Vertical farming market on the rise, valued at US $5.7 billion in 2022
The global vertical farming market was valued at US £5.7 billion in 2022 and is anticipated to reach USD $6.2 billion by 2029, witnessing a CAGR of 40.3%
Major factors driving the growth of the vertical farming market include the rise in popularity of organic food, the best use of vertical space and balanced energy use, the simplicity of crop monitoring and harvesting, and the decline in arable land are the key drivers influencing the vertical farming market growth.
The rise in technology-driven agricultural adoption and the expanding urban population are also predicted to offer profitable growth possibilities to the vertical farming market.
Trends influencing growth
Agriculture needs to alter as a result of rising food demand, shrinking arable land, and unpredictably changing weather patterns. In order to overcome these obstacles, several parties have developed creative techniques, such as indoor farming. In order to provide dependable harvests sustainably, the agriculture sector must change to use less water and pesticides while preserving crops from climate change. It is no secret that many areas of the world lack reliable access to wholesome, fresh foods for residents. It’s possible that fresh vegetables aren’t always readily available, even in certain agricultural regions. No matter the weather or the time of year, vertical farming is a great way to supply these communities with nutritious food. This factor is expected to drive the growth of the vertical farming market.
The majority of traditional farming methods are already less sustainable than hydroponic vertical farms. They consume a lot less water than a regular farm would, don’t need soil, and generate a lot less waste. Furthermore, they don’t use pesticides or artificial fertilisers that might pollute our groundwater. But for many, the system has a serious problem. Many vertical farms employ trays placed on shelves, so they are unable to use natural sunlight for growing. Instead, they produce the lighting conditions required for photosynthesis using a huge number of LEDs. Thankfully, there is a superior choice. This factor is expected to drive the growth of the Vertical Farming market.
The risks of foodborne illness and contamination are greatly reduced by the vertical farming market farming approach. Compared to the product that needs to be tracked through every stage of a complicated supply chain, businesses can better monitor quality standards when they know where their produce comes from. Food contamination, spoilage, and wastage will be reduced by growing goods close to their final destinations, which means less time for produce to sit and decay on trucks. This factor is expected to drive the growth of the vertical farming market.
Urban areas that are underserved are experiencing food deserts, where it is difficult or expensive to buy fresh food. Vertical farms can be established anywhere, giving adjacent companies easy access to fresh vegetables all year long. For more dependable, reasonably priced local food, this means less reliance on supply chains that are disrupted.
The locational flexibility of vertical farms is significantly greater. Vertical farms can produce year-round harvests anywhere since indoor spaces have excellent weather and temperature control. This factor is expected to drive the growth of the Vertical Farming market.
North America and Europe are expected to hold the largest vertical farming market share. The alarming rate of water level depletion, the existence of states suffering from drought, and the rise in environmental concerns are some of the reasons for the market’s expansion. Nanofarms are the most recent fashion.
Hydroponics is expected to hold the largest vertical farming market share. Because of its inexpensive installation costs and simplicity of use, hydroponics is a widely used growth method. It is a technique for growing plants that substitutes a mineral solution around the plant roots for dirt. Moreover, the hydroponics technique eliminates the possibility of disease-causing soil organisms.
Vegetable Cultivation is expected to hold the largest vertical farming market share. The growth of this market is being driven by the increased vertical farming of commonly produced crops. Companies interested in their cultivation make the most money from crops cultivated in vertical farming. Also, because vertical farming doesn’t disrupt the land, it enhances biodiversity. As a result, cultivating a variety of crops vertically is very popular.
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