May 30, 2018Vertical farming market to grow at a brisk pace in the near future
According to the market research report published by P&S Market Research, the vertical farming market size is projected to grow at a CAGR of 24.2 percent during 2017-2023, to cross $6.3 billion by 2023. The market is growing mainly due to the increasing adoption of organic foods, rising urban population and growing focus towards environment friendly production of fresh fruits and vegetables.
With increasing population in the Asia-Pacific, fertile agriculture land is decreasing which creates demand for vertical farming. China and India are the most populated countries and the available agricultural land in these countries is decreasing at a rapid pace with rising urbanization and population. Rising disposable income along with increasing per capita income across Asia-Pacific is anticipated to drive demand of the vertical farming market in the coming years. Rising government investment of different countries across Asia-Pacific towards building high class infrastructure and developing smart cities are also anticipated to drive the demand for vertical farming for the urban population. Because of which, the demand of vertical farming is expected to increase in the coming year specially in Asia-Pacific.
The North American vertical farming market is expected to account for over 30% of the global market. The North American market is projected to grow at a brisk rate during the forecast period due to the growing demand for organic food, rising disposable income, and growing per capita GDP across the region. With rising awareness levels about the features and benefits of vertical farming, pharmaceutical companies are also adopting the same to produce various types of crops which are widely used in biopharmaceutical products across the region. The U.S. accounted for the largest revenue share in the North American vertical farming market and is projected to lead the market during the forecast period because of the growing disposable income of the country, rising health consciousness among consumers, and increasing consumer demand for local foods are expected to boost the demand for vertical farming industry across the country, during the forecast period.
Some of the major players in the vertical farming market are AeroFarms LLC, Koninklijke Philips N.V., Illumitex Inc, Sky Greens Pte. Ltd, Hort Americas, Everlight Electronics Co. Ltd, American Hydroponics Systems Inc., Agrilution GmbH, Vertical Farm Systems and Urban Crop Solutions Inc.