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 2022-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Vertical farming is a method of cultivating plants in vertically stacked layers, typically in a controlled environment such as a building or warehouse. This modern agricultural technique utilizes indoor farming technologies, including hydroponics or aeroponics, to grow crops without soil and with minimal water requirement.
Vertical farming offers several advantages over traditional farming methods. It allows year-round cultivation, independent of seasonal changes and adverse weather conditions. It also enables the efficient utilization of available space, making it an ideal solution for urban areas where land availability is limited. Moreover, vertical farming reduces the need for chemical pesticides and fertilizers, resulting in healthier and more sustainable produce.
B) Market Key Trends:
One key trend in the Vertical Farming Market is the increasing adoption of indoor farming techniques. With the growing concerns regarding food security and the environmental impact of conventional agriculture, there is a rising demand for more sustainable and efficient farming methods. Vertical farming addresses these challenges by providing a controlled environment for crop cultivation, which allows for higher yields and better resource utilization. For example, Aerofarms, a leading vertical farming company, has developed an indoor vertical farm in Newark, New Jersey, where they are able to grow leafy greens without soil or sunlight using their patented aeroponic technology.
C) PEST Analysis:
Political: Governments around the world are increasingly recognizing the potential of vertical farming to address food security challenges and reduce dependence on imports. They are implementing favorable policies and providing incentives to promote the adoption of vertical farming techniques.
Economic: Vertical farming can significantly reduce transportation costs and carbon emissions associated with long-distance transportation of produce. It also provides new opportunities for job creation and economic growth in urban areas.
Social: Vertical farming enables the production of fresh and healthy food in urban areas, reducing the need for long-distance transportation and the associated carbon footprint. It also provides opportunities for community engagement and education about sustainable agriculture.
Technological: Technological advancements in indoor farming technologies, such as LED lighting systems, automation, and AI-based monitoring systems, have improved the efficiency and productivity of vertical farming operations.
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 adoption of indoor farming techniques.
- North America is expected to be the fastest-growing and dominating region in the vertical farming market, driven by the presence of major players and favorable government initiatives.
- 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.
In conclusion, the global vertical farming market is poised for significant growth in the coming years. With increasing concerns over food security and environmental sustainability, vertical farming offers a viable solution for producing fresh and healthy crops in urban areas. The adoption of indoor farming techniques and technological advancements will further drive the market expansion.
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