Northbrook, IL 60062 -- (SBWIRE) -- 03/21/2023 -- The vertical farming market is projected to to reach USD 9.7 billion by 2026 from USD 3.6 billion at CAGR of 25.0% during the forecast period. Services segment is expected to witness highest CAGR of 28.8%. It was observed that the growth rate was 11.4% from 2021 to 2022.
Vertical farming is a technique of cultivating crops on a vertically inclined surface in an urban environment. instead of growing a single layer of crops over a large land area, stacks of crops are grown in an upward direction.
In vertical farming, an artificial environment is created inside a facility using technologies that help plants grow with high nutrition in a short time compared with traditional farming. Growth, productivity, and quality of plants depend on technologies, such as climate control, air purification, lighting, and pump and irrigation systems.
Vertical farming is being adopted to increase the crop yield without increasing the land area, as it does not use soil as a medium. Plants are cultivated using growth mechanisms, such as hydroponics, aeroponics, and aquaponics. Hydroponics is a widely used growth mechanism in which the roots of the plants are provided with nutrient-dissolved solutions through water channels equipped with the pump and irrigation systems, according to the grower's needs.
Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=221795343
Advancement in LED technology, the ability to facilitate year-round crop production irrespective of weather conditions, and minimum requirement of resources such as land, water, and labor to carry out farming are the major factors driving the growth of the vertical farming market. The growth opportunities for the market players include cultivation through vertical farming and potential market opportunities in Asia Pacific and the Middle East. However, lack of skilled workforce and technical know-how and limited crop range are the factors restraining the market growth.
Lighting systems and hydroponic components accounted for the largest share in hardware segment of the vertical farming market
Lighting and hydroponic components are among major hardware systems required for vertical farming setup. Artificial light acts as a substitute for sunlight and provides sufficient light intensities that enable crop growth. The amount and duration of the light are the main aspects considered while providing lighting for plants. Lights either provide a light spectrum such as the sun or a spectrum that caters to the needs of the plants.
Outdoor lighting conditions can be created with varying colors, temperatures, and spectral outputs from the grow lights as well as by varying the intensity of outputs of the lamps. In recent times, LEDs and high-intensity discharge (HID) are the most preferred grow lights in vertical farming. Fluorescent (FL) bulbs are also used for indoor applications, as their fixtures are similar to those of HID bulbs but are less expensive.
Based on growth mechanism, hydroponics segment likely to dominate vertical farming market
Hydroponics segment is expected to keep its dominance during the forecast period mainly due to simple installation and cost-effective vertical farm setup. In the hydroponics system, mineral nutrients dissolved in water are fed directly to the plant's roots due to which the plant grows mostly upward, thereby promoting quicker growth, faster harvest, and higher yield.
Hydroponics systems are used both indoors and outdoors for growing herbs, foliage, and food items throughout the year using an inert growth medium to anchor the plant's roots. One of the major advantages of using this mechanism is less water requirement as the system reuses the water. Furthermore, the nutrition levels can be entirely controlled, resulting in lower nutrition costs and stable and high yields.
US is expected to be the leading country-level market in North America as large number of market leaders are headquartered in the country
The US held the major share of the North American vertical farming market in 2020 and similar trend is expected to be continued by 2026. The US is expected to be the leading country-level market in North America as market leaders or key players of vertical farming are headquartered in the country. Increasing number of vertical farms and partnerships among companies are helping to boost vertical farming market in US. Furthermore, the country is a potential market for farming, owing to the continuous demand for agricultural products.
Request Sample Report:
https://www.marketsandmarkets.com/requestsampleNew.asp?id=221795343
Key Market Players:
Some of the key players in the vertical farming market includes Signify (Netherlands), Freight Farms (US), AeroFarms (US), Sky Greens (Singapore), Spread (Japan), Plenty (US), Valoya (Finland), Osram (Germany), Everlight Electronics (Taiwan), Heliospectra AB (Sweden).These players have adopted various growth strategies such as contracts, joint ventures, partnerships & agreements, acquisitions, and new product launches to further expand their presence in the vertical farming market.