Global Vertical Farming Market to Reach $5.8 Billion by 2026

Vertical farming technique incorporates controlled-environment agriculture, which aims to optimize plant growth, and soilless farming techniques namely hydroponics, aquaponics, and aeroponics. All these techniques offer promising farming tools specially for mountainous regions or places where the soil is infertile. Flowers, vegetables and fruits can be grown indoors and outdoors on rooftops of buildings. These products are mainly used in homes and in medium and small agricultural businesses. Amid the COVID-19 crisis, the global market for Vertical Farming estimated at US$2.7 Billion in the year 2020, is projected to reach a revised size of US$5.8 Billion by 2026, growing at a CAGR of 14% over the analysis period. Lighting, one of the segments analyzed in the report, is projected to grow at a 13.9% CAGR to reach US$2.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Hydroponic Components segment is readjusted to a revised 13.6% CAGR for the next 7-year period. This segment currently accounts for a 20.3% share of the global Vertical Farming market.

The U.S. Market is Estimated at $779.3 Million in 2021, While China is Forecast to Reach $888 Million by 2026

The Vertical Farming market in the U.S. is estimated at US$779.3 Million in the year 2021. The country currently accounts for a 26.94% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$888 Million in the year 2026 trailing a CAGR of 16.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 11.9% and 12.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.5% CAGR while Rest of European market (as defined in the study) will reach US$1 Billion by the close of the analysis period.

Expanding global population and the rising demand for a variety of foods and crops is necessitating focus on alternative farming conditions as supplements to traditional cultivation. Declining availability of arable land worldwide and the rising need for food security are fueling growth in the vertical farming market. The continuous decline in farmland is attributed to factors such as growing climatic changes, random metrological and geological events such as tornadoes, hailstorms, floods, and droughts. Vertical farming techniques minimize the dependence on prevailing climatic conditions and allow optimum use of arable land. The technique is increasingly being adopted worldwide in a bid to prevent damage of crops from natural calamities and other unpredictable changes in an area. Vertical farming method has the ability to address food security concerns such as utilization, stability, accessibility, and availability. Also with ground water levels getting depleted and climatic change having severe impact on agricultural activities, there is growing emphasis on alternatives to traditional farming methods. Population growth and the ever-widening gap between demand and supply of food is the main reason for vertical farming gaining prominence over traditional agriculture. Vertical farming provides a solution to the issue as crops can be grown in limited spaces, and such cultivation will not rely on the environment or climatic conditions ensuring a continuous supply of food. Driven by numerous benefits such as low consumption of agrochemicals and water, low dependence on fertility of soil and human labor, vertical farming has emerged to be a lucrative farming technique in recent years. The market is also driven by the rising consumer demand for clean and organic food that is free from pesticides and GMOs. Rising incidence of heart diseases, obesity and other life-threatening diseases is also driving consumers to seek healthier options, thus presenting opportunities for growth.

Climate Control Segment to Reach $871.7 Million by 2026

In the global Climate Control segment, USA, Canada, Japan, China and Europe will drive the 15.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$276 Million in the year 2020 will reach a projected size of US$744.6 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$179.5 Million by the year 2026.