The global vertical farming market size is anticipated to reach USD 9.96 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 21.3% over the forecast period. Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur the market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. Growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.
Vertical farming is effective in ensuring the stability in the crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over traditional farming technique, such as less use of water, lesser need of agrochemicals, and low dependence on agricultural labors. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.
Genetically modified organisms and environmental and health effects of pesticides and other non-natural substances that are used for increasing agricultural production have encouraged the consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by around 11% in 2018, owing to increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990, the handlers and growers of organic products need to comply with the regulations.
Artificial lighting helps in extending the hours of the natural daylight, which further increases the health, growth rate, and yield of the plants. Artificial lighting such as high-pressure sodium lighting and LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
Hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors such as high initial investment and fewer crop varieties are likely to restrain the market growth.
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Further key findings from the study suggest:
- Escalating production of biopharmaceutical products is anticipated to drive the market
- The building-based segment is expected to register a CAGR of 23.6% in terms of revenue over the projected period
- The climate control segment is expected to expand at a high CAGR over the forecast period as the crop growth can be controlled by monitoring and adjusting the concentration of minerals
- The aeroponics segment is expected to witness considerable growth over the forecast period, as the aeroponics facilitate faster growth in plants (under normal conditions)
- The market in Europe is expected to witness significant growth over the forecast period owing to expansion of small-scale and commercial vertical farms
- Key players of the market include BrightFarms (U.S.), Everlight Electronics Co., Ltd. (Taiwan), and Green Sense Farms, LLC (U.S.).
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About Grand View Research:
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.