Vertical farming is passing through the growth stage, and the market is expected to witness significant growth during the forecast period due to the increasing demand for fresh food products. Considering the benefits of vertical farming, various companies are investing in this technology for production and research purposes across the globe.
As the population increases, the availability of land for agriculture decreases, which encourages the adoption of vertical farming systems. Vertical farming is becoming popular in all regions of the world due to the increasing demand for fresh produce and rising concerns about food safety. The high cost of traditional agriculture, urbanization leading to a reduction in surface area for agriculture, and modernization drive market growth.
Since it does not require ample space for cultivation, manufacturers are adopting this technology to increase their profits. In addition, growing health concerns among consumers regarding pesticide residue and chemicals used in traditional farming are likely to impact market growth during the forecast period positively.
Global vertical farming market segmentation
The report by Precedence Research provides detailed information regarding the global vertical farming market segmentation by technology, application, crop type, end-use industry, and region. Based on technology, the market can be segmented into terraponics, hydroponics and aquaponics.
On the other hand, based on application, the market can be segmented into leafy greens and herbs used as garnishing in various food products. Furthermore, based on crop type, the market can be segmented into fruits & vegetables, including tomatoes and beans; grains & pulses; flowers; mushrooms; root crops such as carrots.
This report studies Vertical Farming in the Global market, especially in North America, Europe, China, Japan, Southeast Asia and India, focusing on top manufacturers in the global market, with capacity, production, price, revenue and market share for each manufacturer. The hydroponic components segment captured the critical market share in the global vertical farming market in the year 2020. Further, climate control vertical growing units is anticipated to register a high CAGR over the forecast period.
The Asia Pacific region holds a significant share in the global vertical farming market. It is expected to be one of the fastest-growing regions due to increased demand for organic agricultural products and a rising preference for locally produced food. Countries such as China, India, Japan, Malaysia, Australia, Indonesia, the Philippines, South Korea, and Thailand are leading countries.
The top players operating in this market are AeroFarms (US), FarmedHere (US), Green Sense Farms (Australia), Infinite Harvest (UK), Plenty (Israel), Sky Green Farms (South Korea), Urban Crops (Belgium), and Terra Firma Foods(US)
Breakdown of competitive advantage: Terraponic system is the future of vertical farming
Terra Firma Foods is a great example for businesses that are working on solving environmental issues like food waste and rising costs of food. Their goal was to develop a vertical farming system that would feed the world using a fraction of the water, land and labor needed to grow food using terraponic growing methods.
The result is the NexGen Vertical Farm System, which uses specialized lights, proprietary growing media and fully automated robotic harvesting equipment to produce pesticide-free food in an indoor facility while eliminating the use of soil and natural sunlight.
The key to this perfect storm is TerraFirma’s proprietary grow system. Its a cost-effective approach to farming that simplifies production, reduces operating and construction costs, while increasing rates of growth and quality, just so happens to be one of the fastest growing farming tech in advanced countries where they are able to generate greater than 50% or more margins than traditional soil farming methods in some cases by as much as 300%+. These + other factors positions TerraFirma as a farm technology leader with ability to grow profit margins not seen in other segments of agriculture
What are the key market insights and trends?
According to Coherent Market Insights analysis, one of the key factors behind the growth of this market is increased demand for energy-efficient technologies. Increasing consumers’ awareness about food safety and quality is expected to boost demand for highly efficient technologies used in vertical farming systems. Energy efficiency is a critical requirement for commercial growers because electricity costs have increased over time and have become a significant constraint.
In addition, a growing number of investments by major players in building research facilities on different crops such as herbs and lettuce or leafy greens is expected to drive the market growth during the forecast period. The shipping container is predicted to dominate the market revenue by 2020. Growing fresh bell and chilli peppers are anticipated to be the fastest-growing sector in this industry.
Agriculture is considered one of the significant contributors to global warming, which is likely to put pressure on governments across the globe to develop land-saving techniques such as vertical farming.
The global Vertical Farming market is segmented based on growth strategy, product type, application, and region. Vertically integrated solutions are gaining popularity across the market owing to their operational efficiency and reduced space requirement.
Vertical farming techniques are mainly used for commercial purposes such as TerraFirma’s terraponic cultivation methods for growing vegetables & fruits vertically for commercial use.