Chicago, July 22, 2024 (GLOBE NEWSWIRE) -- The global vertical farming market size is estimated to be USD 5.1 billion in 2023, and it is expected to reach USD 15.3 billion by 2028, growing at a CAGR of 24.7% from 2023 to 2028.
Various factors are fueling the growth of the vertical farming market share. One of the key drivers is the decreasing availability of land for agriculture, which is happening due to urbanization, deforestation, and climate change. This trend poses a challenge to traditional farming methods, but vertical farming offers a solution by utilizing space more efficiently to produce food.
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Major Vertical Farming Companies Include:
- Signify (Netherlands),
- Freight Farms (US),
- AeroFarms (US),
- Sky Greens (Singapore),
- Spread (Japan),
- Plenty (US),
- Valoya (Finland),
- Osram (Germany),
- Everlight Electronics (Taiwan), and
- Heliospectra AB (Sweden).
Vertical Farming Market Segmentation Analysis:
Hydroponics technique is likely to be the most preferred vertical farming method among commercial growers during the forecast period
Hydroponics is a soil-less plant cultivation method that relies on water and nutrients, offering a highly efficient approach to growing food. It requires less space and water than conventional farming methods, making it a compelling choice. Furthermore, hydroponics enables year-round food production unaffected by weather conditions. Commercial growers find hydroponics particularly attractive due to its numerous benefits for vertical farming. Firstly, it ensures efficiency by reducing water usage and space requirements. Secondly, it grants growers more significant control over the growing environment within the hydroponic system. Thirdly, hydroponics consistently yields high-quality produce. Lastly, it promotes sustainability, providing a more environmentally friendly alternative to traditional farming practices. These advantages have positioned hydroponics as the preferred method for commercial growers engaging in vertical farming.
Building-based vertical farms likely to dominate the overall market between 2023 and 2028
For several compelling reasons, building-based vertical farm structures have emerged as dominant players in the overall vertical farming market. Firstly, their versatility allows them to be established in any location, irrespective of challenging climatic or weather conditions. This makes them particularly suitable for countries or regions facing difficulties in traditional farming due to factors like deserts or urban landscapes. Secondly, the efficiency of building-based vertical farms is notable, as they can maximize the utilization of resources such as water, space, and energy. By utilizing vertical stacking, these farms can produce a higher yield within a smaller area.
US to dominate vertical farming market size in North America as the country has the largest number of vertical farms in the region
The United States has emerged as the leading nation in North America, with the highest number of vertical farms, primarily due to its substantial population and the increasing demand for locally grown produce. With over 330 million people, the US provides a significant market for fresh agricultural products, driving the need for vertical farming solutions. Additionally, the country benefits from abundant capital resources, supported by a robust economy and a large pool of venture capital. This financial backing has facilitated the development and expansion of vertical farming companies. Moreover, the US enjoys a favorable regulatory environment that streamlines the establishment and operation of vertical farms, making it easier for companies to enter the market. Prominent examples of successful vertical farming companies in the US include AeroFarms, Bowery Farming, and Gotham Greens, operating farms in various cities across the country.
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Vertical Farming Market Dynamics:
Driver: Reduced environmental impact from agriculture by the adoption of vertical farming
Vertical farming plays a vital role in reducing the environmental impact of agriculture. It reduces the water required to produce the same or higher number of crops. It also removes the chemicals and pesticides used to grow crops and diminishes the need for transportation. The entire process of vertical farming is carried out organically. It significantly eliminates the use of chemicals and provides natural solutions, such as using fish to produce nutrient-rich waste for plants in the aquaponics growth mechanism of vertical farming. Also, as vertical farming is carried out in a controlled environment, they are immune to dangerous pests, eliminating pesticide use. As methods of pest control such as burning fields, grass, or waste are omitted, vertical farming assures healthy, quality produce for its consumers. This, in turn, is expected to create growth opportunities for the players in the vertical farming market.
Restraint: Lack of technically skilled workforce and limited crop types
Vertical farming often involves use of technical solutions, such as cameras, sensors, automated systems, artificial intelligence, hydroponic, aquaponics, and aeroponic systems. To operate these advanced systems, a knowledgeable and skillful workforce is essential. The lack of a skilled workforce has affected different sectors globally, and vertical farming is no exception. Also, most farmers venture into this market with systems that are inefficient in terms of design and are costly. To sustain and remain competitive in the market, vertical farms need to be updated on different aspects of farming. Moreover, unlike conventional farming, growers can grow a limited range of crops in vertical farming, but these crops are economically and commercially viable today. Indoor farming is the future of farming but will not account for all growing operations; for instance, leafy greens are best grown in vertical farming, but tomatoes, cucumbers, and peppers are best grown in greenhouses.
