February 21, 2024
Vertical Farming Market
Ict

Vertical Farming Market Is Projected To Driven By Need For Sustainable Food Production

Vertical farming is the practice of growing crops in vertically stacked layers or inclined surfaces with the use of controlled environment agriculture technology including climate control, LED lighting systems, hydroponics or aeroponics systems. Vertical farming techniques allow year-round harvesting of crops and vegetables with much higher production yields per acre than conventional horizontal farming. Using vertical farming technologies, crops can be grown in skyscrapers, used warehouses, or shipping containers allowing agricultural production in urban, indoor, and other non-traditional growing environments. The need for sustainable and localized food production is driving the adoption of vertical farming across the world.

The global vertical farming market is estimated to be valued at US$ 14.05 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growing adoption of hydroponics and aeroponics techniques is a major trend in the vertical farming market over the forecast period. Hydroponics allows growers to cultivate plants without soil by using mineral nutrient solutions absorbed by the plant roots. Aeroponics uses a mist of atomized nutrients delivered to hanging or suspended plant roots which provide additional benefits of conserving water and nutrients. Both these techniques help in optimal growing conditions for crops and are increasingly becoming widespread among commercial vertical farmers to boost yield per acre.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate. Vertical farming requires significant capital investments for setting up the infrastructure. However, the growing popularity of fresh produce is attracting new players in the market.

Bargaining power of buyers: The bargaining power of buyers is high. Buyers have sufficient options to choose from in terms of suppliers. Buyers can negotiate on price and quality aspects.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of hydroponics equipment, LED lighting, and sensors have established themselves in the market. However, local suppliers also provide alternatives.

Threat of new substitutes: The threat of new substitutes is low. While traditional farming is a substitute, vertical farming provides produce round the year in a sustainable manner with no pesticides.

Competitive rivalry: The vertical farming market is fragmented with the presence of several small and large players. Competition is based on technology, automation, and quality.

Key Takeaways

The Global Vertical Farming Market Demand  is expected to witness high growth. The global vertical farming market is estimated to be valued at US$ 14.05 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030.

The Asia Pacific region dominates the vertical farming market and is expected to grow at the fastest rate during the forecast period. Countries such as China, Japan, and Singapore are focusing on developing advanced vertical farms as a solution to food security issues arising due to lack of agriculture land.

Key players operating in the Vertical Farming market are BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings ABPOLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd. These players are focusing on developing sustainable and automated vertical farming technologies to cater to the growing demand for fresh produce.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it