The vertical farming market is expected to reach $13 billion by 2024, according to a new research report by Global Market Insights, Inc., Selbyville, Del.
The increasing population rate along with upsurge in food demand will continue to significantly drive the vertical farming market by 2024. And, the growing need of food security owing to reduction in arable land across the world will boost the entire industry demand by 2024. Technological advancements will also enable vertical farming to be done in retail centers in coming years.
Increasing climatic changes and suboptimal nature of geological and meteorological events such as floods, draughts, hailstorms and tornadoes effect crop yields. This will result in adoption of innovative methods of farming such as vertical farming where optimum utilization of farming space and negligible effect of climatic conditions on crop yields are observed.
The equipment segment, which includes atmosphere controllers, LED grow lights and irrigation systems and pipes, will show a 33% CAGR from 2018-2024, as these solutions help to monitor the farm atmosphere, promoting crop growth and controlling the amount of nutrients in solutions.
The hydroponics segment will show a CAGR of around 26% over the forecast timeframe. Aquaponics is also a popular segment, as it involves rearing of fishes and using the wastewater from the fish tanks to irrigate the crops for harvesting. Adoption of this technology is limited in industry due to higher maintenance and operational costs of vertical farms using this technology. However, higher profit margins associated with this technology will increase its demand during the forecast years.
Indoor farms show the growth rate of 28% over the forecast time spell. Indoor farming is extensively practiced controlled environment agriculture (CEA), warehouses and parking. This method plays an important role in satisfying the rising food demand due to increasing population and scarce land under cultivation.
Asia Pacific shows the highest growth rate of about 30% in vertical farming market from 2018-2024. The product market has been popular in Southeast Asia for the regional difficulties such as land scarcity and high food imports. However, rising urbanization and increased population feeding requirements in countries like India, South Korea, Taiwan and others will propel the Asia-Pacific vertical farming market over the forecast period.