Vertical Farming Market Anticipated to Touch 25.1 Billion by 2030, with a CAGR of 23.3% - Report by Market Research Future (MRFR)
According to a comprehensive research report by Market Research Future (MRFR), “Vertical Farming Market Analysis by Technology, Structure (Indoor Vertical Farming and Outdoor Vertical Farming), Crop Type - Forecast till 2030” valuation is poised to reach USD 25.1 Billion by 2030, registering an 23.3% CAGR throughout the forecast period (2021–2030).
Vertical Farming Market Report Scope:
Vertical farming systems and technologies offer a superior approach to farming methods, allowing for the growing of large amounts of crops inside a confined land area while requiring little financial investment and having no negative impact on the environment. The main reason for this is because perpendicular stack-based farming lowers the need for additional land and allows for full land utilization for farming, with optimal land and energy use yielding significant returns.
The vertical farming market's competitive landscape has been vast and tense, with new firms entering the market with ease and existing businesses investing heavily in this sector
Market Drivers:
The vertical farming market has seen diversified growth in all segments and across different regions as a result of rising populations and rising per capita incomes, which has shifted people's demands toward more organic, health, and environment-friendly foodstuffs, resulting in the development of the vertical farming market.
People's growing awareness of what they eat, as well as their greater focus on health issues, has fueled the market for organic farming, which produces fruits and vegetables that are free of insecticides and pesticides and high in nutritional content.
People's interest in producing farm products in small quantities in their houses utilizing vertically stacked structures and little investment for self-consumption has boosted the market for vertical farming at home.
The desire for organic and high-quality foods has transformed vertical farming firms' production capabilities and created a foundation for ensuring high-quality and quantity-approved production to fulfill rising needs. In addition, people have begun to cultivate fruits and vegetables indoors, giving rise to the concept of indoor vertical farming.
Market Restraints:
The general expansion of the vertical farming business has been rapid, but certain limitations, such as huge sums of money to be invested initially in the establishment of vertical farming enterprises, have limited the entry of new players. Second, farmers' lack of practical understanding about vertical farming stymies the growth process. While technology is utilized in such farming, the entire crop production, raising, and care requires the participation of farmers, which is limited due to their lack of information about farming techniques.
COVID-19 Analysis:
The novel coronavirus, also known as the Covid 19 pandemic, has had a negative impact on the vertical farming industry, as demand for high-quality products has been limited to general food products, and vertical farming companies have experienced personnel shortages, accumulated stocks, and forced shutdowns. Because of the lockdowns in many nations, demand for vertical farming equipment and buildings has slowed dramatically, contributing to the vertical farming industry's slow growth rate.
Covid 19 has had such an impact that most of the major players have been forced to shut down their main production units and lay off people. However, once the lockdown limitations are lifted and individuals are free to travel about, the market is projected to rise significantly. The post-lockdown era is predicted to be a huge success for the vertical farming market revenue. With greater public investments for farming reasons, the segment by component is predicted to generate highest returns.
Vertical Farming Market Segments
By Technology
Over the projected period, the aeroponics market is expected to increase significantly. Because neither approach needs soil to produce plants, this technology is akin to hydroponics. Aeroponics, on the other hand, does not require a growth medium because the roots of the plants are hung in a dark chamber and sprayed with nutrient-rich solution on a regular basis.
By Structure
Over the study period, the indoor vertical farming industry is expected to increase significantly.
By Crop Type
The tomato category dominated the market, accounting for a significant portion of global sales. The high average demand for tomatoes in all regions, compared to other crops such as lettuce, leafy greens, peppers, cucumbers, herbs, and so on, accounts for this huge percentage.
Vertical Farming Market Regional Analysis
The worldwide vertical farming market is divided into four areas, each of which has made a substantial contribution in terms of capabilities and population demands. However, of the four countries, the Asia Pacific area has the largest vertical farming market share, as the key drivers for the vertical farming industry's growth are created here, and the public appears to be very interested in new product advancements.
China, Japan, Korea, and India are predicted to generate the majority of the vertical farming market revenue. According to vertical farming data, the population of these countries, as well as their disposable incomes, has been growing, resulting in lifestyle adjustments and new needs.
The European region is also growing steadily, with vertical farming equipment and tools being used extensively in indoor farming and vertical farming at home. The vertical market share in the North American region is also growing rapidly, as the US vertical market is driving demand for vertical farming crops in this region, and individuals are taking advantage of vertical farming benefits at home.
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