DUBLIN--(BUSINESS WIRE)--The "Vertical Farming Market with COVID-19 Impact Analysis by Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure (Building-based vertical farm and Shipping container-based vertical farm), Crop Type, Offering, & Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The Vertical Farming market is expected to grow from USD 3.1 billion in 2021 to USD 9.7 billion by 2026; it is expected to grow at a CAGR of 25.0% during the forecast period.
The major driving factors for the growth of the vertical farming market include high yield associated with vertical farming over conventional farming, year-round crop production irrespective of weather condition, advancements in light-emitting diode (LED) technology and requirement of minimum resources.
Hydroponics growth mechanism Segment to dominate vertical farming market during forecast period
The hydroponics growth mechanism is used widely by commercial growers. It is easier to set up, costs less than other mechanisms, and has a higher return on investments (ROI). Comparing the investments required to set up a hydroponics and aeroponics facility of the same size, aeroponics requires a higher initial investment. Moreover, the hydroponics mechanism recycles the maximum amount of water with minimal wastage, making it the most water-efficient farming method. Furthermore, the amount of nutrients to be delivered to plants can be controlled effectively, enabling control over the growth process and factors, such as the speed of growth and size of plants. Additionally, in the hydroponics mechanism, in case of a power outage, the plants can survive for a long time since the growing medium continues to supply water and nutrients, unlike aeroponics, where the plants can die in just a few hours due to malfunctioning or failure of mist spraying nozzles.
Lettuce to be most commonly grown crop across different vertical farms
Lettuce is extensively cultivated in vertical farming. It is quick and easy to grow, has a steady demand throughout the year, and is available in several varieties, allowing farmers to switch products without changing to a whole new crop. Additionally, the demand for nutritive and organic vegetables has also increased significantly in the last few years due to the growing health consciousness among consumers. Consumers are increasingly focusing on healthy aging and are adopting several measures to prevent diet-related diseases. Furthermore, organic food products not only satisfy hunger but are also considered essential sources of nutrients. They prevent nutrition-related diseases and improve physical and mental well-being.
Increase in number of vertical farms and partnerships among companies help boost vertical farming in US
The US is expected to be the leading country-level market in North America as market leaders or key players of vertical farming are headquartered in the country. Furthermore, the country is a potential market for farming, owing to the continuous demand for agricultural products. The growth of the vertical farming market in the country is significantly driven by the need for sustainable agricultural operations that reduce the adverse impacts on the environment. Also, contrary to the complicated supply chain involved in conventional agriculture that impacts the harvesting, processing, and transportation activities in the market, urban indoor vertical farming reduces farm to consumer transport, hence providing a solution to the inefficient supply chain. Producing fresh greens and vegetables close to urban areas could help meet growing food demands in an environmentally responsible and sustainable way by reducing the number of entities involved in distribution chains, providing higher-nutrient produce, and drastically reducing water usage and runoff.
Premium Insights
- Increase in Investments and Partnerships Between Farms and Technology Providers Boosting Growth in Vertical Farming Market
- Hydroponics Growth Mechanism and Building-Based Vertical Farm Segments to Hold Largest Market Shares in Asia-Pacific in 2026
- Lighting Segment to Dominate Market During Forecast Period
- China to Record Highest CAGR in Vertical Farming Market During Forecast Period
Market Dynamics
Drivers
- High Yield Associated with Vertical Farming Over Conventional Farming
- Advancements in Light-Emitting Diode (Led) Technology
- Year-Round Crop Production Irrespective of Weather Conditions
- Requirement of Minimum Resources
Restraints
- Lack of Technically Skilled Workforce and Limited Crop Types
- High Start-Up Costs
Opportunities
- Reduced Environmental Impact from Agriculture by Adoption of Vertical Farming
- Potential Market Opportunities in Asia-Pacific and Middle East
- Cannabis Cultivation Through Vertical Farming
Challenges
- Maintenance of Temperature, Humidity, and Air Circulation in a Vertical Farm
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Vertical Farming on a Large Scale
Company Profiles
- 4D Bios Inc
- Aerofarms
- Agricool
- Agrilution
- Altius Farms
- American Hydroponics
- Bowery Farming
- Bright Farms
- Everlight Electronics
- Freight Farms
- Future Crops
- Green Sense Farms
- Growpod Solutions
- Heliospectra Ab
- Infarm
- Intelligent Growth Solutions
- Osram
- Plenty
- Sananbio
- Signify
- Sky Greens
- Spread
- Swegreen
- Urban Crop Solutions
- Valoya
- Vertical Farm Systems
- Vertical Future Ltd
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