The vertical farming market size was valued at $2.23 billion in 2018 and projected to hit $12.77 billion by 2026, growing at a CAGR of 24.6% from 2019 to 2026.
Vertical farming is an innovative way to grow crop in cities without the need of soil, with minimum water usage and almost no need of pesticides. Crops grown through vertical farming are organic, environmentally safe, and healthy to consume.
Continuous rise in population and increase in urbanization globally have increased the requirement of food, and food security has gained importance for the governments globally. The traditional farming is exhaustive, both in terms of available arable land and volume of production.
Vertical farming is an improved substitute for traditional farming, which produces more yield, with no need for land, pesticides, and other chemicals. This method of farming has gained popularity in the recent years with decline in water level and problem of drought becoming severe. Vertical farming is expected to become an enhanced substitute of traditional farming, as it produces 70% more crop and uses almost 90% less water as compared to the traditional farming.
Increase in popularity of organic foods, rise in urban population, and limited arable land for traditional agriculture are the major factors that drive the growth of the vertical farming market. Furthermore, optimum use of vertical space, balanced energy utilization, and ease of crop monitoring & harvesting fuel the growth of the vertical farming industry. However, requirement of high initial investment to set up a vertical farm and technologies used to be in developmental phase restrain the market growth.
Furthermore, all crops cannot be grown by this method, and is limited to crops such as tomatoes, lettuces, and green crops, thus hampering the growth of the market. Decline in water level and increase in government initiatives to promote vertical farming globally are anticipated to provide new opportunities for the vertical farming market growth.