SAN FRANCISCO, April 14, 2021 /PRNewswire/ -- The global vertical farming market size is anticipated to reach USD 21.15 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 23.6% from 2021 to 2028. Increased use of Internet of Things (IoT) sensors for producing crops is likely to spur the market demand over the forecast period. Information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. Growing automation in agriculture and increasing use of big data and predictive analytics for maximizing yields are also likely to drive the market.
Key suggestions from the report:
The escalating production of biopharmaceutical products is anticipated to drive the market
The building-based segment is expected to portray a high CAGR of 25.9% over the projected period
The climate control segment is expected to witness a high CAGR over the forecast period, as the growth of crops can be controlled by monitoring and adjusting the concentrations of minerals
The aeroponics segment is also expected to register considerable growth over the forecast period, as the aeroponics facilitates fast growth in plants (under normal conditions)
North America is expected to register significant growth over the forecast period, owing to the expansion of small-scale, commercial vertical farms
The key players of the market include BrightFarms (U.S.), Everlight Electronics Co., Ltd. (Taiwan), and Green Sense Farms, LLC (U.S.)
Vertical farming is effective in ensuring stability in crop production and maintaining reliability even in adverse climatic conditions. It provides multiple benefits over traditional farming techniques, such as less use of water, the lesser need for agrochemicals, and low dependence on agricultural labors. Vertical farming makes use of metal reflectors and artificial lighting to maximize natural sunlight.
Genetically modified organisms and environmental and health effects of pesticides and other non-natural substances that are used for increasing agricultural production have encouraged consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by around 5% in 2019, owing to increased investment in infrastructure and education. As per the Organic Foods Production Act of 1990, the handlers and growers of organic products need to comply with the regulations.
Artificial lighting helps in extending the hours of natural daylight, which further increases the health, growth rate, and yield of the plants. Artificial lighting such as high-pressure sodium lighting and LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce a dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
The hydroponic system is a method of growing plants without soil. A hydroponic system eliminates the need for pesticides and artificial ripening agents and helps in producing nutritionally-rich vegetables. However, factors such as high initial investment and fewer crop varieties are likely to restrain the market growth.
Grand View Research has segmented the global vertical farming market based on structure; offering; growing mechanism; fruits, vegetables, & herbs; and region:
Vertical Farming Structure Outlook (Revenue, USD Million, 2017 - 2028)
Vertical Farming Offering Outlook (Revenue, USD Million, 2017 - 2028)
Vertical Farming Produce Market – The global vertical farming produce market size was valued at USD 1.02 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 25.7% from 2020 to 2027.
Hydroponics Market – The global hydroponics market size was valued at USD 1.33 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 22.52% from 2019 to 2025.
LED Lighting Market– The global LED lighting market size was valued at USD 54.00 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 13.4% from 2020 to 2027.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.