Allied Market Research published a report, titled, “Vertical Farming Market by Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material, and Others) and by Growth Mechanism (Hydroponics, Aeroponics, and Aquaponics): Global Opportunity Analysis and Industry Forecast, 2017–2025.” The report offers a detailed analysis of top winning strategies, changing market dynamics, market size & projections, key segments, and market competition. The report states that the global vertical farming market would generate $10.25 billion by 2025, from $1.78 billion in 2017, growing at a CAGR of 24.4% during the forecast period, 2017–2025.
Upsurge in consumption of organic food and limited arable land to carry out traditional agriculture activities facilitate the growth in the global vertical farming market. On the other hand, huge investment costs and under-developed technologies utilized for vertical farming restrain the market growth. Contrarily, significant rise in urban population and surge in awareness regarding vertical farming create new opportunities in the coming years.
Lighting segment to maintain its leadership status throughout the forecast period
The lighting segment contributed the highest share, accounting for nearly one-fourth of the total market share in 2017. This segment is expected to maintain its leadership position throughout the forecast period, owing to cost benefits of LED lights over the traditional lighting system. However, the climate control segment would grow at the highest CAGR of 27.2% from 2017 to 2025. This is due to disease-free environment, improvement in food security, and lowered wastage of food. The research also explored various components such as sensor, irrigation component, building material, and others.
Aeroponics segment to grow the fastest during the forecast period
The aeroponics segment is estimated to grow at the highest rate, registering a CAGR of 24.9% from 2017 to 2025, owing to environment-friendliness and high yield of crops. On the other hand, the hydroponics segment contributed to the highest share in 2017, accounting for more than two-fifth of the total market share. This is due to its ability to manufacture nutritious eatable food by utilizing less space. Moreover, the aquaponics segment is explored in the research.
Asia-Pacific to dominate in terms of revenue by 2025
Asia-Pacific region dominated the global vertical farming market in 2017, contributing more than one-third of the total market share. This is due to upsurge in urban population, lack of abundance of cultivable land, and favorable government initiatives. However, Europe is expected to register the fastest growth with a CAGR of 25.7% from 2017 to 2025, owing to increase in temperature and occurrences of extreme weather conditions.
Leading market players
The report explores the leading market players including AeroFarm, Sky Green, Illumitex, Inc., Hort Americas, Green Sense Farms, Koninklijke Philips N.V., FarmedHere, American Hydroponics, Everlight Electronics, and Agrilution. They have adopted different strategies including mergers & acquisitions, partnerships, collaborations, new product launches, expansions, and others to maintain its leadership status in the industry.
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