Vertical Farming Market size worth over $20bn by 2026
Published Date: October 22, 2019 Authors: Kiran Pulidindi, Soumalya Chakraborty
Vertical Farming Market size will likely surpass USD 20 billion by 2026; according to a new research report by Global Market Insights, Inc.
Vertical farming is an innovative method that not only eliminates agricultural runoffs, but also creates new employment opportunities in the urban areas. Escalating global population and its concerns for food security in limited arable land will positively drive the vertical farming market size by 2026. Food security primarily relies on availability, accessibility, and affordability of food, which can easily be achieved by means of vertical farming. With technological advancements, vertical farming in supermarket and retail centers will positively augment growth in the industry, which will not only reduce the transportation time and cost, but will also minimize the chances of spoilage. For instance, in 2019, Ocado, a British online grocery retailer, has invested over USD 20 million to grow leafy greens and herbs next to its distribution centers through indoor farming.
Investment in green infrastructure to drive vertical farming market growth
Many emerging economies are constantly investing towards green infrastructure to minimize environment issues, which will further accelerate vertical farming utilization rate in the coming years. Association of Southeast Asian Nations (ASEAN) together with Asian Development Bank (ADB) have introduced “ASEAN Catalytic Green Finance Facility” through which more than USD 1 billion is invested in the development of green infrastructure. This will positively give a boost to vertical farming in various commercial spaces.
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Rising climate change concerns will assist vertical farming
Escalating climatic change and suboptimal nature of meteorological events such as draughts, floods, tornadoes, hailstorms effect crop yields. This will further implement the use vertical farms in both developed and developing countries at a faster rate. Moreover, optimum utilization of faming space and negligible effect of climatic conditions on crop yields will propel the product growth in the forecast spell.
Browse key industry insights spread across 280 pages with 217 market data tables & 34 figures & charts from the report, “Vertical Farming Market Size By Product (Equipment [Lighting Systems, Pumps & Irrigation Systems, Tanks, Sensors, Pipes, Climate Controllers, Meters & Solutions], Fruits, Vegetables & Herbs [Tomato, Lettuce, Bell & Chili Peppers, Strawberry, Cucumber, Leafy Greens], Aquatic Species [Tilapia, Bass, Trout, Salmon, Crab]), By Technology (Hydroponics, Aeroponics, Aquaponics), By Application (Indoor, Outdoor), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019–2026” in detail along with the table of contents:
Segmentation on the basis of product is into fruits, vegetables & herbs aquatic species, equipment. Here, equipment segment illustrates a significant growth more than 33% from 2019 to 2026, which is due to extensive use of several farming equipment such as atmosphere controllers, lighting systems, irrigation pumps & pipes. This equipment provide assistance to the farm atmosphere and help crops to grow under control conditions.
High profitability in aquaponics technology
On the basis of technology, the vertical farming market is classified into aeroponic, hydroponics, and aquaponics. Aquaponics technology generated a revenue of USD 534.5 million in 2018, and is likely to expand with a significant rate in the near term. Owing to growing popularity of the segment as it involves raising fishes in water through aquaculture in addition to this the wastewater from this process can also be used to irrigate crops. However, high operational and maintenance costs may restrain the use of aquaponics technology in vertical farms. Nevertheless, high profit margins associated with aquaponics will further propel its demand over the forecast spell.
Farming in supermarket and retail centers will boost indoor vertical farming
Vertical farming on application basis are of two types i.e., outdoor and indoor vertical farms. Indoor farms illustrate a growth of more than 28% from 2019 to 2026. This can be attributed to growing application in unused warehouses, parking areas, ship containers, etc. where controlled environment agriculture can be practiced. Indoor farming plays an important role to meet the rising food demand of growing population and scarce land for cultivation. Additionally, this process utilizes less water to yield more harvest in comparison to traditional farming practices. Furthermore, indoor farming produces high quantity feed irrespective of any climatic changes, which also increase its usage over outdoor farming.
Vertical farming highly popular in Asia Pacific
Asia Pacific vertical farming market demonstrates the highest growth rate of more than 30% from 2019 to 2026. This is due to its growing popularity in Southeast Asian nations, where many countries are facing land scarcity and imports large quantity food products from other countries. As per United Nations, Department of Economic and Social Affairs, various cities in Asia with more than 500,000 inhabitants is likely to grow by 30% by 2030. Additionally, growing urbanization and feeding requirements in countries like South Korea, India, Taiwan and others will further boost the regional vertical farming market size by 2026.
Highly fragmented industry dependent on local demand
Important players in the vertical farming market includes American Hydroponics, General Hydroponics, Sky Greens, Green Spirits Farms, Urban Crop Solutions, Plantagon International, Mirai, Spread, etc.
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