The global vertical farming market is anticipated to reach USD 9.9 billion by 2025, according to a new report by Grand View Research, Inc. The increased use of Internet of Things (IoT) sensors, for producing crops, is likely to spur the market demand over the forecast period. The information obtained from the sensors is stored on the cloud and analyzed to perform the required actions. The growing automation in agriculture and increasing use of big data & predictive analytics, for maximizing yields, are also likely to drive the market.
Genetically modified organisms and environmental & health effects of pesticides & other non-natural substances that are used for increasing agricultural production have encouraged the consumers to adopt organic foods. According to the Organic Trade Association, the U.S. organic industry sales increased by 11% in 2015, owing to the 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 the natural daylight which further increases the health, growth rate and yield of the plants. Artificial lighting, such as high-pressure sodium lighting, LED lighting can extend the availability of crops (throughout a season). LED lighting systems produce dual-band color spectrum and generate low heat. They are anticipated to witness significant growth over the forecast period.
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.
Further key findings from the report suggest:
The escalating production of biopharmaceutical products is anticipated to drive the market
The building-based segment is expected to portray high growth rate with a CAGR of 24.8% over the projected period
The climate control segment is expected to witness high growth rate 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 have considerable growth over the forecast period, as the aeroponics facilitates fast growth in plants (under normal conditions)
The North American regional market is expected to have 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.)