Vertical Farming Market size worth over $19 Bn by 2027
Published Date: May 6, 2021 Authors: Kiran Pulidindi, Soumalya Chakraborty
Vertical Farming Market size is likely 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 positively drive vertical farming industry growth. According to the UN, the world population is projected to surpass 9 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. Thus, competition for land to grow different food crops over a shortened period will become increasingly fierce, which will positively influence the industry growth.
The market 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. The soaring population and the growing food demand are the foremost growth drivers of vertical farming market.
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Aquaponics generated around USD 1 billion in vertical farming market in 2020. 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 during the forecast years.
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]), By Application (Indoor, Outdoor), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Increasing demand for food products will fuel market revenue
Fruits, vegetables & herbs segment is poised to witness around 24% CAGR through 2027. The rising gap between the global supply and demand for food products will boost the segment growth. 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. Tilapia is the most common aquatic species that is bred in vertical farms.
Robust technical expertise will enable vertical farming across North America
North America holds over 30% of the vertical farming market size and will witness strong growth through 2027. It is 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 in the near future. 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.
Geographic expansion and mergers & acquisitions to increase market foothold
Key participants in vertical farming market 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.
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