Vertical Farming Market size is set to exceed USD 19 billion by 2027, according to a new research report by Global Market Insights Inc.
The escalating global population and its concerns related to food security in limited arable land will drive the market demand. According to the UN, the world population is projected to exceed nine billion by 2050. Feeding this soaring population would require the raising of the overall food production with a lower rural labor workforce. According to the “Food and Agricultural Organization (FAO)”, the urban areas are likely to account for 70% of the world population by 2050.
The vertical farming industry is further anticipated to employ the expanding urban centers, which will outweigh the unemployment created by dismantling traditional farms as farmworkers will shift to cities in search of work. Vertical farming is a sustainable agricultural initiative and can be beneficial to regions struggling with chronic food security problems.
In 2020, aquaponics generated around USD 1 billion market revenue. It involves the rearing of fishes and using wastewater from fish tanks to crop irrigation. The technology has several benefits over conventional farming methods including faster plant growth, bigger & healthier vegetables, easy set up around the year, etc. However, aquaponics vertical farming technology requires electric energy input to maintain & recycle water within the system and this technology is not preferable to grow root crops. Nevertheless, higher profit margins associated with this technology will increase its demand.
Browse key industry insights spread across 280 pages with 226 market data tables & 37 figures & charts from the report, “Vertical Farming Market Size By Product (Equipment [Lighting Systems, Pumps & Irrigation Systems, Tanks, Sensors, Pipes, Climate Controllers, Meters & Solutions, Others], Fruits, Vegetables & Herbs [Tomato, Lettuce, Bell & Chili Peppers, Strawberry, Cucumber, Leafy Greens, Others], Aquatic Species [Tilapia, Bass, Trout, Salmon, Crab, Others]), By Technology (Hydroponics, Aeroponics, Aquaponics [Salmon, Others])” in detail along with the table of contents:
Fruits, vegetables & herbs segment will witness around 24% growth till 2027. The rising gap between the global supply and demand for food products will boost the segment size. The number of crops that can be cultivated through vertical farming is limited; however, certain crops, such as lettuce, strawberries, etc., grow very well in this format. Aquatic species are extensively cultivated in aquaponics systems where wastewater from the fish tanks is used as a nutrient solution for the crops.
North America held over 30% vertical farming market share in 2020, attributed to established R&D institutes, robust technical expertise, and a high concentration of venture capitalists. According to recent research by the UN Department of Economic and Social Affairs, in North America, more than half of the population lives in urban areas. Vertical farming is likely to pose as the optimum resort to feed the growing urban population. The presence of key vertical farming companies, such as AeroFarms, Indoor Harvest Corporation, etc., coupled with increasing investments in research activities will propel industry growth.
Key industry participants include Sky Greens, Green Spirit Farm, Aerofarms, Plantagon International., Mirai Co., Ltd., General Hydroponics, Urban Crop Solutions, American Hydroponics, and Spread Co. These players primarily focus on product innovation, joint venture, partnership, and merger & acquisition strategies to enhance their capabilities and proliferate their market foothold.