Vertical farming is an advanced technique of farming which focuses on utilizing less land and resources, while generating more yields. Vertical farming systems are designed to adjust various parameters such as moisture content, fertilizers, and temperature. Apart from allowing for sustained productivity, they also allow farmers to control the occurrence of plant diseases. Additionally, they can be used to adjust the microbial count in the soil, which can affect the growth of plants.
Market Statistics:
The global Vertical Farming Market is estimated to account for US$ 11.55 Bn in terms of value by the end of 2021.
Global Vertical Farming Market: Drivers
Growing initiatives on food security due to increasing population is driving growth of the vertical farming market. According to the US population division, the global human population has increased nearly fourfold in the past 100 years, and it is estimated to reach 9.2 billion by 2050.
Global Vertical Farming Market: Opportunities
One of the most promising applications for vertical farms is in the cultivation of Cannabis. As the industry continues to evolve, more and more manufacturers are investing in the market. Moreover, the legalization of Cannabis in U.S. is expected to provide lucrative growth opportunities for vertical farming market in the country.
Global Vertical Farming Market: Restraints
Challenges associated with the maintenance of humidity, temperature, and air circulation is expected to restrict the market growth. Also, vertical farming on large scale is another major challenge associated with the market.
Global Vertical Farming Market - Impact of Coronavirus (Covid-19) Pandemic:
The COVID-19 pandemic interrupted agricultural production and supply chains globally, threatening access to agricultural labour and posing challenges to international supply chains. Traditional farming is no longer sustainable with the threat of global viruses, rising temperatures, and more mouths to feed. This has provided an opportunity for the vertical farming market to boom, as the demand for locally grown greens has risen in COVID-19. For instance, the Vegetable Co., a vertical farm in Malaysia, which is next to a gas station, inside a shipping container where the plants grew in vertically stacked shelves, has reported that their revenue grew by 300% in the first few weeks of September in 2020.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/vertical-farming-market-5469
Key Takeaways:
The global vertical farming market was valued at US$ 11.55 Bn in 2021 and is forecast to reach a value of US$ 21.34 Bn by 2030 at a CAGR of 10.30% between 2022 and 2030.
Hydroponics segment held dominant position in the global vertical farming market in 2021, accounting for 52.51% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Vertical Farming Market Trends:
Increasing urbanization is predicted to contribute to the market's growth. Approximately one third of the urbanization is expected to occur in India. Also, the demand for indoor farming is predicted to grow in Africa, due to the rise in population. Furthermore, increasing investment and research in the agri-tech space is likely to propel the market.
Growing awareness about the benefits of vertical farming is expected to encourage adoption of the technology. Additionally, increasing awareness about the health risks of conventional farming and the need for food safety is expected to motivate farmers to adopt the technology. Aside from these, the rise in the number of entrepreneurs in the agri-tech field is also expected to boost the market's growth.
Global Vertical Farming Market: Competitive Landscape
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
Global Vertical Farming Market: Recent Developments
- In May 2021, IGS has signed a partnership deal with AgTech R&D experts and growers, Madar Farms, bringing its vertical farming technology to the UAE for the first time. This partnership deal will allow to scale up its operations in UAE.
- In December 2020, IGS made a referral partnership agreement with International Real Estate Partners (IREP), the international facilities management firm. The agreement is specifically focused on indoor vertical farming for the UAE and Saudi Arabian markets.
- IGS has signed a significant export deal with experienced French urban agriculturalists, Jungle. The multi-million-pound deal introduced IGS indoor growing platforms to Jungle’s operations, initially outside Paris, to grow a variety of crops to supply major French retailers.
- In December 2020, Freight Farms and Arcadia, a monthly subscription service that connects renters and homeowners across the United States to clean energy, had partnered to provide Freight Farms’ US customers with access to clean energy for their everyday operations.
- In January 2020, Freight Farms had announced the addition of ‘Grown by Freight Farms’, an on-site vertical farming service to its product line. With Grown, Freight Farms will not only install its proprietary hydroponic farm—the Leafy Green Machine™— on site, but staff a designated farmer to operate, monitor, and maintain the farm completely.
- In December 2017, Osram acquired a stake in Munich-based start-up, Agrilution. The lighting group holds a strategic minority interest in the company, via its venture capital firm, Fluxunit. For horticultural applications, Osram supplies specially developed lighting solutions that can stimulate and manage plant growth and are designed for cultivating plants in greenhouses or indoor spaces.
