Vertical Farming Market Is Estimated To Witness High Growth Owing To Growing Demand for Sustainable Agriculture
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Vertical farming is a method of cultivating crops in vertically stacked layers, using indoor farming techniques such as hydroponics, aeroponics, and aquaponics. This approach allows for year-round production of crops in controlled environments, regardless of weather conditions. The market for vertical farming is driven by the growing demand for sustainable agriculture, as it enables efficient use of resources such as water and land, reduces the reliance on pesticides and herbicides, and mitigates the impact of climate change on crop production. The use of advanced technologies, such as LED lighting and IoT sensors, further enhances the yield and quality of crops grown in vertical farms.
B) Market Dynamics:
1. Driver: Growing Demand for Sustainable Agriculture
The increasing global population, coupled with the limited availability of arable land and depleting natural resources, has led to a rising demand for sustainable agriculture practices. Vertical Farming Market offers a solution by maximizing crop yield per unit area while minimizing water and fertilizer usage. It also eliminates the need for traditional agricultural practices, such as tilling and the use of large machinery, thereby reducing carbon emissions and soil degradation. Vertical farming also enables urban residents to have access to fresh, locally grown produce, reducing the carbon footprint associated with transportation.
2. Driver: Increasing Adoption of Indoor Farming Techniques
Indoor farming techniques, such as hydroponics and aeroponics, have gained significant traction in the agricultural industry. These techniques allow for precise control of environmental factors, such as temperature, humidity, and light, resulting in higher crop yields and faster growth rates. Vertical farming takes indoor farming to the next level by utilizing vertical space efficiently. It enables multiple layers of crops to be grown in a limited space, thereby increasing overall production capacity. Indoor farming also eliminates the need for pesticides and herbicides, making it a sustainable and environmentally friendly alternative to traditional farming methods.
C) SWOT Analysis:
- Strength: Increasing demand for sustainable agriculture and efficient resource utilization.
- Strength: Advancements in technology, such as LED lighting and IoT sensors, enhancing crop yield and quality.
- Weakness: High initial investment costs and operational expenses.
- Weakness: Limited crop varieties that can be grown in vertical farms due to space constraints.
- Opportunity: Growing consumer preference for locally grown, pesticide-free produce.
- Opportunity: Expansion of vertical farming into urban areas, reducing the carbon footprint associated with transportation.
- Threat: Potential disruption in the supply chain due to power outages or equipment failures.
- Threat: Limited scalability of vertical farming compared to traditional farming methods.
D) Key Takeaways:
- The global vertical farming market is expected to witness high growth, exhibiting a CAGR of 10.30% over the forecast period, due to increasing demand for sustainable agriculture and the adoption of indoor farming techniques.
- North America is projected to dominate the vertical farming market, owing to the presence of key players and the growing consumer demand for locally grown, pesticide-free produce.
- Key players operating in the global vertical farming market include Signify Holding (PHILIPS), Aerofarms, Sky Greens, IGS limited, Everlight Electronics Co., Ltd., Freight Farms, Agrilution, American Hydroponics, Urban Crops Solutions, Vertical Farm System, Gronska stadsodling ab, V-Farm, GrowUp Farms Ltd, Vertical Future Ltd, SweGreen, Jones Food Company, InFarm, Agricool, Future Crops, GrowY, and Intelligent Growth Solutions Limited. These players focus on product innovation, partnerships, and expansion strategies to gain a competitive edge in the market.
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