The Vertical Farming Market is projected to reach USD 7.3 billion by 2027 from USD XX billion in 2020; it is expected to grow at a CAGR of 20.2% during the forecast period.
added Vertical Farming Market research study by MarketDigits offers detailed product outlook and elaborates market review till 2027. The market Study is segmented by key regions that is accelerating the marketization. At present, the market is sharping its presence and some of the key players in the study are 4D Bios Inc., AeroFarms, Agrilution, AMHYDRO, Everlight Electronics Co., Ltd, Hort Americas. The study is a perfect mix of qualitative and quantitative Market data collected and validated majorly through primary data and secondary sources.
Request for Sample Copy of This Report @ https://marketdigits.com/vertical-farming-market/sample
This report studies the Vertical Farming Market size, industry status and forecast, competition landscape and growth opportunity. This research report categorizes the Vertical Farming Market by companies, region, type and end-use industry.
Scroll down 100s of data Tables, charts and graphs spread through Pages and in-depth Table of Content on “Vertical Farming Market, By Structure ( Building-based Vertical Farms, Container-based Vertical Farms), Component (Irrigation Component, Lighting, Sensor, Climate Control, Building Material, Glass Greenhouse, Plastic Greenhouse), Growth Mechanism ( Hydroponics, Aeroponics, Aquaponics) and Geography – Global Forecast To 2027”. Early buyers will get 10% customization on study.
To Avail deep insights of Vertical Farming Market Size, competition landscape is provided i.e. Revenue Analysis (M $US) by Company (2018-2020), Segment Revenue Market Share (%) by Players (2018-2020) and further a qualitative analysis is made towards market concentration rate, product/service differences, new entrants and the technological trends in future.
Unlock new opportunities in Vertical Farming Market; the latest release from MarketDigits highlights the key market trends significant to the growth prospects, Let us know if any specific players or list of players needs to consider to gain better insights.
Grab Complete Details with TOC @ https://marketdigits.com/vertical-farming-market/toc
Major drivers for the growth of the market are high yield and numerous other benefits associated with vertical farming over conventional farming, advancements in light-emitting diode (LED) technology, year-round crop production irrespective of weather conditions, and requirement of minimum resources.
Impact of COVID-19 on Vertical Farming Market:
For Lighting solution providers to vertical farming growers, COVID-19 pandemic has disrupted the entire LED lighting supply chain covering upstream chip production to packaging and lighting OEMs. However, it has different impacts on different entities of the supply chain. On one side, LED wafer and chip producers are less impacted by the pandemic because they still have a high inventory due to oversupply in 2019. Many chip producers still have products in stock from last year that can be supplied. On the other hand, materials required for LED chips like sapphire substrate and others might become short in supply if the work delay continues. Thus, it is anticipated that the LED chip price will increase in Q3 or Q4 of 2020.
Additionally, COVID-19 outbreak has flashed a spotlight on the fragility of the global just-in-time food supply chain. Most of the countries worldwide only produce a limited percentage of the food they consume. For instance, the UK only produces around 50% of the food it consumes, which leaves it vulnerable to shocks in the global supply chain. Additionally, the lockdowns and closures enforced due to the pandemic have resulted in bottlenecks that ripple across the food supply chains globally.
Driver: Advancements in light-emitting diode (LED) technology
Light-emitting diodes (LEDs) are now affordable and efficient enough to cut the overall farming cost for the growers. The innovations in LED technology in recent years are consequently supporting the growth of the vertical farming market. Artificial lighting is a pre-requisite for indoor farming applications. The price of LEDs dropped significantly in the recent past, with increased efficiency and long lifespan. This has resulted in higher return on investments (ROIs) for growers and has helped to increase the number of installations of vertical farms with profitable produce. LED toplighting and interlighting systems are widely accepted over other technologies by the horticulture growers as they are available with full-spectrum and can be used for diverse crop types.
Restraint: Lack of skilled workforce and technical know-how, and limited crop range
Vertical farming often involves the use of advanced solutions such as cameras, sensors, automated systems, artificial intelligence, and hydroponic, aquaponics, or aeroponic systems. To operate these advanced systems, knowledgeable and skilled workforce is essential. Maintenance of machines and computers too requires people who are technically well-trained and equipped with all upgrading know-how. Lack of skilled workforce has affected different sectors at a global level, and vertical farming is not an exception. Also, most of the farmers venture into this market with their systems, which are not efficient in terms of design and are costly. To sustain and remain competitive in the market, vertical farms need to be up-to-date in different aspects of farming.
Opportunity: Cannabis cultivation through vertical farming
The cannabis industry is growing rapidly post legalizing medical and recreational cannabis by many states in the US. As the demand for cannabis is increasing rapidly, the supply side has started to develop operations in different forms to meet the ends. As per the current production scenario, growing cannabis in a vertical farm can be an expensive operation to carry out. Cannabis grown under sunless medium needs to have various factors considered. For instance, the heat emitted from high-pressure sodium lights (HPS) can damage the produce. Hence, LEDs, which run at much lower temperatures, can be a solution to the excessive heat emitted. Companies growing cannabis through vertical farming have observed significant results in terms of productivity.
Challenge: Maintenance of air circulation in a vertical farm
Maintaining the circulation of conditioned air everywhere within the vertical farm to create a uniform growing environment is a major challenge for the growers. As the racks in vertical farms are spaced close together, it is difficult to create uniform conditions everywhere. In the case of horizontal flow, the plants and light obstruct the flow of air from a point to another, resulting in temperature, humidity, and airspeed differences from one end of the rack to the other. The air circulating across the shelf vertically picks up heat from light and moisture from plants, causing it to become hotter and more humid along its path. To tackle the challenge of air circulation, farmers deploy small circulating fans, however, this contributes to the production cost and consequently affects the price of the produce.
Based on hardware, lighting held larger share of the vertical farming market in 2019.
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. Depending on the type of plant being cultivated, the stage of cultivation, and the photoperiod required, specific ranges of spectrum, luminous efficacy, and color temperature are used with specific plants and for different time periods.
The hydroponics growth mechanism segment projected to account for large size of the vertical farming market during the forecast period.
The hydroponics growth mechanism is used widely by commercial growers. This mechanism is easier to set up, costs less than other mechanisms, and has a higher return on investments (ROI). Comparing the investment required to set up a hydroponics and aeroponics facility of the same size, aeroponic requires a high initial investment. Hydroponic mechanism recycles the maximum amount of water with minimal wastage making it the most water-efficient method of farming. The control over the amount of nutrients to be delivered to plants can be done effectively, enabling control over the growth process and influencing factors such as the speed of growth and size of the plants. In the hydroponic mechanism, in case of a power outage, the plants can survive for a long time since the growing medium continues to supply water and nutrients, unlike aeroponics, where the plants can die in just a few hours due to malfunctioning or failure of mist spraying nozzles.
APAC accounted for the largest size of the vertical farming market in 2019.
In APAC, the companies involved in vertical farming are investing and expanding their operations in other countries. For instance, in November 2019, Sustenir (Singapore), an agri-tech company, launched a 30,000 square foot hydroponic vertical farming facility in Tuen Mun, Hong Kong. Hong Kong is a densely populated country with limited availability of land for farming. The produce from conventional farming is not enough to serve the local demand, and hence the country highly relies on imported produce. Similar is the case with other countries such as Singapore. In order to decrease the dependency on imported food and reduce the food waste in the transportation process, growing a significant amount of food locally in limited space is the solution offered by vertical farming, resulting in the expansion of farms by companies in this region.
Europe to witness significant CAGR in vertical farming market during the forecast period
The growth of the vertical farming market in Europe is expected to be majorly driven by the growing food demand, urbanization, unfavorable weather conditions for conventional farming, urge to minimize the import of fresh produce, and the need for new productive farming activities. Vertical farming could play an important role in contributing to urban food security, allowing year-round production and reducing food miles in Europe. The European vertical farming market has been segmented into EU5, Scandinavia, the Netherlands, and Rest of Europe. The majority of the top companies in the vertical farming ecosystem have their presence in Europe with global operations.
Key Market Players
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.
Vertical Farming Market Segmentation:
In this report, the vertical farming market has been segmented into the following categories:
By Growth Mechanism:
- Building-based vertical farms
- Shipping container vertical farms
- Hydroponics components
- Climate control
- Software and Services
- North America
- In April 2020, AeroFarms has announced that it is set to build a 90,000 square foot indoor vertical farm in Abu Dhabi, UAE, as part of USD 100 million AgTech investment by Abu Dhabi Investment Office (ADIO).
- In March 2020, Signify expanded its collaboration with Planet Farms (Italy), a European operator of vertical farms. Under this agreement, Signify will provide horticulture LED grow lights to an additional five vertical farms that Planet Farms is planning to build in several European countries in the coming years, including Switzerland and the UK.
- In January 2020, Osram launched the new generation of the Oslon Square Hyper Red with a wavelength of 660 nm, which is the flagship product in Osram Opto Semiconductors’ comprehensive horticulture portfolio.
- In January 2020, Freight Farms and Sodexo (France), a food services and facility management company, entered into a partnership to facilitate schools and universities across the US with advanced hydroponic vertical farming technology.
- In December 2019, AeroFarms announced an investment of USD 42 million to build an indoor vertical farm in the Cane Creek Centre, a joint industrial park for the City of Danville and Pittsylvania County in the US.
Enquiry before Buying
- Is the Vertical Farming market research conducted by MARKETDIGITS?
Yes, the Vertical Farming report has been compiled by expert analysts of MARKETDIGITS through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst
- What research methodology is followed by MARKETDIGITS?
MARKETDIGITS follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
MARKETDIGITS speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
MARKETDIGITS conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
- Is a sample of this report available for evaluation?
Yes, you can request a sample and it will be sent to you through an email.
- How can I buy this report?
MARKETDIGITS provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.
Any Questions? Inquire Here Before Buying @ https://marketdigits.com/vertical-farming-market/analyst
About Market Digits :
MarketDigits is one of the leading business research and consulting companies that helps clients to tap new and emerging opportunities and revenue areas, thereby assisting them in operational and strategic decision-making. We at MarketDigits believe that market is a small place and an interface between the supplier and the consumer, thus our focus remains mainly on business research that includes the entire value chain and not only the markets.
We offer services that are most relevant and beneficial to the users, which help businesses to sustain in this competitive market. Our detailed and in-depth analysis of the markets catering to strategic, tactical, and operational data analysis & reporting needs of various industries utilize advanced technology so that our clients get better insights into the markets and identify lucrative opportunities and areas of incremental revenues.
USA : +1 847 450 0808
Email : email@example.com