Global Vertical Farming Market - Analysis & Forecast, 2016-2022
The emerging need of sustainable farming operations, decreasing arable land and scarcity of natural resources enabled the introduction of vertical farming at the global level. The market largely comprises of growth mechanisms, components and fixtures required for the viable vertical farming operations. The growth in the market is accredited to the overall cost effectiveness of the technology, increasing global food demand and the customization option provided to the users. The global vertical farming market is expected to grow at a CAGR of 27.77% through 2015 to 2022.
The report is a compilation of the different segments of global vertical farming market, including market breakdown by the components, growth mechanisms, and different geographical areas. Herein the revenue generated from the growth mechanism, namely: Aeroponics, hydroponics & others; and components, namely: lighting, hydroponic, climate controls, and sensing components is tracked to calculate the overall market size. While highlighting the key driving and restraining forces for this market, the report also provides a detailed summary of the vertical farming systems. It also includes the key participants involved in the industry at the relevant sections.
The report answers the following questions about the global vertical farming market:
With regard to the growing world population and the rise in the demand for food sufficiency, the limited land resources won’t be sufficient to cater to the current and future demands. Such a situation has led to a stronger emphasis on opting for alternative farming techniques, vertical farming being one of them. In this unconventional farming method, food products are grown in vertically stacked layers by using artificial lighting. The global vertical farming market is expected to grow over $6.81 billion by 2022 at a double digit CAGR through the forecast period.
The option to customize the growing environment, all year round food supply, and minimum overheads and costs are some of the factors responsible for the growth of this market. However, the market consists of certain challenges as well which are inhibiting the overall growth for the market, such as limited market scope, lack of awareness, and high initial investment requirement.
In the technique of vertical farming, the components and fixtures are combined with different growth mechanisms. These components are lighting components, hydroponic components, climate controls, and sensing devices. The replacement of traditional lighting with LED grow lights has led to the domination of lighting components in the market. However, the climate control devices are estimated to grow at the highest CAGR, primarily because these devices are one of the vital requirements for the system in order to manage and customize the environment for growth.
The vertical farming industry provides a range of growing mechanisms to its users. The user can keep the roots of the plant in nutrient solution (hydroponic) or just misting them at regular intervals (aeroponics). The most commonly used growth mechanism i.e. hydroponics is generating the maximum revenue in 2015.An alternate growth mechanism is aeroponics, which is expected to grow at the highest rate.
The market is dominated by Asia-Pacific (APAC)due to a continuous increase in the ratio of urban population and also due to a decline in cultivable land. However, it is expected that Europe will grow at the highest CAGR through 2015 to 2022. North America, with the U.S. leading, will also continue to generate significant revenue through the forecast period.
The competitive landscape for the vertical farming market demonstrates an inclination of companies which are interested in adopting strategies such as collaborations, product launches, mergers, and contracts among others. Some of the key players in the industry are Aerofarms, Everlight Electronics, Illumitex, FarmedHere, Koninklije Philips N.V., and American Hydroponics.