According to the new market research report "by MarketsandMarkets™, the Vertical Farming Market is projected to reach USD 7.3 billion by 2025 from USD 2.9 billion in 2020.
It is expected to grow at a CAGR of 20.2% during the forecast period.
The growth of the vertical farming market is primarily attributed to 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.
Factors such as positive impacts of adopting vertical farming on the environment are expected to create growth opportunities for the market.
The hydroponics growth mechanism segment of the vertical farming market is projected to grow at the highest CAGR during the forecast period. The growth mechanism is used widely by commercial growers, being easier to set up and costing less than other mechanisms. It also has a higher return on investments (ROI) than its traditional counterparts.
In case of a power outage, in the hydroponic mechanism, 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.
Among structure, the building-based vertical farm segment is projected to hold a larger share of the vertical farming market during the forecast period.
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).
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.