Global vertical farming market is expected to reach $6,372.5 million by 2023, witnessing CAGR of 24.2% on account of increasing awareness levels among consumers and rising disposable income, leading to the consumption of high value crops. Adoption of organic foods, rising urban population, growing focus towards efficient production of fresh fruits and vegetables among the consumers in the developing countries are expected to boost the growth of the vertical farming market during the forecast period. of the vertical farming is also known as urban farming or indoor farming.
Insights on market segments
As per the findings of research, lettuce, spinach, broccoli, cucumber, and pepper are the major types of crops that are grown through vertical farming technique. These crops contributed around 80% to the vertical farming market in 2016. The market for spinach is likely to register the highest growth during the forecast period. Hydroponics growth mechanism accounted for the largest revenue share in 2016, as it does not require any soil and offers solutions where water can be reused for growing crops, making this mechanism highly preferable among crop producers.
Access Report Summary with Detailed TOC on "Global Vertical Farming Market Size, Share, Development, Growth and Demand Forecast to 2023 - Industry Insights by Hardware Type (Lighting, Hydroponics Components, Climate Control and Sensors), by Structure (Building-Based Vertical Farming and Shipping Container Vertical Farming), by Growth Mechanism (Aeroponics, Hydroponics and Aquaponics), by Crop Type (Lettuce, Pepper, Broccoli, Cucumber, Spinach and Tomato)" at: https://www.psmarketresearch.com/market-analysis/vertical-farming-market
North America to remain the largest market throughout the forecast period
North America is projected to remain the largest vertical farming market throughout the period of analysis. Although small residential urban farming in the region has been around for decades, commercial urban farming has gained traction in the last few years. The region is witnessing a growing inclination towards this farming technology.
Growing focus towards efficient production of fruits and vegetables
The growing inclination towards efficient production of fruits and vegetables in environment friendly conditions, irrespective of climatic conditions, is driving the growth of vertical farming market. It minimizes the transportation time of fresh foods starting from harvesting, till it reaches the consumers, which is one of the major factors boosting the growth for this market.
Growing production of biopharmaceutical products
The vertical farming market is gaining traction as many pharmaceutical companies are adopting this type of farming to produce a variety of medicinal plants used in biopharmaceutical products. Companies are developing their own patented products from raw seed and further provide proprietary products to the medicinal, nutraceutical and cosmetic industries, which helps them in expanding their customer base.
High investment in the vertical farming
High price of farmscraper is adversely impacting the growth of vertical farming industry. Most of the hardware used in the industry are very costly, due to their advanced features such as enabled lights and temperature control. The cost of organic pesticides is also increasing, which is driving the total cost of investment. The high cost of hardware makes it difficult for small and mid-sized enterprises to implement them, which is hindering the growth of the vertical farming market. The rising water cost along with increasing electricity price is also hindering the growth of the market, across the globe.
Highly consolidated market
The vertical farming industry is moderately competitive, with players offering advanced technology solutions to cultivate specific crops. Some of the major players in the industry are Koninklijke Philips N.V., AeroFarms LLC, Sky Greens Pte. Ltd, Illumitex Inc, Everlight Electronics Co. Ltd, Hort Americas, Agrilution GmbH, American Hydroponics Systems Inc., Urban Crop Solutions Inc., and Vertical Farm Systems.
GLOBAL VERTICAL FARMING MARKET
By Growth Mechanism
By Crop Type