoFarms is known for innovative indoor farming techniques. Recently, it has developed aeroponic growing system for faster harvesting cycle. This system can predict crop results and help in maintaining superior food safety. EVERLIGHT is among the top suppliers of optoelectronics products that are useful for agricultural lighting. It is one of the first LED producers that provide monochromatic LEDs with over LM-80 testing. This setting can significantly increase life span of the LEDs.