Pune, India, August, 2018 /press release/- Market Research Future Published a Half-Cooked Research Report on Global Vertical Farming Market Research Report
Market Research Future (MRFR) reports that the global vertical farming market is presumed to reach approximately USD 6 billion by the end of 2022. The market is set to surge ahead at 21% CAGR during the forecast period (2016-2022). Vertical farming involves growing produce in vertically stacked layers using soil, hydroponic or aeroponic growing methods. Vertical farms strive to produce food in challenging environments. This type of farming uses controlled environment agriculture (CEA) technology, producing food through skyscraper, shipping container, and vertically stacked layers. It is also known as indoor farming or urban farming, which is witnessing widespread adoption across the globe. Moreover, it offers various benefits such as low water requirement, low transportation cost, and reduced washing and processing of produce making it ideal for larger adoption across the globe.
Accelerated adoption of Internet of Things (IoT) to spur market demand
The increased use of Internet of Things (IoT) sensors to produce crops, will act as a major impetus in the market growth over the appraisal period. The sensors obtain information, storing it on the cloud and then analyze the information to perform the subsequent actions. The increasing automation in agriculture and growing use of big data & predictive analytics, to maximize yields, are also projected to drive the market to a large extent.
Rapid urbanization to work in favor of the market
With growing population, the migration from rural to urban areas is observed. Changing lifestyle, growing per capita income, and increasing health consciousness are driving the market growth. Growing focus towards reliable production of crops by farmers has been noted who are aiming to achieve environment-friendly production of fresh fruits and vegetables.
Government initiatives prompt the market growth
Governments of various nations are taking up initiatives in a bid to promote the cultivation of organic food with the use of organic pesticides. Ill-effects of genetically modified organisms along with environmental and health effects of pesticides and other non-natural substances used for increasing agricultural production have compelled the consumers to adopt organic foods. Thus, various government bodies are putting efforts to augment the awareness amongst consumers, thus propelling the market growth.
However, overshadowing these drivers to some extent, are expensive high initial investments in urban regions. Producing high-value crops with meager capital investment is quite challenging. On the other hand, after doing extensive research, market giants invest heavily to take advantage of the high potential the sector possesses. For instance, in 2018, Masayoshi Son’s Vision Fund invested in a vertical farming start-up Plenty Inc. in the United Arab Emirates. The investment amounted to USD 200 million
The report states that the global market for vertical farming is segmented on the basis of component, type, crop type, and region.
The component type comprises hardware, software, and services.
Hydroponics sub-segment to achieve high growth levels
By type, the market is segmented into hydroponics, aeroponics, and aquaponics. Hydroponics has captured the largest market share as it does not require any soil and substantiates reuse of water for growing crops. These factors make this mechanism highly preferable among crop producers.
Spinach segment to flourish in the vertical farming market
The types of crops are lettuce, peppers, and spinach. The market for spinach is expected to register the highest growth during the review period.
The global market is regionally segmented into North America, Europe, Asia Pacific (APAC) and the Rest of the World.
North America ahead of other regions with the largest market share
Globally, North America has claimed the largest market share on the back of increasing population, employment generation and adoption of new technological solutions. Furthermore, the popularity of organic foods and decreasing arable land in the region has been instrumental in the market growth.
On the other hand, APAC is expected to observe a substantial growth rate over the forecast period due to the presence of countries such as China and Japan that generate considerable revenue. Growing urbanization, less fertile land and increasing investments for developing vertical farming systems have catapulted the growth of the market in the region.
In Europe, the adoption of vertical farming is growing owing to various initiatives taken by the European Environment Agency (EEA). EEA is focusing on building vertical farms to curb the challenges like climate change, population growth, and also address challenges of producing food using environmentally-friendly ways.
The key players in the market are Koninklijke Philips N.V. (Netherlands), Everlight Electronics Co. (Taiwan), Agrilution (Germany), Aerofarms (U.S.), Indoor Harvest Corporation (U.S.), Illumitex, Inc. (U.S.), Sky Greens (Singapore), Hort Americas (U.S.), Urban Crop Solutions (Belgium) among others.