Vertical Farming Market is Estimated to Witness High Growth Owing to Advancements in LED Lighting Technologies | IGS limited, GrowUp Farms Ltd, SweGreen

Market Overview:

Vertical farming involves growing crops in stacked layers or vertical modules with precisely controlled environments including climate, nutrients and light. It aims to maximize crop yields per square foot of farmland.

According to Coherent Market Insights study, The global vertical farming market size was valued at USD 11,548.10 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 10.30% from 2022 to 2030.

Market Dynamics:

LED lighting technology has seen tremendous advancements in recent years making it an affordable option for vertical farms. LEDs have higher electrical efficiency and lighting consistency compared to traditional lighting sources. They also emit spectra tailored for specific plant growth stages. This has boosted the adoption of vertical farming particularly in urban areas where land availability is limited. Additionally, vertical farms can be located closer to large consumer bases in urban centers reducing transportation costs and time to market for fresh produce. The feasibility of vertical farming has further increased with improvements in automation, sensors and data analytics tools that optimize resources like water, nutrients and energy usage.

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Vertical Farming Market Drivers: Population Growth Will Drive Demand for Locally Grown Produce

As the global population continues to rise, demand for fresh produce is also increasing. Traditional farming methods struggle to meet this growing demand due to constraints like availability of arable land and water. Vertical farming allows produce to be grown locally in controlled indoor environments without these constraints. This helps meet consumer demand for fresh, locally grown fruits and vegetables while reducing environmental impacts from long-distance transportation. As population growth puts more pressure on traditional agriculture, vertical farming is well positioned to help address global food security needs.

Higher Yields Through Optimal Growing Conditions

Vertical farms use technologies like LED lighting and hydroponics/aeroponics to carefully control the growing environment. This allows farmers to maximize plant growth by providing optimal temperatures, lighting, nutrients, and other conditions. Crops can be grown year-round regardless of outdoor climate conditions. Optimized indoor environments also help reduce the risk of crop loss from weather, pests and diseases. The ability to grow more crops in less space makes vertical farming significantly more productive than traditional agriculture. This higher yield potential is a major driver for the industry as it improves the economics of farming.

Vertical Farming Market Restrain: High Initial Capital Investments Required

Developing commercial vertical farms requires substantial upfront capital investments in infrastructure, equipment, tools and technologies. This includes costs for construction of controlled-environment buildings, hydroponic/aeroponic systems, artificial lighting and other automation. Ongoing operational costs for electricity, rent and labor are also high compared to traditional farms. While vertical farms have lower ongoing costs for land, water and pest management, the high initial capital barrier prevents many small farmers from entering this industry. Obtaining financing can also be challenging for new and unconventional farming ventures. This restrain currently slows down the adoption of commercial vertical farming practices on a large scale.

Vertical Farming Market Opportunity: Demand for Organic and Non-GMO Produce

There is growing consumer demand for organic and non-GMO produce grown without pesticides and in a natural environment. Vertical farming is well positioned to meet this demand. Crops can be grown using only natural inputs like sunlight, water and nutrients in a carefully controlled indoor setting that eliminates pesticide usage, cross-contamination risks and runoff concerns. By growing crops hydroponically or aeroponically all year long, vertical farms can be certified organic with less difficulty than traditional farms. This emerging consumer preference for cleaner, pesticide-free produce is a major opportunity for vertical farming businesses to capture market share from organic sales.

Vertical Farming Market Trends: Increased Focus on Technology and Automation

To improve commercial viability, vertical farms are increasingly adopting advanced technologies for automation, data analytics, robotics and artificial intelligence. This includes automated harvesting equipment, robotic pollination systems, computer vision systems to detect plant diseases and nutrient deficiencies. Technologies also help optimize and monitor the growing environment centrally. Detailed grow data enables precision agriculture approaches. Automation helps reduce labor costs which currently account for 30-50% of vertical farm operating expenses. As technology costs come down, their use will soon become widespread. This trend towards smart, technology-driven vertical farming will significantly boost yields, quality and lower production costs in the coming years.

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The major players operating in the market include:

➱ Signify Holding (PHILIPS)
➱ Aerofarms
➱ Sky Greens
➱ IGS limited
➱ Everlight Electronics Co. Ltd.
➱ Freight Farms
➱ Agrilution
➱ American Hydroponics
➱ Urban Crops Solutions
➱ Vertical Farm System
➱ Gronska stadsodling ab
➱ V-Farm
➱ GrowUp Farms Ltd
➱ Vertical Future Ltd
➱ SweGreen
➱ Jones Food Company
➱ InFarm
➱ Agricool
➱ Future Crops
➱ GrowY
➱ Intelligent Growth Solutions Limited

These companies are focusing on new product development, partnerships, collaborations, and mergers and acquisitions to increase their market share and maintain their position in the market.

Detailed Segmentation:

Global Vertical Farming Market, By Growth Mechanism
◘ Aeroponics
◘ Hydroponics
◘ Aquaponics

Global Vertical Farming Market, By Structure
◘ Building-based Vertical Farms
◘ Shipping Container-based Vertical Farms

Global Vertical Farming Market, By Component
◘ Lighting
◘ Climate Control
◘ Sensors
◘ Other Components

Global Vertical Farming Market, By Crop
◘ Tomato
◘ Berries
◘ Lettuce and Leafy Vegetables
◘ Pepper
◘ Cucumber
◘ Microgreens
◘ Other Crop Types

Market segment by Region/Country including:

- North America (United States, Canada and Mexico)
- Europe (Germany, UK, France, Italy, Russia and Spain etc.)
- Asia-Pacific (China, Japan, Korea, India, Australia and Southeast Asia etc.)
- South America (Brazil, Argentina and Colombia etc.)
- Middle East & Africa (South Africa, UAE and Saudi Arabia etc.)

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This release was published on openPR.