The vertical farming market is projected to grow at a CAGR of 20.2% from 2020 to 2025
NEW YORK, Aug. 17, 2020 /PRNewswire/ --
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The vertical farming market is projected to reach USD 7.3 billion by 2025 from USD 2.9 billion in 2020; it is expected to grow at a CAGR of 20.2% during the forecast period. The vertical farming market in APAC is projected to grow at the highest CAGR during the forecast period. Countries such as China, Japan, and Singapore are major contributors to the growth of the vertical farming market in APAC. The growth prospective of the vertical farming market in APAC is promising with a steady growth rate in the near future. The COVID—19 pandemic has affected the market in APAC, however, a steady recovery by 2021 is expected with the significant investments and government support. The major restraints for the growth of the market are lack of skilled workforce and technical know-how, and limited crop range; and high initial investments. Maintenance of air circulation in a vertical farm, and vertical farming on a large scale act as major challenges for the growth of the market.
Hydroponics segment projected to hold the largest share of the vertical farming market during the forecast period.
Hydroponics mechanism is easier to set up, has a higher return on investments (RoI), and incur less cost than other mechanisms.With maximum amount of water recycled with minimal wastage, hydroponics is the most water-efficient method of farming.
On the contrary, aeroponics requires a high initial investment and plants can die in just a few hours due to malfunctioning or failure of mist spraying nozzles. As hydroponics provides more advantages than other mechanisms it is used widely by commercial growers.
Among structure, the shipping container vertical farms segment to grow at a higer CAGR between 2020 and 2025.
The vertical farming market is largely dominated by the building-based vertical farms segment as leading companies in the market are involved in this type of farming.However, the market for shipping container-based vertical farms is likely to register a higher CAGR as it is a ready-to-use (plug and play model) solution that can help to cater to the rising demand for fresh and high-quality produce.
A shipping container-based vertical farm is ideal for serving a small base of consumer, nevertheless, can be ineffective and costly to serve a larger consumer base.Shipping container-based vertical farms are flexible, easy to operate, and portable.
The rising demand for fresh produce is expected to create notable growth opportunities for this segment in the next few years.
Lighting to hold the largest share of the vertical farming hardware market during the forecast period.
Sunlight is a vital resource in traditional farming.However, vertical farming highly depends on artificial lights.
Artificial light acts as a substitute for the sunlight and is required to provide 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 like that of 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 varying the intensity output of the lamps.
APAC projected to hold the largest share of the vertical farming market in 2025.
APAC is the base to numerous small and large vertical farms operating in different countries of the region.Countries in APAC are densely populated, and the number is increasing exponentially.
This certainly creates a demand to have a substitute for conventional farming as it lacks the capacity to serve the growing population.Vertical farming reduces the dependency on field farming and aids in avoiding the need for new farmland due to the increasing need for food.
Countries such as China, Singapore, Hong Kong, South Korea, and Japan are technologically equipped, complementing the growth opportunities for the vertical farming market. The growth of the vertical farming market in this region can also be attributed to the increasing awareness about alternative farming methods and limited agricultural fertile land.
Breakdown of profiles of primary participants:
• By Company Type: Tier 1 = 40%, Tier 2 = 45%, and Tier 3 = 15%
• By Designation: C-level Executives = 40%, Directors = 30%, and Others = 30%
• By Region: North America = 20%, Europe = 35%, APAC = 30%, and RoW = 15%
Signify (Netherlands), Osram (Germany), Freight Farms (US), AeroFarms (US), Sky Greens (Singapore), Spread Co., Ltd. (Japan), Plenty (US), Valoya (Finland), Everlight Electronics Co., Ltd. (Taiwan), and Heliospectra (Sweden) are a few major players in the vertical farming market.
Research Coverage:
This report segments the vertical farming market based on growth mechanism, structure, crop type, and offering. The report gives a detailed view of the market across 4 main regions: North America, Europe, APAC, and RoW.
Reasons to Buy the Report:
• This report includes statistics pertaining to the vertical farming market based on growth mechanism, structure, crop type, offering, and region, along with their respective market sizes
• Major drivers, restraints, opportunities, and challenges for the vertical farming market have been provided in detail in this report
• The report includes illustrative segmentation, analysis, and forecast for the vertical farming market based on its segments and subsegments.
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