Keywords: Vertical farming , forecast , growth
According to a newly published report from Acumen Research and Consulting, the global vertical farming market is projected to grow at a noteworthy CAGR of around 25% during the period from 2016 to 2023. And it will reach the market size of over $6 billion by 2023.
Some of the major factors behind these projections include the need for alternative farming techniques to enhance crop production, need to meet the demand for food of rapidly growing population, and decrease in arable land due to rapid industrialization.
Vertical farming is a modern farming technique. It has minimal impact of climatic conditions on the crops and yields more crops per square meter area as compared to greenhouses or traditional farming.
The global vertical farming market is segmented based on growing mechanism, growing platform, crop type, hardware components, and geography. Based on growing mechanism, the market is segmented into hydroponics, aeroponics, and aquaponics.
Hydroponics was the largest segment and accounted for more than 50% share in 2015. Hydroponics require subsequently lesser water for growing crops and is less vulnerable to diseases and bugs. Also, the pumice used in hydroponics makes growing environment more cost effective and efficient and is best alternative for soil.
Based on the growing platform, the market is segmented into shipping containers and buildings. As against the traditional technique of growing crops on open fields or greenhouses, growing them in dark warehouses or shipping containers is much affordable. Because it helps in water conservation and reduces harvesting time. This is achieved with the help of UV lights. And crops can be grown round the year in controlled environment.
Growing indoors helps in gaining fine control over the nutrient content supplied to the crops. Thus it can enhance the overall quality. Shipping container segment dominated the market in 2014. And it accounted for the revenue of more than 65% of the total market value.
On the basis of crop type, the global vertical farming market is segmented into greens, fruits and flowers, vine crops, strawberry, herbs, tomatoes, cannabis, and others. Leafy greens segmented accounted for the revenue of around $273 million in 2014. And it is expected to maintain its leading position throughout the forecast period.
Among these markets, Asia-Pacific was the largest market for vertical farming. It is expected to maintain its leading position throughout the forecast period.
Some of the recent vertical farming projects in Singapore. And it is growing acceptance of this farming technique in Japan are predominantly expected to spur the market growth in this region.
Some of the key players profiled in the report include AeroFarms, Infinite Harvest Inc., Brigth Farms, Vertical Harvest Jackson, Gotham Greens Holdings LLC, Metro Farms, Home Town Farms, Garden Fresh, Lufa Farms, and others.
