With 25.0% CAGR, Vertical Farming Market Growth to Surpass USD 9.7 billion

NORTHBROOK, Ill. - Sept. 1, 2022 - PRLog -- The vertical farming market was valued at USD 3.1 billion in 2021, and it is expected to register a CAGR of 25.0% from 2021 to 2026 to reach USD 9.7 billion. 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. Moreover, positive impacts of adopting vertical farming on the environment, potential market opportunities in APAC and the Middle East, and cannabis cultivation through vertical farming are expected to create growth opportunities for the market.

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.

The vertical farming market is largely dominated by the building-based vertical farms segment as leading companies in the market are involved in this type of farming. Building-based vertical farms generate better per square foot revenue than shipping container-based vertical farms, as building-based vertical farms incur lesser capital as well as operating expenses (for same area). A shipping container-based vertical farm is ideal for serving a small base of consumer, nevertheless, can be ineffective and costly to serve a larger consumer base. However, the market for shipping container-based vertical farms is likely to register a higher CAGR as it is a ready-to-use (plug and play model) solution that can help to cater to the rising demand for fresh and high-quality produce. Shipping container-based vertical farms are flexible, easy to operate, and portable. The rising demand for fresh produce is expected to create notable growth opportunities for this segment in the next few years.

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=221795343