New York, June 22, 2023 (GLOBE NEWSWIRE) --
The vertical farming market is estimated to grow at a CAGR of ~8% during the forecast period. The market is estimated to garner a revenue of USD 96.33 Billion by the end of 2035, up from a revenue of USD 4.98 Billion in the year 2022. Increasing demand for organic and fresh food, the need for sustainable farming, and the growth of climate control technology that requires less water and energy for irrigation are contributing factors to market growth.
The increased awareness about the need to conserve resources and reduce carbon footprint is driving the demand for vertical farming, as it is seen as a more efficient and sustainable farming practice. It makes use of less water and energy for irrigation compared to traditional farming methods, and can help reduce the environmental impact of agriculture.
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Vertical Farming Market: Key Takeaways
- Market Growth is expected to be driven primarily by North America
- Highest growth will be seen in the lighting segment
- A high rate of growth is expected in the Asia Pacific region
Technology Advancements In LED Lighting to Boost Market Growth
LEDs provide a more efficient and affordable way to light the plants, as well as generate higher yields. This has opened the door for vertical farming to become a viable option for commercial crop production, and the lower costs associated with LED technology. LEDs also produce very little heat, meaning that they can be placed close to the plants without burning them. Depending on the type of lighting system, LEDs can offer energy efficiencies ranging from 40 percent to 70 percent compared to high-pressure sodium (HPS) or metal halide (MH) systems. The average LED bulb has a lifespan of approximately 50,000 hours, which equals nearly six years. Furthermore, LEDs are available in a variety of colors to provide plants with the exact spectrum of light they need for photosynthesis.
Alarming Loss Of Farmland To Drive The Growth In The North America Region
The North American vertical farming market is predicted to generate the most revenue by 2035. A variety of factors including climate change, urbanization, and overpopulation have contributed to this rapid loss of farmland in the region. According to the USDA's Farm and Land in Farms report for 2021, the US lost 1.2 million acres of farming land. There was a decrease in agricultural land from 896,600,000 acres in 2020 to 895,300,000 acres in 2021. Vertical farming is seen as a potential solution to this issue as it allows for the efficient use of space and can produce higher yields than traditional farming methods. Additionally, the rising popularity of restaurants that have adopted the "farm-to-table" concept is another factor that is driving the demand for freshly harvested veggies across retail outlets in region and is projected to drive market growth in North America.
Rapid Adoption of Innovative Farming Techniques to Drive the Market Growth in the Asia Pacific Region
The vertical farming market in the Asia Pacific region is estimated to garner the largest revenue by the end of 2035. Vertical farming technology is becoming increasingly popular in region, as it enables efficient use of limited urban spaces, reduces water and energy consumption, and reduces environmental impacts. New farming businesses in the region are using innovative technologies such as vertical farming and hydroponics to grow crops in containers or even indoors. In Lim Chu Kang, Ng's vertical farm produces approximately one metric ton of vegetables per day, 10 times the amount produced on a traditional farm. An indoor greenhouse can accommodate up to 2,500 lettuces and Chinese cabbages arranged in A-shaped towers measuring 9 meters high. This makes it possible to produce food on a much smaller scale in urban settings and helps to reduce strain on rural land and provides fresh produce for city residents.
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Vertical Farming, Segmentation by Component
- Lighting
- Climate Control
- Sensors
The lighting segment in the market is anticipated to hold the largest revenue by the end of 2035. This is due to the increasing adoption of LED lighting systems in vertical farming operations, as LEDs can reduce energy consumption, require less maintenance, generate less heat, and have a longer lifespan than other traditional light sources. Additionally, the decreasing cost of LEDs due to advances in technology and economies of scale are expected to further encourage the adoption of LEDs in the vertical farming market. LED light prices in the United States are expected to decrease for the next three decades from 2020 to 2050. Kilolumen prices are predicted to fall to about 0.2 USD in 2050, down from USD 0.6 in 2017. In addition, LED fixtures and lamps producing warm and cold light are projected to lower their prices by as much as 0.2 US dollars per kilolumen by 2035.
Vertical Farming, Segmentation by Structure
- Building-Based Vertical Farms
- Shipping Container-Based Vertical Farms
The shipping container-based segment is anticipated to hold the largest revenue by the end of 2035. In particular, the use of advanced automation technology for vertical farming systems has enabled the growth of the shipping container-based segment. This automation technology allows for the efficient and effective use of resources, such as light, heat, and layout, resulting in a more productive system. Vertical container farms can grow the equivalent of 2.5 acres of produce per year, and each farmer can comfortably handle up to three shipping containers. Additionally, the modular design of the shipping containers allows them to be easily and quickly transported to different locations, making them a great option for farmers looking to expand their operations.
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