14/06/2018 – News / Agriculture / Vertical Farming / IoT / Global
Vertical farming market size to shoot up past $6.3bn by 2023
According to the market research report published by P&S Market Research, the size of the vertical farming market is projected to grow at a CAGR of 24.2 per cent over the 2017-2023 period, to cross the US$6.3 billion mark in 2023. Major drivers of such spectacular predicted growth include the increasing adoption of organic foods, rising urban population and growing focus towards environmentally-friendly production of fresh fruits and vegetables.
With increasing population in the Asia-Pacific, fertile agriculture land is decreasing which creates heightened demand for vertical farming. In China and India – the two most populated countries – the available agricultural land is decreasing at a rapid pace amid rising urbanisation and population. Rising disposable income along with increasing per capita income across Asia-Pacific is anticipated to drive demand in the vertical farming market over the coming years. Rising government investment of different countries across Asia-Pacific towards building high-class infrastructure and developing smart cities are also anticipated to drive demand for vertical farming for the urban population. Resultantly, the demand of vertical farming is expected to sky-rocket in the coming years – and such growth will be most pronounced in the Asia-Pacific region.
From farmer to pharma
The North American vertical farming market is likewise expected to expand at a brisk rate, to account for over 30 per cent of the global market in 2023. Expanding demand for organic food, rising disposable income, and growing per capita GDP across the region are all cited as drivers in that region of the world.
With rising awareness levels about the features and benefits of vertical farming, pharmaceutical companies are also adopting the same to produce various types of crops that are widely used in biopharmaceutical products across the region.
The US accounted for the largest revenue share in the North American vertical farming market and is projected to lead the market during the forecast period because of the growing disposable income of the country, rising health consciousness among consumers, and increasing consumer demand for local foods are expected to boost the demand for vertical farming industry across the country, during the forecast period.
Strong growth drivers
Vertical farming helps in producing organic foods, which are grown without the use of pesticides, artificial fertilizers, and genetically modified organisms. With the growing trend towards eating healthy food, consumers have begun to perceive organic foods as more nutritional than non-organic foods. Vertical farming helps in developing organic foods that are succinct and effective in creating natural organic micro-greens. The system also helps in substantial assortment of organic crops and ensures that crops are accessible in demand-specific areas.
With increasing population, the migration from rural to urban areas is also growing. Changing lifestyle, increasing per capita income, and rising health consciousness among consumers are driving expansion of the global vertical farming market. Additionally, a growing focus towards reliable production of crops irrespective of climatic conditions is driving the focus of farmers towards environmentally-friendly production of fresh fruits and vegetables. Governments of various countries are also promoting the cultivation of organic food with the use of organic pesticides. Such factors are expected to augment the growth of modern agriculture, and will consequently drive the growth of the vertical farming industry.
The growing use of Internet of Things (IoT) sensors in producing crops, and the surging production of biopharmaceutical products opens up myriad opportunities for the players in vertical farming market.
In the case of indoor farming, IoT is a system of sensors that are interconnected through the internet. IoT helps commercial growers in storing information detected by the sensors in cloud storage, or any other storage medium. The vertical farming industry is inclining towards the utilisation of complex sensors to screen the plant completely, without human support. The information collected from the sensors is stored in the cloud space for analysing and performing required actions, which also enhances the productivity of farms with less wastage and better monitoring in real time.
The growing health consciousness among consumers, along with increasing urbanisation and rising per capita income, is emphatically driving expansion of the global vertical farming market. The companies involved in manufacturing pharmaceutical products are also using indoor farming techniques for cultivation and crop production in the green environment. Many pharmaceutical companies are adopting indoor farming techniques for the production of different crops that are widely used in producing biopharmaceutical products.
A competitive landscape
Due to the presence of a small number of players in the vertical farming market, the degree of rivalry in the sector is presently high. Furthermore, the market is growing at a notable pace, which intensifies the competition among the market players. Some of the major players in the global vertical farming industry are Koninklijke Philips N.V., AeroFarms LLC, Sky Greens Pte. Ltd, Illumitex Inc, Everlight Electronics Co. Ltd, Hort Americas, Agrilution GmbH, American Hydroponics Systems Inc., Urban Crop Solutions Inc., and Vertical Farm Systems.
Asia-Pacific, North America and Europe all show a strong tendency to adopt urban farming solutions, thus the key competitors are specifically focusing on those regions to expand their product offerings in the vertical farming market.
To access the report, visit: https://www.psmarketresearch.com/market-analysis/vertical-farming-market