Vertical Farming Market by Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics), Structure (Building Based and Shipping Container), Offering (Hardware, Software, and Service), Crop Type, and Geography
The vertical farming market is estimated to be valued at USD 5.8 billion by 2022, growing at a CAGR of 24.8% between 2016 and 2022. The factors driving the growth of the vertical farming market include high quality food with no use of pesticides, less dependency on the weather for production, growing urban population, increase in the year around production of the crops, and reduced impact on the environment.
Hydroponics is a technology of growing plants in a soilless medium or an aquatic-based environment, and is the most widely used growth mechanism in vertical farms. Exposure to risks, such as climatic changes, soil contamination, limited space in urban areas, and most importantly, low availability of water, have resulted in shortage in food production. The need to overcome this shortcoming in food production will drive the market for vertical farming in the coming years.
Building based vertical farming market to grow at the highest rate during the forecast period
Vertical farming in abandoned building is a growing trend. For example, "The Plant" vertical farm in Chicago is providing an alternate use of abandoned buildings. New building constructions are also being used in vertical farms, such as the new multi-storey vertical farm being attached to an existing parking lot. Such projects are going to increase in number and drive the vertical farming market in the future.
Climate control devices will be the fastest growing hardware segment of vertical farming market
Climate control in indoor farms play a crucial role in increasing yield. To ensure a protected growth environment, several factors, which influence the climate need to be controlled at the advanced level. Totally enclosed growing facilities control all aspects of the indoor climate with heaters, chillers, air-conditioning units, humidifiers, dehumidifiers, air movement fans, full-spectrum artificial lighting, CO2 enrichment, computer-integrated controllers, and sensors that continually monitor and adjust the environment automatically. These demands will drive the need for climate control devices and boost the vertical farming market in the forecast period.
Asia-Pacific (APAC) is estimated to hold the largest share of the vertical farming market by 2022
The vertical farming market in Asia-Pacific (APAC) is expected to have the largest share by 2022 owing to the increase in population and limited fertile agriculture land. There are numerous farms in Japan, Singapore, Taiwan, and other such technologically-advanced countries which is driving the market in the region. Japan is one of the key countries in which over 150 plant factories are equipped with artificial lights in operational form.
Major players involved in the development of the vertical farming market are Aerofarms (US), Urban Crop (Belgium), Koninklijke Philips N.V. (Signify) (The Netherlands), Illumitex, Inc. (US), and Sky Greens (Singapore) among others.